LD Circuit Weekly Report (2023/06/20): The TVL of the public chain continues to decline, and the trading volume of DEX rebounds significantly

Trend Research

特邀专栏作者

2023-06-20 11:39 (UTC+8)

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A quick look at the hot content of the industry for a week.

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A quick look at the hot content of the industry for a week.

Summary

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Summary

Stablecoins: The overall market value of the stablecoin sector did not change much this week, but BUSD and TUSD were affected by Binance, and their market value changed significantly. BUSD is down 9.91% for the week, and TUSD is up 51.29% for the week.

LSD: The ETH pledge rate rose to 19.15% last week, an increase of 0.09% month-on-month. Among the mainstream LSD protocols, from the perspective of price performance, FXS is the best performing target with a weekly increase of 10.4%. The increase of FXS is mainly driven by FraxChain and Frax V2.

Derivatives DEX: Last week (June 12 to June 18), the overall trading volume of derivatives DEX increased compared with the previous week. The weekly trading volume of the 6 major derivatives DEX agreements is about 12 billion US dollars, an increase of about 20%. Judging from the trend of weekly trading volume, mid-May to early June will be the most deserted two weeks in 2023. Since mid-June, it has rebounded significantly.

stable currency

This week, the overall market value of the stablecoin sector did not change much, but BUSD and TUSD were affected by Binance, and the market value changed significantly.

source:defillama，LD Capital

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According to data from defillama.com, the current total market capitalization of the stablecoin sector is approximately US$128.3 billion, a drop of only 0.1% compared to last week. Among the mainstream stablecoins, BUSD still fell sharply due to the SEC's allegations against Binance. At the same time, Binance officially announced the completion of the contract swap between TrueUSD (TUSD) and BNB Smart Chain (BEP 20), and the Binance address minted 1.07 billion TUSD on the TRON chain. TUSD currently has a market cap of $3.009 billion, up 51.29% in a week.

Trending:

1) "Due to the drop in the price of CRV, the address of the founder of Curve deposited 38 million CRV into Aave to reduce the liquidation risk of his own loan position" caused heated discussions in the community. The reason is that the Curve founders have deposited a total of 290 million CRV (worth approximately $187 million) and borrowed $71 million in stablecoins with the Aave lending platform. The current circulating supply of CRV is 852 million pieces, and the Curve founder's address in Aave accounts for 34% of the circulating supply of CRV. With such a large volume of CRV, the founder Michael did not choose to sell it directly in the secondary market for profit, but chose to mortgage it in the loan agreement in exchange for funds, so as to avoid direct selling pressure on the market, which seems to be reluctant to sell. However, from another point of view, if the market falls further, once the CRV price falls to the liquidation line, it is likely to lead to serial liquidation. Even, if someone maliciouslyCurve short history and current potential short cost）

source:Twitter

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@CZSamSun shorted USDT on Aave V2 4 hours before USDT unpegged. After @CZSamSun shorted USDT, the whale "0x d 275 " began to borrow USDC from Aave and Compound and buy USDT for arbitrage, and USDT began to be re-pegged. (@lookonchain Twitter Thread）

source:Coingecko

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The current overall market value of DAI ranks only behind USDT and USDC. As the leading decentralized stablecoin, this interest rate hike can be seen as the encryption market building its own benchmark interest rate.

source:Twitter

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image descriptionmakerburn.com

LSD

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Figure: Coinbase continues to unstake, and the growth of beacon chain validators continues to slow down

Source: LD Capital

Figure: ETH pledge yield continues to fall

Source: LD Capital

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Source: LD Capital

Among the mainstream LSD protocols, from the perspective of price performance, FXS is the best performing target with a weekly increase of 10.4%. LDO fell 5% for the week, and RPL fell 6.7% for the week.

It is worth mentioning that Swell's expected community marketing method TVL through airdrops increased by 19.64% a week, and the current pledged amount of ETH is 26,000 pieces; ether.fi issued NFT as a pledge certificate, released liquidity through NFT mortgage lending, and introduced loyalty gameplay (The longer the pledge time, the higher the apr), and the ETH pledge volume rose by 11.32% in a week.

In LSDFi, most new potential projects such as Prisma, Raft, and Gravita are still in the development stage or have not yet issued coins. Among them, ZeroLiquid released the public testnet last week, which is the last stage of the mainnet launch. Due to the impact of the Binance research report, LBR experienced a short-term sharp rebound. EigenLayer's mainnet was launched last week, and Operators and AVS have not yet been launched. IonProtocol, a CDP project based on EigenLayer, has been launched at an accelerated pace.

1、TVL

The total amount of Layer 2 TVL rose slightly, an overall increase of US$110 million compared to last week, and a total lock-up amount of US$8.44 billion.

Data source: l 2b eat

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Data source: l 2b eat

Arbitrum, optimism, Zksync era, and Starknet TVL all rebounded from last week, among which Zksync era still had the strongest increase, up 14.48% from last week. Zksync era TVL has been rising for more than a month, and the total TVL has reached one-third of optimism.

2. Cross-chain funds

3. Activity on the chain

DEX

Dex combined TVL reached $15.1 billion, down $450 million from last week. The 24-hour trading volume of Dex was US$1.53 billion, and the 7-day trading volume was US$17.25 billion, a decrease of US$1.64 billion from last week. Since Frax Finance intends to launch the Ethereum Layer 2 network Fraxchain, the TVL of Frax Swap on several chains such as Polygon, Arbitrum, and Avalanche has increased significantly.

Ethereum

ETH L2/sidechain

BTC L2/sidechain

Alt L1

Derivatives DEX

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Figure: DYDX weekly trading volume changes

source:tokenterminal

TVL picked up slightly this week. After the SEC regulatory incident came to an end, the funds previously withdrawn from the DeFi agreement re-entered. The protocols that have changed a lot are MUX Protocol and Level Finance. MUX TVL increased by 21.77% this week and Level decreased by 33.23%. Yield may be one of the influencing factors. MUXLP APR is about 28%; Level's low-risk pool yields about 14%; GLP (Arbitrum) yields 10%.