This Week in DeFi – March 19

To the DeFi community,

 

This week, Aave launched AMM liquidity pools, allowing users providing liquidity on Uniswap and Balancer to deposit their LP tokens as collateral for generating loans. The cross-over between some of the biggest names in DeFi means ever greater capital efficiency for LPs making trading on decentralized exchanges possible and is another impressive example of DeFi protocols as money legos, shaping the future of finance. 

 

Today, users can begin depositing and borrowing crypto assets from the Aave AMM Liquidity Pool, enabling @Uniswap and @BalancerLabs liquidity providers to use their LP tokens as collateral in Aave Protocol 👀https://t.co/Gf0WZ6fWiy

— Aave (@AaveAave) March 16, 2021

 

Gnosis, the multi-asset wallet employed by some of DeFi’s most notable projects including Synthetix, Yearn, and PoolTogether, released SafeSnap to integrate governance with direct control of protocol treasuries. SafeSnap makes it easier for governance token holders to cast their votes on proposals and choose the appropriate level of multi-sig controlled intervention to suit their governance needs.

Gnosis Safe is the operating system for DAOs.

Introducing SafeSnap: The first in a decentralized governance tool suite for the Gnosis Safehttps://t.co/BPTtdh7JYv

— Gnosis Safe (@gnosisSafe) March 16, 2021

Overlay Protocol, the novel data-stream trading project raised more than $2 million from a number of DeFi-native investors including the LAO, Metacartel Ventures, and 1kx. Overlay is planning a beta launch in May that will include a liquidity mining program, and should help unlock even more liquidity for synthetic asset markets.

 

1/ We’re excited to finally come out of stealth mode and share what we’ve been building + who we’ve been building with!https://t.co/UMcbAo02gx

— Overlay (@OverlayProtocol) March 17, 2021

 

1inch released V3 of the popular DEX aggregator, achieving a major milestone in offering common trades like swapping ETH for DAI at a lower gas cost than native decentralized exchanges. It could spell the start of a new era of growing popularity for 1inch as high gas costs continue to strain the Ethereum ecosystem. 

 

2/

⤵️ Check our blog post and feel the full power of the Zeus unicorn ⚡️https://t.co/k9wpbCC4nq

Key feature #1

🙏 Thanks to assembly code optimization the version 3 provides the ability to substantially reduce gas #fees in comparison with @Uniswap, @SushiSwap and many more 🔬 pic.twitter.com/k8kRYDkWXC

— 1inch.exchange (@1inchExchange) March 16, 2021

 

The new 1inch capabilities come in part as a result of the recent Binance Smart Chain integration, and more projects are following suit this week. The 0x decentralized exchange protocol and the bZx powered Fulcrum margin lending service are both pushing code on BCS, and Sushiswap is joining the Avalanche DeFi community, in addition to previous BSC integrations.

 

Avalanche welcomes @SushiSwap, one of the leading AMMs in DeFi. DEX traders will now be able to take advantage of the same product but much faster and cheaper than before. https://t.co/M5Csnuze0P

— Avalanche (@avalancheavax) March 15, 2021

 

Spring is a time for growth and renewal, literally branching out into fresh spaces offering new opportunities and planting the first seeds of big things to come. And so it goes with DeFi, as competitors to Ethereum for the DeFi crown continue to attract development and projects like Overlay break new ground in what can be traded with the power of DeFi. Even older, more established projects like Gnosis are seeing green shoots in it’s own way as rays of DeFi energy wash over it. And if ETH gas fees are keeping the winter blues around, there’s good news; L2 solutions are just around the corner, and there’s plenty of action on alt L1s while you’re waiting. The Ides of March are behind us–onwards!

 

👀 Interesting takeaway:

“The AMM Market is the first of many markets of Aave, on Ethereum, and potentially also on different networks, allowing the community to explore ‘new frontiers’ with Aave.”

Something tells me the Aave community is 𝘰𝘱𝘵𝘪𝘮𝘪𝘴𝘵𝘪𝘤😉 https://t.co/emCjHRRAQ3

— DeFi Pulse 🍇 (@defipulse) March 16, 2021

Highest Yields: Aave at 13.61% APY, Fulcrum at 10.51% APY

Cheapest Loans: CoinList at 3.00% APY, Compound at 6.32% APY

MakerDAO Updates

DAI Savings Rate: 0.00%

Base Fee: 0.00%

ETH Stability Fee: 4.50%

USDC Stability Fee: 0.00%

WBTC Stability Fee: 4.50%

Highest Yields: Fulcrum at 11.72% APY, Aave at 10.45% APY

Cheapest Loans: CoinList at 1% APY, Compound at 8% APY

Aave allows liquidity providers to use LP tokens for Aave collateral.

Gnosis introduces native integration of decentralized governance controls.

Crypto-first VC firms are funding the newest data-stream DeFi primitive.

Volumex raises an undisclosed sum to bring volatility indexing to DeFi.

Leveraged tokens made simple, delivered by Pulse and Token Sets.

 

Total Value Locked: $44.19B (up 0.94% since last week)

DeFi Market Cap: $90.17B (up 5.68%)

DEX Weekly Volume: $12.2B (down -12.91%)

DAI Supply: 2.86B (up 7.12%)

Total DeFi Users: 1,637,500 (up 3.17%)

[MakerDAO Blog] – A Brief History of Decentralized Finance (DeFi)

[Chris Powers – Dose of DeFi] – DeFi growth in perspective, AMMs by investor size

[Anthony Sassano – The Daily Gwei] – Kings of Crypto – The Daily Gwei #203

[Sydney Lai – The Defiant] – Tyler Winklevoss Makes GUSD Proposal on Aave

[Fiskantes  – Bankless] – The Good, The Bad, and The Ugly of Binance Smart Chain