Inventory of 10 new DeFi potential projects on Ethereum, Arbitrum, etc.
By Karen, Foresight News
This article will take stock of 10 new DeFi potential projects for readers, and what characteristics or innovations each have. However, most projects are still in the early stage of development, and users are reminded to interact cautiously, DYOR.
Morpho: Lending Optimization Protocol on Ethereum
Morpho can be thought of as a loan pool optimizer, a peer-to-peer layer built on top of loan pools such as Compound and AAVE , which improves the capital efficiency of loan pool positions by seamlessly matching lenders and borrowers peer-to-peer, while retaining the The same liquidity, liquidation guarantees and risk parameters associated with the protocol. At the time of writing, all liquidity provided through Morpho amounted to nearly $300 million, with a total borrowed volume of $156 million.
As we all know, in the current general lending agreement, the loan amount of most pools does not match the loan amount seriously, resulting in a serious mismatch between the interest paid by the borrower and the interest earned by the lender, and the capital efficiency is also relatively low. So how does Morpho improve capital efficiency?
Morpho mainly uses a priority queue to match users' lending needs to achieve a win-win situation. Specifically, users will be sorted according to the amount they want to lend or borrow. When a lender provides liquidity to the protocol, his Liquidity is matched to the largest borrower first, followed by the second largest, third largest, and so on until either the offered liquidity is fully matched or no more borrowers can be matched. Conversely, when a borrower is ready to borrow liquidity, it will be matched with the largest lender first, and so on. In view of the multiple matches that may occur, Morpho also takes into account the Gas consumption and allows users to customize the maximum Gas value. If the Gas spent reaches the maximum value, the remaining unmatched liquidity will be returned to the basic pool.
In other words, Morpho lending users can get the APY of the underlying pool in the worst case, and when their funds are matched, they will get a boosted P2P APY. In both cases, the user will always receive a rate equal to or better than the underlying protocol.
In terms of rewards, Morpho will accumulate rewards from the underlying protocol on behalf of users, and will also distribute its own token MORPHO to users.
Morpho completed $18 million in financing in July this year, led by a16z and Variant, with participation from Nascent, Semantic Ventures, Cherry Ventures, Mechanism Capital, Spark Capital, Standard Crypto, Coinbase Ventures, etc.
Portal: https://www.morpho.xyz/
Sturdy: Interest-free lending and yield protocol
Sturdy Finance is an interest-free loan and income agreement. According to official documents, the Sturdy team comes from encryption-native workers who previously worked in Polymath, Gelato Network, and Injective Protocol. In March this year, it completed a $3.9 million seed round and strategic round of financing , Pantera Capital led the round, with participation from Y Combinator, SoftBank’s Opportunity Fund, KuCoin Ventures, mgnr, One Block Capital, Dialetic, and Orange DAO.
Sturdy is currently listed on Fantom and Ethereum, and will mortgage the collateral provided by borrowers to DeFi protocols such as Yearn, Convex, and Lido, and the pledge rewards are used to pay depositors' interest. Sturdy has made it clear that governance tokens will be issued later.
In terms of interest rates, for borrowers, borrowing on Sturdy is interest-free. However, when the asset utilization rate exceeds 80%, every 1% increase in the utilization rate will require an additional 3% interest rate. When the health factor is lower than 1, it will be liquidated. For the lender, a relatively stable rate of return can be obtained.
Last week, Sturdy announced that it will issue the token STRDY, and will conduct AirDrop to early users and partners. AirDrop to partner users will be announced every day.
Portal: https://sturdy.finance/
Perennial: Derivatives Protocol
Perennial is a derivatives agreement. Earlier this month, it announced a $12 million financing led by Polychain Capital and Variant. Participating parties include Archetype, Coinbase Ventures, Scalar Capital, Robot Ventures, etc. Perennial co-founders Kevin Britz and Arjun Rao previously co-founded Astro Wallet in 2017, which was later acquired by Coinbase.
Perennial uses a DeFi-native trading model, i.e., no order book, zero slippage, and permissionless leverage, as well as DeFi-exclusive markets (such as Squeeth) and composable positions. Perennial acts as a peer-to-pool derivatives AMM where traders deposit collateral to gain leveraged exposure and liquidity providers can provide funding for a fee traders pay
In addition, Perennial also regards itself as the underlying protocol of derivatives, allowing developers to launch any synthetic market with only a few lines of code, and the tools built on top of the protocol can simplify and automate the participation of retail users. Perennial's initial core functions include "point-to-pool AMM", settlement in US dollars, LP flexibility, etc.
As of writing, within a week of Perennial’s launch on the Ethereum mainnet, the total amount of funds provided by liquidity providers was $1.8 million, and the open positions of traders exceeded $40,000. Although the current Perennial transaction heat is low, Perennial has not yet released tokens, so it may be worth ambush.
Portal: https://perennial.finance/
Further reading: " What are the highlights of Perennial, a $12 million derivatives agreement?" "
Panoptic: An oracle-free perpetual option protocol based on Uniswap
Panoptic was founded in July by Kristensen, former head of research at Advanced Blockchain AG, and Guillaume Lambert, a professor of applied physics at Cornell University, to build a perpetual, oracle-free decentralized crypto options trading protocol.
Different from the general option agreement, the Panoptic agreement does not use clearinghouse to settle the option, but uses the LP position in Uniswap V3 as the basic building block for trading long and short options. The option market can be deployed on any asset in a licensed way, and anyone can lend funds to option traders as a liquidity provider, etc.
It is undeniable that Panoptic will be able to provide options trading opportunities for long-tail assets, but potential risks also exist, such as excessive leverage ratios, paying a large premium for options, liquidation and other risks. Mechanistically speaking, when the option buyer transfers the seller's pre-deployed liquidity from the Uniswap V3 pool to Panoptic, Uniswap trading activities will generate LP fees owed by the buyer to the seller, which is the source of the premium. Readers who are interested in the Panoptic mechanism click on this link to the official document .
Panoptic plans to launch its platform in the first quarter of next year, and the first version will be based on Uniswap’s automated market maker (AMM), after which it plans to support other AMM.
Panoptic completed a $4.5 million financing this month, led by Gumi Cryptos Capital, with participation from Uniswap Labs Ventures, Coinbase Ventures, Jane Street, SevenX Ventures, and Avalanche Foundation’s Blizzard Fund.
Portal: https://www.panoptic.xyz/
Fluidity: Liquidity Incentive Layer
Fluidity completed a $1.3 million seed round of financing led by Multicoin Capital in October this year, with advisors including investor ZachXBT and others. The project, which will be built on Ethereum and Solana, launched today on the Ethereum mainnet, following a launch on the Ropsten testnet and Solana Devnet in January.
Fluidity will deposit the stablecoin encapsulation assets that users deposit into the protocol into Fluid Assets at a ratio of 1:1, and then users will be rewarded when they use, send or receive Fluid Assets on the chain. Rewards are generated by the cumulative rate of return that Fluidity generates from depositing and lending these underlying assets in other money markets. Users can redeem the underlying assets at any time.
As far as reward distribution is concerned, Fluidity has created a non-destructive reward savings pool, which will randomly distribute rewards of different sizes to users of Fluid Assets. The payment mechanism is determined by the Transfer Reward Function (TRF for short), which will depend on the size of the reward pool, Assets transaction frequency, gas fees paid, and random reward tiers are randomly assigned .
Fluidity also allows developers to dictate how and when these rewards are distributed. Fluid Assets use cases include sending, receiving, and trading tokens, minting, trading, and selling NFTs, executing transactions in DEXs, and more. Fluidit is building a common universal incentive mechanism that can be embedded in different systems, platforms and protocols.
In summary, Fluidity allows users to obtain encapsulated tokens without losing stable coins. At the same time, in order to encourage the liquidity of encapsulated tokens, a random reward incentive mechanism is also being built. In addition, Fluidity also proposes Use the concept of Utility Mining to allocate most of the governance tokens by referring to liquidity mining, so as to guide liquidity. Governance Token Economics can be found here .
Portal: https://fluidity.money/
Spectral: Credit Risk Assessment
Spectral has built an on-chain equivalent of the traditional FICO score, called the Multi-Asset Credit Risk Oracle (MACRO) Score, which allows users to check the on-chain score through its platform. Spectral has launched the V0.3.0 public beta version on the Arrbitrum test network, which allows users to obtain on-chain credit scores based on their on-chain interaction activities.
At present, we can mint non-fungible credit (NFC) tokens in Spectral according to the interaction activities on the chain. Spectral also allows users to bind any number of addresses, so that a MACRO score can represent the comprehensive credit of multiple addresses on NFC. The main wallet will get NFC, and the MACRO score will also be improved due to the length of credit history and the diversification of credit portfolio.
NFC represents our credit value in the DeFi lending market, and is fully programmable and composable, promising to become a credit risk assessment infrastructure in the DeFi world.
Spectral raised $23 million in August this year, led by General Catalyst and Social Capital, with participation from Samsung, Gradient Ventures, Section 32, Franklin Templeton, Circle Ventures and Jump Capital.
Portal: https://www.spectral.finance/
Nibiru: Cosmos Ecological DeFi Hub
Nibiru is not only a Cosmos-based PoS blockchain platform, but also a DeFi Hub that supports derivatives and spot transactions. In September this year, Nibiru completed a $7.5 million seed round of financing at a valuation of $100 million. Participating investors included Tribe Capital, Republic Crypto and Kraken.
The Nibiru ecosystem includes the perpetual futures agreement Nibi-Perps, the spot trading agreement Nibi-Swap, and the partially mortgaged stablecoin NUSD. Among them, Nibi-Perps has launched a public testnet. The initial testnet version is based on the virtual AMM mechanism, and positions are settled in USDC.
Portal: https://nibiru.fi/
Exponential: A DeFi Rating and Investment Protocol
Exponential completed a $14 million seed round of financing led by Paradigm in October. Exponential is not only a DeFi rating agreement, but also an investment agreement. It can easily discover, evaluate and invest in cross-chain liquidity pools, and can also evaluate its own wallet address to analyze investment risk. Exponential will also personalize and recommend the best fund pool based on the user's risk tolerance.
At present, Exponential allows users to analyze wallet risks and explore risk-return opportunities in fund pools, and has opened investment waiting list applications.
Portal: https://exponential.fi/
nftperp: NFT Perpetual Contract Protocol on Arbitrum
The NFT perpetual contract trading platform nftperp has launched the Beta mainnet on Arbitrum One, allowing users to mortgage WETH instead of NFT to go long or short blue-chip NFT, with a leverage of up to 5 times.
The nftperp trading mechanism uses a virtual automatic market maker (vAMM) model, does not require real liquidity providers, and has no order book. The trader's mortgage assets will be stored in a smart contract vault, and all losses and gains of the trader will be processed in the vault.
nftperp also recently completed a $1.7 million seed round of financing, Dialectic, Maven 11, Flow Ventures, DCV Capital, Gagra Ventures, AscendEX Ventures, Perridon Ventures, Caballeros Capital, Cogitent Ventures, Nothing Research, Apollo Capital, Tykhe Block Ventures, OP Crypto Wait to vote.
Portal: https://nftperp.xyz/
Further reading: " NFT perpetual contract agreement nftperp at a glance: how does it work?" What are the characteristics? "
Vertex: DEX on Arbitrum
Vertex is a DEX on Arbitrum, covering spot, derivatives trading, income, lending and other services. Vertex originally planned to launch Terra, but finally decided to launch Arbitum. The public testnet has been launched on Arbiturm.
Vertex combines the advantages of order books and AMM . The core protocol is an on-chain transaction protocol (constant product AMM) with an off-chain order book. The order book is an off-chain sorter for order matching. AMM ’s pool liquidity Will be injected into the off-chain order book, providing traders with deeper liquidity, tighter spreads and slippage.
Vertex has briefly outlined the token economics in the official documentation. In addition to the token VRTX, it will also create a liquid collateral token xVRTX and a non-transferable voting token voVRTX.
Portal: https://vertexprotocol.io/
