Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
, Author: Ryan Todd, translation: Li Hanbo, reprinted by Odaily with authorization."locking"The development of the digital asset industry is very rapid, and its development in one quarter can be compared with the development of the traditional technology industry for a whole year-the iteration and development speed of DeFi this summer have stunned even the most low-key market participants.
into June,
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The total amount of funds in DeFi applications and protocols has reached an all-time high of $1.2 billion, and the previous high was set before "312". In just three months since then, that number has now grown nearly eight-fold, according to DeFi Pulse."Likewise, we have also seen the explosion of various money market (borrowing) and DEX protocols. Now, there are also over 450,000 unique addresses on DeFi protocols (Dune Analytics - Richard Chen). While there may be multiple addresses for unique users interacting with these protocols, the number has still more than doubled since June. Meanwhile, DEX trading volume reached a new all-time high in August, surpassing $11 billion — a huge jump from July’s $4.4 billion. Even more impressively, the jump in DEX volume came at the expense of centralized exchanges, as the ratio of spot volume on decentralized exchanges to centralized exchanges hit a record 6% in August New highs (3.95% in July, 2.1% in June). The market leader DEX Uniswap, based on average daily trading volume, even had a total trading volume of nearly $1 billion on September 1, surpassing the total trading volume of Coinbase Pro on that day."As Steven Zheng pointed out last month, there was a “Frakenstein Code” trend in August, as code-replicating projects sprung up in the DeFi space. The new yield farming protocol follows three distinct themes: 1) using yield farming to incentivize capital formation, 2) using AMPL's rebase feature to create a gamified "Ponzi economy" product to incentivize transactions; 3) using memes and food emojis to attract more attention.
The extraordinary growth of transaction volume and capital flow (usage) of these agreements makes DeFi
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So how did the DeFi field reach this step step by step? Let's take a look at what's been going on in the DeFi market this summer.
This post helps organize some of the key noteworthy events in DeFi this summer, while highlighting previous The Block research work on different protocols within DeFi.
Details about the agreement, important milestones, and additional research by The Block are listed chronologically starting with the timeline.
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The release of the COMP governance token is part of Compound's efforts to gradually achieve decentralization by eliminating the risk posed by key players, allowing the Compound community to weigh protocol updates and monetize them after a buffer period of full decentralization .
According to the distribution schedule at that time, about 2,880 COMP were allocated to the eight lending markets on Compound every day, including ETH, DAI, USDC, USDT, BAT, REP, WBTC and ZRX. The amount of COMP received by each market is proportional to the interest accumulated in the market, and users earn corresponding COMP in real time according to their balance on Compound. Although Compound was originally pioneered by the now-defunct crypto exchange Fcoin, it is now widely believed in the community that Compound popularized the use of liquidity mining to issue its native tokens.
It is worth noting that within one day of the Compound token transaction, the protocol won the first place in the total value of assets locked in all DeFi projects (June 20). At the time, this represented 32% of the total assets under management in the DeFi sector, according to DeFi Pulse. But it won't last long. As of Sept. 14, Compound is currently the 7th largest DeFi protocol by stored value, according to DeFi Pulse.
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Following the success of Compound and COMP, Balancer (n-dimensional automatic market maker) launched its own liquidity mining plan. On June 23, BAL token began trading on the Ethereum mainnet.
Balancer launched its liquidity mining program on June 1, allowing liquidity providers on the platform to start earning BAL by supplying tokens to the protocol. At the time, the team clarified that users would not actually receive their BAL until a few weeks later, as it was still working out the final details of the BAL smart contract deployment.
Before the token launch, BAL had fewer than 70 independent liquidity providers (LPs) in total, however, the number jumped to over 436 on the second day of the token launch. As of September 14, BAL currently has over 1,400 LPs.
July - Nexus Mutual
Launched in May 2019, Nexus Mutual is a member-owned capital pool that provides insurance against smart contract bugs. The project token NXM uses a bond curve to incentivize effective capital buybacks to pools at any given time subject to minimum capital requirements.
With the total value locked in DeFi now exceeding $8 billion, Nexus Mutual’s insurance coverage has surpassed $120 million (Nexus Tracker). It's worth noting that Nexus Mutual's coverage was worth less than $10 million just two months ago.
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In early 2020, yearn.finance was a simple protocol that aggregated different lending protocols (i.e. Compound, Aave, and dYdX) to optimize returns for users.
The initial version of the protocol does not have tokens, and does not even have many functions. Users deposit funds into a smart contract that analyzes the returns of various lending markets and then automatically rebalances funds to keep up with the best strategy.
Assets under management on the platform have grown from less than $10 million to over $607.5 million in the past month. Launched on July 18, 2020, from July to August, the market value of YFI grew from $0 to $295.5 million. Currently, its market cap is under $800 million.
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August-Curve
Curve is an automated market maker platform for trading stable assets. The key feature behind Curve is that by changing the pricing formula for assets in its liquidity pool, Curve can offer less slippage for transactions between assets that are relatively stable in price with each other, such as stablecoins.
On August 14, the launch of the Curve (CRV) token appeared to be forced by the community, after an anonymous developer ran and deployed its smart contract in front of the Curve team without the knowledge.
Due to its sizeable stablecoin pool, Curve is the platform of choice for many people trading stablecoins and Bitcoin. This creates compounding opportunities for Curve's minority pools.
Two days after its token was launched, Curve became the third DeFi protocol to reach $1 billion in total value locked. Currently as of September 14, it is right at the $1 billion level.
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August - Yam Finance
Yam looks similar to Ampleforth (a price-elastic currency that adjusts supply to demand), but with the premise that after the protocol performs an aggressive rebase (see: expanding its supply), it will use a portion of that supply to Buy yCRV, a yield-generating basket of stablecoins on the Curve protocol.
Two days later, the project will fail due to a buyback bug that the team cannot fix, causing the market value of each yam to drop to zero, with a net loss of funds of about $750,000 and yCRV tokens locked forever.
But then, Yam Finance set up a Gitcoin donation to coordinate community funding to audit the Yam contract to support the launch of Yam 2.0.
August - Aave
Decentralized money market protocol Aave overtook MakerDAO to become number one in total value locked (TVL) on Aug. 25. Currently, it still has the largest dollar asset value today (September 14).
After becoming the peer-to-peer lending model leader, the Ethereum-based money market protocol continues to grow at an impressive rate.
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September - Uniswap to SushiSwap
SushiSwap is a fork of Uniswap v2. It was initiated by an anonymous developer. He introduced a governance token called SUSHI. If liquidity providers (LP) stake Uniswap LPtoken, they can earn these tokens, and then Ultimately providing liquidity on SushiSwap.
