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🥵 Markets in Red: Is DeFi Stable?
Hello Defiers! Here’s what we are covering today…
and more ;)
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🙌 Together with:
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.
Kyber DMM, an automated market maker which prioritizes permissionless liquidity contribution and high capital efficiency
Convex allows Curve.fi liquidity providers to earn trading fees and claim boosted CRV without locking CRV themselves. Liquidity providers can receive boosted CRV and liquidity mining rewards with minimal effort.
TLDR If there’s one word to describe crypto markets, it is volatile! Volatility is also a way to gauge market sentiment, especially fear among investors. What we haven’t managed to build in DeFi until recently is a volatility index natively built with smart contracts. volmex.finance is just that--a protocol for tokenized volatility, built on Ethereum. Volmex enables VIX-like indices for crypto assets and trading functionality.
MORE LEGOS This is yet another money lego that mirrors a popular product and concept in legacy finance, which is sure to draw the attention of even more investors interested to move assets to DeFi. The Volmex protocol has already been used to create volatility indexes and tradable tokens (tracking both implied volatility and realized volatility) for ETH and BTC.
DIY Today, we’ll focus on how to mint two volatility tokens with DAI and then provide liquidity to two of the Uniswap v3 pools.
Liti Capital Announces Tokenized Private Equity for Litigation Finance
Liti Capital SA is a Swiss fintech private equity company putting litigation finance in the hands of the retail investor using tokenized shares with the launch of the LITI and wLITI tokens on June 24.
Litigation finance is the practice in which an outside party invests in a lawsuit or arbitration in exchange for a portion of the profit. Liti Capital already owns a share of 3 cases valued at over $200 million, and is ready to open up to a wider market with the launch of the LITI & wLITI tokens.
“We wanted to find a way to get everyone involved,” said Jonas Rey, Co-Founder and Managing Director of Liti Capital, “but how the financial markets are structured all but prevents that. The blockchain finally gave us the answer we were looking for.”
The KYC-required LITI token represents a share in Liti Capital and gives access to voting rights and to dividend payment, it is not on any exchanges by design. The wrapped LITI (wLITI) is not KYC required and will be available for trading on Uniswap and soon other DEXes.
➡️ Learn More at www.liticapital.com!
TLDR It’s grim times for DeFi tokens but as prices plunge, protocol revenue remains stable.
THE RED The DeFi Pulse Index, which tracks the performance of 14 key tokens including Uniswap and Maker, has skidded 31% in the last seven days and 6.5% in just the last 24 hours, compared with a 2.1% decline for ETH from yesterday.
SILVER LINING While DeFi revenue dropped in the last month, it has remained stable in the past week, during the worst of the sell-off.
TLDR Yearn Finance is quickly turning into an asset management behemoth.
COMMUNITY Propelled by its thriving community, Yearn’s fundamentals are looking stronger than its traditional finance counterparts. After recently hitting a new all-time high of $5 billion+ in TVL, Yearn also broke its highest monthly revenues.
BETTER THAN Making over $10 million in revenue in May only, Yearn is projected to generate $123.12 million in annualized revenue. In comparison, roboadvisors Betterment and Wealthfront reportedly accrued $50 million and $30 million in annualized revenues respectively, although for 2019 and 2018 (unfortunately more recent data was not available).
TLDR Investors continue to have an appetite for NFT collectibles despite the recent downturn in crypto markets.
NEXT UP Wicked Craniums, an Ethereum-based, algorithmically-generated NFT project, launched on June 20 and all 10,762 pieces were sold out within the first 30 minutes. The NFTs were available to mint for 0.06 ETH, bringing the total raised by the project to 645 ETH worth $1.3M.
FLOOR The party continued on OpenSea, where a steady flow of buying pushed the floor price to 0.3 ETH, a 5x return in just a few hours. One lucky minter hit the jackpot with a rare Emerald Cranium wearing a Crown, which sold for 19 ETH!
TLDR It isn’t often that a market player appeals to the morality of its customers to correct a mistake. But that’s what’s unfolding this week as Alchemix Finance made traders an offer to iron out the alETH debacle that unfolded on June 16.
THE LAUNCH Alchemix Finance recently launched alETH, a synthetic yield derivative that lets DeFi users borrow 1 alETH for every 4 ETH pledged as collateral. The ETH collateral is deployed into Yearn vaults, and the resulting yield is used to automatically pay off the outstanding alETH debt over time.
THE BUG Last Wednesday, a bug was discovered in the alETH contract, leaving the project undercollateralized by 2,688 ETH, roughly $5.3M at current prices, as users were able to withdraw these funds without first repaying their loans.
✊ Head to THEDEFIANT.IO for more DeFi news 📰
🧑💻 ✍️ Stories in this newsletter were written by Owen Fernau, yyctrader, DeFi Dad and IntoTheBlock’s Lucas Outumuro and edited by Edward Robinson, Bailey Reutzel and Camila Russo. 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).