Hope everyone seems to be staying protected and getting some contemporary air. We are one week away from Dose of DeFi: Brooklyn. Enjoy a extra civilized dialog on this aspect of the East River. The final batch of basic admission tickets are launched tomorrow. Thanks to Hudson River Trading and Caney Fork for sponsoring.
Tweet of the week: DeFi’s hidden power
Today I’m more convinced than ever DeFi is the future of finance, but for a different reason – transparency and auditability.
It’s arduous to peel away from the meltdown enjoying out on Twitter with Celsius and 3AC. It’s very entertaining to chase the gossip crumbs on who’s uncovered to who, however the uncertainty paralyzes all the house. Throughout the final week as costs tumbled and heads turned, essentially the most dependable place to get sign of what was happening was on-chain exercise. Celsius and 3AC have mortgage books with everybody, however solely their Maker/Aave/Compound positions can be found for all to see. This data was the guiding mild as everybody scrambled.
The DeFi world additionally doesn’t give particular remedy. While CeFi tries to @ Su Zhu on Twitter earlier than liquidating his margin mortgage, liquidation costs are the identical for all DeFi lenders and nobody has inside data on liquidations nonetheless to come back.
There aren’t many optimistic issues to say in regards to the final week, however DeFi stood out as a mannequin for a extra clear, international and digitally native monetary system.
Chart of the week: L2 tx depend rise
Safe bet >50% by EoY.
If really successful (+zkSync & Starknet are added), easy to imagine quickly becoming >90% as well.
Chart from on-chain sleuth @mhonkasalo highlighting the expansion of Optimism and Arbitrum as a share of general transactions on Ethereum. L2’s had been so hotly anticipated that it felt like a disappointment when utilization didn’t take off at launch. This underestimated the quantity of infrastructure wanted to get core DeFi apps on L2’s after which the best way to get liquidity on there. All of that is slowly coming collectively for Optimism and Arbitrum, which now have natural communities and a token (Arb?) and with zksync/Starkware to observe, we’re nonetheless within the early phases of the L2 race.
Odds and Ends
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Circle launches Euro Coin Link
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Interest Protocol, a brand new base layer lending protocol, launches Link
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MakerDAO votes to freeze Aave’s DAI Direct Deposit Module (D3M) Link
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Coindesk: Texas, different states examine Celsius after account freeze Link
Thoughts and Prognostications
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MEV past crypto: worth extraction is in all places [Victor Sint Nicolaas]
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Slippage in the course of the UST depeg [0xWailord/Integral]
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Connext – dashing up safe bridges between chains [Arjun Bhuptani/Epicenter]
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Interest Protocol can problem Maker [Makerman/Maker Forums]
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22,000 ETH embezzled time and again ten initiatives failed: The story of Machi Big Brother (Jeff Huang) [Investigations by ZachXBT]
That’s it! Feedback appreciated. Just hit reply. Written in Brooklyn, the place it’s grade-A summer season.
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.
