Weekly DeFi Update (Week 18, 02/05/2022 – 08/05/2022)

UST depegged after US$285M sell-off but quickly regains peg. Uniswap reports deeper liquidity on multiple Ethereum pairs than leading centralised exchanges. Cronos Ecosystem Grants Program announces third batch of grant recipients.

Key Takeaways

• The world’s third largest DeFi protocol by total value locked (TVL), Anchor Protocol (ANC), has lowered the UST earn rate from 19.4% to 18.0% annual percentage yield (APY) since 1 May 2022. Also, a proposal to roll out voting escrow ANC (veANC) has been approved.
• Terra’s UST depegged after a massive US$285 million sell–off on Curve Finance (CRV) and leading centralised exchange. It was soon stabilised and back to peg. Meanwhile, Luna Foundation Guard (LFG) has added another US$ 1.5 billion of Bitcoin (BTC) to its UST reserves.
• Uniswap V3 (UNI) is reported to have deeper liquidity in multiple Ethereum (ETH) pairs than leading centralised exchanges by about 2x or more.
• Cronos Ecosystem Grants Program announced the third batch of grant recipients, which include a few DeFi projects, such as Argo Finance.
• This week’s price and volume indices were negative at -7.04% and -9.75%, respectively, while the volatility index was positive at +38.89%.

Highlights

• Curve Finance (CRV) integrates with Near’s Aurora Network.
• Terra’s LUNA declines 10% amid UST depegging concern
• Hacked crypto platform offers ‘No Questions Asked’ US$10 million bounty for stolen funds
• Total investment in Syndicate DAO tops US$28 million after latest funding round
• Jane Street dives into DeFi with US$25 million USDC loan
• Lido (LDO) briefly becomes top DeFi protocol by TVL with US$20 billion staked
• Juno’s DAO votes to confiscate US$35 million in tokens from whale in messy dispute
• ’Revolution’ promised by Tron’s Justin Sun looks like clone of Terra’s algorithmic stablecoin
• Ribbon Finance (RBN) gives half its protocol revenue to stakers
• Vector Finance (VTX) TVL hits a record high as the Curve Wars shift to Avalanche
• Tron DAO buys US$39 million worth of TRX as reserves for its USDD stablecoin whose circulating supply has exceeded US$200 million
• Polkadex has won the 16th Polkadot’s parachain slot
• Cardano’s first eUTxO cross-chain decentralised exchange goes live on public testnet

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Notable Events

• CRV jumped as institutional capital flows in.