Ahoy from Nashville! My household and I’ve relocated down south, nonetheless unpacking and adjusting to this warmth, however grateful for the extra area.
A programming observe: Dose of DeFi will likely be off for the summer season and returning in September.
An enormous announcement from Aave at this time that they’re launching a brand new stablecoin, GHO, which as Austin from Shipyard crew factors out, can now solely be minted and burned by the Aave lending protocol, however sooner or later different “facilitators” may additionally generate GHO. This would open the door for different methods to again GHO sooner or later, like real-world belongings or market impartial positions.
Aave is the second largest DeFi platform in keeping with DeFi Llama by way of TVL with $6.2bn in TVL and it’s going squarely after the biggest DeFi protocol: MakerDAO ($7.6bn). The transfer is a no brainer for Aave, contemplating the protocol already has the chance administration & infrastructure to handle on-chain liquidations. Aave has lengthy been aggressive on the product entrance. It was the first lending protocol to model “flash loans” and the primary to settle for Uni v2 LP tokens as collateral. It has additionally had much less fruitful efforts to develop into uncollateralized lending and the institutional market.
The query many are asking: what about Compound? It beforehand sketched out a stablecoin (CASH), however that was deliberate for the unreleased Compound Gateway. Gateway was purported to be its personal standalone app chain, however growth has been indefinitely paused (substrate limitations reportedly). The concentrate on Gateway got here on the expense of Compound’s multi-chain technique. It’s nonetheless solely on Ethereum mainnet. Aave, in distinction, has profitable deployments on Polygon, Avalanche, Arbitrum, Optimism amongst others.
Compound is seeking to catch up. Just final week, it launched the code for Compound III, “a version of the Compound protocol that can be deployed and run on all EVM compatible chains”. It is reportedly extra gas efficient to mint/burn cTokens, whereas additionally enabling remoted collateral. Given it’s taking part in catchup, Compound will want a go-to market technique. Might Compound resurrect its shelved stablecoin CASH? And how will MakerDAO reply? Presumably it is going to shut of the Direct Deposit Module (D3M)?
Other: Ryan Watkins explains, “All about cost of capital. You either pay depositors to source stablecoin liquidity or you mint it yourself (for cheaper),” whereas ChainLink God wonders if Curve will create its personal stablecoin and Austin wonders if dYdX may replicate the UXD mannequin.
The Epicenter host and most cancers survivor offering contemporary perspective on how E TH worth accrual will change as blockchains scale. Mehrer speculates that after the L2 universe is constructed out, ETH will undergo the identical destiny as ATOM, the unique Cosmos hub that “ATOM stagnates, while Terra (and now Osmosis) became new centers.”
There are some good technical responses from Vitalik and Martin Köppelmann that go over our head. The huge query is how dapps will likely be constructed and run. There’s lots of theoretical dialogue about it, however it’s arduous to know till a cross-chain app reaches scale.
DXdao* Month in Review Link
Infamous 0xb1 account unmasks itself, used Celsius funds to farm Link
The first Solana MEV dashboard Link
Overview of crypto philanthropy Link
L2Bridge threat framework Link
Aztec launches DeFi privateness bridge Aztec Connect Link
DXdao* proclaims Infinite, a hacker-first hackathon Link
That’s it! Feedback appreciated. Just hit reply. Written in Nashville, the place the scent of summer season is robust.
Dose of DeFi is written by Chris Powers, with assist from Denis Suslov and Financial Content Lab. Caney Fork, which owns Dose of DeFi, is a contributor to DXdao* and advantages financially from it and its merchandise’ success. All content material is for informational functions and isn’t meant as funding recommendation.