Weekly DeFi Report:HAWKISH FED; AUGUST RED

General crypto assets ended lower in August after the hawkish speech from the Fed at the end of the month and strict regulatory policy on crypto institutions, for instance Tornado Cash (Aug: BTC -13.9%, ETH -7.3%). Funding rates also turned significantly negative in accordance with the declining price actions. Crypto assets were consolidating within a narrow range with upcoming releases of macro data, the total crypto market cap is $1T now. Bitcoin was gyrating around $20k and Ethereum ranged between $1.5k and $1.6k over the last seven days. The September schedule is packed for both the macro and crypto market, with the August Nonfarm Payroll being the first one tonight, then August CPI number on 13 Sep, followed by the Ethereum Merge on 15–16 Sep, and the FOMC meeting on 21 Sep.

Top 100 in the last 7 days:

Outperformers: XEC (+19.5%), CEL (+17.4%), BIT (+9.5%), MATIC (+6.5%), LEO (+5.6%), NEXO (+5.2%)

Underperformers: HNT (-27.7%), AR (-18.4%), AVAX (-17.3%), 10SET (-15.2%), AMP (-14.2%), ZEC (-13.7%)

In the DeFi space, total TVL was slightly up this week, currently at $76.6B (-7.0%). Major blockchains’ TVL slid following the steep price correction caused by Jackson Hole event since Friday: Ethereum $44.7B (-7.7%), Binance Smart Chain $7.3B (-4.3%), Tron $5.8B (-5.0%). The L2s were mixed in TV:: Optimism $1.9B (+20.2%), Arbitrum $1.6B (+41.8%). Polygon also had an increase in TVL as OpenSea is accepting $MATIC and expanding to Polygon network via SeaPort, TVL at $2.2B (+18.5%).

Table 1: Total Value Locked (TVL) on major blockchains

The Dogechain token $DC got listed

  • After reaching over $300m worth of DOGE bridged on Dogechain, the team has airdropped the governance token $DC to early contributors. $DC has surged over 140% in last 7 day, currently trading at $0.003176. The token was also listed on centralized exchanges such as Huobi Global, KuCoin and Gate.io.

MakerDAO CEO proposed “Endgame Plan”

  • Rune Christensen, the CEO and co-founder of MakerDAO, believed that $DAI, the major stablecoin for MakerDAO, cannot maintain as a stablecoin forever under strict regulatory policy, following the Tornado Cash issue. He suggested turning $DAI into a free-floating asset if the protocol is unable to reach 75% decentralized collateral threshold in three years. MakerDAO will continue accumulating $ETH as collateral to back $DAI when the protocol lends out $DAI against other real-world assets. Whether the accumulation is successful will determine the future of $DAI, either being a dollar-pegged stablecoin or a free-floating asset.

1inch $OP token airdrop

  • 1inch, the DEX aggregator, announced to reward users that used 1inch wallet on Optimism. The drop will be identical for all users, equally distributed between all qualifiers. The airdrop will include a total of 300,000 $OP tokens.

LG Electronics, the South Korea-based electronic company, announced to launch their first ever crypto wallet — “Wallypto” in 2022 Q3. The crypto wallet is built on Hedera Hashgraph blockchain and expected to expand the list of supporting networks upon releases.

Sygnum, the Swiss digital bank, will open a metaverse hub in Decentraland. The hub will feature a CryptoPunk receptionist, NFT gallery and event space. The first public livestream event will be held on 27 Sep.

Stacked, a community-based livestreaming platform, closed a $12.9m funding in Series A funding round, led by Pantera Capital. The team aims at bringing web2 content creators into web3.

Gogopool, a decentralized staking protocol for Avalanche subnets, raised $5m in seed round, co-led by Framework Ventures and CoinFund. The funding will be used for recruitment and developments for open-source tools that help in scaling the subnets and enhancing Avalanche networks.

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