Weekly DeFi Index

This week's market cap and volume indices were negative at -2.03% and -18.44,respectively, while volatility index was positive at +144.05.

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

New Project Spotlight

• Cronos announced the pre-release version of its upcoming v1.0 mainnet upgrade, which will feature key improvements such as a prioritised Mempool, optimised node storage, IBC token transfer memo field, IBC incentivisation, and custom tx indexer. The mainnet timeline and guide will be released soon ahead of the actual upgrade in early 2023.

As of 14 Dec 2022

Sources: DeFi Llama, Crypto.com Research

Note: TVL excludes governance token staking, staked LP tokens that one of the coins in the pair is governance token, double counting (TVL feeds into another protocol), borrowing, liquidity staking, and vesting

As of 14 Dec 2022

Sources: CoinGecko, DeFi Llama, Crypto.com Research

News Highlight

• Ethereum core developers confirmed that the Shanghai hard fork is tentatively scheduled to be deployed around March 2023 during its All Core Devs Call #151. The Shanghai upgrade is expected to support Beacon Chain withdrawals, allowing stakers to redeem ETH locked in the original staking contract and rewards.

• ConsenSys will start testing its zkEVM private beta testnet internally next week, allowing developers to bridge assets between the Goerli testnet and zkEVM to test smart contracts and dApps, and to deploy dApps using tools like MetaMask and Infura as if they were using Ethereum directly. External users will be onboarded starting January 2023.

• Osmosis recently launched a stableswap for the Cosmos ecosystem, claiming to be its own version of the Curve 3Pool. It aims to facilitate stablecoin trades with ‘minimal price impact or fluctuations in value’, and will support USDC and Tether, among other stablecoins.

• TRON’s stablecoin USDD lost its peg and dropped to US$0.97, its lowest level since June. This creates an imbalance in Curve’s USDD/3CRV liquidity pool, which holds nearly 82.5% in USDD. Justin Sun announced that TRON is deploying more capital to defend USDD and bring back the peg. 

• Arbitrum-based lending platform Lodestar Finance was exploited in a flash loan attack for $6.5 million. It confirmed that the main vulnerability behind the attack was a plvGLP oracle, with the hacker first inflating the token price before using the inflated tokens as collateral to borrow all available liquidity on Lodestar through bad debt. Lodestar tweeted that it’s open to negotiate a bug bounty with the exploiter.

• Cross-chain messaging protocol Nomad Bridge announced that it will restart its bridge and partially compensate users impacted by a $190M exploit back in August. To access their recovered funds, users will have to undergo a KYC verification process for the reimbursement through a special NFT. 

Recent Research Reports

• Alpha Navigator (November 2022): Risk assets were up in November, with the exception of crypto amid the FTX collapse and contagion. Could potentially slower rate hikes provide some Christmas cheer?

• Social Graph and Digital Identity in Web3: Relationships and identities are key elements that make up social networks. In this report, we put a spotlight on the roles that decentralised social graphs and digital identity play in Web3 social.

• Decentralised Social Networks: An Overview: Decentralised social networks aim to enable participants to take back ownership of and better monetise their content and data. We explore the project landscape.

Disclaimer

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