Summary
Lending: Aave stablecoin GHO mainnet deployment, Maker founder continues to buy MKR tokens
LSD: Regulatory pressure eased last week, ETH staking accelerated, increasing by 1.49% month-on-month, and the overall staking rate exceeded 20%.
Ethereum L2: Layer 2 TVL total locked value exceeds 10 billion US dollars. Coinbase L2 network Base opens mainnet to developers and plans to release it publicly in August.
DEX: Dex combined TVL 15.2 billion, down 0.12 billion from last week. Dex 24-hour trading volume 1.5 billion, 7-day trading volume 16.19 billion, up 1.19 billion from last week.
Derivatives DEX: Last week (July 10 to July 17), the overall trading volume of derivatives DEX rebounded significantly compared with the previous week. The weekly trading volume of 9 major derivatives DEX protocols was about 12.6 billion US dollars, while the weekly trading volume in the previous week was about 8.6 billion US dollars, an increase of 46%. The increase in trading volume is mainly due to the partial victory of XRP, the market sentiment turned optimistic, and the trading was active.
Borrowing
MakerDAO
MakerDAO founder Rune received 5 million DAI from the Maker DAO Lock wallet on July 16. He exchanged 2 million DAI for 2 million USDC and transferred them to Coinbase, and exchanged 620,000 DAI for 6.20 MKR. There are still 2.38 million DAI in his wallet balance.
According to statistics from @EmberCN, the founder of Maker began selling LDO to repurchase MKR in November 2022. As of now, a total of 13.57 million LDO have been sold, raising US$26.15 million. The number of MKR purchased is 32,600, worth approximately US$23.96 million.
Source: Twitter
Ghost
Aave stablecoin GHO was officially deployed on the mainnet on July 15, with an initial supply of 100 million pieces and a borrowing rate of 1.5%. AAVE stakers can get a 30% interest rate discount. Two days after the mainnet launch, the number of GHO loans reached 2.51 million. Compared with other stablecoins on the platform, GHO's interest rate is more competitive, and we can continue to observe the team's subsequent measures to promote liquidity.
LSD
Last week, regulatory pressure eased, ETH staking accelerated, up 1.49% month-on-month, and the overall staking rate exceeded 20%. Last week, 24.2663 million ETH were locked in the beacon chain, corresponding to a staking rate of 20.18%, up 1.49% month-on-month, 670,700 active validator nodes, up 2.30% month-on-month, and 83,200 validator nodes in the queue for activation, down 2.71% month-on-month; last week, affected by the XRP victory, the market lowered its expectations for the impact of SEC regulation on Ethereum staking, and the growth rate of ETH staking in protocols and exchanges such as Lido, Coinbase, and Binance increased significantly.
The amount of pledged assets increased rapidly last week, with the pledge rate exceeding 20%.
Source: LD Capital
ETH staking yield remains around 4.5%
Source: LD Capital
Among the three major LSD protocols, from the perspective of price performance, LDO rose 16.5% in a week, RPL rose 0.1%, and FXS rose 3.7%; from the perspective of ETH staking, Lido rose 1.60% in a week, Rocket Pool rose 1.82%, and Frax rose 1.26%. Since the price of LDO has been affected by the SEC's accusation that Ethereum staking is a securities event in the past, after XRP won the SEC case last week, the price of LDO rose sharply along with a series of "securities concept" targets such as XRP and SOL. Another thing to note is that Rocket Pool's deposit pool has a large deposit (Rocket Pool has a cooperative relationship with Coinbase, and the reduction of regulatory pressure is also beneficial to its business development). The current balance is 2,900 ETH, and the node-side Minipool queue is cleared. In terms of price performance, LDO needs to pay attention to whether primary market investors continue to sell tokens; the current problem faced by RPL is that there are no market makers and contracts, and the liquidity of the secondary market is poor.
Ethereum L2
TVL
The total Layer 2 TVL increased by approximately US$400 million compared to last week, and the total locked amount exceeded US$10 billion, reaching US$10.17 billion.
Data source: l 2 beat
Zksync era TVL declined for the second consecutive week, falling by more than 10%, while Starknet TVL surged by 39%.
On-chain activity
Event Review
Celo development team proposes to transform Celo into Ethereum L2 based on OP Stack
On July 16, the Celo development team launched a new proposal, proposing that Celo migrate from an independent Layer 1 to Ethereum Layer 2, using OP Stack to become the Ethereum L 2 architecture. After the transition, the decentralized sequencer will be supported by Celo's existing set of validation nodes running Byzantine fault-tolerant consensus; the off-chain data availability layer is supported by EigenLayer and EigenDA, operated by Ethereum node operators, and protected by restaked ETH.
The community will hold a governance call on July 21 at 8:00 PT and will release the temperature check proposal following the call.
Coinbase L2 network Base opens mainnet to developers and plans to release it publicly in August
On July 14, Coinbase layer 2 Base opened its mainnet to developers and will be publicly released in early August.
DEX
Dex combined TVL 15.2 billion, down 0.12 billion from last week. Dex 24-hour trading volume 1.5 billion, 7-day trading volume 16.19 billion, up 1.19 billion from last week.
Ethereum
1 inch was released and Sushiswap v 3, velo v 2, WooFi v 2 were integrated. 1 inch, Sushi, Velo 24 hrs all rose significantly.
ETH L 2/sidechain
This week, L2 transaction volume increased significantly, Starknet + 4%, zksync Era + 48%, Optimism + 58%, Arbitrum + 17.5%, Polygon + 35%.
BTC L 2/sidechain
Everything L 1
Derivatives DEX
Last week (July 10 to July 17), the overall trading volume of derivatives DEX rebounded significantly compared with the previous week. The weekly trading volume of 9 major derivatives DEX protocols was about 12.6 billion US dollars, while the weekly trading volume in the previous week was about 8.6 billion US dollars, an increase of 46%. The increase in trading volume is mainly due to the partial victory of XRP, the market sentiment turned optimistic, and the trading was active.
Source: tokenterminal
In terms of TVL, MUX continues to maintain its growth trend, exceeding $60 million. Gains Network is relatively weak, with no growth in TVL this week and slow outflow.
Source: Derivatives">Defillama
Open interest is relatively stable. On July 9, the open interest of 9 major derivatives DEX protocols was $480 million; on July 16, the corresponding open interest was $513 million, an increase of about 7%.
It should be noted that after MUX’s TVL steadily exceeded that of Gains Network, its holdings also exceeded Gains Network for many consecutive days, reaching a maximum of $49 million; while Gains Network’s holdings ranged from $20 million to $46 million. However, MUX’s holdings fluctuated greatly, with a minimum of $14 million. Due to the sharp short-term fluctuations, the holdings have not yet stabilized and are greatly affected by the opening and closing of large positions.
Project progress this week
GMX V 2 income distribution plan enters voting phase
The current distribution plan for GMX income is that GMX pledgers receive 30% of the agreement income, and GLP holders receive 70%. Considering the long-term development needs of the project, the project party believes that in V 2, 10% of the income will be allocated to the treasury, and 90% will be allocated between GMX pledgers and GLP holders in a ratio of 3:7. In April, a proposal was submitted to the community for discussion. The community basically agrees with the plan, and the main focus is on the management and use of treasury-related funds to prevent abuse.
The proposal began voting on July 12, 2023 and will end on July 19. The current vote rate is 98.17%.
SNX to establish new derivatives trading platform infinex
On July 14, Kain Warwick, founder of the Synthetix derivatives protocol, said that he would launch a new decentralized perpetual contract exchange Infinex.
In order to maximize the user experience, Infinex generates a new public-private key pair for each user and stores it in the client browser. However, this key cannot withdraw funds and is only used to sign transactions sent to the Optimism relayer. Infinex will no longer issue tokens separately and will be governed by Synthetix's SNX token.
