Weekly DeFi Index

This week's market cap index was negative at -1.84%, while the volume and volatility indices were positive at +19.43% and +30.62%, respectively.

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DeFi Index Tokens

*DeFI index tokens: AAVE, BAL, CAKE, COMP, CRV, CVX, FXS, JOE, LDO, LINK, MKR, OSMO, REN, SNX, SPELL, SUSHI, UNI, VVS, YFI.

News Highlight 

• Coinbase has proposed an investment line with MakerDAO, the organisation behind DAI, the largest decentralised stablecoin. The proposal would move one third, or around US$1.6 billion of USDC backing DAI, to Coinbase for a 1.5% yield. According to the data, MakerDAO is the largest single USDC holder and the stablecoin accounts for 35% of DAI’s collateral, which is roughly $4.8 billion.

• The 13th and last Ethereum shadow fork upgrade has been deployed on the mainnet. A shadow fork is a test fork run by developers to check whether the network is equipped to handle the network alterations that the final upgrade will deploy. Additionally, EthereumPoW (ETHW), a proof-of-work version of Ethereum (ETH) created by the community, revealed its mainnet launch plan. Per this roadmap, ETHW will go live 24 hours after The Merge.

• Mysten Labs, the company behind the in-development layer-1 blockchain Sui, has raised $300 million to build its core infrastructure and accelerate the adoption of the Sui blockchain ecosystem. 

DEX Protocols Metrics

Sources: CoinGecko, DeFi Llama, Nomics, Crypto.com Research

Lending Protocols Metrics

*LDR (Loan to Deposit Ratio) = Total Borrowed / TVL

Sources:CoinGecko,DeFi Llama,Crypto.com Research

Charts on Layer-2 Projects

• After the L2 market TVL increased to over $7.6 billion on 10 September, it dropped by -3.70% in the last week. Optimistic rollup projects dropped by -3.05% and zero-knowledge rollup projects decreased by -3.42%, while Ethereum’s TVL increased by +5.07%.

• The TVL changes for all major optimistic rollup projects were negative last week, and Arbitrum declined the most at -3.15%.

• Similarly, ZK rollup projects’ TVL all declined, and ZKSwap 2.0 plummeted most at -29.48%.

Further Reading 

• Crypto startup Mysten Labs raises $300M from industry heavyweights at $2B valuation

• Uniswap Dex fully backs Ethereum PoS upgrade, no support for ETHPoW forks

• DeFi protocol Curve Finance posts code for upcoming stablecoin

• NEAR Protocol forms working group to promote DeFi governance

• Algorand upgrade boosts speed, adds trustless cross-chain communication

• Algorand foundation discloses $37 million USDC exposure to Hodlnaut

• DeFi protocol token NFD crashes by 99% after a flash loan attack

• Avalanche flash loan exploit sees $371K in USDC stolen

Thank you for reading! We hope you find our Weekly DeFi and Layer 1 & Layer 2 News Update enlightening!

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