This Week in DeFi – November 12

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To the DeFi community,

This week, Solana-based DEX Raydium announced a partnership with liquidity aggregator Serum to kickstart cross chain transactions with liquidity mining rewards. ERC20 tokens for popular protocols including dYdX, Uniswap, And Axie Infinity will get new incentivized trading pools over the coming weeks, with assets bridged using Wormhole.


Wrapped token cross-chain bridging solution Wormhole announced support for Polygon this week, the first L2 solution to be added to the wormhole network that currently connects Ethereum, BSC, Terra and Solana. With more than $5 billion currently on the Polygon chain, the move could unlock significant additional cross chain liquidity for popular protocols and tokens.


Acala, a Polkadot-based DeFi hub for decentralized exchange, DOT liquidity staking, and sporting its own decentralized stablecoin, raised more than $400 million in DOT tokens in the first parachain auction for the Polkadot ecosystem. More than 50,000 investors participated in the ‘crowdloan’, which will need to be paid back over time by the Acala protocol.



And Maple Finance launched a permissioned DeFi pool with an eye towards giving financial institutions the regulatory certainty they need to start using smart-contract based protocols in their business. The Pool will only accept interactions from verified KYC entities and will aim to collect $20 million in liquidity in the first month after launch.


As the number of blockchains seeing significant traction in DeFi, NFTs, and other use cases continues to multiply, it can be harder than ever to know where to allocate capital for the best returns. Ethereum finds itself in an awkward position as a victim of its own success, now almost entirely reliant on L2 solutions to onboard users into the Ethereum ecosystem, just as L1 alternatives like Solana, Avalanche, and several others are hitting inflection points in UI, UX, and liquidity.

L1 Ethereum will likely remain on the sidelines until protocol upgrades can bring greater transaction throughput, but the remainder of the crypto market is highly fractured, limiting both composability and localized liquidity. The good news is a multitude of cross-chain bridges and swap protocols have emerged to begin meeting the demand for portable value across the overall crypto ecosystem.

The proliferation of these bridges raises a classic dilemma for the crypto investor – over time, are returns greater at the protocol layer, or the application layer? Much of the excitement of 2020’s DeFi summer revolved around the then-novel notion that protocols like Yearn or Aave, operating across multiple chains, would deliver better returns than betting on the growth of any one smart-contract platform like Ethereum or Solana. 

The jury is still out on this question, but for application-layer fans, cross chain bridges represent the newest opportunity to get in on the ground floor. So much of application-layer investments turn on the particular tokenomics of a given project, so a shotgun strategy might yield less than optimal returns; always do your research. But for projects with the right market fit and well designed distribution strategies, life changing money could be on the table once again.


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Interest Rates


Highest Yields: Fulcrum at 10.57% APY, BlockFi at 8.50% APY

Cheapest LoansCompound at 4.94% APY, Aave at 5.67% APY

MakerDAO Updates

DAI Savings Rate: 0.00%

Base Fee: 0.00%

ETH Stability Fee: 2.00%

USDC Stability Fee: 0.00%

WBTC Stability Fee: 2.00%


Highest Yields: Fulcrum at 16.34% APY, Celsius at 8.88% APY

Cheapest LoansCompound at 7.78% APY, Aave at 7.92% APY


Top Stories

Nansen Brings Market Intelligence Support to Solana’s Growing Ecosystem

Brave partners with Solana to integrate into the browser

Harmony announces strategic partnership with PowerPool to bring diversified smart indices to ONE ecosystem

Add Liquidity on KyberDMM Pools with a Single Token Deposit

Stat Box

Total Value Locked$111.28B (up 4.49% since last week)

DeFi Market Cap$168.14B (up 2.94%)

DEX Weekly Volume$26.07B (up 11.22%)

DAI Supply: 8.57B (up 10.15%)

Total DeFi Users3,888,300 (up 1.97%)

Bonus Reads

[Lukas Schor – The Defiant] – How DAOs are Challenging VCs in the Race to Fund Web3 Projects

[Owen Fernau – The Defiant] – ConsenSys Founder Joe Lubin Teases MetaMask Token $MASK

[Trent Van Epps – Bankless] – Ethereum Roadmap Update | End of 2021

[Stefan Stankovic – Crypto Briefing] – What Are Polkadot’s Parachain Auctions?

[Anthony Sassano – The Daily Gwei] Global Settlement Infrastructure – The Daily Gwei #376

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