Weekly LD Track Report [2023/07/17]
【Summary】
Lending: Aave’s stablecoin GHO is deployed on the mainnet, while Maker’s founder continues to buy MKR tokens.
LSD: Last week saw reduced regulatory pressure, accelerated ETH staking, up by 1.49% from the previous week, surpassing an overall staking rate of 20%.
Ethereum Layer2: The total value locked (TVL) in Layer2 has exceeded $10 billion. Coinbase’s L2 network, Base, opens its mainnet to developers and plans to publicly launch in August.
DEX: The combined TVL in DEX is $15.2 billion, down $0.12 billion from the previous week. The 24-hour trading volume in DEX is $1.5 billion, with a 7-day trading volume of $16.19 billion, up $1.19 billion from the previous week.
Derivatives DEX: Last week (July 10–17), the overall trading volume of Derivatives DEX significantly rebounded from the previous week. The weekly trading volume of nine major Derivatives DEX protocols was about $12.6 billion, compared to $8.6 billion the previous week, an increase of 46%. The rise in trading volume was mainly due to XRP’s partial victory in court, leading to a positive shift in market sentiment and increased trading activity.
【Lending】
MakerDAO
MakerDAO founder Rune received 5 million DAI from the Maker DAO Lock wallet on July 16. He converted 2 million DAI into 2 million USDC and transferred it to Coinbase, swapped 620,000 DAI for 620 MKR, leaving a balance of 2.38 million DAI in his wallet. According to data compiled by @EmberCN, since November 2022, Maker’s founder has been selling LDO to repurchase MKR, selling a total of 13.57 million LDOs and obtaining $26.15 million, using it to buy approximately 32,600 MKR, worth about $23.96 million.
Aave
Aave’s stablecoin GHO was officially deployed on the mainnet on July 15, with an initial supply of 100 million coins and a borrowing rate of 1.5%. AAVE stakers can get a 30% interest rate discount. Two days after the mainnet launch, the amount of GHO borrowed reached 2.51 million. Compared to other stablecoins on the platform, GHO has a competitive interest rate. The team’s future efforts to promote liquidity will be closely watched.
【LSD】
Last week, regulatory pressure eased, leading to an accelerated pace of ETH staking, up 1.49% week-on-week, breaking the 20% overall staking rate. Last week, 24.2663 million ETH were locked in the Beacon Chain, corresponding to a staking rate of 20.18%, up 1.49% week-on-week. The active validator nodes were 670,700, up 2.30% week-on-week, while validator nodes waiting to be activated decreased by 2.71%. Due to the ripple effect of the XRP’s court win last week, the market has lowered its expectations of the SEC’s impact on Ethereum staking, leading to a significant increase in the speed of ETH staking in protocols and exchanges like Lido, Coinbase, Binance.
Among the three major staking protocols, LDO rose by 16.5% over the week, RPL by 0.1%, and FXS by 3.7% from the perspective of price performance. From the perspective of ETH staking volume, Lido rose by 1.60% over the week, Rocket Pool by 1.82%, and Frax by 1.26%. Following the XRP’s victory over the SEC last week, the price of LDO, along with XRP, SOL, and other “securities concept” assets, rose sharply. Another point of note is the large deposit in Rocket Pool’s deposit pool (Rocket Pool has a partnership with Coinbase, and reduced regulatory pressure is good for its business development), with a current balance of 2900 ETH, and the Minipool queue at the node end is clear. For price performance, we need to watch whether primary market investors continue to sell LDO tokens; RPL is currently facing the issue of lack of market makers and contracts, and the liquidity in the secondary market is relatively poor.
【Ethereum L2】
TVL
The TVL in Layer2 increased by about $400 million from the previous week, breaking $10 billion and reaching $10.17 billion.
The TVL of Zksync era decreased for the second consecutive week, falling by more than 10%, while Starknet’s TVL increased significantly by 39%.
On Chain Activity
Event Review
Celo development team proposes to transform Celo into an Ethereum L2 based on OP Stack
On July 16, the Celo development team initiated a new proposal, suggesting that Celo should transition from an independent Layer1 to Ethereum Layer2, using the OP Stack to become the Ethereum L2 architecture. After the transformation, the decentralized sequencer will be supported by Celo’s existing validator set running Byzantine fault tolerance consensus; off-chain data availability layer will be provided by EigenLayer and EigenDA, operated by Ethereum node operators, and protected by restaked ETH. The community will hold a governance call at 8:00 Pacific Time on July 21, and a temperature check proposal will be released after the meeting.
Coinbase’s L2 network, Base, opens its mainnet to developers and plans to publicly launch in August
On July 14, Coinbase’s Layer 2, Base, opened its mainnet to developers and plans to publicly launch in early August.
【DEX】
The combined TVL in DEX is $15.2 billion, down $0.12 billion from the previous week. The 24-hour trading volume in DEX is $1.5 billion, with a 7-day trading volume of $16.19 billion, up $1.19 billion from the previous week.
Ethereum
Ethereum 1inch released dynamics integrated with Sushiswap v3, Velo v2, WooFi v2, resulting in significant increases in 24hr volumes for 1inch, Sushi, and Velo.
ETH L2/sidechain
This week, L2 trading volumes increased significantly, with Starknet +4%, Zksync Era +48%, Optimism +58%, Arbitrum +17.5%, and Polygon +35%.
BTC L2/sidechain
Alt L1
【Derivative DEX】
Last week (July 10th to July 17th), the overall trading volume of derivatives DEX bounced back significantly from the previous week. The weekly trading volume of nine major derivatives DEX protocols was approximately $12.6 billion, while the previous week’s volume was approximately $8.6 billion, a 46% increase. The main reason for the growth in trading volume is XRP winning a partial victory, which led to optimistic market sentiment and active trading.
In terms of TVL, MUX continues to maintain a growth trend, exceeding $60 million. The Gains Network is relatively weak, with no growth in TVL this week and slow outflows.
The position holding is relatively stable. On July 9th, the holding volume of the nine major derivatives DEX protocols was $480 million; on July 16th, the corresponding holding volume was $513 million, an increase of about 7%.
It should be noted that after MUX’s TVL steadily exceeded that of the Gains Network, its holding volume also exceeded the Gains Network for several consecutive days, reaching a maximum of $49 million; while the Gains Network’s holding volume is between $20 million and $46 million. However, the holding volume of MUX fluctuates greatly, with a minimum of $14 million. Short-term violent fluctuations, the holding situation is not yet stable, greatly affected by large accounts opening and closing positions.
Progress of the projects this week
The GMX V2 revenue distribution plan has entered the voting stage. The current distribution plan for GMX revenue is that GMX stakers receive 30% of the protocol revenue, and GLP holders receive 70%. Considering the need for long-term project development, the project team believes that in V2, 10% of the income should be allocated to the treasury, and 90% should be distributed between GMX stakers and GLP holders in a 3:7 ratio. This was discussed in the community in April. The community basically agrees with the plan, with the main focus being on the management and use of funds related to the treasury, to prevent abuse. The proposal started voting on July 12th, 2023, and will end on July 19th. The current agreement vote ratio is 98.17%.
SNX to set up new derivatives trading platform infinex
On July 14th, Kain Warwick, the founder of the Synthetix derivatives protocol, said that he will launch a new decentralized perpetual contract exchange, Infinex. To maximize the user experience, Infinex generates a new public-private key pair for each user and stores it in the client’s browser. But this key cannot be used to withdraw funds, it is only used to sign transactions sent to the Optimism relay. Infinex will no longer issue tokens separately, and Synthetix’s SNX token will be used for governance.
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