This Week In DeFi – December 25

To the DeFi community,

This week in DeFi, 1inch.exchange launched its governance token with a retroactive airdrop to users, marking the transfer of governance to the newly launched 1inch DAO. 1inch follows Uniswap and BadgerDAO by using retroactive rewards to pursue a fair distribution to protocol supporters. Decentralized governance can only keep up with competing products if token holders participate in decisions around development and rewards with long-term goals in mind, not just short-term profits, and usage based airdrops are emerging as an effective way to get tokens into the hands of true believers. 

On the other end of the spectrum, Ripple saw regulatory scrutiny from the SEC, alleging the top-5 market cap crypto is an unregistered security. This caused prices to plunge and exchanges like Bitstamp to delist XRP. SEC filings are based on claims of lack of utility for XRP tokens and centralized control among the executives of the Ripple corporation, two arguments that would be far more difficult to prove levied against DeFi protocols rapidly pushing decentralization to new frontiers. 

Tokenlon, a decentralized exchange powered by the 0x protocol launched its LON token alongside v5.0 of the Tokenlon exchange. Activity on Tokenlon, built by the same developers that created imBTC cross-chain Bitcoin transfer protocol, helped push 0x share of trading volume among top DEX to more than 20%, the highest on record.

LON tokens were distributed to protocol users and liquidity providers based on, you guessed it, a retroactive reward program distributing more than 15 million LON (worth $30m+) to more than 200,000 addresses of early supporters. Tokenlon still has 100m LON to distribute via liquidity reward programs and is available through both iOS and Android imToken apps, offering another option for hardworking liquidity miners.

Loopring and DeversiFi, two decentralized exchanges using Layer 2 scaling solutions, announced the formation of the L2² committee, a working group focused on advancing the use of Layer 2 scaling solutions within the DeFi ecosystem. 

Using rollups that bundle multiple transactions together without revealing their contents, L2 scaling is shaping up to be an essential part of allowing DeFi apps to serve the next wave of participants before native Eth2 scaling brings vastly increased network capacity. L2² will help educate Ethereum users about the advantages of Layer 2 systems and develop technical standards for L2 integration with wallet providers and other DeFi products.

DeFi participants keep getting boosted just for being a part of the action, while the SEC continues to raise the stakes on securities laws enforcement, affirming what many DeFi faithful knew already–the age of centralized financial protocols is coming to an end, and the community-powered, decentralized financial revolution is just getting started. Tech and governance keep improving at a breakneck pace, and we’re glad readers like you are along for the ride!

In case you missed it, the DeFi community has been speculating on where the next retroactive airdrop might come from. Here’s a look at some projects worth trying out!

Happy holidays from DeFi Rate!

Highest Yields: Fulcrum at 12.70% APY, Bitfinex at 11.03% APY

Cheapest LoansCoinList at 3.00% APY, Aave at 5.11% APY

MakerDAO Updates

DAI Savings Rate: 0.00%

Base Fee: 0.00%

ETH Stability Fee: 2.50% (Updated!)

USDC Stability Fee: 0.00% (Updated!)

WBTC Stability Fee: 4.50% (Updated!)

Highest YieldsBlockFi at 8.6% APY, Fulcrum at 8.4% APY

Cheapest LoansCoinList at 0.8% APY, Compound at 6.9% APY

Cent is turning Twitter into a whole new kind of market.

 

1inch Exchange debuts $1INCH with liquidity mining for select pairs.

Injective partners with Band Protocol and Mirror to launch a decentralized stock exchange.

OpenDAO and RenVM team up to mint OUSD backed by Bitcoin.

 

pNetwork is getting more decentralized with the launch of staking nodes.

 

Band Protocol wants to provide a dataset on pricing for just about every digital asset.

 

Total Value Locked$13.43B (down -15.1% since last week)

DeFi Market Cap$18.87B (down -3.3%)

DEX Weekly Volume$5.32B (up 2.9%)

DAI Supply1.13B (up 4.63%)

Total DeFi Users: 1,150,300 (up 3.8%)

 

[Yearn Finance]Yearn Finance Newsletter #16

[Lucas Campbell – Bankless]10 Ethereum Charts that hit ATHs in 2020

[Jacob Horne – Zora] – What is Cryptomedia?

[Ryan Watkins – Messari] – Index Protocols, Meta-Governance, and the Battle for Capital

[Cooper Turley – The Defiant]Ledger Data Hack Shows Crypto Storage is a Catch 22

[Anthony Sassano – The Daily Gwei]Trending On Up – The Daily Gwei #145

[Perpetual Protocol]How Perpetual Protocol Uses Chainlink to Bring a Perpetual Contract to Every Asset



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