Digital reading of DeFi in September: the market "cools down" and the capital market "emerges"
Text | Meditations Editor | Produced by Tong | PANews
Text | Meditations Editor | Produced by Tong | PANews
A long time ago, some people predicted that Uniswap’s currency issuance might mark the end of the current bull market. Regardless of whether it is so, the DeFi market in September did usher in a turning point, with declining yields and frequent security incidents. When users are no longer interested in the various methods of liquidity mining, more fund-based projects appear in the market, and investors are also reminded to pay attention to risk identification.
Due to the collective sharp drop in yield, liquidity mining is no longer so attractive to players, and the pattern of the DeFi market has gradually stabilized, and it may be difficult for any project to subvert the existing system. The fading of the DeFi boom can also be reflected in the data.
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After several consecutive months of high-speed growth, the total lock-up volume on Ethereum has slowed down. Compared to the previous month, the total locked volume increased by 19.6% to $11.4 billion. Uniswap’s locked positions reached $2.3 billion, an increase of 57% from a month ago, and are still hitting new highs. In the case of lower income from liquidity mining, Uniswap’s annual income of 30+% UNI+ fee income has also attracted many users. Maker and Curve have also consolidated their positions in the issuance and exchange of stablecoins, and their locked positions have increased by 24% and 42% respectively compared to a month ago.
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Stablecoin DAI circulation doubled
The circulation of stablecoins on Ethereum has reached 15 billion U.S. dollars, and the circulation of ERC20 USDT has also successfully exceeded 10 billion U.S. dollars. Among the major stablecoins, the biggest change in the last month was DAI, whose circulating supply increased by 103% to $890 million during the month. MakerDAO adopted a series of expansionary fiscal policies, and adjusted the liquidation lines of USDC-A, PAX-A, and TUSD-A to 101%, allowing users to borrow DAI with collateral assets close to the liquidation price. In this way, it will be difficult for DAI to have a higher premium. Once the DAI/USDC price exceeds 1.01, users can mortgage USDC to borrow DAI and sell it in the market to complete arbitrage without considering the liquidation risk.
In addition to expanding the scale of the stable currency DAI, MakerDAO has also greatly improved its profitability. The stablecoin fees of USDC-A, PAX-A, and TUSD-A are all 4.25%. According to the current data calculation, only the mortgaged USDC can bring MakerDAO a profit of 15.2 million US dollars per year. In addition, ETH has also ended the 0 stable fee rate for this period, and now the stable fee rate has risen to 2.25%, which will also bring more profits to MakerDAO.
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New DEX "collectively short-lived"
The status of Curve, a decentralized stable currency exchange platform, in stable currency transactions has also been confirmed. Since the issuance of the governance token CRV in August, the price of CRV has dropped from $30 at the beginning to less than $1 now, and the annualized return of the representative Y pool has also dropped to 10%, but this has not affected Experience with Curve. The pledged funds in Curve gradually increased and reached 1.55 billion US dollars, and the transaction volume ranked second among all decentralized exchanges.
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Total Mortgage Borrowing Up 36%
Other decentralized lending protocols, such as Cream and ForTube, have also gradually moved from the fringe to the public's attention, and started mining activities on the Binance Smart Chain.
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Although the proportion of Bitcoin in cryptocurrencies has dropped to 57.9%, for any public chain, BTC is a very high-quality asset class. Bitcoin's anchor currency is also the most important cross-chain asset. As of the end of September, BTC's anchor coins had reached 124,492, an increase of 124% from a month ago. Among them, WBTC with the largest circulation has 92,017 pieces, accounting for 73.9% of the total. Compared with a month ago, the proportion of WBTC has increased by 10.5%. The circulation of renBTC also rose to 23,094, an increase of 69% compared with a month ago, but the proportion of cross-chain assets decreased instead.
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Synthetic assets urgently need underlying performance improvement
Due to the decline of liquidity mining, the price of SNX, an important "shovel", also fell by 36% in September. Since Synthetix can only use the platform currency SNX as collateral, the scale of synthetic assets will inevitably be affected.
The network congestion of Ethereum has caused many projects to express that they will adopt Layer 2, including giants such as Uniswap and Aave, but Synthetix took the lead in testing. If the Layer 2 expansion solution is adopted, the transaction will be carried out quickly and the Gas fee will be greatly reduced.
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Summarize
Summarize
Although data such as the amount of locked positions in DeFi is still growing, it has been greatly reduced compared to the previous increase of several times, and the growth of the DeFi market may usher in an inflection point. It can be seen that more and more funds have been transferred to the chain, and more and more BTC has been cross-chained to the Ethereum chain for better application. However, it is also difficult for the funds on the chain to be of great use. For example, if only relying on transaction fees, the income from providing liquidity on Uniswap is only one-tenth of the original.
