LD Track Weekly Report (2023/06/05)
Summary
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Summary
Stablecoins: The total market capitalization of the stablecoin sector is about 129.92 billion U.S. dollars, and the overall market capitalization has not changed much. Circle will issue native USDC on Arbitrum on June 8.
DEX：Dex combined TVL 17.18 billion,LSDFi: Last week, the amount of ETH pledged reached 19.2628 million, a month-on-month increase of 1.95%, and the number of beacon chain queues reached 93,900, a month-on-month increase of 21.69%. Among the three major LSD protocols, the growth rate of Lido continues to accelerate, and the growth rate exceeds that of Rocket Pool and Frax under a high base. At present, LSDFi has formed a rapid capital rotation with traces. At the current stage, we should focus on new targets. A large number of agreements that are really committed to solving market pain points, or a strong "regular army" of teams and investors are entering the market.
Derivatives DEX: Last week, the overall trading volume of derivatives DEX still maintained an overall downward trend, and the cumulative trading volume of the six major agreements was $6 billion. Due to the decline in trading volume, the revenue of the agreement is also declining, and the yield rate has also dropped significantly. The rate of return on funds of leading agreements decreased, which led to the outflow of some funds. The TVL of GMX peaked at about 695 m in mid-to-late April, and has gradually declined since then. The current TVL is 616 m, a monthly decline of 11.8%.
stable currency
According to data from defillama.com, the current total market value of the stablecoin sector is about 129.92 billion US dollars. The market value of USDC has been showing a downward trend, while the market share of USDT has continued to grow. The overall market value of the stablecoin sector has not changed much.
source:defillama，LD Capital
According to the latest data from Circle’s official website, as of June 1, the total circulation of USDC reached 29 billion U.S. dollars, and the total amount of funds reserves reached 29.1 billion U.S. dollars. In the past week, USDC issuance fell back to $700 million and redemptions hit $800 million.
source:image description，LD Capital
Circle official website
LSDFi
Circle will launch native USDC on Arbitrum on June 8, 2023. The native USDC will eventually replace the currently circulating USDC version Bridged USDC bridged from Ethereum. Arbitrum will rename the Ethereum bridge version of USDC to "USDC.e" on the block explorer ahead of the native USDC launch on June 8
Figure: Steady growth of beacon chain verifiers
Source: LD Capital
Figure: ETH pledge rate of return dropped slightly
Source: LD Capital
image description
Source: LD Capital
Among the three major LSD protocols, the growth rate of Lido continues to accelerate, and the growth rate exceeds that of Rocket Pool and Frax under a high base. Last week, Lido’s ETH pledged volume increased by 3.68%, Rocket Pool’s increased by 3.53%, and Frax’s increased by 2.32%. An increase of 59.00%, Frax currently has 234,900 pledged pieces, an increase of 77.56% since the Shanghai upgrade.
Through the horizontal comparison of different protocols and the vertical comparison of the protocol itself, it can be found that Lido's recent growth has been accelerating, and the year-on-year growth rate has surpassed Rocket Pool and Frax. Analyzing the logic behind it, or due to the current force driving the increase in Ethereum’s pledge volume, new user funds have begun to account for an increasing proportion (at the beginning of Shanghai’s upgrade, the strong withdrawal of operators and nodes is the high growth of Rocekt Pool) ; As an emerging protocol of LSD, Frax does not occupy users' minds as well as Lido, which is reflected in the strong correlation between business growth and yield. Recently, due to the growth of Frax's ETH pledge volume and the queue status of some ETH, its yield advantage has been weakening. For the reduction of business growth rate.
Frax founder Sam introduced Frax V2: build a point-to-point Ethereum pledge matching market between users and operators, adjust the interest rate through a perfectly competitive market, in order to provide users with higher yields in the case of nodes without permission access At the same time, operators need to provide collateral to prevent the confiscation of beacon chain funds caused by improper operations; the Lido community voted through the proposal to pledge about 20,000 ETH in the treasury, which is expected to bring an additional income of 2 million US dollars to the treasury every year; Pool rETH has logged into zkSync Era; SSV is currently expected to launch the game mainnet.
The overall performance of LSDFi’s existing targets was poor last week. LSDFi is currently forming a fast fund rotation that can be traced. At the current stage, we should focus on new targets, a large number of agreements that are really committed to solving market pain points, or teams and investors. A strong "regular army" is entering the market.
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The total amount of Layer 2 TVL remained almost unchanged from last week, with a total lock-up amount of USD 9.06 billion.
Among them, the TVL of arbitrum and ooptimism dropped slightly, while the TVL of zksync era still maintained a strong growth trend and has risen for more than three consecutive weeks.
Source: l 2b eat
Cross-chain funds
Cross-chain funds
Source: Dune
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Source: Artemis
Source: Artemis
events of the week
1. Circle will launch native USDC on the Arbitrum chain. At present, the total amount of USDC in stablecoins on the arbitrum chain is 1.15 billion US dollars, accounting for 62.7%, which is much higher than USDT's 400 million US dollars and Dai's 148 million US dollars. Circle's launch of native USDC may prompt more USDC to flow into Arbitrum, injecting ecological fluidity.
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Source: Defilama
On May 31, a total of 128.5 m OPs were distributed, of which 110.5 m received OPs were transferred to the centralized exchange on that day, accounting for 86%. As of June 4, no new on-chain records transferred to CEX have been found. At present, 18 million ops distributed are still in the receiving wallets. Since some wallets already have op positions before distribution, the total balance of OPs in each receiving wallet is 37.16 million.
OP unlocks data on the address chain
Data reference: twitter @EmberCN
DEX
Dex combined TVL 17.18 billion,first level title
Ethereum
ETH L2/sidechain
BTC L2/sidechain
Alt L1
Compared with last week, it decreased by 10 mln, the 24-hour trading volume was 1.21 billion, and the 7-day trading volume was 12.29 biliion. Curve has grown faster on Polygon, Arbtrum over the past week. Mute surpasses Velocore in TVL and ranks third on the Zksync Era chain.
1. Tricrypto-NG launched
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2 . Trader Joe's TVL and trading volume growth this week are impressive. The Auto Pool of Trader Joe v2.1 started to be deployed on June 1st, and The General is the first Auto-Pool to be deployed on AVAX-USDC (Avalanche) and ETH-USDC (Arbitrum). The General automatically rebalances liquidity positions to maximize fee income; and reacts to market trends and asset imbalances, making it adaptable to most markets and environments. In the future, The General will also be used for other liquidity pools.
Derivatives DEX
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Figure: Weekly trading volume of major derivatives DEX
source:tokenterminal
Figure: Main Derivatives DEX Weekly Agreement Income (FEE) Situation
source:tokenterminal
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source:
For the derivative DEX of the capital pool model, one of the important narratives is that the income of the agreement is distributed to token pledgers and capital pool LPs. Around the agreement income, a rich ecology is formed.
Taking GMX as an example, in February and March 2023, the APR of GMX pledges will remain at around 10%, and the APR of GLP will remain at around 20%. Around GLP, various products have been formed, including the direction of hedging the downside risk of GLP and enhancing the income of GLP. However, the rate of return decreased after April. At the lowest point, the APR of GMX token pledge was 1.5%, and the rate of return of GLP was 5%.
Below are the incentives for token stakers and pool LPs for protocols with top TVL rankings. In addition to protocol income, protocol tokens may also be used as one of the incentives. Protocol revenue denominated in ETH is more stable. The volatility of protocol tokens is higher, and if the protocol develops well, the possibility of obtaining excess returns is also higher; but if the protocol does not develop smoothly, token incentives will lead to continuous selling pressure, and token prices will continue to fall.
Source: LD Capital
