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🏊🏻♀️ Balancer’s New Kind of Pool Enters Battle for Crypto Liquidity
Hello Defiers! Here’s what we are covering today,
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🙌 Together with:
Balancer, one of the leading DeFi automated market makers (AMM) for multiple tokens. Dive into their pools at
Kraken, consistently rated the best and most secure cryptocurrency exchange, which can get you from fiat to DeFi
Aave, an open-source and non-custodial liquidity protocol where users can earn interest on deposits and borrow assets.
The DeFi Pulse Index, by Index Coop - DPI is the easiest way to capture the upside of DeFi with the benefit of diversification. Buy DPI today on your favorite DEX.
TLDR Automated portfolio manager Balancer introduced a new mechanism to improve capital efficiency for liquidity providers as it aims to take a larger bite of the interest-bearing token market.
NESTING Balancer’s so-called metastable pools have a “nesting” feature, facilitating cheap swaps between one pool’s tokens and those of a nested group of tokens, as though all tokens were in a single pool, according to a blog post published Monday. This type of liquidity pool is best suited for tokens with highly correlated, but not hard-pegged prices, like digital assets that gradually accumulate fees. Interest-earning tokens, or derivatives of staked cryptocurrencies, are examples of such assets.
COMPETITION Metastable pools should help it compete with the likes of Curve Finance and Uniswap, the leading DEXs for trading stablecoins, as all the decentralized exchanges work to become the single place for non-custodial crypto trading.
NEWS If TikTok is a window into what teens are up to these days, then crypto has a place beside dance videos.
ONE-CLICK On Aug. 17, blockchain-based music streaming protocol Audius announced its partnership with TikTok to allow one-click sharing with the social network.
SO WHAT This is the first music integration TikTok has established. The upshot of the partnership is that a social media giant is betting on a blockchain-powered app before streaming behemoths like Spotify and Apple Music. This signals that Audius, at least, may be ready for primetime and mainstream adoption.
TLDR A copyright battle is being waged in the NFT space. On August 16, Sad Frogs District, a collection of 7,000 Ethereum-based non-fungible tokens (NFTs), was delisted from OpenSea, the largest NFT marketplace.
NEWS According to the OpenSea team, the action was taken in response to a Digital Millennium Copyright Act (DMCA) takedown request by Matt Furie, the creator of Pepe the Frog. According to the request, Furie is the “sole and exclusive owner” of Pepe the Frog and as such, Sad Frogs District is infringing on his copyright.
GAS WAR Understandably, this did not go down well with holders of Sad Frog NFTs, who had to fight through a gas war in order to mint the tokens when they dropped on August 8. At the time, gas fees on Ethereum reached as high as 1000 gwei. Some users paid $300 or more to mint the Sad Frogs, which were sold for 0.05 ETH apiece.
Molly Wintermute Releases Hegic V8888: 0% Trading Fees and Gas Fee-Free Options Trading
Hegic V8888 is live in mainnet:
Hegic is an on-chain peer-to-pool options trading protocol built on Ethereum. With Hegic, DeFi and crypto users can trade 24/7 American, cash-settled, on-chain ETH and WBTC call / put options with no KYC or registration required for trading.
Hegic was founded 1.5 years ago in February, 2020. Hegic V888 (the previous version) was live for 10 months. The results achieved by V888:
● $492,075,000 total volume
● $22M record daily volume
● 6,450 options traded
● 2,825 unique users
● $10,415,000 earned by HEGIC staking lots holders
Introducing Hegic V8888
Trading Options on Hegic V8888
● 0% trading fees: pay only a premium
● 100% gas fee-free options trading
● The lowest prices for ETH and WBTC call / put options
● Auto-exercising of in-the-money options
● Tokenized options for trading on the secondary market
● 90 days is the new maximum period of holding options
Earning Yield on Hegic V8888
● Zero-loss options selling pools with auto-hedging
● x2 higher capital efficiency with flexible collateralization
● Independent pools for selling call and put options
● Individual lock-ups for each liquidity tranche deposited
● Pools’ unrealized profits front-running prevention
● Real-time data on pools APY and P&L per each option sold
Use Hegic now:
NEWS Five months after opening the door to SushiSwap, Harmony One is inviting more major DeFi apps to hop on its blockchain.
TOKENS Harmony One, one of a handful of platforms that uses sharded proof-of-stake for consensus, wants Curve Finance, the automated market maker, and Aave, the lending platform, to join the party. It’s offering $2M in its ONE tokens to each app as an incentive to make the move.
SCALE Sharded proof-of-stake means a project uses many blockchains in parallel in order to scale. The Layer 1 Polkadot uses a version of the consensus mechanism and Ethereum plans to add sharding in 2022.
ACTIVE WALLETS In typical crypto fashion, the public proposals materialized on Curve and Aave’s governance forums. Li Jiang, the COO at Harmony, authored both posts — Curve’s on Aug. 15, and Aave’s on July 29, inviting blue chip DeFi protocols into its ecosystem. Harmony reported having 135K active wallets.
How to enter 3Pool on Mercurial Finance | Solana Tutorial
The last-minute cryptocurrency provisions added to the U.S. infrastructure bill sought to “capture DeFi,” argues Compound’s general counsel Jake Chervinsky. Appearing on the Bankless State of the Network podcast on August 17, Chervinsky — who is also DeFi Chair of the Blockchain Association — said the industry had been “blindsided” by the infrastructure bill’s crypto tax provisions which were announced just nine days prior to when it was expected to pass through the senate.
1inch, a decentralized exchange (DEX) aggregator that sources liquidity from various exchanges, has expanded to Optimism Ethereum, a Layer-2 scaling solution.
Dear Bankless Nation, Uniswap V3 created a new way to provide liquidity in DeFi. Rather than requiring liquidity providers (LPs) to provide liquidity to a full price range (like in V2), Uniswap V3 enables this thing called concentrated liquidity. In short, it gives LPs preferences on a price band where their liquidity is used.
Called Power Perpetuals, these financial instruments provide global options-like exposure without the need for either strikes or expiries, giving them the potential to consolidate much of options market liquidity into a single instrument. They can be thought of as offering pure convexity.
Since dYdX functions as a central limit order book (CLOB), it needs to compete with centralized exchanges to attract standing liquidity. The Liquidity Staking Pool, therefore, functions as a similar form of incentive that market makers are used to from centralized exchanges: interest free, uncollateralized credit lines to be used solely on the dYdX Layer 2 perpetuals protocol. Market makers can therefore use this pool as a line of credit, and immediately add liquidity across multiple markets on the exchange.
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🧑💻 ✍️ Stories in this newsletter were written by Brady Dale, Owen Fernau and Juan Pellicer, and edited by Camila Russo, Bailey Reutzel and Edward Robinson. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was 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).