Uniswap fee switch vote failed to pass, but not because it was unpopular, as Celestia launches a modular DA interface for the OP Stack — find out more in our weekly DeFi roundup.
Ethereum’s top decentralized exchange (DEX), Uniswap, sees the governance proposal regarding the elusive “fee switch” fail to pass, despite a majority voting “for” the proposal. Frax founder, Sam Kazemian, unveils details on frxETH’s unique V2 model. Finally, the MIM stablecoin goes omnichain, in a partnership with omnichain interoperability protocol, LayerZero.
Let’s see what went down this past week in DeFi.
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Overview: The Crab Market Trudges on
Total value locked (TVL) across all chains remains flat once again across the week, despite a slow grind up by large cap cryptocurrencies. Notable increases in TVL were observed on zero-knowledge Ethereum Virtual Machine (zkEVM) chains, Polygon zkEVM and zkSync Era, which both saw increases in the 20% range.
Source: DeFiLlama
Welcome to Alpha Central
DeFi Mochi covers the narrative building on top of the liquid staking derivative (LSD) narrative: the LSDFi narrative, including projects like Pendle, Lybra Finance, Asymetrix and more!
SchizoXBT dives into the world of Sei, the trading-focused Cosmos chain, which is fast approaching its mainnet launch.
2Lambroz takes a tour through the state of StarkNet, some of the projects that users can look at and interact with, and his thoughts on the ecosystem as a whole.
Ethereum: Uniswap Fee Switch Fails Due to Poor Vote Setup
Uniswap’s fee switch governance vote failed to pass, but not because the idea was not popular among voters. Although more than 50% of UNI holders voted for the fee switch, the voting options were split between various fee options, resulting in the majority vote being to not turn on the fee switch.
Frax founder, Sam Kazemian, shares all about frxETH V2, introducing a unique ETH staking model and yield to the ETH LSD space.
Crypto wallet, Atomic Wallet, reports cases of a large number of users being hacked at the same time, potentially due to a security flaw in the wallet. The current known losses are now just over $35 million.
Telegram-based Uniswap sniper bot, Unibot, introduces limit orders to their platform, allowing users to set and leave their orders, instead of waiting for the perfect time to execute.
Paladin releases Warlord (WAR), a yield-bearing index token for simple exposure to Aura and Convex. Users can mint WAR with AURA or CVX, and in return, receive staking rewards as well as vote incentives, which are auto-compounded.
Curve Finance deploys Tricrypto-ng, a new and improved version of their famous Tricrypto pools. The newly deployed contract uses half the gas of the original and a more stable price oracle. A vote is currently underway for frontend UI deployment.
Prisma Finance introduces their model for their ETH LSD-backed stablecoin, acUSD, which can be borrowed against the supported LSDs: wstETH, rETH, cbETH, sfrxETH and WBETH. AcUSD usage will be incentivized with PRISMA emissions in Curve and Convex liquidity pools.
Liquid staking automation protocol, CIAN, deploys CIAN vaults on Ethereum mainnet, which aims to leverage Lido Finance’s staking yield, via integrations with Aave, 1inch, Morpho Labs and Balancer. The protocol also automatically switches between yield opportunities to optimize depositor returns.
LSDFi protocol, Unsheth, was exploited in the past week as well after a private key leak, with approximately $350K in USH farm rewards and protocol liquidity being siphoned away. Users’ deposits are untouched and the team is currently in negotiation for a return of the stolen funds in return for a whitehat bounty.
MIM stablecoin issuer, Abracadabra Money, integrates MIM into LayerZero’s omnichain fungible tokens standard, enabling the seamless transfer of MIM across all of LayerZero’s supported chains.
MAI stablecoin protocol, QiDAO, releases their Pro update, improving the UI of the protocol for a more intuitive and user-friendly experience. The update includes color themes, better display of rewards, more flexibility over the display of user’s active vaults, and more.
Block Analytica launches Project Levon in beta, bringing credit scoring to DeFi. The beta scores wallets with existing open MakerDAO vaults and utilizes machine learning to estimate probability of default based on the user’s past behavior.
Real-yield protocol, Sommelier Finance, introduces plans for single-sided staking for ENS tokens. The strategy seeks to borrow ETH tokens against the deposited ENS tokens, before depositing the borrowed ETH into Sommelier’s Real-Yield ETH vault to generate the returns for the stakers.
Blue-chip asset bridge, Altitude DeFi, launches their public testnet, allowing users to bridge assets, provide liquidity and stake ALTD tokens on their testnet for rewards.
L2s: Celestia x Optimism
Celestia announces Modular Data Availability for the OP Stack, a public good developed in collaboration with OP Labs. This technology enables developers on the OP Stack to utilize any base layer as their data availability layer, be it Ethereum, Celestia or even Bitcoin.
Exotic peg hedging protocol, Y2K Finance, deploys V2 on Arbitrum, enabling Y2K’s 24/7 queue system, which allows users to deposit funds at any time to enter the next available epoch, instead of being able to deposit only during specific windows.
Perpetuals DEX, El Dorado Finance, has been exploited for ~520K worth of USDC and USDT on the Arbitrum network. The exploiter explained that the protocol’s developers were manipulating oracle prices and promised to return funds less a 10% bounty if this was confirmed by the team. The team confirmed this in a follow-up tweet.
One-stop DeFi shop, Trader Joe, releases the highly anticipated Auto-pools, which enable auto-rebalancing of liquidity provided to Trader Joe’s concentrated liquidity solution, Liquidity Book. Auto-pools are currently available on both Avalanche and Arbitrum.
GMX fork, Level Finance, expands its reach to Arbitrum, releasing their token on the chain. The team has seeded 750K worth of liquidity for the LVL token on Trader Joe in the LVL/USDT liquidity pool. The DEX launch is in the works and expected to come soon.
Multichain DeFi aggregation layer, Unidex Exchange, announces upcoming huge upgrades to the protocol, requiring all open positions to be closed by June 12th. The upgrade will bring new features to the platform such as, cross-chain perpetuals aggregation, referral addresses, better capital efficiency and limit orders.
ETH LSD platform, Rocketpool, deploys on zkSync Era, making it the first of the ETH LSD protocols to deploy on the zkEVM chain.
Native BTC can now be bridged to Arbitrum directly as tBTC, in a collaborative effort between Wormhole and Threshold Network. In the same week, Circle announced their plans to launch native USDC on the chain on June 8th.
Binance Smart Chain: Thena Futures Incoming
Solidly fork, Thena Finance, introduces futures on Thena, which will be launching with more than 60 supported assets and deep liquidity sourced from brokers, allowing the platform to scale effectively.
Solana: Marinade V2
Solana liquid staking service, Marinade Finance, introduces Marinade V2, including new features such as Staking 360, an all-encompassing product for all things staking on Solana, and governance upgrades as well as token design improvements.
Cosmos: A New and Improved Keplr
Cosmos-based wallet, Keplr, releases Keplr 2.0, allowing users to view all of their assets in the Cosmos ecosystem in a single page, claim all rewards in a single click, and customize the chains visible on their wallet.
Cosmos-based Ojo Network launches the Agamotto Network, a security-first Cosmos chain seeking to provide reliable and manipulation-proof oracle price feeds for all Inter-Blockchain Communication (IBC) assets in the Cosmos ecosystem.
Cosmos interoperability protocol, Router Chain, deploys their testnet, Mandara, allowing external validators to participate for the first time. The chain’s incentivized and gamified testnet is expected to arrive in June this year.
Another Week, Another Airdrop
LSD protocol Swell Network’s Voyage is now live, with 50M SWELL tokens allocated to the event. If the protocol hits 50K in ETH locked, the amount allocated to the airdrop will be increased. Users can stake or provide liquidity for swETH to collect pearls which can be redeemed for tokens in Swell’s token generation event (TGE) later this year.
The crab market continues, but builder updates only keep going up. Stay updated and stay tuned for next week’s edition, and keep supporting your favorite projects, degens!
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