GM, Tim Here.
Here's what caught my DeFi-eye recently:
Vitalik disses 'ouroboros' DeFi. The $732 million USDD backing the stablecoin will disappear. Everyone is cashing in on memecoin fever.Vitalik vs DeFi
Ethereum co-founder Vitalik Buterin ruffled feathers on social media by criticizing one of blockchain's biggest use cases, DeFi.
At the heart of the issue is yield – a broad DeFi term used to describe the returns users can earn on various crypto tokens.
“It sounds like the Ouroboros,” Buterin said in a Discussion on XRepresents a snake that eats its own tail.
“The value of crypto tokens is that… you can use them to earn the returns paid by people who trade crypto tokens.”
One problem, according to Buterin, is that such a system is “basically closed” to the growing demand for crypto tokens and is therefore not the only activity that attracts new users.
> The yield comes from borrowers, trading fees, etc. correct, so this worries me. Because it sounds like ouroboros: the value of crypto tokens is that you can use them to earn a yield that gets paid by people who trade crypto tokens. Although the answer is obvious…
— vitalik.eth (@VitalikButerin) August 25, 2024> The yield comes from borrowers, trading fees, etc. correct, so this worries me. Because it sounds like ouroboros: the value of crypto tokens is that you can use them to earn a yield that gets paid by people trading crypto tokens. Although the answer is obvious…
— vitalik.eth (@VitalikButerin) August 25, 2024The Ethereum blockchain hosts the largest single DeFi ecosystem in crypto with $51 billion worth of user deposits.
Join the community to get our latest articles and updatesHowever, DeFi growth on Ethereum – as well as many other blockchains – has stalled in recent years.
Although the price of Bitcoin reached a new all-time high this year, DeFi deposits are still below the 2021 peak.
Those pushing back against Buterin say the yield pattern in Defy isn't the problem. How does a traditional economy work?
However, Buterin's comments reiterated his desire to see Ethereum expand meaningfully Other use casesDecentralized identity systems, such as credit scores or social media.
USDD Says 'Bye' to Bitcoin
USDD, a Tron-based stablecoin, is backed by some $732 million worth of Bitcoin.
No more.
The Tron DAO Reserve, which manages USDD, removed 12,000 bitcoins in support of the stablecoin.
USDD is now almost entirely backed by TRX, the volatile native crypto of the Tron blockchain.
The problem is that while the project claims to operate as a Decentralized Autonomous Organization – or DAO – it hasn't voted on Bitcoin's withdrawal.
Tran founder Justin Sun said there is nothing to worry about.
“In the past, the Tran DAO reserve also made frequent adjustments based on the collateral factor,” Sun said. NewsCiting him X post On the subject.
Even after removing Bitcoin, the value of the assets backing the USDD is more than twice the value of the stablecoin in circulation, according to the USDD website.
However, Tron DAO Reserve did not provide any explanation as to why the Bitcoin collateral was removed. That lack of transparency, as well as other differences, is a problem for some.
Stablecoin Rating Agency Bluechip Gives USDD its lowest rating and strongly advises against using it.
Memecoin fever is spreading
Pump.fun, which allows anyone to create and launch their own memecoin for a small fee, has become one of the most profitable protocols in DeFi.
In the wake of its success, others are spinning their own versions of the popular Solana protocol on competing blockchains.
Tron has its own memecoin platform SunPump, while the Binance-affiliated BNB chain is called FOUR.meme.
Trader Joe's, an Avalanche-based decentralized exchange, is the latest project to become Memecoins.
This is Revealed Platform like Token Mill, Pump.Fun.
Trader Joe's hoping Token Mill can revive his fortunes.
The decentralized exchange, which once generated $2.6 million in weekly revenue in 2021, made less than $10,000 last week.
Pump.fun, on the other hand, earned $3.4 million in the last seven days for DeFillama. data.
Weekly data
The so-called “Memecoin Wars” are heating up.
SunPump, the Tron protocol that allows users to create their own memecoins, has just been overtaken by pump.fun, the new tokens created based on the Solana protocol.
Pump.fun still brings in a bit more revenue.
This week on DeFi Governance
Proposal: Lido will set up a DAO-adjacent 'BORG' for its alliance program
Vote: Will Arbitrum sponsor the DAO Ethereum Foundation's Security Audit event?
Proposal: Jupiter DAO Discusses New Microgrants Initiative
Post of the week
DL Research sent Senior Analyst Ryan Selaz to the WebX 2024 conference in Tokyo, August 28-29. Be sure to get in touch if you're attending!
We are sending our great kaiju @rcel1559 to represent DL Research this year @WebX_Asia Meeting in Tokyo. Shoot him a DM to schedule a meeting and explore collaboration opportunities! pic.twitter.com/IP3TPSg5PK
— DL Research (@dl_research) August 22, 2024We are sending our great kaiju @rcel1559 to represent DL Research this year @WebX_Asia Meeting in Tokyo. Shoot him a DM to schedule a meeting and explore collaboration opportunities! pic.twitter.com/IP3TPSg5PK
— DL Research (@dl_research) August 22, 2024What we see
Sonium, the new Ethereum layer 2 blockchain developed by Japanese tech giant Sony, is teasing Wednesday August 28 as the big date for the project.
It is not yet clear if the blockchain will be launched on that date or if the post refers to any upcoming announcement.
08.28.2024 pic.twitter.com/TvjnRCFVE1
– Soneium 💿 (@soneium) August 25, 202408.28.2024 pic.twitter.com/TvjnRCFVE1
– Soneium 💿 (@soneium) August 25, 2024Got a tip about DeFi? arrive at [email protected].
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