LD Weekly Track Report [14/08/2023]
[Summary]
RWA: The utilization rate of DSR has exceeded 20%, and its interest rate might be adjusted to 5%. Spark is set to introduce traceability airdrops for its users.
LSD: Last week, the ETH pledge rate increased to 21.25%, a week-on-week growth of 1.15%. There were 25.55 million ETH locked in Beacon Chain, representing a pledge rate of 21.25% and a week-on-week growth of 1.15%. Among them, active verification nodes amounted to 727,500, a 2.1% growth from the previous week, while nodes in the queue waiting for verification numbered 66,100, down by 8.53%.
Ethereum L2: Layer2 TVL (Total Value Locked) has not changed significantly from last week. The Base chain TVL maintained its growth momentum, rising by 69.89% this week to reach $198 million. Debank has announced its collaboration with OP Stack and the launch of the DeBank Chain testnet. The next official testnet upgrade, Devnet 8, will be initiated this week.
DEX: The combined TVL of Dex is $13.29 billion, roughly the same as last week. Dex’s 24-hour trading volume is $1 billion, with a 7-day trading volume of $10.7 billion, down by $3.7 billion from last week. Ethereum DEX’s trading volume accounts for 52%. Curve’s inflation rate dropped by 15.9%, with daily emission decreasing from 532k to 448k.
Derivative DEX: Over the past week (from August 7th to 13th), the overall trading volume of the derivative DEX continued to decline, with the weekly trading volume of the 9 main derivative DEXs amounting to approximately $4.5 billion.
[RWA]
MakerDAO
The current DAI supply within DSR has reached 1.29 billion, with a weekly growth rate of 230%. Its utilization has reached 25% (1.29/51), and the DSR interest rate is expected to be adjusted to about 5% soon.
Both Discus fish and Justin Sun have deposited DAI into the DSR. Currently, Sun Yuchen’s two addresses have collateralized 231,000 stETH to mint $176 million that’s been deposited into the DSR. This means that just from Sun’s individual addresses, the DAI ratio within the DSR is as high as 17%, accounting for 3.5% of the total DAI supply. The sDAI (wrapped DAI within DSR) supply stands at 560 million.
From the distribution of the above DAI, DEX and Lending’s share of DAI has been shrinking since November 2022, while the EOA account DAI ownership rate has reached 68.6%. After the DSR adjustment, the share of Dai Saving has been increasing. Looking at the decrease, EOA accounts dropped by 12%, DEX by 2.2%, and Lending by 1%.
Maker’s proprietary lending protocol, Spark, has a TVL of $430 million, with a growth rate of 465%. After the EDSR adjustment to 5%, to continue attracting users and loan arbitrageurs to use Spark, founder Rune proposed to introduce traceability airdrops, awarding them to users once the Spark protocol token SPK is launched.
After the launch of Maker’s SubDAO, it is expected to launch mining for six SubDAO tokens, with SPK being the first. According to the information disclosed, SubDAO mining will be open to all stablecoin and MKR holders. In the first 10 years of the genesis farming, a total of 2 billion SubDAO tokens will be distributed to each SubDAO participant: 500 million SubDAO tokens in each of the first two years, 250 million in the next two years, 125 million in the following two years, and 62.5 million in the last four years.
Aave
The Aave governance forum has released a proposal concerning “Introducing sDAI as collateral for Aave V3,” aiming to create new synergies with the MakerDAO ecosystem.
This proposal suggests using the liquidity deposit token sDAI as collateral in the Ethereum pool for Aave V3 (sDAI cannot be loaned out). By doing so, Aave can allow users to benefit from DSR returns while also amplifying their asset leverage. In the long run, this is beneficial for Aave’s growth. One of Aave’s priorities is also to increase the liquidity of the stablecoin GHO, which has already breached 20 million in lending volume.
LSD
Last week, the ETH staking rate increased to 21.25%, up by 1.15%. There were 25.55 million ETH locked in the Beacon Chain, corresponding to a staking rate of 21.25%, a relative growth of 0.1.15%. Of these, 727,500 were active validator nodes, up 2.1%, while 66,100 were in queue for validation, down by 8.53%. The number of active validators on the Beacon Chain surpassed 720,896, with 2,470 validators activated daily.
For the week, the staking growth rate has accelerated.
ETH staking yield decreased to 4.10%.
Looking at the three major LSD protocols, LDO fell by 1.3% in a week, RPL by 2.7%, and FXS rose by 0.9%. From the perspective of ETH staking volume, Lido increased by 1.42% in a week, Rocket Pool by 1.35%, and Frax by 0.7%. Last week, Coinbase announced an investment in Rocket Pool by purchasing tokens directly from the team, but didn’t disclose the exact amount or cost. Rocket Pool’s deposit pool balance currently stands at 19,200 ETH, with the Minipool queue cleared, an RPL staking rate of 47.34%, and effective collateral at 88.95%. The Frax RWA-related proposal, FIP-277, is unanimously passed in the current Snapshot vote, with the voting ending tomorrow. Regarding funds, Brevan Howard Digital continues to sell FXS, transferring 100,000 to exchanges last week, with a current wallet balance of 661,300, accounting for 0.91% of FXS’s circulation. In LSDFi, LBR surged 64.7% in a week, eyeing the V2 launch. ZERO rose by 38.9%, its code audit is complete, and the ZETH/ETH liquidity pool will be launched soon. USH surged 34.7%, announcing a funding round of $3.3 million.
Ethereum L2
TVL
TVL of layer2 decreased by $160 million from last week, with a total locked amount of $10.5 billion.
Base TVL continues to grow. Chain application Friend.tech, following BALD, has once again sparked community enthusiasm and capital inflow.
Friend.tech now has over 20,000 users, completing over 210,000 transactions, totaling 6,599 ETH in volume. Friend.tech is akin to paid private domain communities. When someone buys tokens of another person’s account, they can enter their private chatroom. If your Twitter account token is purchased by someone else, you’ll share the transaction proceeds, and its price will also rise. Currently, only a mobile version is available, and registration requires an invite code.
On August 11th, DeBank announced the launch of the DeBank Chain testnet, planning to launch the mainnet in 2024.
Built on the OP Stack, DeBank Chain modified its consensus mechanism to reduce gas fees for individual transactions by 100 to 400 times. It also integrates an account abstraction-like system on-chain to provide a Web2 experience, fully compatible with the current EVM standard. The new account system supports transactions signed with dedicated L2 private keys, reducing the use of L1 private keys in social scenarios, ensuring the security of L1 assets.
On Chain Activity
Progress on the Cancun upgrade
In the 115th Ethereum core developers’ consensus meeting, topics discussed included the release time of Devnet 8, the deployment strategy of EIP-4788, and changes to the CL fork selection specification. The developers agreed to initiate the next official testnet for the Cancun upgrade, Devnet 8, early next week. They also consented to change EIP-4788 from a stateful precompile to a regular smart contract.
The initiation of the Deneb/Cancun (Dencun) upgrade’s next official testnet, Devnet 8, is set for early this week. Devnet 8 is the first dedicated testnet that will activate all Ethereum Improvement Proposals (EIP) finally determined for the Dencun upgrade.
[DEX]
The combined TVL for Dex is $13.29 billion, roughly the same as last week. Dex’s 24-hour trading volume is $1 billion, with a 7-day trading volume of $10.7 billion, down by $3.7 billion from last week. Ethereum DEX trading volume accounts for 52% of the total. Curve’s inflation rate decreased by 15.9%, with daily emissions dropping from 532k to 448k, but the annualized inflation rate is still around 18%.
ETH L2/sidechain
The trading volume of L2 OP has fallen the most in the past week, with a drop of 30%. Arbitrum is down 16%, while Zksync Era and Starknet continue to see growth, with respective increases of 17% and 18%.
BTC L2/Sidechain:
Alt L1:
[Derivative DEX]
For the past week (August 7 to August 13), the overall trading volume of derivative DEXs has continued to decline, with the 9 main derivative DEXs having a weekly trading volume of around 4.5 billion USD. The previous week saw these 9 DEXs at a trading volume of about 7 billion USD. With the volatility of Bitcoin and Ethereum almost reaching the lowest level in the last 5 years, the trading volume has continued to shrink.
In terms of TVL, the overall TVL in the derivative DEX track is also declining, with funds slowly flowing out over the past 7 days.
In terms of users, daily active numbers peaked in February and March but have been relatively sluggish lately. Currently, GMX’s weekly active users have dropped below 1,000.
LD Capital is a leading crypto fund who is active in primary and secondary markets, whose sub-funds include dedicated eco fund, FoF, hedge fund and Meta Fund.
LD Capital has a professional global team with deep industrial resources, and focus on develivering superior post-investment services to enhance project value growth, and specializes in long-term value and ecosystem investment.
LD Capital has successively discovered and invested more than 300 companies in Infra/Protocol/Dapp/Privacy/Metaverse/Layer2/DeFi/DAO/GameFi fields since 2016.
website: ldcap.com
twitter: twitter.com/ld_capital
mail: BP@ldcap.com
medium：ld-capital.medium.com
