Weekly Update - Defi and Layer 1 & Layer 2 News (Week 30, 27/07/2022 - 02/08/2022)

Aave will launch a crypto-based stablecoin called GHO. Ethereum’s 10th "shadow fork" goes into effect. Harmony proposes proposes a hard fork to reimburse users’ funds.

Weekly DeFi Index

This week's price, volume, and volatility indices were positive at +21.92%, +59.15%, and  +44.81%, respectively.

Check the latest prices on Crypto.com/Price

DeFi Index Tokens

* DeFI index tokens: AAVE, BAL, CAKE, COMP, CRV, CVX, FXS, JOE, LDO, LINK, MKR, OSMO, REN, SNX, SPELL, SUSHI, UNI, VVS, YFI.

News Highlight 

• Aave passed a proposal to launch a crypto-based stablecoin, GHO. The fully collateralised stablecoin is native to the Aave ecosystem and will be initially available on the Ethereum network. 

• Ethereum’s tenth "shadow fork" went into effect. In preparation of The Merge, Ethereum has been undergoing a series of tests (or “shadow forks”), which copy data from the mainnet to a test network. Additionally, the Goerli testnet merge, the final update before the Merge date, is expected to happen on 10 August.

• Harmony proposed a reimbursement plan to make up the US$100 million hack of its Horizon Bridge in June. The plan involves a hard fork of the chain, which will mint billions of ONE.

DEX Protocols Metrics

Sources: CoinGecko, DeFi Llama, Crypto.com Research

Lending Protocols Metrics

*LDR (Loan to Deposit Ratio) = Total Borrowed / TVL

Sources: CoinGecko, DeFi Llama, Nomics, Crypto.com Research

Charts on Layer 2 Projects

• Overall, the L2 market saw +10.67% growth over the past week and the projects adopted Optimistic Rollup and ZK Rollup gained +13.94% and +4.51%, respectively, while Ethereum’s TVL rose 9.68%.

• Optimistic Rollup still dominates the L2 market with over US$3.8 billion in TVL. Additionally, Optimism’s TVL surged around 32% during the week.

• For ZK Rollup projects, StarkNet gained traction with over 15% growth in TVL week on week.

Further Reading 

• Tether supply starts to increase after three-month decline

• TRON becomes the second-largest public chain by stablecoin market cap

• 1.4 billion MATIC tokens issued in just one hour, price reacted with 6% fall

• After failed first attempt, Lido relaunches proposal for diversified treasury

• Aave devs propose freezing Fantom integration, citing lack of traction and potential vulnerability

• Solana DeFi protocol Nirvana drained of liquidity after flash loan exploit

• Solana wallets targeted in latest multimillion dollar hack

• Nomad token bridge drained of $190M in funds in security exploit

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