This Week in DeFi – April 1

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To the DeFi community,

This week the Fantom Foundation has announced a brand new incentive program, this time allocating 335 million FTM tokens – worth almost $550M – to boost development on the network. The foundation is working in partnership with Gitcoin, using the organization’s Quadratic Funding system to match contributions for participating projects.


Cross-chain protocol LayerZero has raised $135 million in Series A funding from Sequoia Capital, a16z, FTX Ventures and others, at a $1 billion valuation. The protocol recently launched Stargate, a cross-chain bridge which attracted more than $2 billion in liquidity.


Yet another fund has entered the space, as gumi Cryptos Capital (gCC) has raised $110 million to invest in early-stage blockchain start-ups, targeting DeFi, gaming, DAOs and more. Each investment is planned to be between $500,000 and $5 million, accepting both equity and tokens.


A MakerDAO improvement proposal is looking to onboard traditional loans by Huntingdon Valley Bank as collateral for use within the protocol. If accepted, it would be the first time that a traditional lender has been able to borrow against its assets via DeFi.


DeFi total value locked (TVL) is sitting back at the highest levels seen since late January, as the crypto market slightly bounced back from its recent slump.


Decentralized finance and the traditional financial world are experiencing more crossover than ever, as the lines continue to blur significantly between the two areas. Protocols are beginning to consider more purposeful integrations of traditional financial instruments and real-world items, for both collateral and value-exchange. Venture capital continues to pour into the sector, while a growing number of DeFi basket funds now provide traditional investors with more exposure to DeFi assets. On the other hand, regulators continue to creep in with attempts to apply traditional financial rules to cryptocurrency wallets and users – a clash of values and principles indeed, this week headlined by a European Union move to de-anonymize self-custodied wallets.

As traditional and decentralized finance continue to amalgamate, individual cryptocurrency ecosystems are also experiencing a merge of their own. Development and investment alike are beginning to pour more heavily into cross-chain compatibility, as previously garden-walled networks begin to more easily flow between each other. As scalability solutions proliferate and the system becomes more interconnected than ever, the applications and doors opened are more exciting than ever.


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Interest Rates


Highest Yields: BlockFi at 8.50% APY, Nexo Lend at 8.00% APY

Cheapest LoansAave at 2.99% APY, Compound at 4.27% 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: BlockFi at 8.37% APY, Nexo Lend at 8.00% APY

Cheapest LoansAave at 3.03% APY, at Compound at 3.54% APY

Top Stories

European Parliament Moves Forward on Anti-Anonymity Rules


DeFi sector TVL rises as investors return to a bullish crypto market


Web3 ETF goes live on on Brazil’s B3 stock exchange

MicroStrategy Borrows Against Bitcoin to Buy More Bitcoin

Stat Box

Total Value Locked$79.18B (up 2.37% since last week)

DeFi Market Cap$135.99B (up 13.56%)

DEX Weekly Volume$16B (up 13.98%)

DAI Supply9.22B (down 2.33%)

Bonus Reads

[Camomile Shumba – CoinDesk] – 1inch Launches Wallet on Android

[Tom Farren – Cointelegraph] – Chiliz launches public testnet for its new layer-1 blockchain

[Timothy Craig – Crypto Briefing] – Acala Integrates Wormhole, Taking Polkadot Multi-Chain

The post This Week in DeFi – April 1 appeared first on DeFi Rate.

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