DeFi & L1L2 Weekly (29/03/2023)

Polygon follows Matter Labs in deploying ZK-EVM scaling solutions. MakerDAO votes to retain USDC as the primary reserve for DAI. Circle stablecoin USDC to launch on Cosmos.

Weekly DeFi Index

This week’s market cap, volume, and volatility indices were negative at -19.11%, -28.46%, and -4.57%, respectively.

Check the latest prices on Crypto.com/Price

• Gnosis Builders, the ecosystem team behind Gnosis Chain, announced its latest integration with DeFi protocol Balancer. The integration will bring liquidity to Gnosis Chain and allow users to deploy funds using decentralised apps such as the Balancer App and DeFi yield booster Aura.

News Highlights

• On 25 March, Matter Labs opened its zkSync Era mainnet to the public, marking the first public launch of an EVM-compatible rollup secured by zero-knowledge proofs.
• Following its testnet launch in October, Layer-2 scaling solution Polygon launched the mainnet beta for its zkEVM product, with Vitalik Buterin initiating the first transaction.
• DAI stablecoin issuer MakerDAO voted to keep USDC as the main reserve currency for DAI.
• Circle announced that its stablecoin USDC will be launched on the Cosmos network.
• A Swiss non-profit organisation is bringing zero-knowledge proofs to Bitcoin.  It aims to scale the network by allowing users to verify the network’s state without downloading hundreds of megabytes of blockchain history or relying on a third party.
• Layer-1 blockchain Avalanche’s X and C chains saw a brief outage last week. On-chain data reveals that C-Chain (the contract chain) has recovered from an hour-long outage, while transactions transmitted across X-Chain (the exchange chain) experienced some delays. 
• As a precautionary measure, THORChain halted its network on 28 March as potential network vulnerabilities are being investigated.
• BNB Chain-based exchange Safemoon was compromised, which led to approximately US$8.9 million worth of digital assets being drained from its liquidity pool. Blockchain security firm Peckshield shared that a recent update may have introduced a ‘public burn bug’ that facilitated the hack.

Recent Research Reports

Research Roundup Newsletter [February 2023]: In this issue, we feature trending market insights and our analyses of the current state of the decentralised derivatives market.	Alpha Navigator: Quest for Alpha [February 2023]: Asset classes took a breather in February and sold off, although crypto bucked the trend. BTC and ETH options implied volatilities remain at subdued levels.	Overview of Decentralised Derivatives: Crypto derivatives dominate the industry, representing about 70% of the entire market. In this report, we shed light on derivatives in DeFi, their market overview, and some innovations in the space.

We’re all ears.

Your feedback has always helped us provide insightful crypto market trends. Tell us how we can improve this newsletter further by taking a quick survey below (it will only take less than a minute). Thank you!

Disclaimer

The information in this report is provided as general market commentary by Crypto.com and its affiliates, and does not constitute any financial, investment, legal, tax, or any other advice. This report is not intended to offer or recommend any access to products and/or services. While we endeavour to publish and maintain accurate information, we do not guarantee the accuracy, completeness, or usefulness of any information in this report nor do we adopt nor endorse, nor are we responsible for, the accuracy or reliability of any information submitted by other parties.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of, or located in a jurisdiction, where such distribution or use would be contrary to applicable law or that would subject Crypto.com and/or its affiliates to any registration or licensing requirement.

The brands and the logos appearing in this report are registered trademarks of their respective owners

Author

Research and Insights Team

Get fresh market updates delivered straight to your inbox:

Be the first to hear about new insights: