To the DeFi community,

This week, 1inch Exchange went live on Avalanche and Gnosis Chain (formerly xDai Chain) to expand DEX aggregation services to more corners of the DeFi ecosystem. At launch 1inch on Avalanche  aggregates liquidity from more than a dozen exchange protocols, and 9 from the Gnosis Chain.

Avalanche 🔺 @avalancheavax

.@1inch, one of the most popular and widely used DeFi aggregators, is now deployed on #Avalanche The integration of their protocols offers users access to Avalanche-based liquidity sources and more options for cost-efficient transactions! 1inch Network Deploys on AvalancheThe 1inch Network, a DeFi aggregator, has expanded its aggregation and limit order protocols to Avalanche. The move will provide 1inch users access to several Avalanche-based liquidity sources…medium.com

January 20th 2022

279 Retweets984 Likes

Aave Arc, the institutional-focused ‘walled garden’ providing KYC verified entities their own liquidity pool is headed to Ethereum scaling solutions Arbitrum and Optimism after a pair of proposals passed with overwhelming support. The additions will mark some of the first ‘institutional-grade’ DeFi services to be ported to L2 solutions, and should help dramatically reduce transaction costs.

The Defiant @DefiantNews

#DeFi lender @AaveAave will launch its ARC institutional platform on @optimismPBC and @arbitrum after receiving resounding support in a governance snapshot. Read more from @samuel_haig👇 thedefiant.io/aave-arc-optim…Aave Cranks Up Institutional Play With Launch on Layer 2 Networks - The DefiantAave’s institutional deployment, Aave Arc, will launch on leading Layer 2 rollup networks Optimism and Arbitrum after receiving resounding support in a governance snapshot.thedefiant.io

January 20th 2022

6 Retweets18 Likes

Stader Labs, a staking service provider for the Terra ecosystem completed a strategic private sale for $12.5 million led by Three Arrows Capital. Fund will be used to add staking support for more blockchains including Solana, Ethereum, Polygon, Hedera, and Fantom.

Do Kwon 🌕 @stablekwon

Congrats @staderlabs! https://t.co/FMXzkljgbi

CoinDesk @CoinDesk

Staking platform @staderlabs has closed a $12.5 million private sale led by Three Arrows Capital, valuing the Bangalore-based company at $450 million.   @thesamreynolds reports. https://t.co/95TU0uj7oQ

January 21st 2022

35 Retweets674 Likes

And Polygon implemented a number of EIP-1559 upgrades to bring the protocol more in line with its Ethereum parent chain and bring fee burning into the protocol. As with Ethereum, Polygon transactions will now burn a portion of the transaction fee paid by users while delivering more predictable transaction pricing and will reduce the total MATIC supply over time.

Polygon | $MATIC 💜 @0xPolygon

Folks, #EIP1559 is a few hours away from going live on the #Polygon mainnet. The highly-anticipated upgrade brings $MATIC burn and improved fee visibility. Find out more: EIP-1559 Upgrades Are Going Live on Polygon Mainnet — Polygon | BlogThe much-anticipated implementation of Ethereum Improvement Proposal 1559 is coming to the Polygon blockchain, bringing with it burning of the native MATIC token and better fee visibility. Known as the London hardfork, EIP-1559 went live on Ethereum mainnet in August last year and was one of the big…bit.ly

January 17th 2022

822 Retweets3,153 Likes

Another big week for L2s and competing L1s, with more and more DeFi protocols continuing to expand their reach to every corner of the DeFi ecosystem. In case there were any lingering doubts, the addition of Aave Arc to multiple Etheruem scaling solutions is proof that - at least at the community level - users see it as essential to success to move important services off of the native Ethereum chain.

And while some L2s have attracted more TVL or developer interest than others, the field is still very much open for existing players or new entrants to pull ahead of the pack. L2 providers (and many L1s) have paid sizable bug bounties to those identifying production issues that put billions at risk, and cross-chain bridges have been identified as risky points of potential failure. DeFi is getting more mature, but there are clearly still technical and market-based inefficiencies to work through before being truly ready for prime time.

As builders continue to branch out into different development environments, it’s also becoming increasingly likely that crypto will have a highly fractured liquidity environment, with cross chain liquidity aggregators likely playing an increasingly important role. In the end, the protocols that see adoption and actual use by large scale institutional and corporate players may have a serious leg up in reaching critical mass and pulling ahead of the competition. Those decisions may not have been made just yet, but the conversations are certainly ongoing.

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Interest Rates

DAI

Highest Yields: BlockFi at 8.50% APY, Nexo Lend at 8.00% APY

Cheapest Loans: Aave at 3.9% APY, Compound at 4.5% APY

MakerDAO Updates

DAI Savings Rate: 0.00%

Base Fee: 0.00%

ETH Stability Fee: 2.00%

USDC Stability Fee: 0.00%

WBTC Stability Fee: 2.00%

USDC

Highest Yields: Celsius at 8.5% APY, Nexo Lend at 8.00% APY

Cheapest Loans: dYdX at 0.01% APY, Aave at 3.81% APY

Top Stories

Formation of the Luna Foundation Guard (LFG)

OpenSea Acquires Dharma Labs, Welcomes New CTO

Solana-Based DeFi Project Hubble Protocol Raises $10M

Cosmos Connects to Ethereum Via the Osmosis DEX

Stat Box

Total Value Locked: $92.36B (down -3.79% since last week)

DeFi Market Cap: $125.2B (down -14.2%)

DEX Weekly Volume: $19.82B (down -3.74%)

DAI Supply: 9.2B (up 0.76%)

Total DeFi Users: 4,377,600 (up 0.70%)

Bonus Reads

[Brady Dale – The Defiant] – DEXs Sliding into Price War as Uniswap and dYdX Slash Trading Fees

[Jack Melnick – The TIE] – A Call to Farms: Dopex, Jones Dao, and the Future of DeFi Options

Anthony Sassano – The Daily Gwei] – To Bridge or Not to Bridge - The Daily Gwei #418

[Shaun Martinak & Sebastian Bea – Bankless] – What's taking so long?

[Brooks Butler – Crypto Briefing] – a16z Seeks Record-Breaking $4.5B for Crypto Funds