LD Track Weekly Report (2023/07/17): Hotspot Rotation, Market Trading Volume Increase

Abstract

Lending: Aave stablecoin GHO deployed on mainnet, Maker founder continues to purchase MKR tokens

LSD: Regulatory pressure eased last week, ETH collateral acceleration, a growth of 1.49% compared to the previous week, overall collateralization rate surpassing 20%.

Ethereum L2: Layer 2 TVL surpasses $10 billion in total locked value. Coinbase L2 network Base opens mainnet to developers and plans to launch publicly in August.

DEX: Dex combined TVL at 15.2 billion, a decrease of 0.12 billion compared to last week. Dex 24-hour trading volume ^.

;1.5 billion, 7-day trading volume 16.19 billion, increased by 1.19 billion compared to last week.

Derivatives DEX: Last week (July 10th to July 17th), the overall trading volume of derivatives DEX rebounded significantly compared to the previous week. The weekly trading volume of 9 major derivatives DEX protocols is about $12.6 billion, while the weekly trading volume of the previous week was about $8.6 billion, an increase of 46%. The main reason for the increase in trading volume is that XRP has won partial victory, and the market sentiment has turned optimistic, leading to active trading.

Lending

MakerDAO

Rune, the founder of MakerDAO, received 5 million DAI from the Maker DAO Lock wallet on July 16th. He converted 2 million DAI into 2 million USDC and transferred it to Coinbase, and exchanged 620,000 DAI for 620 MKR. Currently, there are still 2.38 million DAI in his wallet balance.

Source：Twitter

Aave

Aave stablecoin GHO was officially deployed on the mainnet on July 15th, with an initial supply of 100 million tokens and a borrowing interest rate of 1.5%. AAVE stakers can enjoy a 30% interest rate discount. Two days after the mainnet launch, the GHO borrowing and lending volume reached 2.51 million tokens. Compared to other stablecoins on the platform, GHO has a more competitive interest rate, and the team's efforts to promote liquidity will be closely observed.

LSD

Regulatory pressure eased last week, speeding up ETH staking with a week-over-week growth of 1.49%. The overall staking rate exceeded 20%. Last week, there were 24.26 million ETH locked in the beacon chain, corresponding to a staking rate of 20.18%, with a week-over-week growth of 1.49%. Active validator nodes...The number of validators awaiting activation verification has reached 67,070, with a 2.30% increase compared to the previous period, while the number of validators waiting to be activated has decreased by 2.71% to 83,200. Last week, market expectations of SEC regulation impacting Ethereum staking were lowered due to the XRP lawsuit outcome, resulting in a significant increase in staking volume for protocols and exchanges such as Lido, Coinbase, and Binance. The staking rate exceeded 20% last week.

Source: LD Capital

ETH staking yields remain around 4.5%

Source: LD Capital

Among the three LSD agreements, in terms of price performance, LDO rose by 16.5% in the past week, RPL rose by 0.1%, and FXS rose by 3.7%. From the perspective of ETH collateral amount, Lido rose by 1.60% in the past week, Rocket Pool rose by 1.82%, and Frax rose by 1.26%. Due to the impact of the SEC accusing Ethereum staking of being a security event in the past, the price of LDO has risen significantly along with a series of "security concept" targets such as XRP and SOL after XRP's victory in the SEC case last week. Another point of consideration is the large deposit in the Rocket Pool deposit pool (Rocket Pool has a partnership with Coinbase, and reduced regulatory pressure is also beneficial to its business development). The current balance is 2900 ETH, and the Minipool queue on the node side has been cleared. In terms of price performance, it is necessary to pay attention to whether primary market investors continue to sell tokens for LDO. RPL currently faces the problem of lack of market makers and contracts, leading to lower liquidity in the secondary market.

Ethereum L2

TVL

Layer 2 TVL increased by about $400 million compared to last week, with a total locked amount exceeding $10 billion, reaching $10.17 billion.

Source: l 2 b eat

Zksync era TVL continued to decline for the second consecutive week, with a decrease of more than 10%, while Starknet TVL, on the contrary, increased significantly by 39%.

On-chain Activity

Event Review

The Celo development team proposes to transform Celo into an Ethereum L2 solution based on OP Stack.

On July 16th, the Celo development team launched a new proposal to migrate Celo from an independent Layer 1 solution to an Ethereum Layer 2 solution using OP Stack. The decentralized sequencer will be supported by the existing Celo validation node set that runs the Byzantine Fault Tolerant consensus algorithm; the off-chain data availability layer will be supported by EigenLayer and EigenDA, operated by Ethereum node operators and protected by restaked ETH.

The community will hold a governance conference call at 8:00 AM Pacific Time on July 21st, followed by the release of a temperature check proposal.

On July 14th, Coinbase layer 2 Base opened its mainnet to developers, and will release it publicly in early August.

DEX

Dex combined TVL 15.2 billion, decreased by 0.12 billion compared to last week. Dex 24-hour trading volume is 1.5 billion, 7-day trading volume is 16.19 billion, an increase of 1.19 billion compared to last week.

Ethereum

1 inch released news about the integration with Sushiswap v3, Velo v2, and WooFi v2. 1 inch, Sushi, and Velo have a 24;hrs have seen significant increases.

ETH L 2/sidechain

Significant growth in L 2 transaction volume this week, Starknet + 4%, zksync Era + 48%, Optimism + 58%, Arbitrum + 17.5%, Polygon + 35%.

BTC L 2/sidechain

Alt L 1

Derivative DEX

Last week (July 10th to July 17th), the overall trading volume of Derivative DEX rebounded significantly compared to the previous week. The weekly trading volume of 9 major Derivative DEX protocols was approximately $12.6 billion, while the previous week's weekly trading volume was approximately $8.6 billion, a 46% increase. The increase in trading volume is mainly due to XRP winning partial lawsuits, which has turned market sentiment optimistic and increased trading activity.

Source: tokenterminal

As for TVL, MUX continues to show a growing trend, exceeding $60 million. Gains Network, on the other hand, is relatively weak, with no growth in TVL this week and experiencing slow outflows.

Source：Defillama

The position is relatively stable. On July 9th, the total position of the 9 main derivative DEX protocols was 480 million dollars; on July 16th, the corresponding position was 513 million dollars, an increase of about 7%.

It is worth noting that after MUX stabilizes its TVL above Gains Network, its position has also exceeded Gains Network for several consecutive days, reaching a maximum holding of 49 million dollars; while Gains Network's position is between 20 million and 46 million. However, MUX's position fluctuates greatly, reaching a minimum of 14 million dollars. In the short term, there are large fluctuations in the position, and the position is not yet stable, which is greatly influenced by the opening and closing of positions by large holders.

Project progress this week

GMX V&nbh3;2 Income Distribution Plan Enters Voting Stage

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 proposes in Version 2 to allocate 10% of the income to the treasury, and distribute the remaining 90% between GMX pledgers and GLP holders in a 3:7 ratio. This proposal was submitted for discussion in the community in April. The community generally agrees with the plan, with the main focus on the management and use of the treasury funds to prevent abuse.

The proposal commenced voting on July 12, 2023, and will end on July 19. The current approval rate is 98.17%.

SNX to Launch New Derivatives Trading Platform, Infinex

On July 14, the founder of the Synthetix derivatives protocol, Kain Warwick, announced the launch of a new decentralized perpetual contract exchange, Infinex.