LD Capital Weekly Track Report [04/09/2023]

[Summary]

RWA: The current tokenization of US bonds has reached $635 million, a slight decrease from mid-August.

LSD: Last week, the ETH staking rate rose to 22.02%, up by 1.06% from the previous week. There were 26.47 million ETH locked in the Beacon Chain, corresponding to a staking rate of 22.02%, an increase of 1.06% week-on-week. Among them, there were 772,600 active validator nodes, up by 2.08%, and 49,800 nodes waiting in the queue, a decrease of 10.07%. The ETH staking yield continued to decline to 3.75%.

Ethereum L2: The total value locked (TVL) in Layer2 increased by $70 million from the previous week, reaching a total of $9.63 billion. The top four projects by TVL are Arbitrum, OP Mainnet, Zksync Era, and Base.

DEX: Dex combined TVL remains steady at 12 billion. The 24-hour trading volume for Dex was 1 billion, and the 7-day trading volume was 12 billion, an increase of 0.5 billion from the previous week. Ethereum DEX accounted for 50% of the trading volume.

[RWA]

The current tokenization of US bonds stands at $635 million, showing a slight decrease since mid-August.

Maple Finance:

Completed a $5 million financing on August 22nd and plans to return to the Solana ecosystem. According to defillama, its TVL has been continuously growing since February 2023, with the current TVL at 97.98M, of which the RWA portion is 43.5M.

MakerDAO:

The MakerDAO DSR rate has been reduced from 8% to 5%. After a sharp drop, the DSR scale started to grow steadily from August 23rd and currently stands at $1.35 billion. The PSM portion increased by 37 million from the previous week.

Recent update proposals include:

Increasing the supply cap of Spark protocol’s wstETH from 200,000 wstETH to 400,000 wstETH.

Adjusting market parameters for the Spark protocol’s ETH.

Reducing the potential default debt of ConsolFreight (RWA003-A) from 2 million Dai to 0 Dai.

Frax Finance

The team expects the initial APR for the RWA segment to be close to 10%; the base yield is approximately 5% (declining with TVL growth). Sam predicts that under ideal circumstances, it can reach several billion in scale. Overall, Frax Finance’s operations are too diversified, the launch date for the RWA business is uncertain, and there’s a high level of uncertainty.

TProtocol

The core task last week was the v1-v2 migration test, and the V2 version is expected to launch soon. The key feature of v2 is the loan recovery mechanism to improve capital utilization efficiency. The protocol primarily recovers loans in two ways: quickly selling LP tokens through the Curve liquidity pool and liquidating through Matrixdock.

[LSD]

Last week, the ETH staking rate rose to 22.02%, an increase of 1.06% from the previous week. 26.47 million ETH were locked in the Beacon Chain, corresponding to a staking rate of 22.02%. Of this, 772,600 were active validator nodes (an increase of 2.08% from the previous week), and 49,800 were validator nodes in the queue (a decrease of 10.07% from the previous week). The ETH staking yield continued its decline, now at 3.75%.

ETH staking continues to grow steadily.

ETH staking yield decreased to 3.84%.

Of the three major LSD protocols, in terms of price performance, LDO decreased by 2.5% over the week, RPL fell by 6.5%, FXS declined by 5.8%; From the perspective of ETH collateral volume, Lido increased by 1.88% over the week, Rocket Pool rose by 1.98%, Frax grew by 1.01%.

Last week, the topic of decentralized ETH staking sparked discussions. Medium and small-sized LSD protocols like Rocket Pool, Stake Wise, Stader Labs, Diva, and Puffer pledged that their ETH staking share would be less than 22%. Among these, Rocket Pool, with the largest share, holds only 3%. The biggest LSD protocol, Lido, currently possesses 32% of the staking share and declined self-limitation in a community vote in June 2022. Frax’s founder, Sam, mocked the idea of self-limitation as a clumsy marketing tactic for small LSD protocols.

[Ethereum L2]

TVL

Layer2 TVL grew by $70 million from the previous week, with the total locked amount being $9.63 billion.

OP Labs has hired a former Google executive as its Chief Operating Officer:

Prithvi Subburaj, a former General Manager at Google, worked there for over 15 years. He held leadership roles in software engineering and previously managed the wireless subscription service, Google Fi. Subburaj’s appointment comes after Optimism co-founder Karl Floersch became the CEO of OP Labs.

Aerodrome becomes the Dex with the highest TVL on the Base chain

Following its launch on Base, Velodrome’s fork protocol, Aerodrome, has a current TVL of $190.01 million, making it the Dex with the highest TVL on the Base chain.

Aerodrome plans to incentivize users by airdropping its native Aero token. This will target veVELO holders and will be distributed in the form of veAERO, making up 40% of the total supply.

Base’s TVL has grown the fastest across all L2, ranking fourth with a 7-day growth of 53.36%.

The highest TVL on the OP chain remains with Velodrome at $161.15 million.

The dYdX community has approved the “V4 Adoption and Moving DYDX to the dYdX chain” proposal.

The proposal includes

1. Adopting dYdX V4 open-source software as the next version of the dYdX protocol.

2. Using DYDX as the L1 token for the dYdX chain.

3. Implementing a smart contract, developed on commission by the dYdX foundation, to establish a permissionless one-way cross-chain bridge between Ethereum and the dYdX chain for DYDX.

4. Suggesting that dYdX chain validator nodes reference the aforementioned smart contract when distributing DYDX on the dYdX chain.

5. On dYdX V3, wethDYDX will have the same governance and application functions as the Ethereum-based DYDX.

The Shibarium network is back online with over 800,000 transactions

The current Shibarium TVL stands at $1.16 million. Approximately 1 million wallets have completed over 950,000 transactions on the network. The peak transaction day was on August 25th, with 130,000 transactions.

Users can utilize SHIB, BONE, and other tokens on Shibarium for exchanges, lending and borrowing, or staking to earn rewards.

On-chain Activity

[DEX]

Dex combined TVL stands at 12 billion, consistent with last week. The 24-hour trading volume for Dex is 1 billion, with a 7-day volume of 12 billion, a growth of 0.5 billion from the previous week. Ethereum DEX transactions account for 50% of the total.

Ethereum

ETH L2/sidechain

The fastest-growing DEX on the Base chain this week is Aerodrome, with an increase of 81,508%. Its TVL has climbed to the top position in the Base ecosystem, currently standing at 188 million.

BTC L2/Sidechain:

Alt L1:

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