DeFi & L1L2 (Week 30, 27/07/2022 – 02/08/2022)

Aave passed proposal to launch crypto-based stablecoin, GHO. Ethereum’s tenth “shadow fork” goes into effect. Harmony proposes a hard fork to reimburse users’ funds with minting billions of ONE.

Weekly DeFi Index

This week’s price, volume, and volatility indices were positive at +21.92%, +59.15%, and  +44.81%, respectively.

DeFi Index Tokens

News Highlight

• Aave passed a proposal to launch a crypto-based stablecoin, GHO. The fully collateralised stablecoin is native to the Aave ecosystem and will be initially available on the Ethereum network.
• Ethereum’s tenth “shadow fork” went into effect. In preparation of The Merge, Ethereum has been undergoing a series of tests (or “shadow forks”), which copy data from the mainnet to a test network. Additionally, the Goerli testnet merge, the final update before the Merge date, is expected to happen on 10 August.
• Harmony proposed a reimbursement plan to make up the US$100 million hack of its Horizon Bridge in June. The plan involves a hard fork of the chain, which will mint billions of ONE.

DEX Protocols Metrics

Lending Protocols Metrics

Charts on Layer 2 Projects

• Overall, the L2 market saw +10.67% growth over the past week and the projects adopted Optimistic Rollup and ZK Rollup gained +13.94% and +4.51%, respectively, while Ethereum’s TVL rose 9.68%.

• Optimistic Rollup still dominates the L2 market with over US$3.8 billion in TVL. Additionally, Optimism’s TVL surged around 32% during the week.

• For ZK Rollup projects, StarkNet gained traction with over 15% growth in TVL week on week.

Further Reading

• Tether supply starts to increase after three-month decline
• TRON becomes the second-largest public chain by stablecoin market cap
• 1.4 billion MATIC tokens issued in just one hour, price reacted with 6% fall
• After failed first attempt, Lido relaunches proposal for diversified treasury
• Aave devs propose freezing Fantom integration, citing lack of traction and potential vulnerability
• Solana DeFi protocol Nirvana drained of liquidity after flash loan exploit
• Solana wallets targeted in latest multimillion dollar hack
• Nomad token bridge drained of $190M in funds in security exploit

Author

Research and Insights Team