Note: Dose shall be off subsequent week consuming turkey for Thanksgiving!
Given the occasions of the previous couple of weeks, it looks like no buying and selling desk is protected from the contagion of the FTX Collapse. DeFi fared nicely, as a result of you can’t negotiate with a smart contract. Still, there shall be repercussions to DeFi and on-chain exercise. The bear market has already led to the bottom DEX volumes in two years.
The tweet above factors to outflows from on-chain uncollateralized lending platforms as their goal clientele (market makers) shrink again their involvement as credit score tightens throughout the board. There is likely to be different downstream results on new DeFi merchandise that will not discover a market on this threat urge for food atmosphere.
Read extra: [The Defiant] Unsecured DeFi lenders look shaky in face of FTX contagion
Uniswap has no equal within the DeFi world, the place it occupies greater than 85% of the market share. Its opponents are the massive CeFi exchanges. The chart above – taken from an Alastor report for Uniswap Governance – exhibits simply how aggressive it’s with the centralized gamers with 15% of non-BTC/secure marketshare in Q3, second behind Binance. The collapse of the #3 alternate shall be a chance for Uniswap to develop marketshare, particularly as buyers now perceive the attraction of DeFi’s transparency and sovereignty. Given that Binance’s DEX in all probability occupies round 1% of total market quantity – I ponder what it expects the DEX/CEX market share break up to be in 2-3 years?
The report from Alastor has a number of different nice information, notably on the payment market.
dYdX launches easy swap mode Link
MakerDAO tightens debt ceilings in wake of FTX fall Link
Yearn launches Cowswap solver, commits to settling methods by way of CoW Link
Cosmos group fails to approve ATOM 2.0 whitepaper Link
Aave votes to free REN market due to hyperlinks to FTX Link
That’s it! Feedback appreciated. Just hit reply. Written in Nashville, the place it’s c-o-l-d.
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 supposed as funding recommendation.