What’s New in DeFi, November 25 – December 8
This week the crypto market has experienced a severe downturn, with Bitcoin hitting lows not seen since May 2019. It fortunately didn’t affect DeFi much, as the total value of assets locked in DeFi applications hit new all-time high, DEX trading volume showed a significant increase over the previous week, and a number of prominent products were released.
Keep reading to find out more about the hottest news and latest developments in DeFi space this week.
Total Value Of Assets Locked in DeFi Hits New Records
Amid the shifting cryptocurrency market, the total value locked in DeFi applications reached its all-time high of 4.4 million ETH this week. The total value in USD also hit a new record with $693M locked, according to DefiPulse.
The amount of Ethereum locked in DeFi also peaked — it’s now up to 2.7 million ETH. Almost 80% of that total, or 2.1 million ETH, accounts for MakerDAO, followed by Compound and InstaDApp with 350K and 210K ETH locked respectively.
Exchange and Guardian Contracts Are Released on Equilibrium Framework
Two new DeFi products were released on the Equilibrium framework this week: Guardian and Exchange.
A new on-chain guardian contract is intended to boost the process of buying out liquidated collateral and burning EOSDT “bad debt.” When the guardian contract receives an EOSDT transfer and the bad debt on the liquidator contract is greater than zero, it will perform as follows:
- attempt to liquidate the bad debt by transferring EOSDT to the liquidator and getting collateral EOS back
- go to DEX to convert EOS into EOSDT
- return EOSDT and the profit to the user.
The guardian contract will improve in the future so that it can act as a liquidity pool.
Guardian needs liquidity to quickly buy out collateral and sell it at a profit, and Exchange contract is developed for this purpose. After integrating exchange contract in their code, Guardian will complete buying liquidated collateral and selling it to DEX in a single transaction. At the moment, exchange contract supports two trading pairs: EOS/EOSDT and NUT/EOS.
Compound Adds Multi-Collateral DAI
As the official Compound blog revealed on Nov. 28, users can now supply and borrow the newest version of DAI, Multi-Collateral Dai (MCD). The Compound protocol made it available by creating a new cToken contract called cDAI. At the moment, cDAI’s functionality is similar to other cTokens, but there are plans to upgrade it and use it as collateral to borrow other assets.
As a reminder, MCD was released on Nov. 18 and bolstered the list of cryptocurrencies that could be used as collateral in MakerDAO’s infrastructure. Previously, only ETH could be locked in the system for borrowing DAI tokens. After the release, BAT was also added as a possible collateral option, Augur’s REP token is being evaluated, and almost any token could become available as collateral after MKR voter approval.
DEX 7-Day Trade Volume Reaches $80 million
The crypto market decline did not affect DEX growth rate. According to data collected by DuneAnalytics, the total DEX trade volume over the last 7 days has almost reached $80 million, a 116% week-over-week increase.
The top performers are Kyber with $24.9 million in volume, Uniswap with $23.8 million, and 0x with $11.7 million. Idex executed almost 2,800 trades, more than any other.
China Has A Clear Blockchain Plan
We can’t count on the de facto tech hubs like San Francisco and New York to be hotbeds of action for fintech. If anything, 2019 is showing us that China is poised strongest to show us new features and deliver us new products based on blockchain technology. The Chinese president recently gave an endorsement of the technology and has whipped up a storm in the process: the country is eager to demonstrate its capabilities here, and other countries are moved to act before they get left behind.
HSBC Transitions $20 Billion From Paper Records To Blockchain
Forbes reports that HSBC will move billions in private placements — assets offered directly to an investor instead of as part of a public sale — from paper records to a new blockchain-based custody platform called Digital Vault by March 2020. Private placements are generally recorded on paper in a non-standard way. This can make them difficult and inefficient to track and interact with.
But blockchain methodology reduces the time and complexity involved in checking or querying those holdings. HSBC will experiment with giving investors real-time access to records of $20 billion worth of securities. If the experiment goes well, they’ll move an additional $30 billion into the system.
Jack Dorsey Sees The Future In Africa
Square and Twitter co-founder Jack Dorsey has been calling lots of attention to the continent of Africa and its role in the future of finance. Through tweets and public appearances, the American entrepreneur has made it clear that he’s paying a lot of attention to how Africa interacts with Bitcoin on the rationale that people there will set new trends for financial technology.
Dorsey even teased that he plans to live somewhere in Africa for “three to six months” in 2020.
Synthetix Releases A System Upgrade Called Vega
Synthetix released Vega, a system upgrade to launch Synthetix Improvement Proposal (SIP) 29, on Nov. 27. This removed the ability to issue, burn, and claim rewards in assets other than sUSD, a special mintable asset of the Synthetix platform. According to developers, issuing, burning and claiming in any Synthetix asset could let users avoid paying the exchange fee. This backdoor was discovered and used in malicious activities.
The upgrade, which was deployed without the usual week’s notice, will now prevent frontrunning bots from minting and then burning Synthetix assets immediately to profit on price movements without paying fees.
Bancor Announces New Year Airdrop, Binance Supports It
Bancor plans to give away its ETHBNT tokens to 60,000 participants. According to Bancor officials, it would bring 60,000 new DeFi applications users into the fold, in addition to some 10,000 existing users.
To participate, users only need to hold BNT in a non-custodial wallet or a supported exchange wallet on January 1st at 12:00 AM EST. If this condition is met, participants will receive the ETHBNT airdrop bonus in the amount of 10% of their BNT holdings. The ETHBNT they receive will let users earn fees from every ETH trade on Bancor.
Binance is the first exchange to support the Bancor airdrop.