Who is the second turn of DeFi?
Editor's Note: This article is from:DeBankView (ID: DeBankView)DeBankView (ID: DeBankView)
, Author: Jorge S, reproduced by Odaily with authorization.
When calculating the ranking of DeFi projects according to the size of locked positions, MakerDAO undisputedly ranked first with a total locked position of 380 million US dollars, although with the continuous emergence and development of new projects, its overwhelming dominance is slowly Weakened, but the position of the boss is still very stable. For Synthetix, who is ranked second, the situation seems to be not so easy.
Synthetix's Death Spiral Begins?
Synthetix is undoubtedly the most dazzling star in the DeFi ecosystem in 2019. The currency price has been rising all the way, and the lock-up scale has also increased. It successfully replaced Compound and took the second place. The scenery is unparalleled for a while. However, the model of derivatives transactions generated by the native tokens of its mortgage projects has also been facing a lot of controversy.
Supporters believe that it is a beneficial innovation of the token economic model, successfully integrating network value into native tokens effectively. Opponents believe that it cannot escape the end of the collapse. Among them, the expression of Cao Yin, managing director of the Digital Renaissance Foundation, is the most representative:
This kind of project that relies on the original token of the mortgage project to synthesize assets is actually a building built on the beach. A similar model has long been played badly in China's A-shares. The company raises its own stock price, and then pledges it to the brokerage, and draws out the money to continue stock speculation. The essence of this model is to attract market funds to follow suit through performance pulls, and then freeze liquidity through lock-up or burning mechanisms to form funds. Continued net inflows to foil the effect of prices. This kind of game is very dangerous, because when the price is too high, the whole situation will become a barrier lake. As long as someone starts to sell, it will immediately cause a catastrophic breach of the embankment, which will cause a death spiral, SNX plummets, mortgage assets Liquidation, SNX's plunge increased, and mortgage assets continued to liquidate.
After entering December, Synthetix finally ended its continuous rapid growth, and the currency price and lock-up scale began to stagnate. After entering January, both turned around and down, making people wonder whether the death spiral has started.
It is worth noting that in addition to directly selling SNX, Synthetix can also convert sETH into ETH through Uniswap, which will calm the selling pressure of SNX to a certain extent, and everyone who provides liquidity on Uniswap will bear the responsibility for the Synthetix project. risk. At present, the price of sETH on Uniswap has begun to break the anchor. All signs indicate that the situation is not so optimistic, the key still depends on whether the project party has the ability to continue to pull the market and stabilize the situation.
If Synthetix is still defeated in the end, will the position of the second child go back to Compound?
previous article
As we previously speculated, MakerDAO has raised the deposit rate to 6%, matching the lending rate! It can still be profitable without interest rate difference. It has to be said that MakerDAO is a great innovation.
In the face of MakerDAO, what Compound can do is really limited. It still has the advantage of supporting more mortgage asset types, but supporting non-mainstream currencies will inevitably expose itself to greater risk exposure.
As you can see from the graph above, Compound is getting more and more squeezed by MakerDAO.
If the situation of Compound is not optimistic, then we have to continue to look down on the question of who the second child is. InstaDApp, which locked up $45 million, is currently ranked fourth, but it is not suitable for horizontal comparison with the previous projects, so we came to Uniswap, which locked $30 million.
Maybe not the second child
Uniswap has made steady progress in 2019, and its growth is gratifying. As a very important building block in DeFi Lego, Uniswap provides liquidity for many projects, making many attempts possible. However, its $30 million lock-up size is still too small compared to our expectations for DeFi's second child.
