Hello Defiers, here’s what’s going on in decentralized finance,
Ether deposits in bZx, the platform at the center of recent financial exploits, are surging
dYdX introduces tried and tested exchange monetization model: trading fees
Instadapp created DeFi Smart Account to provide a single point of entry for open finance
PieDAO wants to allow anyone to create and trade passive funds
and more 🙂
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Confidence in bZx Coming Back After Exploits
Users are coming back to bZx, the DeFi platform that was at the center of two exploits about three weeks ago, even as trading hasn’t resumed.
Ether deposits in bZx shot up by more than 20% yesterday to 21.3K ETH, from 17.5K, according to DeFi Pulse. The amount of ether in the platform is still about 22% lower than pre-exploits level. Increased liquidity slashed ether rates by about half, to 27.5% from 41% on the previous day, and from as high as 99% on the day of the first exploit.
dYdX Introduces Trading Fees
DeFi trading platform dYdX is introducing trading fees starting March 10. Taker fees will range between 0.05% and 0.5% of trade volume, depending on trading pair and order size. Market makers will pay no fees, as the platform aims to incentivize liquidity and create a deeper order book.
Instadapp Wants to Provide a Single Point of Entry for DeFi
Instadapp, which built a bridge connecting major DeFi lending protocols, is launching a platform aimed at providing users and developers with a single point of access to all of decentralized finance. Most users interact with DeFi through wallets, which were mainly designed for tokens. Instadapp wants to improve the experience and make it more seamless.
PieDAO Wants to Become DeFi’s ETF Issuer
Another passive investing solution is coming to DeFi. PieDAO wants to enable anyone to trade and create investment portfolios, which can include digital and traditional assets via synthetic assets. These portfolios, called PIEs, will be tokenized and available for trading 24/7 by anyone, globally, and with no minimums.
Top five decentralized finance apps running on Ethereum —MakerDAO, Compound Finance, dYdX, Aave, bZx— have reached almost 6,000 daily active unique wallets in the last 7 days.
Coinbase Engineer Daniel Que writes about the risk of decentralized finance composability. “We hear a lot about the magic of composability in DeFi, or “Money Legos.” I want you to remember that it could become “Money House of Cards” in a flash.”
Richard Burton compares ICO days with DeFi days.
In 2017 I watched founders launch stupid tokens with valuations over $100,000,000 and proceed to incinerate their investors’ capital 🔥 In 2020 I am watching founders craft sensible tokens with valuations under $10,000,000 and carefully deploying their seed capital 🌱
March 3rd 2020
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The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access at $10/month or $100/year, while free signups get only part of the content.
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About the author: I’m Camila Russo, a financial journalist writing a book on Ethereum with Harper Collins. (Pre-order The Infinite Machine here). I was previously at Bloomberg News in New York, Madrid and Buenos Aires covering markets. I’ve extensively covered crypto and finance, and now I’m diving into DeFi, the intersection of the two.