Weekly Update - DeFi and Layer 1 & Layer 2 News (Week 4, 19/01/2023 - 26/01/2023)
Ethereum Shanghai Mainnet shadow fork goes live. MakerDAO approves proposal to deploy USDC in Yearn Finance. SushiSwap passes Kanpai proposal, will redirect all trading fees to its treasury.
Weekly DeFi Index
This week's market cap was positive at +9.12%, while volume and volatility indices were negative at -2.82% and -23.42%, respectively.
Check the latest prices on Crypto.com/Price
*DeFI index tokens: AAVE, BAL, CAKE, COMP, CRV, CVX, FXS, JOE, LDO, LINK, MKR, OSMO, REN, SNX, SPELL, SUSHI, UNI, VVS, YFI.
Osmosis (OSMO) is seeing some traction amid news of the launch of its Neon upgrade. The upgrade aims to make cross-chain trading more attractive by introducing key upgrades to the network, including geometric TWAP (Time Weighted Average Pricing) in liquidity pools, a downtime detection module, and more efficient pricing ticks while preventing liquidity attacks.
As of 25 Jan 2023
Sources: DeFi Llama, Crypto.com Research
Note: TVL excludes governance token staking, staked LP tokens that one of the coins in the pair is governance token, borrowing, and vesting
As of 25 Jan 2023
Sources: CoinGecko, DeFi Llama, Crypto.com Research
Ethereum moves one step closer to the Shanghai Upgrade with the successful release of its latest shadow fork, with only a few minor technical issues reported.
A MakerDAO community vote was passed in favour of deploying up to US$100 million worth of USDC from the Maker reserve on DeFi protocol Yearn Finance. Maker estimates that this amount of USDC on Yearn will earn an annual yield of 2% using the proposed strategy.
DeFi protocol SushiSwap passed a governance action to further strengthen its treasury. Its fee diversion protocol called ‘Kanpai’ enables the DAO to direct all trading fees from xSushi holders to its Sushi treasury. The governance action has been passed, with the majority of votes coming from token holders who staked SUSHIPOWAH and xSUSHI.
Fantom unveils ‘Ecosystem Vault’, a decentralised funding system to fund and support new projects in the Fantom ecosystem. This system will take 10% of all transaction fees paid on the network in FTM, and projects will need to pass a governance proposal for funding to be approved.
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