Weekly DeFi Index

The market capitalisation and volatility indices were negative at -2.06% and -35.58%, respectively, while the volume index grew by +7.76%.

Check Price

• Synthetix proposed a significant governance overhaul that received near-unanimous support from its community. The changes aim to enhance governance processes and efficiency, including simplifying the decision-making structure and improving its transparency.

Chart of the Week

EigenLayer removed transfer restrictions on its EIGEN token, leading to increased token movement. 

EIGEN’s total supply was 1,673,646,668 at launch. The circulating supply is approximately 200 million EIGEN (11.95%), with 6.75% from Stakedrop 1 and 5.2% from Stakedrop 2. However, only 85.4% and 21.7% of tokens were claimed from each stakedrop, respectively, resulting in a total circulating supply of about 114 million EIGEN.

Additionally, 73 million EIGEN has been restaked, leading to an actual float of 40.43 million EIGEN. At pre-market prices of around US$3.84 on the decentralised exchange, Hyperliquid, this equates to a market value of $155 million, and a fully diluted valuation (FDV) of $6.42 billion. A float of 2.42% suggests potential volatility during price discovery.

News Highlights

• Ethena Network proposed a native decentralised exchange (DEX) called Ethereal as part of its ongoing development. The proposal aims to enhance the network's functionality by enabling users to trade assets directly within the Ethena ecosystem. Additionally, Ethena Labs is developing a new stablecoin, UStb, in partnership with BlackRock and Securitize. It will be backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), giving it a value of $1 per token. The stablecoin is separate from USDe, a synthetic dollar stablecoin issued by Ethena.

• Warpcast, a Farcaster client, launched ‘mini apps’, a tooling system for the decentralised social media protocol. Mini apps are web pages that can be used to mint NFTs, build games, create polls, and more, similar to Farcaster Frames. The system allows for deep links, sending users directly to a specific page in an app.

• Incept launched the INCEPT token, which is built on the innovative ERC-4D standard and combines elements of ERC-20 (fungible tokens), ERC-721 (non-fungible tokens), and ERC-6551 (token-bound account). This new token standard allows for a multi-layered asset management approach, enabling each INCEPT token to act both as a tradable asset and a wallet that can hold other tokens and NFTs.

• Truflation (TRUF), a blockchain-based inflation data platform, confirmed a malware attack with estimated losses of up to $5.2 million. No customer funds were stolen in the security breach, and staking funds were not affected. The attack resulted in the loss of approximately $3.89 million in TRUF, $1.07 million in ETH, and $236,000 in DAI.

• Onyx protocol was exploited for $3.8M on 26 September because of an interaction between a bug and a new input validation. The exploit leveraged a known vulnerability in the NFT contracts, as well as a loophole from a previous attack. The protocol incurred over $3.8 million in losses, including 4.1 million VUSD, 7.35 million XCN, and 0.23 WBTC.

Recent Research Reports

• Research Roundup Newsletter [August 2024]: We present to you our latest issue of Research Roundup, featuring our deep dives into asset allocation with crypto, the decentralised perpetuals market, and the prediction market.

• Alpha Navigator: Quest for Alpha [August 2024]: Cryptocurrencies were down in August; Fixed Income and Equities were up. New Zealand and Canada reduced interest rates; China and Australia kept interest rates unchanged.

• Asset Allocation With Crypto: Adding BTC to portfolios helps increase yield by up to 2% annually without significant impact on volatility. The Modern Portfolio Theory is adopted to compile portfolios including TradiFi, BTC, and ETH.

Interested to know more? Access exclusive reports by signing up as a Private member, joining our Crypto.com Exchange VIP Programme, or collecting a Loaded Lions NFT.

Recent University Article

• What Is Bittensor (TAO)?: Bittensor (TAO) is changing how machine learning trains AI models. We explain the fundamentals, and explore how the TAO token plays a key role.

• What Are Crypto CFDs and How to Trade Them: Learn how to trade a crypto Contract for Difference (CFD) in the Crypto.com App, and the advantages CFDs offer over spot trades.

• Solana Staking: A Guide to Staking SOL: Learn how to make the most of your SOL with Solana Staking — including current return rates.

Author

Research and Insights Team

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