DeFi January review: multiple top projects hit new highs, and algorithmic stablecoins underperformed
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DeFi once again collective carnival.
DeFi once again collective carnival.
Text | Meditations Editor | Produced by Bi Tongtong | PANewsDeFi Rookies of January
Although the pattern of leading DeFi projects has basically stabilized, in some segments, there are also many high-quality projects that have been used by more users because of the distribution of governance tokens.Furucombo is a DeFi aggregator that can really create more profit opportunities for users. It turns complex DeFi protocols into visual cubes. Users can package multiple transactions to form a single transaction to reduce time costs; they can also conveniently arbitrage among various DeFi protocols by simply dragging and dropping the various protocols supported by Furucombo. Furucombo is currently the only project that integrates flash loans in a modular way, and users can use flash loans without programming knowledge.Armor is another popular project in the decentralized insurance circuit. Its founder, Azeem Ahmed, was also one of the founders of SAFE before. After the vulnerability of SAFE was exposed, Alan, another initiator of SAFE, continued to make Cover Protocol with the support of Andre and others; and Azeem created armor.fi. Armor is built on Nexus Mutual and is underwritten by Nexus Mutual without requiring KYC. Armor also empowers NXM through the liquidity mining of the platform currency, providing the liquidity of arNXM to obtain ARMOR tokens.Opium Finance, a decentralized derivatives agreement, also issued governance tokens this month. Opium can provide various insurances including smart contract security, stable currency default, and token price fluctuations. Traditional insurance projects can often only provide insurance for a certain direction. At present, OPIUM is about 4 times higher than when it was released. Another popular project on the derivatives track, dYdX, may also be about to issue tokens. Many users risked high usage costs to experience it, hoping to get token airdrops.New progress of popular projects
Cover announced the abandonment of shield mining after a loophole in minting rights, and will not issue rewards that were not received when the loophole broke out. Currently, there is only Rewards Mining in Cover, and this part of the rewards comes from the respective project parties. Without the support of the project party, there will be no rewards.On January 17, Curve announced a partnership with Synthetix to launch cross-asset trading services. Curve originally focused on transactions of similar assets, such as transactions between stablecoins such as USDC, DAI, and sUSD, or transactions between various Bitcoin-anchored currencies, where the transaction slippage is low and the handling fee is low. Synthetix is currently the largest synthetic asset protocol, in which transactions between synthetic assets have unlimited liquidity. If the user wants to exchange DAI for WBTC, DAI will first be exchanged for sUSD in Curve, then sUSD will be destroyed in Synthetix to generate sBTC, and then sBTC will be exchanged for WBTC in Curve. The cooperation between Curve and Synthetix will significantly enhance Curve's position in large cross-asset transactions.DeFi data
As of January 31, the total locked position in the Ethereum network reached 40.1 billion US dollars, an increase of 65.8% compared with the previous month; the actual locked position was 29.1 billion US dollars, an increase of 71% compared with the previous month. On the one hand, the WBTC mortgaged on the chain continued to appreciate, and the price of BTC was less than $30,000 at the beginning of January; on the other hand, more and more funds were transferred to the chain to share the benefits of liquidity mining.stable currency
As the most stable type of asset with rising market value, the issuance of stablecoins continues to increase. At the end of January, the issuance of USD stablecoins on Ethereum reached 26.5 billion, an increase of 5.5 billion compared to the previous month. Among them, the issuance of USDT increased by 2 billion, USDC increased by 1.8 billion, and DAI increased by 460 million.Mortgage
At present, the most used in the lending market is to mortgage ETH to lend stable coins. If these stable coins are used to continue to buy ETH, it will achieve the effect of increasing leverage. Total borrowing on the Ethereum network rose to $5.1 billion, up 37.5% over the past month.decentralized exchange
The trading volume of decentralized exchanges hit a record high in this month, and far exceeded the trading volume of all historical months. Decentralized trading platform tokens represented by UNI and SUSHI are the best-performing asset classes this month. Led by UNI and SUSHI, the entire DEX sector generally rose. The DEX in Ethereum has formed a parallel situation of Uniswap and Sushiswap. Because of the advantages of liquidity, it is difficult for other exchanges to compete with these two exchanges as a whole.Cross-chain assets
By the end of January, the number of Bitcoin-pegged coins on the Ethereum chain had reached 162,000, an increase of 14.4% from the previous month. Regardless of quantity or proportion, HBTC has seen the largest increase in Bitcoin-anchored coins this month, and the annualized return of the hbtc pool in Curve is also 17.08%.synthetic assets
Because of the WSB incident, American retail investors bought a large number of stocks such as Game Stop and AMC, causing many institutions to stop losses and leave the market. Afterwards, brokerage trading platforms represented by Robinhood suspended the trading of these stocks one after another, and some brokerages even forcibly closed the positions of users. At this time, synthetic assets built on the blockchain have attracted more attention. Recently, Mirror, a synthetic asset project developed by the Terra team, has also received widespread attention because of its proposal to list GME stocks. Mirror provides transactions for a variety of synthetic equity tokens.Summarize
It can be seen that in the subdivided field of DeFi, there are still many small and beautiful projects that issue their own governance tokens one after another. Token issuance is usually combined with liquidity mining. Different from copycat projects that just copy the code, these innovative projects have performed well in price after going online for a period of liquidity mining and undergoing market testing. In the segmented fields such as decentralized derivatives and insurance, there is no single dominant player at present, and many projects still have opportunities. Welcome to Join Odaily Official Community
