This Week in DeFi – August 27

This post was originally published on Defirate

To the DeFi community,

This week, Aave announced plans for more robust cross-chain governance as the Ethereum community supporting the initial Aave framework branch out to other chains and L2 solutions. The announcement was also paired with news that Aave will open source the Aave UI, allowing anyone around the world to contribute to, utilize, and spin off from the existing interface.

 

Sushiswap joined the Avalanche Rush project, with the two protocols pledging $7.5 millon each for liquidity mining incentives for AVAX and SUSHI pairs over a three month period, with the exact starting date to be announced soon. Sushiswap has now been deployed on 20 blockchains, making it easily one of the most prolific DeFi partners in the industry. 

 

Pyth Network launched its mainnet beta, bringing oracle pricing data for more than 30 assets including cryptocurrencies, traditional equities, commodities, and fiat currencies to the Solana blockchain. Pyth has partnered with dozens of institutional data providers to deliver accurate pricing data, with updates every 400ms and many more assets to come.

 

And Ribbon Finance announced the Ribbon V2 launch, bringing greater decentralization to and governance controls to options-strategy vaults. The transition to V2 will be gradual as many features are highly experimental, with initial V2 vaults rolling out with conservative caps on investment and a limited access testing period.

 

After years of waiting in the wings, crypto is now fully in the spotlight of US legislators and regulators as DeFi and crypto capital markets continue to rapidly expand. It’s also forcing ‘decentralized’ finance protocols to take their governance and accessibility more seriously, after regulator callouts noting that in some aspects, including front-end UI access and token distribution structures, many projects are still highly centralized. 

biswap

There are a variety of approaches to avoiding the wrath of regulators and DeFi protocols continue to raise funds and scale, from changing jurisdictions to open sourcing large swathes of previously proprietary code to reduce central points of failure. But in the long run, new regulations are bound to emerge, and even fully decentralized protocols will likely need to interact with regulatory structures in some way.

The situation can seem intimidating, but the potential for abuse through money laundering, financing bad actors, and manipulation by malicious market participants is too great to ignore. Plus, institutions will never get involved in a meaningful capacity without regulatory blessings.

The process will take years or decades, and the successful blue-chip protocols of today are the most likely to succeed at becoming truly integral parts of the global economy. And, there will always be crypto innovation on the bleeding edge of technology and creativity where the adventurous can play, learn, and gamble. Just don’t invest more than you can afford to lose 😉

Thanks to our partner:
Nexo – Unlock the power of your crypto with up to 12% interest and borrowing starting at 6.9%. Read our Nexo review.

Interest Rates

DAI

Highest Yields: BlockFi at 8.50% APY, Nexo Lend at 8% APY

Cheapest LoansAave at 4.23% APY, Compound at 4.24% APY

MakerDAO Updates

DAI Savings Rate: 0.00%

Base Fee: 0.00%

ETH Stability Fee: 5.50%

USDC Stability Fee: 0.00%

WBTC Stability Fee: 4.50%

USDC

Highest Yields: Celsius at 8.88% APY, Ledn at 8.50% APY

Cheapest Loans: Compound at 3.91% APY, Aave at 4.25% APY

Top Stories

Uniswap v3 DPI-ETH Liquidity Mining Program launching soon!

 

0Chain Partners With Band Protocol to Secure Decentralized Storage Layer

 

Spectre Receives Grant To Build New Type of Pool on Balancer Protocol

 

Kava Launches Rebranded Product Portfolio

Stat Box

Total Value Locked$82.09B (down -1.31% since last week)

DeFi Market Cap$126.27B (down -0.02%)

DEX Weekly Volume$15.5B (down -9.09%)

DAI Supply5.84B (up 1.21%)

Total DeFi Users3,267,260 (up 1.24%)

Bonus Reads

[Fabian Klauder – DeFi Times] – Why Is ETH A Scarce Asset?

[Ben Giove – Bankless] – The Liquidity Singularity

[Anthony Sassano – The Daily Gwei] An EIP-1559 Update – The Daily Gwei #321

[Helena Flack – Centrifuge Blog] – Going, going…. Gone! Why parachains auction slots are crucial for the future of blockchain development

[Dennis Suslov – Dose of DeFi] – Can USD-independent stable assets survive – and thrive?

The post This Week in DeFi – August 27 appeared first on DeFi Rate.

Leave a Comment