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What’s Happening in DeFi? dYdX, 3Jane, MakerDAO, and More

Published

1 month ago

June 5, 2024

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The decentralized finance (DeFi) sector continues to evolve, with several significant launches and updates making waves. BeInCrypto has examined the latest happenings, providing a comprehensive overview of the most noteworthy developments in the DeFi space.

From the launch of dYdX’s Android app to 3Jane’s derivatives yield layer, the sector is brimming with innovation and progress.

Term Structure’s Mainnet Launch

Term Structure has now launched its mainnet on Ethereum (ETH). This marks the debut of the first market-driven, institutional-grade fixed-income protocol. It is changing how lenders and borrowers manage liquidity in DeFi.

This platform lets users borrow tokens at fixed rates and terms using their liquid staking tokens (LSTs) and liquid restaking tokens (LRTs). They can also earn points and staking rewards. The auction mechanism in the primary markets facilitates borrowing and lending.

Additionally, the secondary markets offer a real-time order book. This feature enhances liquidity by supporting the trading of fixed-income tokens.

With this launch, Term Structure aims to set new global standards in liquidity management. It enables users to lock in a fixed cost of funds. This move is crucial for leveraging opportunities to possibly earn higher floating annual percentage yields (APYs) or capitalize on token price appreciation.

“Our mainnet, designed to cater to institutional clients, traders, and retail investors, marks a pivotal development in DeFi. It allows users to leverage their digital assets with fixed rates and terms,” Jerry Li, Term Structure CEO, said.

Term Structure is a fixed-rate lending and borrowing protocol powered by a customized zero-knowledge (ZK) rollup, zkTrue-up. The Taiwanese DeFi platform specializes in non-custodial fixed-income protocols for peer-to-peer borrowing and lending.

dYdX Android App Launch and Chain Upgrade

On another front, dYdX, a perpetual trading decentralized exchange (DEX), now offers its app on Android. The app contains all the current features of the dYdX chain.

“dYdX Chain for Android includes some of your favorite features like 24/7/365 markets, 20x leverage, 65 Markets and counting, low gas fees, and so much more,” the dYdX team noted.

Additionally, dYdX revealed its upgrade to dYdX Chain v5.0. This software upgrade was scheduled for block 17,560,000 around June 6 at 15:16 UTC.

This decision followed a dYdX community vote, with 90% supporting the upgrade to version 5.0 and 98.5% voting in favor. The upgrade introduces several improvements: Isolated Markets, Batch order cancellation, Protocol-enshrined liquidity provider (LP) Vault, Slinky Sidecar/Vote Extension, Performance Enhancements, Soft Open Interest Cap, and Full Node Streaming. As per DefiLlama data, dYdX Chain’s total value locked (TVL) stands at $146.28 million as of this writing.

3Jane Revolutionizes Restaking with Derivatives Yield on EigenLayer

3Jane, a derivatives yield protocol, is live on EigenLayer. It unlocks a novel derivatives yield layer by enabling the collateralization of restaked ETH in derivatives contracts.

Chudnov Glavniy, founder of 3Jane, announced the protocol launch. According to Glavniy, the protocol unlocks a new derivatives yield layer for restakers by enabling the collateralization of restaked ETH in derivatives contracts, specifically call options.

“3Jane is the first ETH yield source for all EigenLayer assets and the first step towards ‘financializing’ EigenLayer by sourcing yield not just from [Actively Validated Services] AVS security but also from financial derivatives,” Glavniy explained.

The protocol enables collateralizing all exotic yield-bearing ETH and Bitcoin (BTC) variants across EigenLayer, Babylon Chain, and Ethena in options contracts. Users can wrap natively restaked ETH, restaked LSTs, ether.fi Staked ETH (eETH), Renzo Restaked ETH (ezETH), Ethena Staked USDe (sUSDe), and Savings DAI (sDAI) on 3Jane to earn additional options premium yield. 3Jane Vaults sell deep out-of-the-money options and accrue premiums to wrapped deposits.

Everclear: Connext’s Rebranding and Clearing Layer Introduction

Interoperability protocol Everclear has introduced the first “Clearing Layer” after rebranding from Connext. These layers coordinate transactions between chains, netting fund flows before settling them on the underlying chains and bridges. The live test net begins today.

The Chain Abstraction stack aims to solve fragmentation by eliminating the need for users to care about the chain they are on. However, it faces challenges in rebalancing and settling liquidity between chains.

Everclear addresses this issue by creating Clearing Layers. These layers coordinate market actors to net funds flows between chains before settling with underlying chains and bridges. They form the foundation of the Chain Abstraction stack, enabling seamless liquidity and permissionless chain expansion for protocols built on them.

Everclear reduces the cost and complexity of rebalancing by up to 10 times. The system is built as an Arbitrum Orbit rollup (via Gelato RaaS) and connects to other chains using Hyperlane with an Eigenlayer Interchain Security Module (ISM).

On average, about 80% of daily cross-chain capital flows are nettable. For every $1 bridged into a chain, $0.80 is bridged out. If solvers, market makers, and centralized exchanges coordinated, they could reduce bridging fees by more than five times.

TrueFi’s Deployment on Arbitrum

TrueFi is now live on Arbitrum, marking a significant expansion in partnership with Cicada Credit to bring on-chain credit to Arbitrum with market-neutral borrowers. The TrueFi team explained several reasons they chose Arbitrum.

“Arbitrum is the largest Layer 2 by TVL, number of DeFi protocols, and balance of stablecoins. According to L2beat, Arbitrum is the furthest along the path of decentralization. They are investing significant funds from their treasury into [real-world assets] RWAs, as seen in their recent STEP program, where we have also applied with Adapt3r Digital,” the team outlined.

In the coming days and weeks, TrueFi will share more about the pools’ specific configuration and details on each of the borrowers. The first two pools will be with Gravity Team and AlphaNonce, and many more will come.

Nostra’s NSTR Tokenomics and Launch Events

Nostra revealed their tokenomics for NSTR, featuring a total supply of 100 million tokens unlocked entirely at launch. NSTR will serve as the governance token for the Nostra ecosystem.

They plan to distribute 11% to the community through an airdrop. Launch events include an upcoming Snapshot, a Liquidity Bootstrapping Pool (LBP) running from June 10 to 13, and the Token Generation Event (TGE) on June 17.

Nostra claims NSTR will be the fairest launch in DeFi. The Liquidity Bootstrapping Pool (LBP) pre-listing event aims to fund DEX liquidity.

They will airdrop tokens to the most active users and community members. All proceeds will go towards Treasury-owned DEX liquidity.

Solv Protocol Integrates Ethena for Yield Vault

Solv Protocol, a platform for optimizing yield and liquidity across major assets, has integrated Ethena to introduce the first yield vault for SolvBTC. This vault will enable users to earn yields from Ethena’s strategies while retaining exposure to Bitcoin.

Users can earn attractive yields with SolvBTC through two methods. Firstly, by utilizing Solv’s Yield Vaults, users can deposit their SolvBTC into these vaults to access premium yield sources such as BTC staking, restaking, and delta-neutral trading strategies.

Secondly, users can explore DeFi opportunities using SolvBTC across diverse DeFi protocols. This allows access to various yield-generating options, maximizing earnings within the vibrant DeFi ecosystem.

The ‘SolvBTC Yield Vault – Ethena’ is the first of many planned collaborations by Solv Protocol. These partnerships aim to introduce new yield sources and strategies to the expanding SolvBTC ecosystem.

MakerDAO’s New Proposal: Etherfi’s weETH into SparkLend

MakerDAO has opened a new proposal to onboard Etherfi’s weETH into SparkLend. weETH is the largest Liquid Restaking Token (LRT) on the market. It is also the only large LRT with fully enabled withdrawals, ensuring stable liquidity and a strong peg to ETH.

Phoenix Labs has proposed listing weETH to increase DAI borrowing on SparkLend, given the low competition for borrowing USD stablecoins using LRT collateral. The initial parameters and risk assessment are based on current market and liquidity conditions for weETH:

Liquidation Threshold: 73%

“If approved, this change will be part of an upcoming Executive Vote in SparkLend,” the MakerDAO team said.

These advancements emphasize the evolution of the DeFi sector, showcasing the relentless innovation and progress that are propelling the industry forward. With projects like dYdX, 3Jane, and MakerDAO continually breaking new ground, the future of decentralized finance appears exceptionally promising.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Aptos (APT) Sees Surge in Market Volatility: Price Impact

Published

48 mins ago

July 8, 2024

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APT, the governance token of the Layer 1 blockchain network Aptos, has witnessed a significant price decline in the last month. This comes amid the general decrease in activity in the cryptocurrency market during that period.

Exchanging hands at $5.82 at press time, the altcoin’s value has plunged by over 30%. APT remains at risk of significant price swings as its volatility markers have begun to spike.

Aptos Sees Spike in Volatility

The first indicator of the heightening volatility in the Aptos market is its Bollinger Bands. Readings from this key volatility market show a widening gap between the upper and lower bands of the indicator.

Bollinger Bands measure an asset’s market volatility and identify potential overbought or oversold conditions. When the gap between the upper and lower bands of the indicator widens, it indicates increased market volatility.

Also, during a period of price decline, the widening bands suggest that the downtrend may continue. It signals stronger selling pressure or a lack of buying interest at current price levels.

APT’s surging Average True Range (ATR) confirms the spike in market volatility.

This indicator measures market volatility by calculating the average range between high and low prices over a specified number of periods.

When its value rises, it suggests increased market volatility and hints at the possibility of a price swing in either direction. At press time, APT’s ATR is 0.48. It has been on an uptrend since July 1.

APT Price Prediction: Bearish Divergence Puts Token at Risk

Despite APT’s price decline, it has witnessed a surge in its daily trading volume. While the token’s price has fallen by 18% in the last week, its trading volume has increased by 29% during the same period.

The opposite movements of APT’s price and its daily trading volume create a bearish divergence, suggesting that more market participants are actively selling the asset.

If selling activity remains high, the token’s value may plunge to $5.62.

However, while increasing volume during a decline generally supports the continuation of the downtrend, extreme spikes in volume could sometimes precede a price reversal. Therefore, if APT witnesses a correction, its price may climb above $5.90.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

Altcoins Topped, But Meme Coins Set to Soar: Here’s Why

Published

2 hours ago

July 8, 2024

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After a rally in the first quarter of 2024, most altcoins appear to have peaked. They are struggling significantly from their March 2024 highs, with reductions in value ranging between 70% and 90%.

According to the latest data, the total market capitalization for crypto, excluding Bitcoin and Ethereum, has receded to December 2023 levels. This regression has effectively nullified all gains accrued year-to-date.

Why Crypto Analysts Believe Meme Coins Can Still Make New Highs

Crypto investor Andrew Kang believes that nearly all altcoins have reached their peak for the current bull cycle. Nonetheless, he retains a positive outlook on meme coins, which could defy the broader market downtrend.

“I believe 98%+ of altcoins topped for the cycle except for maybe a handful of coins that may make some new highs in Q4 2024/Q1 2025. Memes probably constitute a majority of the coins that have a chance of making new highs,” Kang revealed on X (Twitter).

In contrast to the faltering performance of most altcoins, meme coins exhibit peculiar resilience. Meme coin expert Murad Mahmudov anticipates that the sector will dominate the next altcoin season.

“People are slowly waking up to the black pill that all altcoins have always been meme coins with a bit of techy obfuscation on top. This will cause tens of thousands of people to (1) Sell tech altcoins for pure memes, (2) Buy pure memes instead of tech altcoins with fresh fiat this cycle,” Mahmudov boldly remarked.

Mahmudov’s analysis suggests a shift in investor sentiment. Institutional investors focus largely on Bitcoin (BTC) and, to a lesser extent, Ethereum (ETH), while retail investors gravitate towards meme coins.

“This is why tech altcoins are underperforming. No one wants them,” Mahmudov noted.

Furthermore, data from the crypto analysis platform DYOR highlights the outperformance of meme coins over the last 90 days during market volatility. With a relative strength of -0.37, meme coins have shown remarkable resilience compared to sectors like Web3 gaming and Layer-2/Layer-3 technologies, which recorded much lower strengths of -1.32 and -1.30, respectively.

Relative strength calculates the performance of a particular sector against the broader market.

Relative Strength of Crypto Narratives. Source: DYOR

Hitesh Malviya, founder of DYOR, provided a critical view of the altcoin ecosystem, particularly those backed by venture capitalists (VCs). He argued that many VC-backed projects, despite their initial promise, often do not survive the long term.

“90% of these so-called projects backed by top-tier VCs are essentially white-collar grifters who promise shiny things, raise funds, run the project for three or four years, and eventually die,” Malviya explained.

This pattern, Malviya warns, usually benefits the founders and VCs financially while leaving retail investors at a loss. Malviya’s remarks highlight the need to focus more on community-aligned altcoins.

“If we fail at that, the community will keep trading meme coins, which isn’t good for the larger section of the community, as the greed factor is always high and lacks fundamental backing,” Malviya concluded.

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Market

XRP Worth $4 Million Moves Amid Sentiment Shift

Published

3 hours ago

July 8, 2024

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XRP transactions on exchanges recorded an uptick on Monday, coming amid elevated fear levels in the market.

Traders show a general lack of conviction as altcoins follow Bitcoin’s lead. Despite the bearish sentiment, data indicates heightened interest in Ripple.

XRP Transactions on Exchanges Increase

Data platform Blockchair reported a series of XRP transactions on exchanges on Monday. In one transaction, over 10 million XRP tokens worth at least $4.2 million moved from Binance to an unknown wallet.

In another transaction, more than 3.6 million XRP tokens worth at least $1.45 million moved from Bitstamp to Binance.

When traders move their assets to a wallet, it suggests an intention to HODL. On the other hand, moving crypto between centralized exchanges suggests plans to explore different trading features, lower fees, or a wider variety of trading pairs. It may also be a strategic move to arbitrage between exchanges, as traders exploit price differences to make a profit.

Increased XRP trading activity coincides with changing social sentiment. According to CFGI.io, sentiment has improved from fear to neutral. This indicates that the market is currently neither overly optimistic nor excessively pessimistic.

Along with it, the investment suggestion remains to hold on amid “very positive” volatility, suggesting the need for caution. Nevertheless, Ripple’s Chief Technology Officer suggests the market needs to focus on XRP’s utility rather than its investment potential.

“Still costs $1 to buy enough XRP to make a $1 payment,” Schwartz noted.

The expression came as community members showed concern over how the ongoing market crash would impact the Ripple token. XRP has been subdued below the $0.6 price threshold over the past several months.

Focus on the Primary Function of Ripple, David Schwartz Says

Ripple CTO suggests that XRP holders can take advantage of the current price to purchase more tokens. He believes this highlights XRP’s primary function as a medium of exchange, facilitating fast and cost-effective cross-border transactions despite the bearish market.

However, some say Schwartz is deviating from his 2017 comment and is trying to manipulate the narrative.

“It can’t be dirt cheap. That does not make any sense. If XRP costs $1, they would need a million XRP, which would cost $1 million. If XRP costs a million dollars, they would need one XRP, which would, again, cost $1 million. Except that, higher prices make payments cheaper. Right now, you can buy a million-dollar house with bitcoins. When bitcoins were $300, it would move the market too much and be too expensive to be practical. So higher prices make payments cheaper,” the Ripple executive said in X post.

Nevertheless, Schwartz shot down the allegation that he was deviating and manipulating, reiterating his stance on XRP’s main purpose. This emphasis suggests the Ripple network’s commitment to promoting XRP for its utility in cross-border payments, not as an investment tool.

During Token2049 in Singapore, Ripple CEO Brad Garlinghouse also said the network is now more focused on what utility they are building than on speculative trading.

“Bitcoin ETF volumes have been soaring, we’re due for a halving, and the broader crypto market is following BTC’s lead. As someone who has experienced multiple cycles of ‘crypto is back,’ this bullishness must go hand in hand with real-world utility. That’s the real march of progress,” Garlinghouse explained.

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