To the DeFi Community,

This week, IDEX, one of the original decentralized exchanges on Ethereum, has announced plans to build a Layer-2 chain based on Polygon zkEVM. 

The chain, dubbed Xchain, will use Polygon’s Supernets stack and aim to provide a decentralized perpetual trading platform. 

Supernets allow developers to build completely customized chains tailored to decentralized apps’ requirements. Immutable and Aavegotchi have both been constructed using the technology.

https://twitter.com/idexio/status/1676984357326651393

Ethereum developers have proposed a new “circuit breaker” standard, that is designed to minimize hacking losses in DeFi protocols.

ERC-7265 would enable developers to choose a limit on withdrawals from a protocol, which would halt token outflows if exceeded, as a security measure. If implemented, the standard has the potential to prevent the immediate draining of assets in future exploits.

Smart contract auditor Enbang Wu has suggested adding a timelock function to protect users against administrators using the standard, providing a grace period to withdraw assets if the circuit breaker limit is changed.

https://twitter.com/MeirBank/status/1675851684386570240

Abracadabra DAO, which governs the tokens Magic Internet Money (MIM) and Spell (SPELL), has put forward a proposal to introduce a centralized legal structure to the DAO.

The move seeks to protect intellectual property rights and manage server expenses, countering the current need to rely on community members privately funding essential services.

Abracadabra has emphasized that it stays committed to decentralization, and will retain governance via the DAO’s traditional voting mechanisms.

https://twitter.com/TheBlock__/status/1676891108310151168

Balancer protocol has proposed a mechanism to address the lack of liquidity in DeFi, by replacing the single-asset staking model with a two-token staking system.

The mechanism will allow users to participate in protocol governance while also providing liquidity to decentralized exchanges – rather than adversely affecting liquidity and slippage with single-asset staking.

Dubbed the “8020 Initiative”, several protocols have joined the movement, including Radiant Capital, Alchemix, Paraswap, Y2K Finance and Oath Finance.

https://twitter.com/Balancer/status/1676954525603860481

Several interesting developments and proposals have arisen in DeFi this week, as the sector continues to learn and make necessary improvements.

The prospect of a circuit-breaker standard could very well save protocols from substantial losses from future hacks, if implemented correctly with ERC-7265. Balancer’s 8020 Initiative is equally exciting, with the potential to thoroughly improve the liquidity and resilience of multiple protocols, throughout the entire ecosystem.

Abracadabra DAO is stepping into uncharted waters with its proposal to formulate a centralized legal component of its DAO, which will set a very interesting precedent for DAOs, depending on the result of its experiment. Could all DAOs look to form a legal focal point to interface with the CeFi world?

Looking to older issues, Gemini has issued a “final offer” to Genesis, as the debtor seems to be pushing away responsibilities for its liabilities as long as possible. It is hopeful that customers are made as whole as possible from an eventual resolution.

Overall, the DeFi world appears to be finding feet in terms of development and progress, despite continued stress in asset prices. The new advances will certainly add to the long-term viability of the ecosystem – now it’s just time for attention and money to come back.

Interest Rates

DAI

Highest Yields: Nexo Lend at 10% APY, Aave at 2.3% APY

MakerDAO Updates

DAI Savings Rate: 3.49%

Base Fee: 0.00%

ETH Stability Fee: 3.49%

WBTC Stability Fee: 5.55%

USDC

Highest Yields: Nexo Lend at 10% APY, Compound at 2.8% APY

Top Stories

Gemini's Cameron Winklevoss Tweets $1.5B 'Final Offer' in Debt Talks Over Crypto Firm Genesis

Circle quietly launches wallet-as-a-service developer platform

Compound Token Surges After CEO Steps Down And Unveils New Venture

BlockFi Bankruptcy Plans Opposed by FTX, Three Arrows, and SEC

Stat Box

Total Value Locked: $44.25B (up 0.0% since last week)

DeFi Market Cap: $48.03B (up 3.8%)

DEX Weekly Volume: $14.11B (down 7.6%)

DAI Supply: 4.31B (down 1.6%)

Bonus Reads

[Vishal Chawla – The Block] – Uniswap v4 expected to go live after Ethereum’s Cancun upgrade and security audit

[Vishal Chawla – The Block] – Ethereum Layer 2 network Starknet plans 'Quantum Leap' upgrade on July 13

[Owen Fernau – The Defiant] – Pendle Attracts Over $125M In TVL With ‘Discounted Assets’

[Martin Young – Cointelegraph] – Poly Network Hacker Mints Billions Of Tokens From Thin Air