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🗳 Axie Infinity’s New AMM Attracts $100M+ Less Than 10 Hours After Launch
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Aave, an open-source and non-custodial liquidity protocol where users can earn interest on deposits and borrow assets.
NEWS All signs point towards lending giant Aave getting a V3 soon. Voting is now live on Snapshot, with well over 99.9% of the votes supporting the protocol releasing its next iteration.
SO WHAT V3’s proposed features highlight how DeFi is becoming increasingly cross-chain and oriented towards Ethereum Layer 2s. Increased capital efficiency and user safety are also important themes.
PORTAL Perhaps the most significant update in Aave’s V3 is a feature called “Portal,” which allows users of the lending protocol to move their supplied liquidity across blockchains.
CROSS-CHAIN In practice this will mean users will burn aTokens on one blockchain and mint them on another. aTokens represent deposited liquidity. The underlying assets will be moved with cross-chain products like Hop Protocol, Connext, and others.
RONIN Axie Infinity has launched an automated market maker called Katana for its sidechain Ronin, and it had 25,000 people interact with it less than 10 hours into its existence, according to Jiho Zirlin, co-founder of the team that built the game.
NEW TOKEN “You can now swap, you can deposit liquidity and you can now farm with your LP [liquidity provider] tokens. We’re going to be turning on LP rewards this week,” Zirlin told The Defiant during an interview at the Axie Rally in Brooklyn, New York, following the NFT.nyc conference this week. The rewards will be in the form of RON, the new token for the Ronin sidechain.
GROWTH RATES There is already $115M in assets locked into Katana. Zirlin explained that its community has been asking for a way to quickly move between tokens on Ronin. “Whenever we reduce friction and make things easier, we see higher growth rates,” Zirlin said.
CHARACTERS What will happen when a bear market hits blockchain gaming, a sector that hasn’t really seen a downturn before? The most obvious game to look at is the market leader, Axie Infinity, the game of teams of cute playable characters battling it out much like Pokemon.
AXIE FAMILY “Right now I am realizing the Axie family is extremely strong. It’s not going to go away,” Ben Heidorn of Blockade Games, the company behind the NFT-powered game Neon District said Thursday at NFT.nyc, the digital collectibles conference that ran from Nov. 2 to 4 in New York.
BLOCKCHAIN GAMES If there’s a bear market coming to crypto soon, as many expect, Heidorn said no one really knows what the impact will be on blockchain games that have made so much progress in recent years. He predicted that the most popular blockchain game so far will weather it successfully. That reflected the general bullish sentiment of the play-to-earn panel on the last day of the conference.
In this provocative guest column, Derek Alia, the CEO of Futureswap, writes about how NFTs are increasingly trading like securities and enabling investors to express bullish and bearish views on specific pieces.
POLARIZING The NFT market is bizarre, brilliant, or both, depending on who you ask. One thing is for sure, the $10.7 billion in trading volume during Q3 is enough loot to make ignoring NFTs futile. NFTs are, like many things today, a polarizing subject. But now, NFT pessimists can put their money where their Tweet is and short that CryptoPunk they loathe so much.
CREATIVITY It was not so long ago that NFT collectors could only buy, hold, and sell an NFT. Those were simpler times. Today, thanks partly to oracles, permissionless protocols, fractionalized NFTs, and the creativity of the commons, traders can short, go long, and use leverage via perpetual contracts.
UNDERLYING VALUE Perpetuals are crypto-native derivative contracts similar to futures with no expiration date or settlement, allowing them to be held or traded for an indefinite amount of time. Essentially, this enables traders to get some skin in the game and lay financial claim to what they feel the true underlying value of a particular NFT is — all without owning it.
On-Chain Markets Update by Juan Pellicer, IntoTheBlock
This week, IntoTheBlock explores new features from the big DeFi lending platform.
TL;DR MakerDAO is back in the spotlight both for its new feature release as well as the surge of its token, MKR, by 24% in the last seven days. A proposal was passed this week to launch a new feature called Dai Direct Deposit Module (D3M).
DAI SUPPLY This will allow Maker to directly interact with its secondary market by actively controlling the DAI supply according to its market demand. The effect will be better rates for its users and an increment in DAI supply. Such an increment will directly impact the MKR holders due to Maker auctions and token burns. We will show here some on-chain indicators about the current DAI growth and how the MKR holders are reacting.
MINTED Periods of high demand in DeFi produce high spikes in borrowing rates that negatively affect users that have to pay higher than expected costs over their loans. D3M will act over the main DAI lending market (Aave) by stabilizing its DAI interest rates. When the demand for it is high, DAI will be minted and supplied over Aave to decrease its interest rates. Conversely, if demand is low DAI liquidity will be removed from Aave in order to increase its interest rate.
NEWS You know a new iteration of the Web is ready to take off when the gamers get on board. Web3 just picked up serious mojo with a $100M fundraising deal designed to build out the next generation of gaming apps and ventures.
STUDIO Solana Ventures, the strategic investment arm of Solana Labs, has joined forces with Lightspeed Ventures and FTX to finance a studio for games that will live on Web3, the rapidly expanding home for decentralized apps powered by the Ethereum blockchain.
INTERSECTION The firms plan to create games, technology, and projects “at the intersection of blockchain and gaming,” they said in a joint statement released today. “In the last few months we’ve seen talented game builders leave their jobs at Riot, EA, Scopely, and other established gaming firms to build web3 games on Solana,” said Anatoly Yakovenko, CEO of Solana Labs. “We are excited to collaborate with Lightspeed and FTX to support and accelerate this new wave of builders.”
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Crypto leaders are divided over whether Mark Zuckerberg should lead Facebook into the Metaverse, with Hodl Asset’s Jenny Ta saying he needs to resign if Meta is to succeed while Animoca’s Yat Siu says Zuck is the only one who can drive the company forward.
Who is CelsiusX and what is the cross-chain liquidity bridge? We'll dive into these topics and answer these questions in this video.
In 2019, the first version of the Aave protocol smart contracts (the “Aave Protocol”) were deployed to the Ethereum mainnet. V1 of the Aave Protocol provided a way for users to provide and obtain liquidity autonomously, and to earn yield on any liquidity provided to the protocol.
Craig Wright – the Australian computer scientist best known for his widely disputed claim to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin – is now expected to testify in a Miami court on Monday.
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NFT-backed Lending Market Surges with $1M-Plus Loans and 20% Interest Rates The NFT-backed loan market is off the hook. The latest sign? A $1.42M loan secured by Autoglyph #488, an NFT produced by CryptoPunks’ creators, Larva Labs, was approved on Oct. 28. It’s the largest NFT-backed loan ever, according to Stephen Young, the founder of NFTfi, the peer-to-peer lending protocol that facilitated the transaction.
DappRadar Exclusive Report: Play-to-Earn Revolution Leaps Beyond Axie Infinity with New Games and Tokens Generating income while playing a game sounds like a utopia for most of us. However, thanks to the play-to-earn movement, that scenario is not far from reality.
XRP Holders to Get Huge Airdrop of New Blockchain Songbird Not only is DOGE a very good boy, its coin is about to be very smart, too — as in, smart contract-ready.
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🧑💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Samuel Haig, DeFiDad and yyctrader, and edited by Edward Robinson, Bailey Reutzel, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access, while free signups get only part of the content. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button above ($15/mo, $150/yr).