Memoirs of the DeFi market in August: "Classical leeks" went to the fields to become "farmers"

特邀专栏作者

2020-09-04 10:08 (UTC+8)

This article is about 2952 words, reading the full article takes about 5 minutes

Many investors were still "classical leeks" last month, and this month they became "farmers" who shouted "farming is really fragrant", but many of them were also cheated by the gas fee.

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Many investors were still "classical leeks" last month, and this month they became "farmers" who shouted "farming is really fragrant", but many of them were also cheated by the gas fee.

Text | Meditations Editor | Produced by Bi Tongtong | PANews

Due to the token incentives of liquidity mining, the development of a project in a few days can surpass the accumulation of a long time in the past.

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Liquidity mining blowout, food is not enough

After the proposal of additional token issuance was rejected, yEearn (YFI), the pioneer of aggregation mining, did not come to an end due to the lack of economic incentives. Instead, it achieved unprecedented glory. The price of YFI has so far exceeded 40,000 US dollars.

As the successor of YFI, YFII once faced a situation of collapse, and finally achieved its goal with the unremitting efforts of community members, and the highest price rose to 9,500 US dollars.

YAM pioneered the combination of COMP's governance + YFI's distribution + AMPL's elastic supply, and boldly tried to provide liquidity on Uniswap with 1:1 between YAM and ETH. In return, the annualized return of early mortgage Uniswap LP (Liquidity Pools) tokens is as high as 50,000%. Although in the end YAM was close to zero due to a loophole, the situation gradually improved. The official announced the method of migrating YAM to YAM v2 and plans to migrate to YAM v3. YAM v2 has also risen several times so far.

In addition to sushi 🍣, there are many new DeFi projects emerging one after another, such as pizza, pasta 🍝, grapes 🍇, kimchi, spring rolls... the real thing is not enough.

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The total lock-up volume in DeFi protocols increased by 151% last month, but the lock-up volume data is no longer so interesting. On the one hand, due to the rise in the price of tokens, the number of tokens locked may not change, but the value of assets has increased. On the other hand, the building blocks of the Ethereum protocol allow other protocols to borrow their own liquidity. For example, SushiSwap’s lock-up is actually included in Uniswap, and Curve’s integration of Compound’s cToken and yearn’s YToken may also lead to lock-up Quantitative double counting.

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Decentralized exchange growth: Uniswap surpasses Coinbase for the first time

In August, the trading volume of decentralized exchanges still maintained a very high growth rate, and the daily trading volume of major decentralized exchanges increased by 219%. A commemorative event also happened in August. The trading volume of the decentralized exchange Uniswap surpassed Coinbase, the largest centralized exchange in the United States, for the first time, which made it impossible for even the largest centralized exchange to continue to ignore decentralization. chemical exchange. And all of this is done under the token incentive of an emerging project SushiSwap. Users first use the main DeFi tokens + ETH to provide liquidity on Uniswap, and then mortgage the obtained LP tokens to SushiSwap, and can obtain nearly 2000% annualized SUSHI token rewards.

In the last 4 days of August, liquidity in Uniswap rose from $308 million to $1.37 billion, an increase of 345%. Behind the glamor of Uniswap is investors' fear of SushiSwap. Obviously, these growing funds just use Uniswap as a bridge to mortgage liquidity into SushiSwap. Eventually, these liquidity may remain in SushiSwap completely. Then, SushiSwap, which has better liquidity, may grab a large number of customers by then. It has only been a week since SushiSwap was launched.

Due to the distribution of the governance token CRV, Curve’s daily transaction volume also increased by 139%.

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Stablecoin: USDT resumes money printing speed

This month, stablecoin exchange platform Curve distributed its own governance token, CRV. In the official liquidity mining stage, users need to deposit stablecoins into Curve to get LP token yCRV, and then pledge yCRV to Curve to start liquidity mining. At present, the annualized income of yCRV liquidity mining is about 90%. The surge in users of the Curve platform has also made yCRV a very important LP token, and yEarn even launched yyCRV on this basis.

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The decentralized lending market on the Ethereum network did not continue to grow rapidly in August, with borrowing volume increasing by 20.8%. Compound, which ranks first in total borrowings, has not seen any growth in business, and its proportion in total borrowings has declined. Borrowing in Maker is still growing due to the demand for DAI in decentralized applications. On another lending platform, Aave, the proportion of loans this month rose from 7.37% to 17.82%. According to TheBlock, Aave's application to the UK Financial Services Regulatory Authority for an electronic money institution license has been approved, allowing Aave users to purchase stablecoins and other assets in the Aave ecosystem with legal tender.

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The native token SNX of the synthetic asset representative project Synthetix still achieved good results this month, with the price rising from $4 to $7.4. As a widely recognized DeFi token, SNX has been widely used in liquidity mining, pushing up the price of SNX. Due to the success of Synthetix, more synthetic asset projects have appeared in the market, such as Linear Finance and AXIS.

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The anchor currency of Bitcoin on Ethereum increased from 20138 BTC to 55600 BTC, an increase of 176%. The growth rate of renBTC far exceeds that of other Bitcoin-anchored coins, rising by 562% in one month. The proportion of renBTC in the Bitcoin anchor currency also increased from 10.17% to 24.62%. There is no doubt about the continued development of cross-chain assets, and the value of Ren is gradually being reflected. Since the beginning of this year, the market value of Bitcoin has dropped from 68% to 56%. The DeFi boom on Ethereum has also increased the attractiveness of Ethereum to assets, and the most important asset in Bitcoin cryptocurrency will be more and more used on Ethereum or other public chains.

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The DeFi boom brought about by liquidity mining has not radiated to the decentralized margin trading platform. Unlike the popularity of decentralized exchanges, in August, the open interest of decentralized leveraged trading platforms even dropped by 1.3%.

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Summarize

The upsurge brought by liquidity mining is still going on, but the risks are getting bigger and bigger, and the survival time of projects is getting shorter and shorter. Before entering liquidity mining, you must pay attention to whether the project has a back door. Secondly, try to mine with the tokens you hold, so that if the market falls, you will not magnify your losses. The token incentives for liquidity mining may make SushiSwap surpass Uniswap within a few days, and the token economy may attract more attention.

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