DeFi observation for a week: stablecoins and smaller market value tokens become the next major growth point

As DeFi (Decentralized Finance) continues to spread in the blockchain industry, the Total Value Locking Measurement (TVL) has become a useful tool for measuring the progress of DeFi projects. It can also highlight the growth of the entire industry and help us determine the source of growth.

According to data provided by DeFi Pulse, the current amount of DeFi ecological lock-in is close to 700 million U.S. dollars, and this number has been rising steadily in the past year.


Among them, the increase from April to June was mainly driven by the increase in the price of ETH, and during the bull market, the absolute amount of ETH locked in the DeFi field actually decreased.


Ethereum's less than 2.5% of the ETH circulating supply is locked in the DeFi project, and entering the DeFi ecosystem does not necessarily have to be through ETH. The recent increase in DeFi is largely from other assets, such as stablecoins.

Of course, in terms of the amount of funds currently locked in DeFi, ETH is twice the sum of all other assets.


SNX is the latest DeFi darling. Synthetix exchange only accepts its SNX tokens as collateral. Users generate debt by collateralizing this token. This is very similar to ETH's MakerDAO, but the difference is that it does not generate Dai. Instead, it generates any (valued) synthetic asset.

There has been controversy as to whether Synthetix should take second place on the DeFi Pulse leaderboard, as most of its TVL growth has been mainly due to its SNX price having nearly doubled in the past 3 months, and nobody will Admit that SNX is the same level of collateral as ETH (TVL is just a simple comparison tool).

At present, SNX is the only non-ETH asset that has obtained significant benefits. Although borrowing Dai and USDC is regarded as a DeFi service with mass market appeal, they together account for only 6% of DeFi TVL.

We know that Ethereum is currently the cornerstone of DeFi. In the foreseeable future, ETH will also be the most important asset in the DeFi field, but DeFi projects need to be diversified and focused on creating opportunities for other idle assets. Obviously, multi-collateral Dai is a step in this direction.

In this regard, Compound and Uniswap are far ahead. Specifically, for each asset added to Uniswap, there must be a corresponding proportion of ETH assets in the locked amount, and this proportion is 50%.


The ETH locked in Compound can earn interest, but this interest is minimal. It is speculated that users lock ETH in Compound as collateral to borrow other assets (mainly stablecoins), and the same is true for REP in Compound.

However, the most promising markets on the Compound platform are actually its USDC and Dai.

Let's talk about Uniswap. Uniswap's liquidity pool has at least US $ 100,000 in assets locked. Uniswap has 25 items.

Determining the next wave of assets flowing into DeFi is a bit like throwing jelly on the wall. ETH holders have a clear entrance ramp, but the channel is almost dry. Looking ahead, growth may be focused on stablecoins used for lending and tokens of smaller value for trading liquidity pools.

Obvious phenomenon this week: DEX trading volume soars

In the past week, the total transaction volume of all DEX reached:


Almost all of the DEX utilization rates have increased significantly, especially Kyber and Uniswap, both of which last week exceeded 24 million USD in transaction value.

DeFi Highlights of the Week: Uniswap as the oracle (Oracle)


There are numerous attempts to solve the oracle problem, and Hayden Adams, the founder of Uniswap, believes that the V2 version of Uniswap will serve as a decentralized price oracle.

DeFi Video of the Week: Potential of Multi Mortgage Dai


Lou Kerner organized an "all-stars" group to discuss the meaning of multi-collateral Dai. Before participating in the group discussion, each participant must make a self-statement.

Piecemeal news

  1. Synthetix has launched a new DeFi theme, Synth ;
  2. The Set agreement announces the launch of social trading capabilities in 2020 ;
  3. Chai token appears, which can generate interest from Dai deposit rate ;
  4. The smart contract wallet Argent provides a free exchange path for USD and USDC ;
  5. Synthetix is ​​considering adding ETH as collateral ;
  6. Than the original chain MOV test online, and began to target the DeFi market ;

Thoughts and predictions about DeFi

  1. Analysis of the impact of the closure of large CDPs on the MKR market , by Andrew Kang;
  2. The history of Kenya Mpesa and its significance to the blockchain , author Michael Kimani;
  3. Network Effects in the Open Financial World , by Ivan Martinez;
  4. Introduction to Network Value to Transaction Ratio (NVT) by Santiment;

Best reflections on DeFi this week: from Vitalik

"While the MakerDAO system has survived the tough economic conditions of 2019, this is by no means the hardest problem it will face. In the past, Bitcoin has fallen by 75% in two days, while Ethereum or The same could be true of any other mortgage asset. "

Vitalik, the founder of Ethereum, has brought you a very long 4D text with great reference value in the past week. In this article, Vitalik once again reviewed the difficulties faced by his blockchain in 2014. In addition, The industry's progress over the years has also been assessed.