DeFi Season in Full Swing; Blue Chip Tokens Climbing Up the Ranks

DeFi tokens exploding yesterday with Cream (55.5%), SYN (55%) MTA (46%), 1inch (34%), AAVE (28%), bzrx (26%), SWRV (24%), UMA (22%), and UNI (21%) leading the market.

This had the total value locked (TVL) in decentralized finance (DeFi) at a new ATH above $23.85 bln, DeFi Pulse.

Meanwhile, the market cap of the top 100 DeFi tokens has reached $30 billion.

These gains result in DeFi tokens gaining higher ranking in the entire cryptocurrency market, with Polkadot (DOT) replacing XRP at 4th space, with Uniswap (UNI), Aave, and Synthetix (SNX) particularly climbing up the ranks to become 17th, 18th, and 23rd (now 24th) largest crypto assets by market cap.

Given the development and repricing, DeFi tokens see it won’t be long before several of them join the top 10.

Power of on-chain cash flow

In this past week, HGET (88.8%), CREAM (88%), AAVE (70%), SUSHI (55%), CRV (55%), PEPP (54%), UNI (47%), MTA (39%), 1inch (35%), and RUNE (34%) recorded significant gains.

Cream’s gains are the result of the launch of the road to Cream V2, which aims to become the Iron bank, which “actually *creates* value for tokens like YFI and ALPHA,” which was “previously impossible,” says Kyle Samani, Managing Partner at Multicoin Cap.

YFI, currently trading around $33,420, recently announced the proposal of buying back the crypto asset, and much of the community has come out in support of this.

When it comes to Sushiswap, its TVL has hit the milestone of $2 bln.

The token SUSHI is also enjoying the greens, surging past $7, bringing the market cap of $924 million.

The DEX project has come a long way since its controversial start, steadily growing its liquidity and volume, both of which are also hitting new highs.

The same is the case for fees that have surpassed $2 million on a daily basis. Sushiswap actually incentivizes LP and token holders by charging traders a 0.30% fee on each trade, out of which 0.25% goes to LPs and 0.05% to those staking xSUSHI.

“The power of on-chain cash flow: over 58% of the circulating SUSHI supply is locked in xSushi, earning a double-digit annualized earnings yield. Coins being accumulated on centralized exchanges and moved into on-chain yield-bearing contracts is a welcome development,” noted Max Bronstein, who previously worked at Coinbase.

Still, Sushiswap’s valuation relative to sales has decreased by 40% during all this growth.

DeFi’s stablecoin not stable

Maker is also finally enjoying this uptrend as it retakes its dominant position in the space, currently at 17.84%, with its TVL surpassing a whopping $4.26 bln.

The Ethereum-based MKR is a governance token for MakerDao as well as Maker’s decentralized lending platform. The latest success in the value of the project is attributed to the increase in the supply of its stablecoin DAI.

DAI’s market cap has grown to $1.3 bln as per Coingecko, up from $129.5 mln on July 1st, 2020.

Unlike DAI, other DAI stablecoins are anything but stable with BASED trading at $0.94, AMPL $0.88, DSD $0.79, DEBASE $0.87, SHARE $0.69, ESD $0.57, and BSD $0.33.

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Author: AnTy

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

“Defi has incredible potential,” says Mark Cuban but cautions that much like derivatives, “risk never leaves the system” here as well.

Ethereum is notorious for its extremely high fees when the network activity amps up.

In January, with ETH and DeFi tokens enjoying an uptrend and offering buy the dip opportunities, too much activity is making the platform costly to use. Popular DEX Uniswap, which has long been the biggest gas guzzler, has spent $28.3 million in gas in the last 30 days.

“The high gas costs are a direct result of *huge demand for trading on Uniswap,” said Hayden Adams, the creator of Uniswap, earlier this month when the fees skyrocketed yet again.

“Scaling is a huge problem. It absolutely sucks small transactions are sometimes priced out during volatility.”

But it looks like it’s not only the smaller users that are feeling the brunt of the hefty fees; even the billionaires are complaining. This billionaire, is none other than crypto skeptic Mark Cuban.

Cuban mentioned that gas was always an issue when Haralabos Voulgaris, Head of Quantitative Research at Dallas Mavericks, suggested there being real value in sending money over a decentralized, permissionless network. Cuban feels,

“Except the gas is always an issue. Just the cost of moving crypto to AAVE is crazy expensive, and the number of non crypto options will increase.”

With the Shark Tank investor who finds more worth in bananas and compares crypto trading with the dotcom bubble,  name dropping popular DeFi project, AAVE got the CT excited AAVE 10.31% Aave / USD AAVEUSD $ 140.95
Volume 509.28 m Change $14.53 Open $140.95 Circulating 12.2 m Market Cap 1.72 b
8 s Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited 1 d A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round 1 w Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC

“One of the most high-profile billionaires trying out DeFi. I am liking this trend,” noted one such DeFi investor.

However, just because Cuban publicly doesn’t find worth in crypto doesn’t mean he isn’t trying things out, as he responded,

“I don’t think people realize I try to test and use all this stuff and have for years. I still have crypto from the early days of coinbase. I’ve never sold anything.”

As for decentralized finance itself, Cuban says, “DeFi has incredible potential.” Still, according to him, much like derivatives, “risk never leaves the system” as it faces the risk of a dominoes-like collapse. Cuban said on the prospect of Defi fixing the problem of underbanked,

“It’s a long way off for the unbanked. Most deal with cash or lack compute power so they need intermediaries. That’s costly. As DeFi grows away from overcollaterization, it will be interesting to see if access expands or contracts.”

But here, the CT takes over and points out that while “the system is only as strong as its weakest link.” We do, in fact, need better insurance models; the missing point is “unlike tradFi, DeFi is a perfectly transparent system that allows you to measure risk in real time,” said Santiago R Santos, a partner at Parafi Capital.

The DeFi space has grown to over $20 billion in total value locked (TVL) as the DeFi project continues to grow and rise in value. This week, the top US banking regulator actually talked about the opportunities of DeFi and regulators needing to be ready for it.

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Author: AnTy

This DeFi Blue Chip is Coming to Bitcoin with The RSK Market Proposal

“An Aave approach to the Bitcoin world” is what the DeFi Bluechip project is trying to achieve now.

The popular decentralized finance project announced this week that it is now coming to Bitcoin with a new proposal “for an RSK market on the Aave Protocol.”

“This is a huge step for expanding the DeFi ecosystem,” noted the team which launched Aave V2 last week, which saw its market size surpassing $35 million. The upgrade makes the project easier and cheaper to use, with its flash loan functionality also getting a revamp.

Following the launch of the latest version, the team proposed the ability to separately delegate proposal power and voting power —

“a major step in governance scalability as we believe the ability to assess proposals require different skills than those needed to make a smart contract proposal.”

Aave is the fourth largest DeFi project whose governance token AAVE continues to grow strong, trading at $76.28, with a whopping 4,147% year-to-date performance.

The project has $1.6 billion in TVL, with 432.5k ETH, 10k BTC, and 15.55 million DAI locked in it.

The proposal on Aave’s governance forum explains that for leveraging Bitcoin, they will be incorporating the RSK Market. This will be completely done by RSK devs, and integration has already been done with Chainlink, which will be used by Aave.

RSK’s full technology stack is built on top of Bitcoin, and its goal is to add value and functionality to the ecosystem of the largest cryptocurrency by enabling smart-contracts, near-instant payments, and higher-scalability.

Instead of a bridge, Aave proposes creating a Market, a new idea that incorporates new customers that are not using Aave. All new tokens already on RSK Marketplace natively will be brought along with the new proposal to increase the liquidity and opportunities for both companies. The team noted,

“We will bring to the table new customers that will bring new business and liquidity from the bitcoin world that look the DeFi platforms differently.”

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Author: AnTy

DeFi Leader, Aave, Rolls Out V2; Adding ‘Collateral Swaps’ to Reduce Loan Liquidations

Aave, a decentralized lending platform, launches Version 2 (Aave v2), bringing along a slew of new features to build more efficient decentralized lending solutions. While the added features all bring better efficiency to the platform, the new collateral swap feature is the poster boy for the Aave v2 launch on Thursday.

Furthermore, the launch coincides with the recent rise in Aave flash loans – reaching $1 billion – and rise to the fourth spot in rankings of the largest DeFi projects in total value locked (TVL) – recording $1.5 billion in TVL (10% of the total DeFi market cap).

The collateral swap feature

As mentioned, the new collateral swap is the most exciting feature in the new upgraded version. If a user wants to borrow across the DeFi ecosystem, users place their crypto as collateral, locking them up until they are repaid. For example, a user can put ETH as collateral against Maker’s DAI stablecoin to use it. However, they wish. However, this forces the user into a long position on ETH since they are locked for a set period.

If the price of ETH tanks, the user will be readily liquidated, as witnessed during the March mega-crash. The new collateral swap feature allows the borrower to swap their collateral for another token efficiently while using low gas costs. In the case that if the ETH price is collapsing, users can switch it for wBTC, AAVE, LINK, or even a stablecoin to protect them from volatile crypto price movements and potentially liquidations. Stani Kulechov, Founder of Aave, wrote in a blog post,

“In DeFi, assets that were being used as collateral were tied up, but now with V2, they are free to be traded,”

“Users can trade their deposited assets, across all currencies supported in the Aave Protocol, even when they are being used as collateral.”

The collateral swap on Aave v2 is supported by a new flash loan, a new feature on the upgrade, allowing users to open and close a loan within one block. The new feature aims to quicken the process and reduce the fees when repaying loans giving users a seamless experience.

“This new feature allows users to close their loan positions by paying directly with their collateral in just 1 transaction — smooth and simple.”

Native credit delegation introduced

Aave v2 encompasses a host of features, including credit delegation aiming to revolutionize the decentralized lending industry. According to Stani’s post, the credit delegation feature will “open up access to liquidity without [the user] needing existing capital.” Introduced back in July, the CD feature remained a hugely centralized feature on version 1, managed by the Aave development team.

The upgrade introduces a more decentralized power to users who wish to delegate their collateral to another account. In a statement to Coindesk, Kulechov called on developers to build systems atop the Aave v2 and solutions to boost credit delegation across the platform.

Other features added on Aave v2 include batch flash loans, flash liquidations, gas optimization, and stable & variable rate borrowing, allowing users to switch conditions on their loans at any given time, switching from regular and irregular rates.

The Aave community also recently passed the AIP-3 proposal that makes a move from v1 to v2 seamless. The statement reads,

“By using a Flash Loan powered migration tool, users will be able to make the transition without having to close their V1 loan positions.”

The migration will be launched later in the month.

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Author: Lujan Odera

Aave Takes an ‘Important’ Step Towards Decentralization with the Handover of Governance Keys

In what marks a historic moment, decentralized finance (DeFi) project Aave has officially handed over the protocol admin keys to the governance, which it calls “an important step towards decentralisation.”

Initially launched on Ethereum, LEND token holders were the ones with the governance. Now, about a month away, LEND holders voted for the first Aave Improvement Proposal (AIP) to migrate to the AAVE token at a rate of 100:1, “effectively jumpstarting the Aavenomics.”

The governance tokens were first distributed in a nearly $18 million token sale in November 2017.

Currently, LEND’s migration is going on with the AAVE token now the new governance token of the protocol.

With a total token supply of 16 million AAVE, 13 million will be redeemed by LEND token holders, and 3 million will be allocated to the Aave Ecosystem Reserve.

Besides voting on AIPs, Aave holders can stake their tokens in the Safety Module and earn Safety Incentives in exchange for securing the protocol.

Aave protocol facilitates the issuance of “flash loans,” which has been described as the “first uncollateralized loan option in DeFi.”

Currently, the project is the 5th biggest DeFi protocol by the Total value locked (TVL) of $975 million, down from $1.7 billion on August 31st, as per DeFi Pulse.

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Author: AnTy

Lending Protocol, Aave, Raises $25M From Investors; Plans to Bring DeFi Closer to Institutions

Aave, one of the leading DeFi protocols for lending and borrowing, announced today that it had received a $25 million investment from prominent investors, including Ventures, Standard Crypto, and Blockchain Capital. The newly injected funds boost Aave’s capital base; the firm had already raised $24 million since 2017 in three token sales.

According to Aave’s CEO, Stani Kulechov, they are now looking to expand their footprint in the Asian market and bring DeFi closer to institutions;

“Aave raised funds from strategic investors to bring DeFi closer to institutional use and to expand the team size to serve the growth in Asian markets.”

Kulechov also noted that the strategic investors would be included in Aave’s governance and get an opportunity to stake on this DeFi protocol. This development coincides with the ongoing migration to ‘Aavenomics’ as earlier reported by BEG.

Aave has been upgrading its native token ‘LEND’ to a more effective governance token ‘AAVE’; the initiative rolled out earlier this month but had been in the works since the beginning of 2020. Kulechov said,

“Aave is now moving towards the AaveDAO, which means that after the migration from LEND to AAVE, anyone can build new functionality into the protocol along with the Aave team, effectively decentralizing development and governance.”

Aave’s DeFi protocol has been thriving; its current TVL stands at $1.15 billion according to metrics from DeFi Pulse. This makes it the third-largest DeFi protocol as of press time; the platform touts close to $500 million worth of flash loans since its debut about nine months ago. Its prospectus native token ‘AAVE’ was recently listed on Gemini exchange and featured in custodial services.

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Author: Edwin Munyui

Aave & Synthetix Dominate FTX’s DeFi Index; Replacing Maker & COMP

  • Aave (LEND) continues to lead the decentralized financial (DeFi) sector, accounting for the highest 17.82% share of the marketplace.
  • This dominating DeFi lending protocol, which has a total locked value (TVL) of $1.52 billion, is now the second most weighted digital asset in the derivatives platform FTX’s DeFi Index.

FTX’s DeFi perpetual contracts were launched in mid-June with Compound (COMP) and Maker (MKR) having the dominant position with 20% share each, which has now fallen to 11.2% and 6.1%, respectively.

It makes sense, given that while COMP and Maker were hot at the beginning of this DeFi craze but now as the market grows, other projects are gaining strength.

While Maker saw the biggest reduction in its weightage in FTX’s DeFi Index, Kyber Network (KNC), 0x (ZRX), Augur (REP), and Bancor (BNT) also recorded a lower end single-digit decrease.

Meanwhile, emerging projects like Kava, Loopring (LRC), and REN registered a jump in their weightage.

However, the biggest gainer has been Synthetix (SNX), the 6th largest DeFi project with just over $745 million in deposits, as per analyst Ceteris Paribus.

Together LEND and SNX account for 46.6% of FTX’s DeFi Perpetual contracts.

Since the launch of the DeFi futures contract in mid-June, LEND and SNX are the biggest gainers while Maker has actually suffered losses.

The DeFi PERP is currently trading at $2,607 with a volume of $3.2 million, up from around $1,200 level it was at during the launch but down from nearly $3,500 high on Sept. 1st.

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Author: AnTy

Aave Dominates after DeFi Loses One Unicorn, FTX Launches LEND Perpetual Contracts

Aave is now the dominating force in the DeFi world.

With a dominance of 20.72%, this lending protocol currently has $1.54 billion of total value locked in it, out of the total DeFi TVL of $7.45 billion.

Aave is actually now one of the three unicorns of the DeFi world after Uniswap lost its status following SushiSwap’s migration.

Uniswap’s clone, SushiSwap, was responsible for more than 75% of the liquidity on the former DEX, which resulted in its TVL to be more than halved to $450 million, volume to slash down to around $350 million, and liquidity to take the biggest hit to $600 million.

Still, the numbers are improving and are better than the pre-SushiSwap launch. As such, currently, Aave, Maker, and Curve Finance are the only ones with more than $1 billion TVL.

DeFi darling Yearn.Finance is close behind with $806 million, followed by Synthetix $715 million, Compound $612 million, and Balancer with $564 million.

Aave Perpetual Contracts

The derivatives platform FTX meanwhile launched LEND perpetual contracts today.

One of the hottest DeFi tokens in the market, LEND, has seen an uptrend of 7,460% YTD. Today, this 26th largest crypto with a market cap of $866 million jumped 21% on the back of FTX listing, trading at $0.665.

FTX is recording a volume of 2.9 million LEND and open interest of nearly 635k LEND on its perpetual futures.

FTX CEO Sam Bankman-Fried, who was recently handed over the control of SushiSwap, also announced that its migration has also been successful and the DEX is now live with staking SUSHI enabled to earn fees from Sushiswap.

Also, FTX’s partner Solana blockchain’s on which the DEX Serum is built will now have Tether running on it. The idea is to “facilitate the building of ultra-high-speed, low-cost decentralized finance (DeFi) applications.”

The most popular stablecoin Tether (USDT), which is the third-largest cryptocurrency by market cap of $14.7 billion, already runs on several blockchains including Ethereum, which accounts for more than 60% of all USDT issuance, followed by Tron, Omni, EOS, Liquid, Algorand, and Bitcoin Cash’s Standard Ledger Protocol (SLP).

Solana’s native token responded with a 30% spike in its price to $3.34.

“Tether is expanding every day/week/month/year since 2014. Never stops, never sleeps, just works,” said Paolo Ardoino, CTO at Tether and its sister company, crypto exchange Bitfinex.

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Author: AnTy

Institutional Interest Picking Up for This DeFi Token which is on a ‘Tear’ This Year

The biggest gainer of 2020 Aave (LEND) has hit a new all-time high today at $0.58.

The 27th largest cryptocurrency by market cap of $736 million that has recorded 6,380% returns YTD is in the double-digits green today.

The protocol also has a record of $1.145 billion of total locked value, as per DeFi Pulse.

As IntoTheBlock notes, this decentralized lending protocol “has been on a tear this year.”

Besides price, LEND’s large transaction volume hit an-time high as well at $148 million last week, which “points to institutional interest picking up for Aave.”


Aave has already been a “DeFi VC darling” with the sale of $3M worth of LEND tokens to crypto funds Three Arrows Capital and Framework Ventures. About a week before that, it had secured $4.5 million investment from ParaFi.

The tremendous success of Aave, previously known as Eth.Lend, has been more than just speculative, as it grew to be a $1 billion market with innovations like flash loans, credit delegation, and stable rates.

Additionally, as we reported, just over the weekend, the decentralized money market protocol announced Aave V2, which will be venturing into debt, collateral, and margin trading.

Interestingly, it is also planning the tokenization of all kinds of assets, and collaboration with RealT is reportedly already in the works.

The latest version will also include transition to governance and transaction fee optimizations.

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Author: AnTy

Aave Launches V2 to “Push DeFi Limits,” LEND Hits ATH & TVL Doubles to Exceed $1 Bln

One of the hottest crypto projects in decentralized finance (DeFi), Aave, is now ready to leave phase 1 by launching Aave V2 to “push the limits of what is possible,” with this sector.

There is already much excitement for the (formerly known as Eth.Lend) project, which was launched in January 2020 after a 2017 $16.2 million ICO, into the community as it integrates with other popular DeFi projects.

In the past couple of years, the protocol has grown to be of 1 billion market size with innovations like flash loans, credit delegation, and stable rates.

Recently, there have been reports that the project will be transferring the ownership of the project through its governance token AAVE.

In its latest announcement, the team shared governance features such as vote delegation and cold wallet voting that will be coming with V2.

“V2 will be the start of what is commonly referred to as “Liquidity Mining” for the users of the Aave Protocol,” it read.

Much Excitement

The native token of the money protocol LEND took a jump on these upcoming developments, hitting a new all-time high of $0.499. This biggest gainer of 2020, with 5,400% returns, has recorded an increase of 13,500% in the past year.

Even more exciting response was reflected in the total value locked in the protocol, which doubled, going from $529.5 million yesterday to surpass $1 billion yesterday, as per DeFi Pulse.

Meanwhile, with this new version, Aave is also ready to venture into debt, collateral, and margin trading.

The Aave protocol V2 will allow anyone to natively trade their debt position, which will open the possibility for interest rate optimization and yield optimization strategies.

To onboard a new set of users, this new version will allow users to repay with part of their collateral and introduce debt tokenization and native credit delegation.

Interestingly, the Aave protocol will open private markets to support tokenize assets of all kinds. “A collaboration between RealT and the Aave Protocol is in the works to push DeFi even further and bring mortgages on Ethereum.”

Fixed deposit rates are meanwhile chosen to provide a guarantee of income for liquidity providers, so that market volatility doesn’t affect them while improving the stable borrow rate.

With V2, Aave is also tackling the skyrocketing Ethereum gas prices. First, for gasless approvals, aTokens V2 integrates the EIP 2612. Besides introducing significant gas Optimisations that will be leading to a “sharp drop” in the transaction cost, they will implement native GasToken Support as well.

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Author: AnTy