DeFi Monthly | Lockup Achieves Record High, Cosmos Launches First DeFi Project


DeFi lockout amount hits record high

As of January 31, data from DeFi Pulse showed that the total value of DeFi lockups reached $ 882 million, a record high, of which Maker accounted for 57.76%. In the past month, the amount of DeFi lockups has increased from US $ 6.52 to US $ 882 million, an increase of approximately 35%, and the growth rate has clearly increased.


According to data from Dapp Total, the top 10 DeFi products in the lockup are Maker, EOS REX, Edgeware, Compound, InstaDApp, Synthetix, Uniswap, EOSDT, dYdX, IDEX.


Only 4 DeFi applications have been broken in 7 days

From the perspective of the locked-up currency, the DeFi ecosystem is still around Ethereum. In the top 10 of the hedging position, 8 applications are based on ETH, and 2 applications are based on EOS. In terms of application attributes, they include stablecoin, lending, DEX, derivatives, and hedging airdrop. From the number of active users, Thousands of active users in 7 days are Maker, Uniswap, IDEX, Synthetix.


MakerDAO assets are concentrated in a few addresses

Despite the explosive growth of the DeFi market, Digital Assets Data data shows that MakerDAO assets are concentrated in a few addresses. On the old Maker agreement, about 155,000 CDPs were created on "Single Collateral Sai". But as of January 15, 77% held less than 0.05 ETH. In addition, only one account holds 171,000 PETH, which accounts for 27% of the total amount of PETH. At the same time, most accounts are small, but these addresses account for only 4% of the total locked WETH. At the same time, one address holds 15% of the locked value and the other holds nearly 8%. These two accounts hold nearly a quarter of the collateral.

Whale Alert's data shows the concentration of DeFi from another dimension. Last year, the DeFi project raised its loan limit to $ 120 million, but 42% of the ETH locked in the MakerDAO system was stored in two wallets, 27% and 15%.


Cosmos's first DeFi project, Kava, will go live on testnet

Today, Kava announced that the CDP test network will officially launch at 10 pm Beijing time on February 5th. This is Cosmos' first DeFi project.

The Kava team stated that the goal of the testnet is to test end-to-end CDP functions, including bug and other functional tests for upcoming deployments, and testing of governance functions and adjustment parameters. The team will also use the testnet to improve, Document and improve governance processes. Kava Labs encourages validators to participate in this governance to become familiar with the operating model. Professionals who build Cosmos / defi interfaces can apply for the Kava Grants program.

It is worth noting that this test will not support anchor testing of external assets. The Kava team said that the future testnet will support the anchor asset function and provide vulnerability bounty and reward programs for system attacks.

BlockchainIST will develop DeFi products on Ava platform

On January 9th, before Ava Labs launched its mainnet, BlockchainIST, Turkey's first university blockchain center, partnered with Ava Labs, an associate professor of Cornell University Emin Gün Sirer, to develop DeFi products on the Ava platform. According to previous news, Associate Professor Emin Gun Sirer of Cornell University founded the blockchain organization Ava Labs and is currently developing the Ava network and cryptocurrency.


Vitalik opposes calling Defi's mortgage position a loan

Recently, the American media Mashable published an article entitled "I have borrowed a sum of money without signing documents and seeing people." The article describes how the author used Compound to lend a sum of money. In the process, lenders can easily borrow DAI stablecoins without applying to any institution or signing any documents.

But Ethereum founder Vitalik has different opinions. He said: "The media believes that DeFi can make people lend money without signing any documents. The main reason is that traditional borrowing needs to sign some documents to determine whether the lender can Debts are paid off, and in DeFi, digital assets have always been in the hands of users, just leveraged positions. "

Vitalik further explained: "The difference between traditional loans and DeFi is that the house cannot be divided, and the house is also occupied when the loan is used to buy a house, which makes DeFi and the loan different in terms of quantity." Therefore, Vitalik called this kind of behavior of lending funds through DeFi as "CDP mortgage positions" and "active leverage trading", and stated that he has always opposed the use of the term borrowing on DeFi.

Ethereum developers should pay attention to the migration of DeFi in Ethereum 2.0

Ethereum 2.0's beacon chain is expected to be launched in the first quarter of this year. The merger from Ethereum to Ethereum 2.0 has created problems for the user base in the defi ecosystem. Token Daily partner Mohamed Fouda said: "If the DeFi application cannot be easily migrated to Ethereum 2.0, there will be no activity on the new chain."

Ethereum advocate and general manager of Weald Technology Jim McDonald also said: "This is undoubtedly the most important task that Ethereum developers should pay attention to in 2020. DeFi relies heavily on network effects, so if Ethereum 2.0 is launched late, DeFi Already moved to another network, which could cause problems for continued use of Ethereum 2.0. "