DeFi Rate - This Week In DeFi – Aug 4
This Week In DeFi – Aug 4This week, drama surrounds Curve's CRV, Coinbase's Base mainnet becomes a roller coaster and the IRS says staking rewards are taxable as soon as they're received.To the DeFi Community, This week, Curve has become the center of attention, as a new exploit places founder Michael Egorov’s massive loans under stress once again, as the price of $CRV wavers. The exploit at hand was not specific to Curve, however it was of course the largest affected protocol. Vulnerabilities in the Vyper smart contract language enabled “reentrancy” attacks by the exploiters, leading to a total of $70 million in losses across the affected platforms. Egorov has $168 million worth of CRV – 34% of the total market cap – posted as collateral backing loans across several DeFi protocols, putting a large contingent of the DeFi community on-edge as his liquidation price drew nearer. CRV plummeted as much as 86% on decentralized exchanges after the exploit, however liquidation of Egorov’s positions was avoided due to Chainlink oracles using centralized exchange prices. Agorov has sold almost 72 million CRV tokens over-the-counter in order to reduce his liquidation risk since the exploit, including 10 million CRV to Huobi co-founder Jun Du, 5 million to Justin Sun, 4.25 million to trader DCFGod,, and more. It has been reported that these tokens were sold at $0.40, a significant discount from current market prices. Curve, Metronome and Alchemix have offered the hacker a 10% bounty and no legal pursuit, in exchange for returning the entirety of the stolen funds. https://twitter.com/CurveFinance/status/1687180381714358272 In response to lender risks, lending protocol Abracadabra has seen a pair of proposals to raise the interest rate on loans against CRV in order to prompt earlier repayment. The newer proposal of the two seeks to increase the interest rate on Egorov’s positions to 80%, but variable depending on the outstanding loan balance and the health of the borrowing position. As for Aave, security firm Gauntlet has proposed that the protocol pause all borrowing activity against CRV to mitigate any additional risk of bad debt, by setting the CRV loan-to-value ratio to 0. Both proposals detailed above appear to be on track to pass within the next several days. In Layer-2 news, Coinbase’s scaling platform Base has experienced a rollercoaster of early activity, despite its mainnet still being in a “developer access period”. Users bridged hastily over to the chain, without a bridge UI, to speculate on a flurry of new meme tokens including $BALD. In the space of just a few days, $BALD saw its market cap rise from zero to well over $90 million, before dumping 90% after an apparent “rug pull” by its anonymous developer, who some claim had ties to Alameda Research. But the drama didn’t stop there – LeetSwap, the chain’s leading DEX at the beginning of the frenzy, experienced its own exploit that led to developers having to halt activity on the exchange. The initial exploit saw around 340 ETH (about $630,000) worth of liquidity drained from the platform. Base has announced that the chain will be officially open to the public August 9, with Coinbase running an “Onchain Summer” campaign to promote the platform. https://twitter.com/coinbase/status/1687087501507469312 Although much controversy has taken the limelight in this week’s DeFi headlines, don’t let that fool you – there has also been a wealth of new integrations and development! One interesting new thing out of this week is EIP-6968, which proposes a new token type that allows developers to claim a portion of transaction fees generated from use of their smart contracts. These revenues could be used to fund further development, public goods, or simply provide developers with incentives. We also had THORSwap introduce “Streaming Swaps,” a feature which automatically breaks large trades down internally to minimize slippage and maximize efficiency, without the need to manually execute multiple smaller trades. This also works well to minimize gas fees, since the trade is treated as a single transaction. Yet another interesting innovation has been Ribbon Finance (now Aevo) creating and settling the first “Autocallable” product on Ethereum – a popular financial instrument in traditional finance. Over in regulatory news, the IRS has made a statement saying that staking rewards should be counted as income at market value as soon they are received – perhaps leading to some interesting and/or unfavorable implications for large stakers. Interest RatesDAIHighest Yields: Nexo Lend at 10% APY, Aave at 3.1% APY MakerDAO Updates DAI Savings Rate: 3.49% Base Fee: 0.00% ETH Stability Fee: 3.49% WBTC Stability Fee: 5.55% USDCHighest Yields: Nexo Lend at 10% APY, Compound at 6.8% APY Top StoriesIRS: Crypto Staking Rewards Taxable Once Investor Gets Hands on TokensProposed Ethereum Upgrade Could Allow Layer 2 Developers To Share Fee RevenueEthereum futures become latest ETF craze as applications tumble inCoinbase Looks to Add Bitcoin Lightning for PaymentsStat BoxTotal Value Locked: $40.50B (down 6.2% since last week) DeFi Market Cap: $47.91B (down 3.0%) DEX Weekly Volume: $11.50B (up 23%) Bonus Reads[Sage D. Young – CoinDesk] – Decentralized Exchange THORSwap Introduces New Feature Aimed at Better Price Execution for Large Trades [Sage D. Young – CoinDesk] – DYdX Proposal to Slash Token Issuance Wins Early Support [Yogita Khatri – The Block] – PancakeSwap to share trading-fee revenue with CAKE token stakers [Omkar Godbole – CoinDesk] – Ribbon Finance Settles First On-Chain Ether 'Autocallable' With Marex and MEV Capital This Week in DeFi is free today. But if you enjoyed this post, you can tell This Week in DeFi that their writing is valuable by pledging a future subscription. You won't be charged unless they enable payments. |
Older messages
This Week In DeFi – July 28
Friday, July 28, 2023
This week, Eco launches its Beam wallet with "cash-like" payments, Flashbots obtains unicorn status, Binance lists the new FDUSD stablecoin with zero fees, and MakerDAO votes for an 8% DSR.
This Week In DeFi – July 22
Friday, July 21, 2023
This week, Uniswap announces its own DeFi aggregator, Synthetix dives into perpetuals contracts, Chainlink launches its interoperability protocol, and Aave finally launches its GHO stablecoin.
This Week In DeFi – July 14
Sunday, July 16, 2023
This week, Linea launches on mainnet in alpha, Aave votes to launch GHO, more funds go missing from Multichain, and Eclipse hires former Uniswap and dYdX business head Vijay Chetty.
This Week In DeFi – July 7
Friday, July 7, 2023
This week, IDEX announces it's going to L2, Ethereum considers an anti-exploit standard ERC-7265, Abracadabra DAO looks at a centralized legal structure, and Balancer proposes a new staking system.
This Week In DeFi – June 30
Friday, June 30, 2023
This week, TUSD briefly loses its peg, Maple Finance launches a direct lending arm, ZKSync developers launch the ZK Stack, and dYdX announces a date for its Cosmos testnet.
You Might Also Like
Liquidation heatmap shows volatility ahead as Bitcoin drops to $57k
Sunday, May 5, 2024
Liquidation heatmap analysis forecasts turbulent times ahead for Bitcoin as it struggles to regain $57000. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Asia's weekly TOP10 crypto news (Apr 29 to May 5)
Sunday, May 5, 2024
1. Hong Kong Bitcoin Spot ETF Holds 4218 BTC Three Days After Launch link After three days of trading, the Hong Kong Bitcoin spot ETF holds a total of 4218 BTC. Among these holdings, the ChinaAMC
The Path to Reorganisation | BanklessDAO Weekly Rollup
Saturday, May 4, 2024
Catch Up With What Happened This Week in BanklessDAO ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Arthur Hayes predicts Bitcoin is poised for a steady rise in value
Saturday, May 4, 2024
Hayes believes Bitcoin's local bottom is in and predicted that the flagship crypto will steadily grind upward over the coming months. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Weekly Project Updates: LayerZero Initiates Sybil Hunt Operation, Eigenlayer Launches First Season Airdrop, Acquis…
Saturday, May 4, 2024
1. LayerZero: Phase One Network Snapshot Completed, Sybil Hunt Operation Initiate link On May 2nd, LayerZero Labs announced via Twitter that they had completed the Phase One snapshot at UTC time 11:59:
Coinbase surpasses expectations with Q1 revenue surge amid Bitcoin boom
Friday, May 3, 2024
A significant component of the revenues was a $650 million mark-to-market gain on digital assets held for investment, following new accounting standards adopted by the company. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Earn $FLOW with this
Friday, May 3, 2024
New Flow Quests just dropped on Flipside. Collect Top Shot NFTs while building your onchain score with Flipside's newest Quest. Get started now Flipside Crypto Get into a ~flow~ while you earn. A
NFT & Blockchain Gaming Weekly - 📈 NFT Lending Volume Exceeds US$2.1B in Q1
Friday, May 3, 2024
NFT Lending Volume Exceeds $2.1B in Q1, Led by Blend. Moonbirds changes copyright policy under Yuga Labs. "Gacha Grab" catapults Azuki NFT sales to $1.1M in a day. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
WuBlockchain Weekly: Federal Reserve Adopts Dovish Stance, Debut of Hong Kong Spot ETF, CZ Sentenced to Four Month…
Friday, May 3, 2024
1. Powell: Unemployment Rate Must Rise by Over 0.2% to Prompt Fed Interest Rate Cut link The Federal Reserve has acknowledged recent setbacks in combating inflation but indicated a higher likelihood of
Fidelity Bitcoin ETF’s $191 million outflow surpasses Grayscale as BlackRock records first redemptions
Thursday, May 2, 2024
All spot Bitcoin ETFs recorded outflows for the first time on record with $563 million leaving funds. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏