Curve founder sells CRV in OTC deals to repay his CRV loans, while Base plans to open mainnet to the public on August 9. Check out the top DeFi news in our weekly roundup!
Curve Finance founder, Michael Egorov, engages in over-the-counter (OTC) deals with prominent figures and institutions in a bid to keep his CRV loans on Aave afloat amidst the falling price after the recent Curve exploit. Offchain Labs also releases BOLD, an initiative to allow for permissionless validation on all Arbitrum chains. Finally, the BALD memecoin on Coinbase L2, Base, has rugged, after the developer pulls liquidity from the coin.
An eventful week in DeFi! Let’s see what went down this past week.
Overview: Base and Mantle Continue to Attract Users
Total value locked (TVL) across all chains take a tumble as dominant stablecoin automated market maker, Curve Finance, takes a 30% hit in TVL after an exploit last week. Notable TVL increases included Coinbase L2, Base, which saw its TVL surge to $27 million, and BitDAO-backed L2, Mantle, which saw its TVL hit $40 million, a 163% rise from the week prior.
Source: DeFiLlama
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Crypto research firm, ASXN, releases a research report on EIP-4844 and the impact of the upcoming upgrade to rollups and their profit margins, using Arbitrum and Optimism as examples.
DeWhales Capital dives into collateralized debt position (CDP) stablecoins backed by ETH liquid staking tokens (LSTs), covering protocols such as Raft, Lybra, Gravita and Prisma Finance.
Ethereum: Curve Founder OTC Deals Keep Loans Afloat
Curve Finance founder, Michael Egorov, has been making large over-the-counter (OTC) deals, to sell off CRV tokens in exchange for USDT to service his $80 million loan on Aave which is currently backed by CRV tokens, which has been approaching liquidation due to the recent Curve Finance exploit.
Multi-chain decentralized exchange (DEX), Sushi, introduces permissionless incentive creation, enabling anyone to incentivize any pool on Sushi, without Sushi’s permission. The feature is now live on Ethereum, Arbitrum, Optimism and Polygon, with more in the works.
DeFi product suite, Frax Finance, unveils FIP-277, releasing details on Frax V3, which intends to onboard FinresPBC as Frax Finance’s real-world asset partner to hold USD deposits for Frax Finance, generate yield on these deposits and channel the yield back to the protocol.
Yield aggregator, Beefy Finance, announces their plans for a token migration plan to relaunch their native token, BIFI, after the losses resulting from the Multichain saga in the prior month, which resulted in Multichain's assets being unrecoverable.
Institutional grade finance protocol, Ondo Finance, releases USDY, a yield-bearing stablecoin backed by treasuries and bank deposits. The yield on the token starts at 5% and will not be available to US citizens or people in the USA.
Telegram bot protocol, Unibot, teases the launch of their Telegram-linked DEX aggregator, which will drop after UnibotX.
L2s: Offchain Labs’ BOLD Move and Base Opens Mainnet
Offchain Labs introduces Bounded Liquidity Delay (BOLD), a new dispute protocol enabling the decentralization of validation for all Arbitrum chains, bringing the Arbitrum ecosystem one step closer to decentralization.
Coinbase L2, Base, releases their native bridge, finally opening the gates for all users to enter the chain. The mainnet for users will officially open on August 9.
Memecoin, BALD, on Coinbase's L2, Base, surges more than 4M% over a single weekend, before the developer pulled liquidity on the token, causing prices to tumble more than 90%. On-chain analytics suggest connections to Alameda Research while others suggest a link to another CT personality.
Perpetuals DEX, GMX, quietly unveils GMX V2 on Arbitrum and Avalanche, bringing new assets to the DEX including, SOL, XRP, DOGE and more. The upgrade also brings multiple collateral types, lower slippage, cheaper fees and faster execution for traders on the platform.
DeFi product suite, Trader Joe, cuts base trading fees on their DEX by 75% from 0.02% to 0.005% on stablecoin pools on Arbitrum. This is made possible due to Trader Joe's liquidity book, which enables zero price-impact trades on stablecoins.
In the same week, Trader Joe also launched on-chain limit orders on both Arbitrum and Avalanche, giving users even greater control over their liquidity provision strategies.
Exotic derivatives protocol, Y2K Finance, deploys their “Touch-down” vaults on the CRV token, amidst the chaos resulting from the Curve Finance exploit. The “Touch-down” vault is a 24h vault betting whether CRV will trade under the “Touch-down” price by the end of the duration.
Ethereum Virtual Machine (EVM) compatible L1 chain, Celo, has successfully passed the temperature check on the governance proposal to transition to an Ethereum L2 built on Optimism, with close to 100% of voters voting in favor.
Multi-chain lending protocol, Tarot Finance, has begun migration of their token, TAROT, which will be swapped at a 1:1 ratio to the new TAROT token, which will be an omni-chain fungible token powered by LayerZero. Migration will be live until August 29, 2023.
Optimism-based leveraged trading protocol, Pika Protocol, launches V4, bringing to Pika new oracle integrations, increased trading pairs, improved incentives and stop-loss or take-profit orders in the same transaction as opening or closing positions.
Binance Smart Chain: PancakeSwap Revenue Share
Binance Smart Chain DEX, PancakeSwap, introduces Revenue Sharing Pools, allowing Fixed-Term CAKE stakers to earn trading fees from PancakeSwap's V3 pools. Rewards will be distributed weekly, beginning on 9th August.
GMX-fork, Level Finance, launches omni-chain staking for their native token, LVL, allowing users to stake and claim rewards on both Binance Smart Chain and Arbitrum. Users can also seamlessly migrate from one chain to another via Level’s interface.
Cosmos: Evmos 2.0 Deployed
EVM compatible Cosmos chain, Evmos, launches Evmos 2.0, introducing revamped tokenomics, faster performance, easier onboarding and more seamless bridging via EVM extensions and Inter-Blockchain Communication (IBC) protocol integrations.
Another Week, Another Airdrop
DeFi options protocol, Premia, will be doing a snapshot on August 7, for Premia stakers, whereby 2 million PREMIA tokens will be distributed based on their pro-rata influence across all of Premia’s supported chains.
Chaos rocked the DeFi world as established protocols instrumental to DeFi came under attack. But rain or shine, ecosystems keep building and protocols stay shipping. Stay updated and stay tuned for next week’s edition, and keep supporting your favorite projects, degens!
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