DeFi & L1L2 Weekly (14/09/2022)

Coinbase proposes to move 1.6 billion USDC from MakerDAO’s DAI collateral. The last Ethereum shadow fork upgrade is deployed on the mainnet. Mysten Labs raises $300 million to accelerate Sui adoption.

Weekly DeFi Index

This week’s market cap index was negative at -1.84%, while the volume and volatility indices were positive at +19.43% and +30.62%, respectively.

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DeFi Index Tokens

News Highlights

• Coinbase has proposed an investment line with MakerDAO, the organisation behind DAI, the largest decentralised stablecoin. The proposal would move one third, or around US$1.6 billion of USDC backing DAI, to Coinbase for a 1.5% yield. According to the data, MakerDAO is the largest single USDC holder and the stablecoin accounts for 35% of DAI’s collateral, which is roughly $4.8 billion.
• The 13th and last Ethereum shadow fork upgrade has been deployed on the mainnet. A shadow fork is a test fork run by developers to check whether the network is equipped to handle the network alterations that the final upgrade will deploy. Additionally, EthereumPoW (ETHW), a proof-of-work version of Ethereum (ETH) created by the community, revealed its mainnet launch plan. Per this roadmap, ETHW will go live 24 hours after The Merge.
• Mysten Labs, the company behind the in-development layer-1 blockchain Sui, has raised $300 million to build its core infrastructure and accelerate the adoption of the Sui blockchain ecosystem.

DEX Protocols Metrics

Lending Protocols Metrics

Charts on Layer-2 Projects

• After the L2 market TVL increased to over $7.6 billion on 10 September, it dropped by -3.70% in the last week. Optimistic rollup projects dropped by -3.05% and zero-knowledge rollup projects decreased by -3.42%, while Ethereum’s TVL increased by +5.07%.

• The TVL changes for all major optimistic rollup projects were negative last week, and Arbitrum declined the most at -3.15%.

• Similarly, ZK rollup projects’ TVL all declined, and ZKSwap 2.0 plummeted most at -29.48%.

Further Reading

• Crypto startup Mysten Labs raises $300M from industry heavyweights at $2B valuation
• Uniswap Dex fully backs Ethereum PoS upgrade, no support for ETHPoW forks
• DeFi protocol Curve Finance posts code for upcoming stablecoin
• NEAR Protocol forms working group to promote DeFi governance
• Algorand upgrade boosts speed, adds trustless cross-chain communication
• Algorand foundation discloses $37 million USDC exposure to Hodlnaut
• DeFi protocol token NFD crashes by 99% after a flash loan attack
• Avalanche flash loan exploit sees $371K in USDC stolen

Author

Research and Insights Team

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