Crypto.com Weekly DeFi Update (Week 18, 02/05/2022 – 08/05/2022)

UST depegged after sell-off but regains peg. Uniswap reports deeper liquidity on multiple Ethereum pairs than leading centralised exchanges. Cronos Eosystem Grant recipients announced.

Key Takeaways 

• The world’s third largest DeFi protocol by total value locked (TVL), Anchor Protocol (ANC), has lowered the UST earn rate from 19.4% to 18.0% annual percentage yield (APY) since 1 May 2022. Also, a proposal to roll out voting escrow ANC (veANC) has been approved.

• Terra’s UST depegged after a massive US$285 million sell-off on Curve Finance (CRV) and leading centralised exchange. It was soon stabilised and back to peg. Meanwhile, Luna Foundation Guard (LFG) has added another US$ 1.5 billion of Bitcoin (BTC) to its UST reserves.

• Uniswap V3 (UNI) is reported to have deeper liquidity in multiple Ethereum (ETH) pairs than leading centralised exchanges by about 2x or more.

• Cronos Ecosystem Grants Program announced the third batch of grant recipients, which include a few DeFi projects, such as Argo Finance.

• This week’s price and volume indices were negative at -7.04% and -9.75%,respectively, while the volatility index was positive at +38.89%.

Highlights

• Curve Finance (CRV) integrates with Near’s Aurora Network.

• Terra’s LUNA declines 10% amid UST depegging concern

• Hacked crypto platform offers ‘No Questions Asked’ US$10 million bounty for stolen funds

• Total investment in Syndicate DAO tops US$28 million after latest funding round

• Jane Street dives into DeFi with US$25 million USDC loan

• Lido (LDO) briefly becomes top DeFi protocol by TVL with US$20 billion staked

• Juno’s DAO votes to confiscate US$35 million in tokens from whale in messy dispute

• ’Revolution' promised by Tron's Justin Sun looks like clone of Terra's algorithmic stablecoin

• Ribbon Finance (RBN) gives half its protocol revenue to stakers

• Vector Finance (VTX) TVL hits a record high as the Curve Wars shift to Avalanche

• Tron DAO buys US$39 million worth of TRX as reserves for its USDD stablecoin whose circulating supply has exceeded US$200 million

• Polkadex has won the 16th Polkadot’s parachain slot

• Cardano's first eUTxO cross-chain decentralised exchange goes live on public testnet

Check the latest prices on Crypto.com/Price

Top Token Metrics

*Top DeFi tokens based on CoinGecko

Source: CoinGecko

DeFi Index Tokens

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

Notable Events

• CRV jumped as institutional capital flows in.

DEX Metrics

* % change is based on the difference between two consecutive weekly periods

** Omitted due to incomplete source data

Source: CoinGecko, DeFi Llama, Nomics

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