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- Learning Defi - Weekly News (3/26 - 4/2)
Weekly News 3/26 - 4/2
❈ DEFI TOTAL TVL ❈
$49.73 Billion (+1.09% last week)
❈ Chain TVL Winners & Losers ❈
zkSyn Era (+690% last week)
they just launched last Saturday
Hedera (+17.24% last week)
Canto (+6.88% last week)
Celo (+5.82% last week)
Avalanche (+3.56% last week)
Moonbeam (-5.87% last week)
Stacks (-9.27% last week)
Algorand (-19.69% last week)
Core (-33.35% last week)
❈ L1 Price movements ❈
❈ Arbitrum Foundation Drama
There is a lot of drama this morning around Arbitrum’s AIP-1 (Arbiturm Improvement Proposal #1).
I’ll be honest and say that I haven’t had time to do that much background research here, it’s all actively coming to light this Sunday morning. If it becomes something significant, I’ll dive deeper into it in next week’s newsletter.
From my understanding right now, here’s what happened.
It mostly started when Blockworks publically stated that they were voting against AIP-1 in this thread.
Blockworks Research is voting AGAINST AIP-1: Arbitrum Improvement Proposal Framework
We are committed to improving DAO governance and transparency, and this proposal represents a step backwards in its current state. 👇
@arbitrum@OffchainLabs
snapshot.org/#/arbitrumfoun…
— Blockworks Research (@blockworksres)
4:43 PM • Mar 31, 2023
Arbitrum initially allocated 4.27B of $ARB tokens to the DAO Treasury in their docs
• AIP-1 proposed that 750M of that 4.27B go to the Foundation
New numbers:
ARB DAO Treasury: 3.52B
ARB Foundation: 750M
The problem is that they already moved the 750M to the foundation before the “proposal”.
Arbitrum’s response was that the “proposal” wasn’t really a proposal, but rather a ratification.
If you want to dive deeper into this, @OlimpioCrypto has the least biased viewpoint I’ve read and tries to see both sides in this thread:
The Arbitrum Team released a statement on AIP-1.
Takeaways:
• It was a ratification of something already decided. Not a proposal.
• Other chains have Foundations. And they control a similar amount of tokens as the $1B ARB requested
• They acknowledge miscommunication🦅🔵🧵
— olimpio (@OlimpioCrypto)
2:31 PM • Apr 2, 2023
Like I said, most of this is just coming to light and I’m sure more information will come out in the next few days.
❈ Uniswap V3 License expired
Yesterday, April 1st, the BSL (Business Source License) license that Uniswap used for its concentrated liquidity technology expired. The new license that applies to the code “General Public License” makes it possible for developers to fork the code and start to build their own concentrated liquidity competitors.
It will be interesting to watch and see if any new DEXs with uniswap-forked concentrated liquidity pools launch in the coming months.
It will also be very interesting to see if any of these new DEXs come out with better tokenomics than Uniswap and have some sort of fee-share structure for token holders.
To be clear, I don’t think any fork is going to dethrone Uniswap - but there will certainly be some more competition.
❈ US Government selling BTC obtained from Silk Road Arrest
A court filing that was released this past week disclosed that the US Government sold 9,800 BTC this past month in an auction.
[DB] US Govt Sold 9,800 BTC on March 14, Intends to Sell a Further 41,500 BTC Connected to Silk Road in Four Batches Over the Course of the Year: Court Filing
— db (@tier10k)
3:14 PM • Mar 31, 2023
❈ CFTC sues Binance and founder
Another week, another lawsuit. I don’t know if it’s just me, but I feel like most people are starting to become numb to these announcements now.
❈ Other Headlines
EigenLabs, the team behind the initial development of the EigenLayer protocol, raised $50 million
Ledger, the hardware wallet company, raised $109 million
Hydra Ventures
Hydra, an investment DAO, raised $10 million this week to invest in other funds run by DAOs (aka investment DAOs). Kinda meta, but also kinda cool.
I think their website does a great job of explaining what they do.
“Hydra Ventures is the first dedicated investment DAO focused on backing and incubating other investment DAOs across the web3 ecosystem. We bring expertise and guidance on all aspects of running an investment DAO throughout the entire lifecycle: community coordination, investments, organizational design, incentive design and back office (legal, tax, accounting, ops).“
One of my favorite defi newsletters, DeFi Education, wrote a pretty awesome newsletter about crypto Tokenomics. I thought they did a really great job of breaking down all components of what makes a token valuable.
If you missed out on getting the Arbitrum airdrop, another highly anticipated upcoming one is the zkSync airdrop. @DeFiMinty released a detailed thread walking step by step through the process of how to get onboarded to the zkSync ecosystem and start making your first few transactions which may or may not qualify you for a future airdrop.
The @zksync era mainnet is finally live. Users are bridging massively to be early to its ecosystem.
To get started, here is a guide on the zksync ecosystem and what you can do right now.
🧵
— Minty (@DeFiMinty)
5:00 PM • Mar 26, 2023
Here is a graph of daily fees generated by Gamma Strategies. Gamma is a protocol that provides automated concentrated liquidity management for LPs.
They manage concentrated liquidity positions across multiple chains and a few DEXs (Uniswap, Quickswap, and Zyberswap).
I think this will be an interesting protocol to watch over the next 6-12 months.
As I mentioned above, with the uniV3 license expired, I think we’ll see some new DEXs with concentrated liquidity pools launch.
As new DEXs launch with these pools, it will be interesting to see how much tools like Gamma will benefit.
(Concentrated Liquidity will be an upcoming topic in the Thursday Deep Dives!)
That’s all for this week! As always - stay safe and stay yielding. 🌾
-Andy