🔦 CZ Strives to Show Binance is Different From FTX
Hello Defiers! Here’s what we’re covering today:
Trending in The Defiant
DeFi Alpha is a weekly newsletter by The Defiant and DeFi Dad, packed with tutorials and tips on how to earn yield in DeFi. DeFi Alpha is exclusive to paid subscribers.
Get the 5-minute newsletter keeping 78K+ crypto innovators in the loop.
A word from our wonderful sponsors, who make this newsletter possible:
Aave is the leading decentralized liquidity protocol. Aave governance has greenlighted the development of GHO - a decentralized, collateral-backed stablecoin that will be native to the Aave protocol. Launching on testnets soon!
Lumerin is revolutionizing Bitcoin mining with a decentralized marketplace for buying and selling hashpower. Help us test the network in beta and earn real BTC hashpower to sell, trade, or mine. Find out more!
DeFi should be better - and it’s about to get radically better with Radix. Get your free ticket to join RadFi2022 on December 8 and learn what the future holds for decentralized finance. Find out how!
Metis Andromeda is a permissionless & secure Ethereum Smart Layer 2 creating the decentralized finance foundations for the web3 economy. Bridge Free & explore our ecosystem during our first anniversary!
Binance Begins Disclosing Wallet Assets in Transparency Push
By Samuel Haig
VULNERABLE Just like FTX, Binance maintains billions of dollars worth of its own tokens on its balance sheet. So is the globe’s No. 1 cryptocurrency exchange vulnerable to the same type of bank run that poleaxed Sam Bankman-Fried’s exchange last week?
QUESTION That’s a pertinent question as Binance, which does $14B in daily trading volume, leans into playing the role of savior at a perilous moment for digital assets.
Nansen Data Show Double-Digit Jumps in Users at MakerDAO, Aave, and Other Protocols
By Owen Fernau
DOUBLE-DIGIT JUMPS Don’t look now, but the FTX collapse has spurred a wave of interest in decentralized finance platforms. DeFi protocols are experiencing double digit increases in the number of users over the past week, according to data from Nansen, the blockchain analytics platform.
DeFi Saver is an all-in-one dashboard for creating, managing and tracking positions with automatic liquidation protection and leverage management options for only the most trusted DeFi protocols, Liquity among them.
Liquity, interest-free borrowing protocol built on Ethereum, recently introduced a novel product offering The Defiant wrote about - Chicken Bonds. Chicken Bonds are a new, innovative form of bonding mechanism in DeFi.
Chicken Bonds are an innovative bonding mechanism offering several key benefits to those willing to bond their Liquity native stablecoin LUSD. In exchange for depositing and bonding LUSD, users accrue boosted LUSD (bLUSD), derivative token.
Primary benefit for bonding LUSD instead of supplying to Liquity’s Stability Pool is the amplified yield users get from Liquity’s internal liquidation mechanism as well as from other liquidity sources like the pools in Curve. Alongside improved liquidity for the LUSD stablecoin, the most important benefit to users is bonding with no time commitment or maturity. Users can withdraw principal LUSD fully and chicken out at any time, renouncing the accrued interest. The other option being to chicken in and claim accrued bLUSD, forgoing the initial LUSD deposit.
As the most comprehensive decentralized frontend for Liquity, DeFi Saver continues its devoted support with dedicated Chicken Bonds dashboard and advanced protocol actions and strategies. Alongside basic actions, DeFi Saver offers users options to Claim and Sell bLUSD or Rebond (Claim, Sell and create new bond). DeFi Saver team is even preparing automation options for the new Liquity innovation.
Get the most out of your Liquity experience with DeFi Saver.
TradFi + DeFi
Citigroup, Wells Fargo, and MasterCard Test DLT to Connect Deposits
TEST Even as the crypto industry grapples with a year-long bear market and the collapse of FTX, global financial institutions just can’t say no to blockchain-related technology. On Tuesday, a lineup of top-shelf firms — Citigroup, HSBC, Wells Fargo, and MasterCard, among others — joined forces with the Federal Reserve Bank of New York to explore using distributed ledgers to connect deposits.
Zero-Knowledge Powered Rollup Garnering Momentum in Race to Scale Ethereum
By Samuel Haig
SERIES C In a sign of momentum for Layer 2s, Matter Labs, the team behind the nascent zkSync 2.0 network, raised $200M in a Series C round led by Blockchain Capital and Dragonfly, the venture announced on Nov. 16.
Circle’s Move Comes as Stablecoin Has Been Losing Market Share
FEATURE Circle, the issuer of the dollar-pegged USDC stablecoin, has unveiled an integration with Apple Pay, the payment service with over half a billion users around the globe. Merchants will be able to accept USDC as payment using this new feature.
It’s Imperative to Provide Real Value to Tokenholders, Not Just Governance Tools
Guest writer Mike Sall argues that it’s time for tokenomics to get real and prove it’s utility…
VALUE In the midst of a harsh bear market, crypto investors are asking tough questions: “What actually drives value to this token, and why would I want to own this?”
COMMUNITY I see it first-hand when people ask the same things about Goldfinch, the protocol I helped launch in 2021. The market downturn is forcing the crypto community to become much more discerning.
A Step-by-Step Guide to This Important Swaps Tool
SWAPS When Uniswap popularized decentralized exchanges on the Ethereum network, it was a ground-breaking development. DEXs permissionlessly enable users to become liquidity providers for token pair swaps.
Trending in The Defiant
Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion The fallout from FTX’s collapse is just starting and within decentralized finance, platforms enabling unsecured loans are the most exposed relative to collateralized counterparts with millions in loans on the line, while total value locked slides.
Markets Rally After Binance Proposes ‘Industry Recovery Fund’ Crypto markets rallied early Monday after Binance CEO Changpeng Zhao (CZ) proposed to create an “industry recovery fund” that would invest in companies struggling to stay afloat in the wake of FTX’s collapse.
Solana Discloses Losses From FTX Collapse The Solana Foundation and Solana Labs have disclosed their asset exposure and transaction histories linked to bankrupt crypto exchange FTX and its sister trading firm Alameda Research.
This is the craziest moment we’ve experienced in crypto. So many things to unpack. But the biggest question remains… where do we go from here?
Crypto exchanges can go bust when they do not have the funds to fulfill customer withdrawals.
🧑💻 ✍️ Stories in The Defiant are written by Owen Fernau, Aleksandar Gilbert, Samuel Haig, and yyctrader, and edited by Edward Robinson, yyctrader and Camila Russo. Videos were produced by Alp Gasimov. Podcast was led by Camila, edited by Alp.
Free subscribers to the newsletter get:
Daily news briefings
Sunday Weekly recap
General chat on The Defiant’s Discord server
👑 Prime defiers get:
Full transcript of exclusive podcast interviews
DeFi Alpha weekly newsletter on how to put your money to work in DeFi by yyctrader and DeFi Dad
Weekly live DeFi Alpha call with yyctrader
Inbox Dump edition of The Defiant newsletter every Saturday with all the PR that didn’t make it to our content channels
Exclusive community calls with the team
Subscriber-only chats on The Defiant Discord server
Full access to The Defiant’s content archive
Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button below ($15/mo, $150/yr).
You can start a prime membership for free right now with this link. You’ll get full access for 7 days. It’s 100% risk-free.