Weekly DeFi Report: Who Should Be Paid First?

The crypto market traded heavily following the higher-than-expected CPI released on Wednesday night, then rebounded strongly in the following 24 hours ($BTC +5.3%, $ETH +8.5%). The June inflation was reportedly 9.1%, 30bps higher than expected. Crypto’s total market cap reclaimed $969 billion, with BTC now trading at $21k and ETH at $1.2k. Fed’s aggressive monetary policy, with a 1% rate hike in July, is highly anticipated. The FOMC meeting will be on July 26–27.

In the last 7 days:

Outperformers in the Top 100: QNT (+69%), SRM (+40%), LDO (+37%), AAVE (+29%), MATIC (+23%), UNI (+22%), AR (+17%), CRV (+11%)

Underperformers in the Top 100: 10SET (-21%), EVMOS (-19%), BAT (-13%), DOGE (-13%), MANA (-10%), WAVES (-10%)

In the DeFi space, total TVL stayed flat following the choppy price actions over the entire week, currently at $76B. TRON (+7%), Optimism (+5%) and NEAR (+2%) took the lead while the major blockchains declined slightly in TVL this week, ETH (-3%), SOL (-9%), BNB (-2%) and AVAX (-2%).

Celsius declared bankruptcy after repaying DeFi loans

More in details: The crypto lender under the liquidity crisis just paid off the debts on several DeFi platforms ($235m to Aave, $223m to Maker and $258m to Compound). After paying off the debts, Celsius recouped more than a billion worth of crypto assets, mainly in wBTC and stETH. However, the reclaimed collaterals were not enough to cover investors’ deposits and offset clients’ obligations. Regulatory questions about who should be paid first were raised.

Arbitrum Nova goes live

What is it about: Arbitrum Nova is Arbitrum’s new chain. Nova is built on AnyTrust technology and mainly used for social applications and gaming. It is now live on Arbitrum mainnet and developers can deploy their apps onto Nova. On the other hand, Arbitrum One will continue its availability for launching NFT and Defi projects.

Angel Protocol’s “Borrowing Module” launching on Polygon

What is happening: Polygon became the second blockchain network after Ethereum to deploy Angel Protocol’s Borrowing Module. The module allows users to get agEUR (euro-pegged stablecoin) directly on Polygon without interacting with Ethereum, paying less fees and transactions. Users can also borrow agEUR for 0.5% against wETH, USDC or MATIC.

Bitpanda launching DeFi and Metaverse indices

What is it about: Bitpanda is a crypto investment platform, recently launching four crypto indices (DeFi, Metaverse, Infrastructure and Smart Contracts). The indices provide users preset crypto portfolios, which will be automatically rebalanced according to market conditions. This allows users to gain crypto exposure in a much faster and easier way.

Big Money Raises

ZKX, a derivative trading protocol, raised $4.5M funding in seed round from Alameda Research, StarkWare, Huobi, Amber Group and more. The fund was said to be used on ZKX’s development, including main offerings, open-source protocol, DAO funding and ecosystem growth.

Hang, an NFT membership and loyalty rewards platform, raised $16M in Series A funding led by Paradigm. The fresh funds will be spent on expanding products and engineering teams.

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