DeFi content this week includes:
- One-week DeFi data: ETH lock-up volume hits a record high, and the total value of DeFi ecological lock-up reached $ 1.13 billion
- Biyuan Chain released a white paper on MOV stable financial system, which can truly realize multi-asset mortgage
- Thinking of dYdX mortgage assets plunging 50%
- How the secret whale "liquidator" helps DeFi run smoothly
- DeFi golden sentence of the week
- DeFi project progress in one week
- to sum up
According to data from 34 Defi projects counted by dapptotal, the current Defi Ecology total lock-up funds amounted to US $ 1.13 billion, an increase of 18.25% year-on-year, of which Maker was US $ 415.79 million, accounting for 36.76%, and EOSREX was 247 million US dollars, accounting for 21.84%.
- DeFi weekly selection 丨 DeFi lockup value is approaching US $ 1 billion. Will the "ruler" Maker be overthrown in 2020?
- DeFi Zhouxuan 丨 Locked positions back to 1 billion US dollars, a new wave of DeFi is coming
- DeFi weekly selection 丨 "1 billion US dollars locked amount", "triple jump in deposit rates", the signal of the Ethereum bull market?
- DeFi week selection 丨 Ethereum's DeFi ecosystem ushers in an explosion period, but the issue of contract loopholes is still cause for concern
As for the amount of locked positions, the current amount of ETH locked positions has reached 4.01 million ETH, a record high. In contrast, the EOS amount of locked positions in EOSREX is currently 68.43 million EOS, which is about 590,000 EOS less than last week.
Biyuan Chain released a white paper on MOV stable financial system, which can truly realize multi-asset mortgage
On January 15, Biyuanchain officially released the "MOV Stable Financial System White Paper 1.0".
This article proposes a stable coin financial system based on the MOV cross-chain ecology. From the perspective of basic economic principles and the construction of MOV infrastructure, a multi-collateralized collateral (BTC, ETH, USDT, and BTM) framework is developed, and a comprehensive stability mechanism and The clearing system introduces the concept of risk bonds, and based on the traditional financial field risk control models and theories, comprehensively builds a new vision of modern financial and multilateral trade on the chain.
It is reported that the four types of digital assets have different liquidity risks and market risks, and the degree of correlation risk will not be too high. Users can choose the type of collateral independently. The four types of digital assets are independently mortgaged and the risks are isolated. The discount rate is calculated separately.
Article link: https://www.8btc.com/article/546678
Thinking of dYdX mortgage assets plunging 50%
During the period when the price of Ethereum (ETH) dropped to $ 120, the total locked assets of DeFi application dYdX plunged from a high of $ 30 million to $ 15 million. What are the reasons for this? In addition to the currency price factor, there are more reasons for too many people trying to liquidate, and dYdX's front-end server has collapsed under pressure. As a result, many traders were liquidated, so participants lost some confidence in the platform.
DYdX, which is in a "big distress", is currently in the recovery phase, but it does show that reliability incidents can cause irreparable damage to the reputation of the product / agreement. Compared with more traditional industries such as medicine / automotive, when we are considering making software, reliability is not our focus because of easy changes, and this matter is a good reminder to all DeFi teams that you The reliability of the front end is as important as the reliability of your contract, especially when the number of third-party interfaces of the protocol is limited. Moreover, if liquidity is a moat, its huge losses can really affect both sides of the currency market's balance. However, taking a step back and saying that one thing really worries me, when there are many liquidators competing for liquidation to demand returns, this competition will cause the price of gas to soar. If anyone can't keep up, the end result is that they can't close their positions.
CDPSaver encountered this situation in the last big price drop, but as the DeFi ecosystem grows, I expect this will become a bigger problem. The agreement can temporarily alleviate this situation by increasing collateral demand, although we must start moving DeFi to layer 2 and use the main chain as the settlement layer.
How the secret whale "liquidator" helps DeFi run smoothly
The liquidators are an under-appreciated role in the DeFi field. They work behind the scenes like miners and validators to keep the entire system up and running, and thus get rich returns. However, unlike miners and validators, clearing institutions don't actually require up-front capital investment, which creates an ecosystem of professionals who may operate anywhere in the world, be completely anonymous, and maintain the market by paying compensation Solvency.
Original author Tom Schmidt, junior partner at Dragonfly Capital, noon edition provided by Zhan Juan (Chain Wen).
DeFi golden sentence of the week
- "Surprisingly, the DeFi application did not try to recommend a link, it is like a natural complement to the word-of-mouth growth model." —— Hasu
- "I have boarded a plane flying to Switzerland (Davos Forum). Given the traction of blockchain and DeFi, I hope this will be a huge opportunity to spread information to a wider audience beyond the cryptocurrency bubble." — — Rune Christensen, founder of MakerDAO
- "People ask me what is the most exciting DeFi asset. The answer is simple. ETH, it is the economic bandwidth of all other DeFi assets. The growth of DeFi is inseparable from the growth of ETH. Most people do not connect these points, but This is so obvious that you can't be bullish on ETH while optimistic about DeFi. "—— Ryan Sean Adams, founder of mythos.capital
- "The DeFi market is growing exponentially, but it is still far from large-scale adoption. The main obstacles facing the industry are scalability, poor user experience / user interface, price volatility and fraud, and once these issues are resolved, there will be bound to be Paving the way for more adoption. "— Eljaboom, Ajoobz founder and CEO
- "Many of the most talented people in the tech world started programming in their teens (I call them 'computer kids'), but who would manage a series of advanced financial tools since middle school? #DeFi 将Create a generation of 'financial kids' in a good way. "-Rainbowdotme co-founder mikedemarais
DeFi project progress in one week
- Biyuan Chain officially released the "MOV Stable Financial System White Paper 1.0" ;
- VeChain 2.0 white paper introduces the concept of DeFi ;
- synthetix releases roadmap for 2020 ;
- compound reduces the cREP mortgage factor ;
- InstaDApp adds WalletConnect wallet integration ;
to sum up
Through the data we can clearly see that the current Ethereum DeFi ecosystem is in a stage of rapid growth, and more and more public chains have aimed at this direction, but it seems that it is not wise to “hard and rigid” with Ethereum directly. The path of choice, mortgage ETH has almost become an inevitable choice.
From this perspective, the original chain selection idea is very reasonable. It chooses to realize the separate mortgage of four assets: BTC, ETH, USDT, and BTM through cross-chain. However, like most DeFi competitors, it lacks infrastructure. It is the most important problem to be solved in the current competition of the DeFi chain. In this regard, the Ethereum's DeFi ecosystem has been far ahead. In addition, the 50% drop in dYdX mortgage assets also gives us a good reminder that DeFi can easily reach the bottleneck in layer 1. It seems that layer 2 will be more suitable, but this will inevitably come at the expense of some attributes.
The era of DeFi's great sailing is slowly beginning. In 2020, it is worth looking forward to!