Weekly DeFi Index

This week’s DeFi indices showed mixed movements, with market capitalisation and volume indices growing +35.48% and +33.77%, respectively, while the volatility index declined -52.65%.

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• Curve Finance (CRV) partnered with blockchain network Elixir to enhance decentralised finance (DeFi) access for BlackRock’s tokenised money market fund. The partnership allows CRV token holders to mint Elixir’s yield-bearing stablecoin, deUSD, against the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). In addition, the team behind the protocol launched Curve-Lite, a streamlined and open-source version of its decentralised exchange (DEX) architecture, to serve Ethereum’s rapidly growing rollup ecosystem.

• Aave and Compound face high interest rates exceeding 20% for stablecoin loans. Users borrowed US$2.21 billion in USDT and $1.85 billion in USDC on Aave, which accounts for 93.6% and 94.4% of the supplied amounts, respectively. High levels of borrowing pushed both USDT and USDC, as well as smaller stablecoins, to their highest levels in 12 months. The surge is attributed to various factors, including increased demand for stablecoins and liquidity challenges within the DeFi ecosystem.

Chart of the Week

According to L2Beat, the total value locked (TVL) on Ethereum Layer-2 (L2) networks reached a new all-time high. It surpassed $54 billion on 3 December, which is more than double its initial value of $22.6 billion at the start of 2024.

The rapid growth is primarily driven by Arbitrum One and Base, both of which are L2 scaling solutions on Ethereum. Arbitrum accounts for 37%, or $20.1 billion, of the entire L2 TVL. Base holds $12.3 billion, which constitutes 23% of the total L2 TVL.

News Highlights

• Hyperliquid, a decentralised derivatives exchange, launched its native HYPE token and unveiled its token distribution plan. The total token supply is capped at 1 billion, with the distribution plan allocating the vast majority — approximately 69% — for community rewards and future growth. The rest is reserved for core contributors and the Hyper Foundation budget.

• A US federal court ruled that the sanctions imposed against Tornado Cash, a cryptocurrency mixer, are unlawful. The court stated that Tornado Cash's immutable smart contracts do not qualify as property, as they cannot be owned or controlled by any entity.

• Sonic Labs, previously known as Fantom, announced that its new network has successfully produced its genesis blocks. The company also hinted that the achievement would soon follow with the launch of its mainnet.

• L2 zero-knowledge (ZK) rollups solution Starknet launched the first phase of its native staking feature, enabling users who hold a minimum of 20,000 STRK tokens to lock their assets. The project claims it is the first Ethereum rollup to implement native staking.

• SynFutures, a DEX for trading derivatives on Base, announced the launch of the SynFutures Foundation and its native F token. The asset will grant holders voting rights within the SynFutures ecosystem, along with airdrop boosts, fee discounts, and rewards, while the Foundation will oversee the platform's growth and development.

• Ethena announced a new partnership with Derive.xyz, an on-chain options and structured products platform, to enhance liquidity and growth on both protocols. As part of the agreement, Ethena will integrate Derive's basis trading, options, and vaults, while utilising the USDe stablecoin and staked USDe to increase liquidity and trading volume.

• SingularityNET, a decentralised artificial intelligence platform, partnered with the Mina Foundation, a non-profit organisation behind the privacy-focused Mina Protocol, to advance decentralised AI using ZK technology. The collaboration aims to create secure, decentralised artificial general intelligence (AGI) applications that prioritise user privacy and data protection.

Recent Research Reports

• AI Data Chains: As AI continues to grow, it needs more user data in model training, which raises concerns about one’s privacy. This report looks into the concept of AI data chain, using Vana and CARV Protocol as case studies.

• Research Roundup Newsletter [October 2024]: Our latest issue of Research Roundup features our deep dives into Intent-Based Protocols, Solana Staking and Crypto Derivatives Trading – Technical Analysis in Perpetuals and CFDs.

• Alpha Navigator: Quest for Alpha [October 2024]: Crypto and equities saw mixed performances, and interest rates in areas like China and the Eurozone dipped. Dive into the details in the latest Alpha Navigator report.

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 Are Crypto Baskets and How Do They Work?: Crypto Baskets in the Crypto.com App allow traders to diversify their portfolio with just a few clicks. Here’s how to set up a Crypto Basket.

• What Is Crypto.com’s Wrapped Bitcoin (CDCBTC) and How Does It Work?: CDCBTC is a tokenised version of bitcoin which allows users to unlock DeFi opportunities. Here’s how it works.

• How to Automate Trading on the Crypto.com Exchange: Discover trading bots on the Crypto.com Exchange for DCA, TWAP, and Grid Trading to optimise performance and risk management.

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Research and Insights Team

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