1. DeFi Data Dashboard
Stablecoin issuance
As of February 27, the market capitalization of the top five stablecoins was $130.7 billion, basically the same as $131.1 billion in the middle of the month.
The regulatory ban on BUSD continues to ferment. As a result, the market value of BUSD has dropped from about $16B to less than $11B.
From February 21 to February 28, Binance minted approximately US$130 million worth of TUSD, and the market value of TUSD increased by 15%, surpassing Frax Finance to rank fifth.
TVL data
As of February 28, the TVL of the entire network was US$74.7 billion, up 8.57% from the previous month.
The TVL of the two L2 giants continued to be popular in the market in February, with large increases for Arbitrum (+57.94%) and Optimism (+37.83%).
Polygon's TVL has been surpassed by Avalanche and has fallen out of the top five.
The TVL of the LSD track accounts for 15%, and the staking value reaches 10.5 billion US dollars. Among them, Lido accounts for nearly 75%. At present, the ETH staking ratio of the entire Ethereum network is 14.46% (Dune@hildobby, 2/28). Binance Research recently released research related to the Shanghai upgrade, predicting that more funds will flow into the staking agreement after the upgrade because the redemption risk is reduced.
DEX Data
As of February 28, DEX's February trading volume reached $36.6 billion, up 3.35% from the previous month.
Lending data
As of February 28, the volume of loans under the main lending agreement continued to grow, reaching US$4.396 billion.
2. DeFi Information Aggregation
DeFi News
1. LSD track TVL exceeds lending and ranks second
On February 27, the TVL of the LSD track exceeded lending for the first time, becoming the second-ranked track. The current total TVL is US$14.4 billion, accounting for 61% of the DEX TVL.
2. Lido added $1.02 billion in ETH deposits within the month
According to 0xScope analysis, $1.02 billion worth of ETH has been deposited into Lido in the past month. Among them, Justin Sun deposited more than 303,000 ETH (about $500 million) through 3 addresses, equivalent to 73.6% of the total ETH staked in Rocket Pool; the anonymous multi-signature address starting with 0xea withdrew a total of 78,700 ETH (about $130 million) from Aave and Binance to participate in staking. The address may be a fund; NFT DAO Nouns vault deposited 10,000 ETH (about $16.3 million) into Lido, ranking third.
3. ZigZag — ZK DEX built on zkSync and Starknet — announces airdrop information
On February 24, Ethereum's second-layer ZK Rollup order book DEX ZigZag announced airdrop information, with a total of 7 rounds of airdrops (the first round of airdrops has been carried out), a total of about 110,000 addresses were airdropped, and the total amount of airdrops was 35 million ZZ (accounting for 35% of the total supply).
4. Yearn will launch a basket of LSD Token yETH
On February 22, DeFi yield aggregator Yearn tweeted that it would launch a basket of LSD Tokens yETH. According to reports, yETH contains a variety of LSD Tokens, aiming to diversify investment risks for users and increase investment returns.
5. Frax Finance will gradually remove algorithmic support and switch to the fully collateralized FRAX stablecoin. The proposal was passed with a 98% rate, which shows that the community has reached a consensus on "stability and compliance".
DeFi Perspective
1. Sushi’s journey to save itself
At the end of last year, the Sushi team disclosed the dire financial situation that Sushi was facing. At that time, the funds were only enough for the team to survive for another year and a half. Currently, Sushi’s self-rescue strategy can be summarized in two aspects:
1. Adjust the token economic model, increase LPs yield, and replenish treasury funds;
2. Adjust product planning, abandon Kashi and MISO, and focus on centralized market making, aggregators, derivatives, etc.
On February 12, the team published a post about the new organization "Sushi Studio" on the Sushi governance forum, proposing the establishment of Sushi Studios, which will permanently obtain a royalty-free license to use the Sushi brand and have the right to grant other developers the right to use the Sushi brand to create new products. This approach only requires the use of Sushi's brand without the need for Sushi DAO Treasury funds. On the one hand, this can reduce the funds needed to expand Sushi's product matrix. On the other hand, the Sushi community can in turn obtain crowdfunding opportunities, airdrop income, special token utility and other benefits through these "deck" projects.
2. The flywheel effect of Optimism lending protocol Sonne Finance — slappjakke.eth
Introduction: Sonne Finance is Optimism's first native lending protocol, providing a fully decentralized, transparent and non-custodial peer-to-peer lending protocol. Sonne is a folk of Coumpound, but has innovated in revenue sharing and token economics. Protocol stakers can receive 3 different types of income based on the vaults they use:
sSONNE - $VELO、$OP 和 $SONNE
uSONNE - $VELO, $OP and $USDC
Sonne built an innovative flywheel based on VelodromeFi, which raises funds for $VELO farming. The farming income was initially 100% distributed to SONNE stakers, but now Sonne has locked up enough $VELO to be eligible to participate in VelodromeFi's vote bribes and receive lock-up rewards, which are also distributed to stakers.
A portion of $SONNE released is used to bribe veVELO holders to vote for SONNE/USDC LPs to get a higher APR, which will eventually be distributed to sSonne stakers. This makes $SONNE one of the biggest bribers of Velodrome, providing huge APRs to its LPs, and stakers can currently earn up to 45% APR from protocol revenue.
Sonne is also applying for the next round of Optimism funding, which is mainly used to incentivize lending. If the application is approved, it means that more protocol revenue can be distributed to stakeholders, which will ultimately greatly increase TVL. Currently, Sonne's flywheel effect has begun to emerge, and its TVL has doubled rapidly in half a month to 41 million US dollars.
DeFi Outlook
The DeFi yield protocol Affine Protocol recently completed a $5.1 million financing, led by Jump Crypto and Hack VC, with participation from Circle Ventures and Coinbase Ventures. Affine provides automated diversification and yield through liquidity management strategies. Its flagship product USD Earn has an annualized yield of 6.34% in the past 30 days, with an asset management scale of $2 million.
DeFi structured product GammaSwap completed a $1.7 million seed round of financing. GammaSwap allows traders to leverage volatility or hedge against impermanent loss to obtain better LP returns, and is not yet online.
DeFi strategy protocol Ammalgam announced that it completed a $750,000 Pre-seed round of financing in the third quarter of 2022, with participation from Synthetix founder Kain Warwick, Compound founder Robert Leshner and others. Ammalgam allows borrowed funds to provide liquidity for AMM pools, and the product is not yet online.
The decentralized DeFi strategy builder Mellow Protocol has been launched on Polygon. It has integrated QuickSwap, Uniswap and Aave. The strategy manages Vault funds by allocating liquidity among different DeFi protocols. There are currently 8 Vaults in operation, and the funds managed by each Vault range from tens of thousands of dollars to hundreds of thousands of dollars. The Vault with the highest APR is Uni V3 WSTETH/USDC liquidity management. With the LDO token reward of the pool, the APR reaches 299%. The LDO reward distribution period of the pool ends on March 13.
Factor, an Arbitrum-based on-chain asset management platform, raised approximately $7.6 million from more than 4,000 wallets in its just-completed token offering. Previously, Snapfingers Research introduced the platform in its biweekly report. Currently, the product is not online and only $FCTR tokens can be staked.
3. Snap DeFi Radar Data
radar.snapfingers.com is a DeFi strategy information platform under snapfingers. It mines and displays DeFi strategy data and provides valuable strategy screening to lower the threshold for users to operate DeFi. Currently, 20 strategies are online, covering various strategy types such as interest-bearing, derivatives, and liquidity management.
All strategies have positive returns in this period (2/13-2/26). A total of 5 strategies have a return rate of more than 30%. The highest TVL is Diamond Unibot V2, reaching $27.02M.
Toros Finance's Risk-Managed Yield strategy currently has the highest return, with an APY of 143% and a TVL of $227,006. RMY is a more cautious investment strategy that can achieve relatively stable returns in market fluctuations.
The Ethereum Yield strategy currently has an APY of 75% and a TVL of $2.38M.
Ribbon Finance's AVAX covered-call strategy currently has an APY of 36.46% and a TVL of $281.62k.
The SAVAX Covered-Call strategy currently has an APY of 101.29% and a TVL of $187.12k.
Diamond Unibot V2’s WETH/USDC 0.05% strategy has an APY of 42.24% and a TVL of $27.02M.
Opyn's bull strategy Zen Bull ETH and sideways strategy Crab USDC fluctuated greatly before the 19th, thanks to the sharp rise in $ETH during the period. After the slight decline began on the 20th, the returns gradually decreased. With the slight increase at the beginning of this week, APY increased slightly.
About Snapfingers Research
Snapfingers Research is a research platform under Snapfingers, focusing on DeFi and TradeFi research on various public chains.
