LD Weekly Track Report [28/08/2023]
[Summary]
RWA: The overall outflow of stablecoins exceeded their inflow. Following Sun Yuchen’s withdrawal, the DSR supply has been slowly rising.
LSD: Last week, the ETH pledge rate increased to 21.79%, up by 1.34% from the previous week. A total of 26.19 million ETH was locked in the beacon chain, corresponding to a pledge rate of 21.79%, an increase of 1.34% from the previous week. Among these, active validation nodes numbered 756,900, up by 1.90%, and nodes waiting in the queue for validation were 55,400, down by 7.39%. The yield from ETH pledges continued to drop to 3.84%.
Ethereum L2: Layer2’s Total Value Locked (TVL) decreased by $440 million from last week, with the total amount locked being $9.56 billion.
DEX: DEX: Dex combined TVL is $12.03 billion, a decrease of $240 million from last week. The 24-hour trading volume for Dex is $1 billion, and the 7-day trading volume is $11.79 billion, a decrease of $3 billion from last week. Ethereum DEXs account for 49% of the trading volume.
Derivative DEX: In the past week (from August 21 to August 27), the total trading volume of major derivative DEXs was about $50 billion. The trading volume shrank again, returning to the lower range for the year.
[Stablecoins]
The overall market value of stablecoins is $124.49 billion. Compared to last week, the overall market value of stablecoins has not seen significant fluctuations. Among them, Dai’s market value reached $5.15 billion, rising by over 29% in the past week and over 23% in the past month. Dai’s trend shifted from a decline to a rise this week.
Looking at the overall inflow of stablecoins, in the past month, the outflow still exceeds the inflow.
After MakerDAO adjusted its DSR rate from 8% to 5%, Sun Yuchen withdrew his $200 million supply. This caused a significant drop in the DSR’s TVL. However, observing its TVL changes, even though there was a significant rate adjustment, liquidity from other accounts was not withdrawn. The current supply is still experiencing a slight increase.
The PSM module has shown a significant increase this week, with the current supply reaching 770 million. Maker has achieved preliminary results in the following two aspects through the DSR interest rate hike:
1. Increasing the USDC supply within PSM, serving as a source of funds for RWA investments.
2. Stabilizing the decline in Dai’s size, thereby stimulating Dai demand.
[LSD]
Last week, the ETH pledge rate rose to 21.79%, an increase of 1.34% from the previous week. 26.19 million ETH was locked in the Beacon Chain, corresponding to a pledge rate of 21.79%, a week-on-week increase of 1.34%. Among them, the number of active validator nodes was 756,900, a week-on-week increase of 1.90%, and the number of validator nodes in the queue was 55,400, a week-on-week decrease of 7.39%. The ETH pledge yield continued to drop to 3.84%.
ETH’s pledge continues to grow steadily.
ETH staking yield decreased to 3.84%.
Among the three major LSD protocols, in terms of price performance, LDO fell by 5.6% in a week, RPL fell by 7.8%, and FXS fell by 3.3%. From the perspective of ETH pledge volume, Lido increased by 2.29% in a week, Rocket Pool increased by 1.90%, and Frax increased by 0.92%. Curve founder Michael expressed support for the combination of Frax RWA voucher FXB and crvUSD in Telegram. EigenLayer increased the ETH pledge limit to 100,000 last week, which is now full. Users participating in the pledge can mint NFT EigenWorlds. Influenced by Binance’s investment and the launch of RWA business, Pendle’s price increased by 17.1% last week. Currently, the sDAI pool’s TVL is 12.57M, the fUSDC pool’s TVL is 2.78M, the implied yield of sDAI is 3.81%, the actual yield is 5%; the implied yield of fUSDC is 3.45%, and the actual yield is 4.21%. Since Pendle only builds sy/pt LPs, adding liquidity to new pools often leads to overselling of YT, resulting in a decrease in the implied yield. There is an investment opportunity in sDAI and fUSDC YT.
[Ethereum L2]
TVL
The total volume of layer2 TVL decreased by 440 million USD from the previous week, with a total locked amount of 9.56 billion USD.
Cancun Upgrade Progress
On August 24, 2023, the 116th Ethereum Core Developer Consensus Meeting (ACDC) was held, discussing four main topics:
(1) All EL and CL clients have joined Devnet #8 (dedicated testnet for the Deneb/Cancun upgrade). The two EL clients not yet running validators on the testnet are Besu and Erigon.
(2) The Dencun test overview document, which details the specific testing areas for the upcoming Dencun upgrade in the next few weeks. These include EVM-related tests for Dencun EIPs that impact the EVM, syncing block and blob tests between EL and CL clients, chaos tests to evaluate different chaotic conditions, public tests including more Devnets and shadow forks, MEV-related tests, regression tests, bad block and blob tests, and blob-specific tests.
(3) A brief discussion on the launch plan for Devnet#9; the only significant code specification change between Devnet #8 and Devnet #9 is the deployment strategy for EIP-4788.
(4) Three unresolved issues were identified during the launch of the Holesky testnet: Developers agreed to adjust the Epoch time of the Shapella upgrade on Holesky from 10 to 256; agreed to use an exit balance of 28 (instead of 16) for validators; and to support a compressed version of the genesis state for Holesky testnet checkpoint synchronization.
(Holesky public testnet’s launch date is September 15, 2023, 22:00 Beijing time, with the genesis block having 1,460,000 validator nodes, making it the largest public network to date.)
OP
Base and Optimism developers jointly announced a revenue-sharing and governance-sharing agreement.
(1) Base’s smart contract can only be upgraded through a 2/2 multi-signature wallet. One signature is controlled by Base, and the other by the Optimism Foundation. This means that Base and OP mainnets will share upgrades, ensuring block space compatibility, homogeneity, and ultimately interoperability in the future superchain.
(2) A certain percentage of Base sequencer’s revenue will be contributed to the Optimism Collective. Base will also pay the Optimism Collective either 2.5% of its revenue or 15% of its profit, whichever is higher. In return, Base will have the opportunity to acquire 2.75% of OP token supply (approximately 118 million tokens) over the next six years, enabling it to have a say in Optimism’s protocol governance.
BASE
friend.tech has a total transaction volume of over 50,000 ETH, high revenue, ranking third in 7-day income.
Unibot has been integrated into the Base network, marking its first integration with a Layer2 network.
ARB
On August 23, Offchain Labs repurchased 1.72 million ARB through an address starting with 0xb41 at a price of 0.99 USDT each. Previously in June, Offchain Labs purchased 4.48 million ARB through the same address at an average price of 0.99 USDT.
On August 27, Offchain Labs withdrew 1.367 million ARB, equivalent to 1.3 million USD, from Binance through an address starting with 0xb41. Last week, Offchain Labs cumulatively withdrew 3.087 million ARB (approximately 3 million USD) from Binance through the same address at an average price of 0.97 USD.
On-chain activity
[DEX]
On August 22, DEX Balancer announced that multiple V2 pools faced serious vulnerabilities and recommended users to immediately withdraw the affected funds. Due to the vulnerability incident, users withdrew nearly $100 million from Balancer, resulting in the TVL (Total Value Locked) dropping from 852 million a week ago to the current 681 million.
Ethereum
ETH L2/sidechain
The two fastest-growing DEXs on the Base chain this week are Alien Base (+60%) and Balancer (+33%). Alien Base’s TVL rose to the second position in the Base ecosystem, with the current TVL at 22.56 million.
BTC L2/Sidechain:
Alt L1:
[Derivative DEX]
Over the past week (August 21 to August 27), the total trading volume of the major derivative DEXs was about $5 billion. The trading volume shrunk again, returning to its lower levels for the year. After BTC and ETH experienced a significant drop on August 18, they entered a horizontal oscillation range. Currently, BTC is oscillating around 26,000, and ETH is around 1,650. The volatility is not high, and the market trading is once again sluggish.
In terms of TVL, the overall TVL of derivative DEX is still declining, with funds slowly flowing out.
Regarding users, the daily active users of derivative DEX are continuously declining. GMX’s daily active users have reached the lowest level in 2023, indicating a quiet market with fewer participants.
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