To the DeFi community,

This week, MakerDAO has proposed allowing users to borrow its DAI stablecoin against its MKR governance token as part of a wider overhaul, provoking some concern from the community. 

Some worry that allowing users to borrow DAI against MKR could lead to bank runs, similar to what happened with Terra's UST stablecoin last year. There are some key differences, however, such as MKR being only one of several tokens backing DAI. 

However, if the price of MKR collapses and leaves the protocol with bad debt, that shortfall will remain on its books. 

Conor Ryder @ConorRyder

Allowing $DAI to be minted with $MKR would be a huge mistake, opening up Maker and DAI to a bank run If MKR is used as collateral for DAI, that MKR may have to be liquidated someday $MKR has awful liquidity at only $2m, worse than $AAVE and $LDO Good luck liquidating $100m

Coingraph | News @CoingraphNews

The crypto community is split over MakerDAO's latest proposal, which will allow MKR token holders to borrow DAI stablecoins. The suggestion has sparked heated debate, with some industry insiders expressing their approval while others criticize the move. A tweet from a MakerDAO… https://t.co/cYOsgbeaMJ https://t.co/kAx38fYCf8

12:11 PM ∙ Mar 2, 2023

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Robinhood has launched its own self-custody crypto wallet, Robinhood Wallet, which is now available for all iOS users worldwide. 

The wallet supports both Polygon and Ethereum networks, and users can connect to a range of decentralized applications. The company plans to release Android support later this year and add more features such as a web3 browser, in-app rewards, and support for more assets. 

Token trading in the wallet will also be powered by 0x’s Tx Relay API, via a new partnership with the protocol.

Whale Coin Talk @WhaleCoinTalk

#Robinhood launches crypto wallet for iOS users, currently supporting the #Ethereum and #Polygon networks.🦾 The Android version is expected to be released later this year.🗓🔍

3:30 PM ∙ Mar 1, 2023

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0x @0xProject

We’re excited to announce that 0x’s new Tx Relay API is powering crypto trades on @RobinhoodApp Wallet! 🎉 Robinhood users can trade crypto with no network fees on @0xPolygon⚡ Learn more and join the waitlist for early access to Tx Relay API👇 blog.0x.org/0x-labs-launch…

blog.0x.org0x launches Tx Relay API in beta, with Robinhood Wallet as first partnerWe are excited to announce that we’re launching Tx Relay API on Polygon and Ethereum to make it easier for developers to build friction...

1:00 PM ∙ Mar 1, 2023

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Ethereum developers have introduced a new software feature called "EntryPoint" that allows wallet accounts to operate as smart contracts, enabling complex tasks such as automated payments and adding recovery methods – without requiring users to directly interact with the Ethereum blockchain.

EntryPoint is an optional feature to be offered to users by crypto wallet providers and has been released in accordance with the ERC-4337 standard. The feature is accessible on EVM networks, including Ethereum, Polygon, Optimism, Arbitrum, BNB Chain, Avalanche, and Gnosis Chain.

Wallet provider Safe, which branched off the famous Gnosis project, has also announced its own implementation of account abstraction, intended to enable Web3 apps to be used in a Web2-level user experience.

Pimlico (we're hiring!) @pimlicoHQ

A new era has just begun for account abstraction. The Ethereum Foundation has just completed ERC-4337's security audit and deployed the EntryPoint contract to Mainnet 🎉🥳🎊 This is fantastic news. Here's why it matters 👇

CoinDesk @CoinDesk

SCOOP: @Ethereum will announce that Account Abstraction is already live on the blockchain at #ETHDenver, @cryptauxmargaux reports https://t.co/5ixDFpY3sB

7:06 PM ∙ Mar 1, 2023

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Redeem has raised $2.5m in a pre-seed funding round led by Kenetic Capital to develop its Web3 technology, which allows users to send and redeem non-fungible tokens (NFTs) using their phone number. 

Redeem allows users to link any crypto wallet to a phone number, making it easier for non-crypto natives to enter the space. The startup intends to use the funds for its Q2 product launch and to continue developing its core technology.

Toby Rush - TobiasRush.eth @TobiasRush

Today, we’re proudly launching @Redeem_xyz, the connectivity layer of web3 — allowing anyone to use their phone number to send, receive and redeem digital assets! No long wallet addresses, no technical jargon – just simple, easy Web3! Learn more at:

redeem.xyzHomepage – New - Redeem TechnologiesUnleashing the power of Web3 with the simplicity of a phone number What is Redeem? We take the familiar (the phone number) and link it ...

5:44 PM ∙ Mar 1, 2023

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Several interesting new developments have hit headlines this week, in a great week for progress within the industry.

The most major of these of course, is Ethereum’s Shanghai upgrade, which will take place in less than two weeks if everything goes to plan. At last, Ethereum stakers will be able to withdraw their coins (if need be), allowing for more freedom of movement of ETH within the ecosystem.

Other interesting updates seem to be revolving around ease-of-use – a much-needed point of focus for crypto and DeFi if it is to be more widely adopted. Account abstraction will undoubtedly do wonders on the consumer side, opening up a whole realm of new possibilities. Redeem’s work on sending NFTs via a simple phone number is also exciting, enabling non-crypto natives to begin participating in the sector.

Yet another great innovation is Polygon’s Giddy wallet enabling users to pay gas fees in USDC. This is solving a problem that is old as blockchain tokens themselves, which has been an obstacle to many users, i.e. requiring the blockchain’s native token to make token transactions.

A final major story to watch is Silvergate bank – the struggling banking service provider to several major centralized platforms. The potential demise of Silvergate may close many fiat on- and off-ramps to crypto for US users, shutting crypto users in (or out) of the ecosystem. This may lead to short-term increases in DeFi use, but longer-term difficulties for new adoption.

Interest Rates

DAI

Highest Yields: Nexo Lend at 10% APY, Aave at 1.5% APY

MakerDAO Updates

DAI Savings Rate: 1.00%

Base Fee: 0.00%

ETH Stability Fee: 0.50%

USDC Stability Fee: 0.00%

WBTC Stability Fee: 0.75%

USDC

Highest Yields: Nexo Lend at 10% APY, Aave at 1.7% APY

Top Stories

Ethereum Developers Target March 14 Date for Shanghai Upgrade on Goerli Testnet

DeFi to Go Under Microscope at US CFTC Advisory Group’s Opening Session

Host of Crypto Firms, Including Coinbase, Paxos and Galaxy, Jump Ship From Silvergate Bank

U.S. Treasury convening regular Biden administration discussions on CBDC

Stat Box

Total Value Locked: $50.00B (up 0.7% since last week)

DeFi Market Cap: $51.67B (down 0.8%)

DEX Weekly Volume: $9,98B (down 13%)

DAI Supply: 5.02B (unchanged)

Bonus Reads

[Aleksandar Gilbert – The Defiant] – Oasis To Patch Vulnerability That Allowed It To Recover $150M Of Stolen Crypto

[Vishal Chawla – The Block] – Polygon launches web3 identification service using zero-knowledge proofs

[Nathan Crooks – The Block] – Lido Finance reports largest ever daily stake inflow with more than 150,000 ETH staked

[Danny Nelson – CoinDesk] – Crypto Wallet Giddy Lets Polygon Users Pay Gas Fees in USDC