Recap: DeFi Week of April 13š¦
Hello Defiers, hope youāre having a great weekend!
Summing up last week: The big news this week is that Compound Finance, DeFiās second-biggest lending platform after MakerDAO, took its first steps towards fully decentralizing governance by handing down decision making to shareholders and team member who own COMP tokens. Other big news happened over the weekend: An attacker was able to exploit DeFi project LendfMe, which has been accused of copying Compound Financeās code, and drain $25 million, almost all of its funds.
Gnosis and 0x joined the decentralized exchange party. Atomic Loans unveiled a $2.45 million funding round āyou can follow the steps to opening a leveraged long BTC position trustlessly, and getting more than 8% on your Dai. Loopring founder Daniel Wang talks about how the speed of centralized exchanges is now possible for non-custodial platforms. Etherean who goes by the name of DeFi_Dad wrote a guide on how to make DeFi go viral.
š¦Reminder to follow @DefiantNews on Twitter if you havenāt!
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šĀ Together withĀ Ampleforth, a digital asset protocol for a base money which doesnāt require collateral and is uncorrelated with the rest of crypto.
Interview
Decentralized Money Shouldn't be Traded on Centralized Exchanges: Loopring Founder Daniel Wang
This weekās interview is with Daniel Wang, CEO and founder of the Loopring protocol. The exchange built on the protocol launched a little over a month ago, with the goal of providing a non-custodial platform, meaning it allows users to keep control of their funds, with similar performance in throughput and cost as centralized exchanges. Thereās mind boggling technology with funny names behind this protocol āzero-knowledge proofs, Snarks, Starks,ā which Wang demystifies and explains. We talked about how scalability is a relative and not an absolute measure. To him that means Ethereum 2.0, an upgrade meant to increase the tractions per second on the network, wonāt magically solve all scalability issues and Layer 2 solutions, which take part of applicationsā data and computation off chain, will still be needed.
Podcast
The Defiant Podcast Episode 2: Daniel Wang
Ever since Ethereum launched in 2015, there has been one over-arching concern hanging over developersā heads: scalability. Loopring CEO and Founder Daniel Wang is using scaling solutions to build a protocol for non-custodial exchanges than can compete in throughput and cost with centralized exchanges. Is scaling on Ethereum solved?Ā Listen up to what he has to say about that in The Defiant podcastās second episode.
Op-ed
Fail-Proof Guide to Make DeFi Go Viral by @DeFi_Dad
If you frequent DeFi twitter at all, then you already know about the popular account ofĀ @DeFi_Dad. Heās a heavy user of decentralized finance and is on a mission to get everyone around him to try these apps, frequently posting step-by-step tutorials and videos of his experience. In this op-ed, he argues everyone should do the same. As early users of this new financial system, itās on us to explain to our friends and family why itās so much better than the old one, and to guide them through what seems baffling to an outsider, but is really so simple for those who just try it out.
Friday
Dives
Compound Cedes Governance to Shareholders and Team: Compound Finance on ThursdayĀ announcedĀ holders of its new COMP token are taking over the platformās governance system, deciding on everything from what assets the platform will supported to systemās parameters.
New Dexes in Town Are Bet on DeFi Going Mainstream: Gnosis and 0x announced the launch of decentralized exchanges,Ā Gnosis Protocol and Matcha. Theyāre coming to aĀ relatively crowded space with over a dozed DEXs competing for a reduced pool of volume, likely betting the pie will get bigger.
Tutorials
This weekās tutorials focus onĀ recently launched Atomic Loans, a platform to take out BTC-backed loans on Ethereum, which launched this week.
Liqualityās Simon Lapscher, willĀ guide you through how to take out leveraged long Bitcoin positions in a trustless wayĀ ā read, without having to give your information or funds to a centralized exchange.
The second tutorial by the Etherean who goes by the online name ofĀ DeFi Dad, will teach you how to lend USDC and Dai,Ā which are currently yielding 5% APR and 8.2% DAI respectively.
Wednesday
Dives
Rather than Banning Stablecoins, Bankers Should Worry About Strengthening Their Own Currencies: The Financial Stability Board published a documentĀ outlining 10 recommendations on how bankers should regulate stablecoins, which go as far as outright banning them. Bankers should worry about making their local currencies and the global financial system more attractive to use than trying to ban digital assets.
Bytes
DeFi Saver Updates MakerDAO Collateral Automation: DeFi Saver, which provides an automated mechanism to manage collateral on MakerDAO,Ā updatedĀ its system to prevent the events of Black Thursday ever happening again.
Zerion Team Launches DeFi Market Cap: The team behind DeFi portfolio tracker and mangerĀ ZerionĀ launchedĀ DeFi Market Cap, a website ranking the market capitalizations and other metrics specific to tokens of decentralized finance platforms.
šCommunity Loveš
Thanking all the amazing Defiers for the support and love this week (and always)!
The DefiantĀ is a daily newsletter focusing on decentralized finance, a new financial system thatās 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 at $10/month or $100/year, while free signups get only part of the content.
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About the author: Iām Camila Russo, a financial journalist writing a book on Ethereum with Harper Collins. (Pre-order The Infinite Machine here). I was previously at Bloomberg News in New York, Madrid and Buenos Aires covering markets. Iāve extensively covered crypto and finance, and now Iām diving into DeFi, the intersection of the two.