EigenLayer raises restaking cap limit after oversubscription, while MakerDAO's Spark is going multi-chain. Check out the latest DeFi alpha right here on our weekly roundup!
Ethereum restaking layer, EigenLayer, to raise restaking limits across the support liquid staking tokens (LSTs) after the earlier caps were hit. Perpetuals trading platform, dYdX launches their Cosmos-based V4 testnet to the public and Yearn Finance begins the bootstrapping phase for their ETH LST basket product, yETH.
Plenty of projects to be watching! Let’s see what went down this past week in DeFi.
Overview: Evmos and Stacks See Increase in TVL
Total value locked (TVL) across all chains dipped 1.2% as the broader crypto market retraced against a slight pullback in traditional markets. Notable increases included Ethereum Virtual Machine (EVM) compatible Cosmos chain, Evmos, and Bitcoin Layer 2, Stacks, which both saw TVL increases in the 20% range.
Source: DeFiLlama
Welcome to Alpha Central
Castle Cap and DeFi Man come together to release a research report into leading perpetuals DEX, GMX, and their upcoming V2, including what’s in store for users and liquidity providers, and some of the risks for the protocol.
Winter Soldier drops a deep dive on permissionless, oracle-free options protocol, Panoptic, covering how it changes up the options trading landscape in DeFi.
DeFi Ignas covers some of the most interesting decentralized exchanges (DEXs) in the space at the moment, including Maverick Protocol, Shell Protocol and more.
Ethereum: EigenLayer Cap Increase and YETH Bootstrapping
EigenLayer has made the move to increase the caps on restaking on their platform to 15K tokens per LST with no deposit limits. A pause will be implemented once 30K tokens have been restaked across all LSTs. This change is expected in the week of July 10.
Yield vault protocol, Yearn Finance has begun bootstrapping for their LSDFi product, yETH. YETH is a basket of LSTs, designed to give holders the best adjusted yield on their LSTs. LSD protocols can now apply for their tokens to be included and depositors can deposit their ETH from Week 3 to 5 for the right to vote on the weightage of each LST in yETH (and earn incentives for doing so!)
Yield protocol, Sommelier Finance, integrates yield optimizer platform, Morpho, to optimize yields for their real-yield ETH (RYETH) and real-yield USD (RYUSD) vaults.
BadgerDAO deploys the eBTC protocol on Ethereum, enabling the borrowing of eBTC against Lido Staked ETH (stETH). The collateralization ratio is currently set at 110% with stETH being the only accepted collateral option.
MakerDAO’s money market platform, Spark, is set to go multi-chain. They are currently seeking network partners in alt-L1s, L2s or other ecosystems which are interested in supporting their expansion plans.
Permissionless, oracle-free options protocol, Panoptic, opens up for sign ups for their gated launch. The protocol released their whitepaper the week earlier, designed to solve the problem of fragmented options liquidity in the DeFi space.
Multi-chain interoperability protocol, PolyNetwork, has been exploited again in the week, with tokens being sent out from the Ethereum pool to various chains. Although the minted value of the tokens exploited was initially assessed at a whopping $34 billion, due to lack of liquidity in most of them, the final exploit value is estimated at approximately $400K.
Cross-chain bridging solution, Multichain has reportedly been exploited. Approximately $120 million has been stolen, although some have suspected it to be the work of a white hat hacker.
Redacted Cartel launches Hidden Hand V2, an upgrade to their bribe marketplace product. V2 brings improved control over bribes to Hidden Hand, with range bribes and limit bribes. New partners such as Pendle and Aura are also being added in the upgrade.
L2s: Loopring L3 and the IDEX Supernet
ETH zero-knowledge rollup (zk-rollup), Loopring, deploys its very own L3 on zero-knowledge EVM (zkEVM) chain, Taiko’s, alpha-3 testnet. The move is expected to bring cheaper transaction fees to the L3 through the use of recursive proofs.
Leveraged trading platform, IDEX, partners with Polygon to launch a specialized zkEVM chain as a Polygon supernet, XCHAIN, tailored for their protocol. The chain is currently live on an internal testnet and will be made live to the public soon.
Permissionless lending protocol, Surge, has launched on the Arbitrum mainnet. Surge enables truly permissionless lending by allowing borrowing and lending on ANY token, without the use of oracles.
RightSide shares all on yield tokenization protocol, Pendle’s, upcoming V2 updates, including increased token utility and efficiency, reduced fragmentation and an improved UI. In the same week, Pendle goes live on BNB Smart Chain.
Arbitrum-based gambling protocol, Pepe’s Game, releases a slew of incentives with V1.5, including referral bounties, the Degen of the Week prize pool, buybacks and Pepe’s pills: a daily loyalty reward point system.
Arbitrum yield protocol, GMD protocol, partners with perpetuals DEX, MUX Protocol to offer pseudo delta-neutral vaults for USDC, BTC and ETH, yielding between 10-30% APY.
Optimism-based leveraged trading platform, Pika Protocol, unveils Pika V4, bringing to the platform setting take-profit and stop-loss orders when opening positions, lowered fees and TradingView integration, among other features.
BNB Smart Chain’s dominant DEX, PancakeSwap continues on their multi-chain strategy, this time expanding to ConsenSys-backed zkEVM chain, Linea. The DEX will also be a part of the chain’s ongoing campaign, the Linea Voyage.
Solana: Phoenix Limit Order Book DEX
Phoenix introduces its revolutionary limit order book DEX on Solana. Phoenix is designed for instant settlement and deep liquidity via market makers. Phoenix also logs all data events on-chain, making analysis and data retrieval easy.
Cosmos: DYdX V4 Testnet Live
Cosmos-based L1, Archway, is now live. The chain is designed to help developers capture the value created by their decentralized applications (DApps), to power more sustainable ecosystems. As part of this, 25% of all token emissions are allocated to developers, with the remaining 75% for validators.
Perpetuals trading platform, dYdX, has officially launched their V4 testnet to the public as a Cosmos-based appchain. The most recent milestone brought to the platform advanced order types and dynamic funding rates.
Modular infrastructure layer, Celestia, undergoes an upgrade to their testnet, releasing the Oolong Testnet which brings to the protocol increased space in the block for blob data, restricted block sizes and more.
Another Week, Another Airdrop
Arbitrum-based gamified DEX, SpartaDEX, releases the details on their airdrop. 50% of the airdrop will be claimable on the token generation event (TGE), with the remaining portion vesting over three months.
The market takes a breather with a small retrace, but the builders keep pushing forward with the project updates. Stay updated and stay tuned for next week’s edition, and keep supporting your favorite projects, degens!
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