Review of DeFi in April: Real assets start to be mortgaged on the chain, Tron USDT issuance exceeds Ethereum USDT for the first time

With the appreciation of encrypted assets, various data in DeFi continue to improve. In addition to Ethereum, DeFi projects on other chains are also booming. DeFi innovation is becoming more and more difficult, but there are also many projects that have achieved extremes in certain directions, so that they stand out and may change the existing interaction methods.

Project launch and update

As early as last year, MakerDAO stated that it would focus on the mortgage lending of real assets. On April 15th, MakerDAO’s first entity financing execution proposal was approved, adding New Series 2 DROP as collateral, and then officially issued the first real asset loan. New Silver is a home renovation and resale loan on Centrifuge Tinlake. Investing in New Series 2 DROP tokens means financing real estate in the United States. MakerDAO has partnered with Centrifuge to realize the first real-world asset-backed DAI loan , which is also the first real-world asset-based loan in DeFi, will become a milestone in the integration of DeFi and reality.

In the decentralized lending market, because interest rates fluctuate with demand, it is not conducive to the large-scale influx of traditional assets. Pendle (formerly known as Benchmark), which is dedicated to the yield market, can solve this problem. It can separate the underlying assets from the income, and the owner of the asset can sell its income rights within a fixed period of time, thereby locking in profits and income rights. There is also no liquidation risk for buyers. Lenders can lock in rates when rates are high, and borrowers can hedge rates when rates are low. In specific operations, you can use the aToken in Aave and the cToken in Compound to mint OT tokens representing ownership and XYT tokens representing future earnings. If you sell XYT tokens, it is equivalent to locking in future earnings; buying XYT tokens Tokens can obtain the income generated by the asset in Aave or Compound for a period of time in the future, which is convenient for borrowers to hedge interest rate risks.

Major data review: The main force of Huobi ETH bought more than 26 million US dollars during the decline: AlCoin PRO version K-line main force large order statistics show: August 15th 10:00-August 16th 20:15, ETH from 442 The dollar fell to as low as $412. During this process, Huobi ETH/USDT appeared and executed a large number of entrusted buy orders.

Among them, 70 large entrusted buy orders with a total value of more than 26 million U.S. dollars (a single entrusted amount of more than 200,000 U.S. dollars) were completed, and the average purchase price was 426 U.S. dollars. [2020/8/17]

After six months of pre-mining, B.Protocol finally upgraded the points in the platform to the governance token BPRO through voting. B.Protocol wants to solve the problem of Gas war and uncertainty in the liquidation process. Its creator, Yaron Velner, was once the CTO of Kyber Network and the co-designer of the WBTC protocol. B.Protocol will integrate the protocol into the existing DeFi lending platform, and has completed the integration of MakerDAO and Compound. B.Protocol liquidators obtain priority in the liquidation process by providing a buffer for user accounts when the liquidation price is close. Users of MakerDAO and Compound can complete borrowing and lending in B.Protocol, and obtain governance tokens over time, and part of the liquidator's proceeds will also be distributed to users. The project is completely fair and started. During the initial token distribution, all BPRO tokens are allocated to users according to the proportion of points, and there is no pre-mining and VC distribution.

Major resumption: 24 hours before the sharp drop, the main force of Huobi sold 110 million US dollars: AICoin PRO version K-line main force large order statistics show: From 13:45 on August 1st to 12:15 on August 2nd, the main force of Huobi’s BTC quarterly contract Large orders appear frequently and are executed. Among them, a total of 110 large-amount entrusted sell orders were completed, totaling 110 million US dollars; 76 large-amount entrusted buy orders were completed, totaling 51.55 million US dollars, and the transaction difference was -58.467 million US dollars. [2020/8/3]

Recently, the discussion in the Ethereum community on "miners can extract value" has heated up again, and the high Gas fee has seriously affected the participation of DeFi in Ethereum. The usage of the Ethereum network has skyrocketed, which includes a lot of inefficient MEV extraction processes, and the mutual bidding of arbitrageurs has also increased the Gas fee, thus bringing negative externalities to Ethereum. Flashbots, through a proof-of-concept project MEV-Geth, wants to solve this problem. Miners can use MEV-Geth to outsource the rights and interests of the blocks of packaged transactions to third-party searchers, and the searchers compete with each other by communicating the block space hidden mark of transaction ordering preference. Although MEV-Geth cannot reduce front-running and trailing transactions, it can reduce network congestion caused by robots.

CowSwap is also a kind of decentralized exchange (DEX), but it is significantly different from the existing DEX, and is famous for its zero handling fee (Gas fee for authorization, basic fee for executing transactions and agreement fee for actual use) ). Transactions submitted on CowSwap will first be matched in off-chain services, and if there is an exact matching demand (Cow), the transaction will be executed directly. Because there are no market makers and no fees to liquidity providers, transactions in Cow will result in better prices. In the absence of a better price, the trade will be executed on the best path in the AMM. If the transaction is successfully matched directly off the chain, then CowSwap can also alleviate the trouble caused by MEV.

Major data review: The main force made a profit of nearly 20% from high-level short selling: AICoin reported yesterday that OKEx BTC quarterly contracts, Huobi BTC quarterly contracts, and BitMEX XBT all had relatively large entrusted sell orders near $9,900, and their positions increased , can be judged as the main force to open short.

Shortly after the main force opened short, the market experienced two rounds of decline. The first round of decline was around 15:20 on the 9th. Binance’s BTC spot main force actively sold 1,251 BTC, with a slippage as high as $109. It was tested that the market depth was insufficient, and the main force’s short-selling belief strengthened.

The second round of decline occurred at 8:00 this morning. The main force of the BitMEX XBT perpetual contract actively sold 119 million contracts, easily completing a round of plundering of more than 1,000 US dollars in profit. It can be seen that this round of short selling has made more than 20% profit. [2020/5/10]

With the overall increase in the valuation of encrypted assets, various data in DeFi also continue to improve. The total market capitalization of cryptocurrencies rose 15.8 percent in April and topped $2 trillion for the first time, reaching $2.12 trillion, according to CoinMarketCap. The price of BTC (WBTC), which is more used in DeFi, fell 1.78%, ETH rose 44.44%, and BNB rose 105.92%.

Total locked amount

Replay: It was the main force of Binance who made the first move, and the spot was heavily sold: AICoin PRO version K-line main transaction data shows that in the past 24 hours, the price of Bitcoin fell from above US$6,900 to a minimum of US$6,468. Among them, the Binance BTC spot took the lead in selling large orders at 18:30 on the 15th. From 18:20 to 20:20, there were a total of 16 large orders of 899.51 BTC sold. Afterwards, Huobi BTC spot began to suspend sell orders, from 19:40 on the 15th to 00:15 on the 16th. A total of 3 large entrusted sell orders with a pending sale volume of 2113.82 BTC appeared and 2131.97 BTC were traded. In the second decline from 05:45 to 09:05 this morning, Binance also took the lead in selling large orders, with a total of 21 transactions and 1666.8 BTC. Please pay close attention to the main movements of Binance and Huobi. [2020/4/16]

According to DeBank statistics, in April, the total lock-up volume on Ethereum, BSC, xDai, and Polygon chains rose from $64.8 billion to $108.6 billion, an increase of 67.6%. As of May 6, the total lock-up volume on these chains has risen to $122.8 billion. If Heco’s $8.9 billion is added, the total lock-up volume in all DeFi protocols has exceeded $130 billion. the

Tracking and review of the main large orders: Before the sharp drop, the large spot orders were sold close to 4000 BTC: AICoin PRO version K-line main large orders statistics show that during the sideways trading stage from 16:00 on March 6th to the early morning of March 8th, Huobi and A total of 20 large orders were sold on OKEx BTC spot trading pairs, totaling 3770.98 BTC. There were only 5 large orders, with a total turnover of 363.82 BTC and a difference of -3407.16 BTC. In the early morning of March 8, Bitcoin fell, and it continued to fall this evening. It has fallen by more than 8% so far. [2020/3/9]

Decentralized Exchange

Daily trading volume on decentralized exchanges (DEXs) was around $4 billion at the end of April, up from around $2.7 billion a month earlier, up 48%. Among the DEXs on Ethereum, SushiSwap's lock-up volume is about half of that of Uniswap, and its transaction volume is about one-third of that of Uniswap. There is still a significant gap between the two. If DEX on Ethereum is compared with other chains, PancakeSwap on BSC far exceeds Uniswap in terms of locked positions, number of 24-hour transactions, and number of active-zce users, while the transaction volume of the two is comparable.

Decentralized lending

The total borrowings of decentralized lending platforms increased by 49.4% to US$19.6 billion, of which Compound still has the highest total borrowings, while Venus on BSC rose from third to second. The largest increase in total borrowing was Aave V2, which rose 355% from $810 million to $3.64 billion. The increase in the total borrowings of Aave V2 also accounted for 43.6% of the total borrowings of all platforms that have been counted in April, and the total borrowings of Aave V1 decreased slightly. While Compound’s total borrowing volume is on the rise, its share has dropped from 42% to 38%.

Stablecoins

According to the data on Messari, as of the end of April, the total market value of the eight stablecoins USDT, USDC, BUSD, HUSD, TUSD, sUSD, PAX, and DAI was 75.3 billion US dollars, compared with 61.8 billion US dollars a month ago. Monthly increase of 21.8%. This month, the authorized issuance of USDT on Tron also surpassed that of ETH for the first time. According to the data on Tether’s official website, ERC20 USDT has authorized the issuance of 25.9 billion, while Tron USDT has authorized the issuance of 29 billion.

BTC anchor currency

The Bitcoin-anchored coins issued on Ethereum also exceeded 1% of the total BTC for the first time this month. As of the end of April, the total issuance of BTC-anchored coins on Ethereum was 216,728, an increase of 15.1% from a month ago. The circulation of BBTC has increased a lot in this month, from 2900 to 9900.

Decentralized Oracle

The number of calls to decentralized oracles has not increased. According to DeBank's data, by the end of April, ChainLink, as a professional oracle machine, was called about 10,000 times a day; Uniswap was called about 3,700 times a day because it has a large number of trading pairs and has the largest trading volume among DEXs. These two account for 95% of oracle calls.

Summary

The various data in DeFi continue to improve. On the one hand, there is the impact of the overall valuation increase of encrypted assets, and on the other hand, there is an influx of more assets. The total market value of encrypted assets exceeded 2 trillion U.S. dollars. MakerDAO issued the first loan based on real assets of DAI. The BTC anchor currency exceeded 1% of the total BTC for the first time. Aave V2 also began to attract a large amount of funds.

In addition to Ethereum, DeFi on other chains is also developing rapidly. PancakeSwap has surpassed Uniswap in terms of locked positions, 24-hour transaction volume, and number of active-zce users, and its transaction volume is comparable to Uniswap. Venus surpassed MakerDAO in borrowing volume and jumped to the second place. The circulation of Tron USDT also surpassed that of ERC20 USDT for the first time.

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