An article reviewing the market situation of DeFi in October: Fantom and Avalanche performed eye-catchingly, and the popularity of algorithmic stablecoins recovered

Text | Edited by Jiang Haibo | Produced by Tong | PANews

Text | Edited by Jiang Haibo | Produced by Tong | PANews

With the recovery of the market, BTC, ETH, etc. have hit new highs one after another. The data in DeFi has risen as a whole, but the performance of different platforms has also diverged.

According to Defi Llama data, as of October 31, the total locked-up volume (TVL) in DeFi projects on all smart contract platforms was 242.61 billion US dollars, of which Ethereum was 163.6 billion US dollars, BSC was 19.3 billion US dollars, Solana was 12.5 billion US dollars, and Terra was 9.95 billion US dollars. billion, Avalanche $8.38 billion, Fantom $5.49 billion, Polygon $4.97 billion, Arbitrum $2.41 billion.The TVL of all major smart contract platforms has increased over the past month as the cryptocurrency market as a whole rallied.Fantom and Avalanche continue to show strong growth, TVL exceeds Polygon

, Polygon further lost its competitiveness as competing products came from behind.Avalanche, Fantom, and Arbitrum have seen their TVL growth rates exceed 100% in the past month.

After being deployed to Avalanche, Aave surpassed the eco-native projects Trader Joe and Benqi within a month and became the DeFi protocol with the highest TVL on Avalanche. The OHM imitation disk Wonderland has contributed more growth to Avalanche. In the past month, TVL has increased from 198 million US dollars to 1.063 billion US dollars, but almost all assets are pledged by its own token TIME. Fantom’s data explosion comes from the mining opportunities brought by the lending agreement Geist Finance, but then the liquidity in Geist Finance is transferred to other ecosystems. Arbitrum is the opportunity brought about by the migration of various project funds.Old-fashioned DeFi projects with scalability have become the winners in this battle for liquidity. This is most prominent on the Ethereum second-layer network Arbitrum. The top ten TVL projects on it have already been launched on Ethereum and can be directly migrated to On smart contract platforms that support EVM, including Arbitrum. Thanks to Curve's multi-chain strategy,Curve already has one of the highest TVLs of any DeFi protocol at over $20 billion.

Let's take a look at the data in various DeFi protocols.

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Algorithmic Stablecoins ResurrectionAccording to CoinMarketCap data,As of October 31, the market value of major stablecoins in circulation totaled $125 billion

, an increase of $4.11 billion over the previous month. They are USDT 70.3 billion, USDC 33.2 billion, BUSD 13.6 billion, DAI 6.47 billion, UST 2.79 billion, TUSD 1.19 billion, USDP 945 million, USDN 605 million, USDT, USDC, BUSD, UST , USDN circulation increased slightly, DAI, TUSD, USDP circulation decreased.Algorithmic stable currency concept projects have fully recovered in the near future,AMPL's market capitalization has increased by 250% in the latest month, and inflation has been maintained in the past two weeks, and the recent highest price has exceeded 2 US dollars. The Basis Cash-type imitation Tomb Finance has a TVL of more than 300 million US dollars on Fantom, anchoring Fantom's platform currency FTM.first level title

decentralized exchange

decentralized exchangeAfter excluding the special circumstances of market fluctuations in May, the overall DEX trading volume on Ethereum is on the rise, still dominated by Uniswap, SushiSwap, and Curve.ShibaSwap, which is related to Dogecoin SHIB, also has a recent daily transaction volume of more than 100 million US dollars, located around the sixth place

On other chains, PancakeSwap’s daily trading volume of more than US$1 billion recently far exceeds that of other exchanges in the BSC ecosystem, and is second only to Uniswap as a whole; the TVL of Raydium, Serum, Saber, and Orca on Solana all exceed US$1 billion, of which Raydium's TVL is just over $2 billion; Avalanche, Fantom, and Polygon are dominated by Trader Joe, SpookySwap, and Quickswap, respectively.

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Mortgage lending: Aave plunges 20% in TVL due to Justin Sun withdrawalAs of October 31, total borrowing volume in DeFi protocols was $26.8 billion, up 6.8% over the past month. Compound surpassed Aave V2 and became the lending agreement with the highest total borrowing volume again, while MakerDAO ranked second. After Cream was attacked,Tron founder Justin Sun withdrew about $4.2 billion in deposits from the Aave deposit pool, causing Aave’s TVL to drop about 20% in the past 7 days

, also fell from its original number one position. Thanks to the multi-chain strategy, the total borrowing volume of multiple platforms of Aave still exceeds Compound and MakerDAO.Abracadabra, which uses interest-earning assets as collateral, ushered in an explosion.The circulation of the stablecoin MIM has risen from 880 million to 2.36 billion in the past month.

Before that, the LP tokens of platforms such as Curve had almost no effect, but now they can lend up to 90% of the stable currency MIM from Abracadabra, greatly improving the utilization rate of funds.

On other platforms, Aave is the main platform on Avalanche and Polygon; Geist Finance on Fantom quickly accumulated funds after its launch, and after the rate of return dropped, the funds spilled over to other projects.The lending agreement is Solana's shortcoming, but with the advancement of Solend's IDO, this situation began to gradually improve. As IDO approaches,

Comparing Solend and Larix, the second largest lending agreement currently on Solana, because the former currently has a large number of token rewards, and IDO pushes up price expectations, liquidity mining users deposit and lend the same asset in a cycle, reducing deposit and borrowing interest Poor, good for Solend's data growth. On the other hand, Larix’s borrowing amount is only 84 million US dollars, and its deposits are about 420 million US dollars. The capital utilization rate is low, and there is a large deposit and loan interest rate difference. Due to the high loan interest rate and low mining rewards, it is not suitable for liquidity. Mining users, which also shows that Larix has a higher proportion of real deposits.

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Bitcoin anchor currency: the proportion of WBTC continues to increaseThe issuance of Bitcoin-anchored coins on Ethereum increased from 283,960 to 303,933, an increase of 7.03%.first level title

summary

summaryThe underlying innovation of DeFi is getting more and more difficult, but like AbracadabraTaking advantage of the composability of DeFi, projects built on existing DeFi infrastructure are likely to be applied,

It may be necessary to pay more attention to the micro-innovation of DeFi.