LD Capital track weekly report (2023/10/16):
Summary
DeFi: Liquidity protocol revenue growth is close to 90%, and GHO stablecoin borrowing interest rates may further increase.
LSD: Last week, the ETH pledge rate rose to 23.10%, a month-on-month increase of 1.23%; this week, the ETH pledge yield continued to hit a new low of 3.34%, and the annualized inflation rose to 0.46%.
Ethereum L 2: The total amount of Layer 2 TVL is US$10.6 billion. The overall TVL has fallen by 0.92% in the past 7 days. Mantle has risen the fastest in the past 7 days, with TVL increasing by 43.44%.
DEX：Dex combined TVL 10.71 billion,Basically a decrease of 800 mln compared to last week. Dex’s 24-hour trading volume was 1 billion, and its 7-day trading volume was 10.45 billion, a decrease of 2.5 billion from last week.
Derivatives: Trading volume and open interest in the cryptocurrency derivatives market have recovered somewhat following BTC’s rebound since the August 18 drop, but remain below pre-drop levels.
DeFi
Liquity
The price trend of Liquity governance token LQTY has been strong in the past week, with an increase of nearly 40%. In the past month, the price of the LQTY token has been in an upward breakthrough trend. On the one hand, this is because Liquity’s protocol revenue increased by nearly 90% in September. On the other hand, there may be funds behind it.
In the past week, three addresses have withdrawn large amounts of coins from the Binance exchange, with the total cumulative withdrawal amount reaching about 2.3 million coins.
Aave
The Aave community initiated a proposal to “further increase the GHO borrowing rate by 50 basis points (bps)” from 2.5% to 3% to strengthen GHO anchoring and increase GHO income. The discount for StkAave holders remains unchanged at 30%. At present, the proposal has been recognized by the community, and the next step will be to launch an on-chain execution vote.
Previously on September 19, the Aave community voted to pass the proposal to “increase the GHO borrowing interest rate to 2.5%”.
LSD
Last week, the ETH pledge rate rose to 23.10%, a month-on-month increase of 1.23%. Last week, 27.78 million ETH were locked in the beacon chain, corresponding to a pledge rate of 23.10%, a month-on-month increase of 1.23%; of which there were 862,100 active verification nodes, a month-on-month increase of 1.44%, and the verification nodes that entered the queue to be activated were completely cleared. This week, the ETH staking yield continued to hit a new low of 3.34%, and the annualized inflation rose to 0.46%.
ETH staking increased by 1.23% month-on-month this week
Source: LD Capital
This week, ETH staking yield continued to hit a new low of 3.34%
Source: LD Capital
ETH annualized inflation this week is 0.46%
Source: ultrasound, LD Capital
Among the three major LSD protocols, from the perspective of price performance, LDO rose by 1.1% over the week, RPL fell by 1.9%, and FXS rose by 6.5%; from the perspective of ETH pledge volume, Lido fell by 0.07% over the week, Rocket Pool rose by 1.47%, and Frax rose by 2.01%. sFRAX was officially launched last week. The current sFRAX scale is 39.34 million, with a yield of 6.85%; the current Rocket Pool deposit pool balance is 18,031 ETH, the RPL pledge rate is 50.51%, and the effective pledge ratio is 90.02%. The number of ETH pledged in SSV increased to 11,104. Last week, its founder Alon Muroch was drafted into the Israeli army, causing the price of SSV to fall by 10% for a short period of time, closing down 13% for the week. In addition, the Lido Governance Forum discussed the addition of a DVT pledge module, which will be launched on October 10 Voting begins on March 26th.
Ethereum L 2
TVL
Total Layer 2 TVL is $10.6 billion. TVL has fallen by 0.92% in the past 7 days, and Mantle has risen the fastest in the past 7 days, with TVL increasing by 43.44%.
Source: L 2 beat, LD Captial
OP
Ethereum technology development team Test in Prod officially joined the Optimism Collective core development team on October 12. As the third core team, Test in Prod will work with OP Labs and Base to build the OP Stack.
Optimism will provide 5 million OP tokens to Test in Prod within four years, with Cliff releasing 30% in one year and the remainder on a monthly basis.
ARB
The first round of voting for the Arbitrum short-term incentive plan has ended. 29 projects were selected out of 95 projects that participated in the voting, including Camelot, Jones, Dopex, GMX, Galxe, LODESTAR, Socket, Timeswap, RADIANT, Pendle, MUX, Frax, Tally, Rysk , Silo, Stella Venture DAO is a multi-chain dApp ecosystem. Our internal products and incubation projects span chains and verticals to ensure sustainable value for ALPHA users and token holders. In May 2023, Alpha Venture DAO was renamed Stella and moved to the Arbitrum ecosystem. Stella strives to be the premier destination for leveragers and lenders to maximize their earning potential. Whatever on-chain strategy a leverager wants to use on leverage (and is secure enough to be backed), Stella will back it with 0% borrowing costs.Venture DAO is a multi-chain dApp ecosystem. Our internal products and incubation projects span chains and verticals to ensure sustainable value for ALPHA users and token holders. In May 2023, Alpha Venture DAO was renamed Stella and moved to the Arbitrum ecosystem. Stella strives to be the premier destination for leveragers and lenders to maximize their earning potential. Whatever on-chain strategy a leverager wants to use on leverage (and is secure enough to be backed), Stella will back it with 0% borrowing costs., Good, Gamma, Umami, Abracadabra, KyberSwap, OpenOcean, Angle, Trader, Dolomite, Premia, Vertex, Perennial and Balancer.
Arbitrum will allocate up to 50 million ARB in incentive funds to all eligible projects in the future to stimulate ecological activity and attract more users and liquidity.
Scroll
The Scroll mainnet, the Ethereum second-layer network based on ZK Rollup, generated the genesis block on October 10.
Opside
The decentralized ZK-RaaS platform Opside announced its brand upgrade to Lumoz on October 10. Lumoz was born in 2022 and launched on the test network in May 2023, providing users with ZK-Rollup, zkEVM and other services without programming. Currently supported zkEVM types include Polygon zkEVM and zkSync, Q 4 is expected to support Scroll, StarkNet, etc.
On-chain activity
Source: Artemis
DEX
Dex combined TVL 10.71 billion,Basically a decrease of 800 mln compared to last week. Dex’s 24-hour trading volume was 1 billion, and its 7-day trading volume was 10.45 billion, a decrease of 2.5 billion from last week.
Ethereum
ETH L 2/sidechain
BTC L 2/Sidechain
Alt L 1
Suis DEX TVL performance is outstanding, and last weeks announcement of 117 million SUI and an additional 40 million SUI transferred from external market makers to ecosystem and community development - a total of 157 million SUI will be used to promote the booming Sui Ecosystem related.
Derivatives
Trading volume and open interest in the cryptocurrency derivatives market have recovered somewhat as BTC rebounded since the August 18 drop, but remain below pre-drop levels.
The chart below shows how contract open interest and volume have changed over the past year. Open interest reached a nearly one-year high in October 2022 at about $33 billion. After the FTX incident, open interest fell significantly to $18.4 billion. In the first half of 2023, open interest slowly recovered, reaching $28.1 billion in August 2023. After the drop on August 18, open interest stood at around 22 billion and has since grown slowly to 24 billion.
source:coinglass
In terms of average daily trading volume, it remained above US$50 billion in the first half of the year. At the end of February and early March, the trading volume on multiple days was above US$100 billion. From August to September, most of the trading volume was below US$50 billion, and there were only 2 days. transaction volume exceeded US$100 billion.
The trading volume of major derivatives DEX in the past two weeks was US$6.9 billion and US$5.4 billion respectively, and the trading volume is still at an overall low level.
source:tokenterminal
In terms of specific tokens, since the end of August, low market capitalization, high circulation contract tokens have had better price performance. The main reasons are that, first, after the decline on August 18, most tokens are in the bottom price range of the year or even this round of bear market; second, low market value and high circulation make it easy for main funds to control the market and cooperate with the high liquidity brought by contracts. Third, there are no narrative hot spots in the market. After the contract tokens rise, it is easy to gain attention and follow the followers of retail investors.
