DeFi & L1L2 Weekly (01/02/2023)

Ethereum to launch ‘Zhejiang’ testnet for simulating ETH withdrawals. Aave buys 2.7M CRV tokens to clear bad debt from Nov exploit. MakerDAO new proposal seeks to increase Compound D3M debt ceiling.

Weekly DeFi Index

This week’s market cap, volume, and volatility indices were negative at -2.53%, -14.15%, and -20.46%, respectively.

New Project Spotlight

• Cronos Accelerator, an expert-led 3-month accelerator programme for selected teams who want to be a part of the Crypto.com and Cronos ecosystem, is now open. Teams can access the Cronos ecosystem, which is made up of a supportive community that shares advice, forms partnerships, and builds together. They will also meet with the Crypto.com App and Exchange teams in order to gain a deeper understanding of the listing assessment process. Visit the Cronos website to learn more.

News Highlights

• Ethereum‘s public staking withdrawal testnet Zhejiang is scheduled to launch today. The Shanghai and Capella testnets will be launched six days after Zhejiang. 
• With the approval of the governance vote for AIP-146, DeFi protocol Aave purchased 2.7 million Curve (CRV) tokens to clear “excessive remaining bad debt” that resulted from the short-seller attack that occurred last November. 
• MakerDAO is seeking community approval on a new proposal put forward by its Open Market Committee, which will increase the maximum debt ceiling on its Compound DAI Direct Deposit Module (D3M) by 300% and set the Target Available Debt to 5 million DAI. 
• Decentralised exchange Sushiswap is launching a perpetual futures exchange on the Sei Network. As shared by its ‘Head Chef’ Jared Grey, this will allow it to expand to non-Ethereum ecosystems and could have an impact on the exchange’s native token, SUSHI, because of a recent revamp of its tokenomics.

Recent Research Reports

Crypto Market Sizing Report 2022: The global number of crypto owners reached 425 million by the end of 2022. After crunching the numbers, this is the result of our highly anticipated Crypto Market Sizing Report for 2022.	Alpha Navigator: Quest for Alpha [December 2022]: The new year sees crypto outperforming equities and gold. BTC options implied volatilities are subdued while perpetual futures funding rates are positive.	2022 Year Review & 2023 Year Ahead: 2022 has been a rollercoaster ride for the crypto industry. In this report, we curate the top ten crypto events and trends of 2022, followed by our outlook for 2023.

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Research and Insights Team

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