【Summary】
Stablecoin : The total market value of the Stablecoin sector is about 129.92 billion US dollars, and the overall market value has not changed much. Circle will issue native USDC on Arbitrum on June 8.
LSDFi : Last week, the amount of ETH pledged reached 19.2628 million, a month-on-month increase of 1.95%, and the number of beacon chain queues reached 93,900, a month-on-month increase of 21.69%. Among the three major LSD protocols, the growth rate of Lido continues to accelerate, and the growth rate exceeds that of Rocket Pool and Frax under a high base. At present, LSDFi has formed a rapid capital rotation with traces and traces. At the current stage, we should focus on new targets. A large number of agreements that are truly committed to solving market pain points, or a strong "regular army" of teams and investors are entering the market.
Ethereum L2 : The total amount of Layer2 TVL is almost unchanged from last week, and the total locked-up amount is 9.06 billion US dollars. Among them, the TVL of arbitrum and ooptimism dropped slightly; the TVL of zksync era still maintained a strong growth trend and has risen for more than three consecutive weeks; the growth of Starknet has slowed down.
DEX : Dex combined TVL 17.18 billion, 10mln less than last week, 24-hour trading volume 1.21billion, 7-day trading volume 12.29biliion. In the past week, Curve has grown rapidly on Polygon, and Arbtrum. Mute's TVL exceeds Velocore, and currently ranks third on the Zksync Era chain.
Derivatives DEX : Last week, the overall trading volume of Derivatives DEX still maintained an overall downward trend, and the cumulative trading volume of the six major agreements was $6 billion. Due to the decline in trading volume, the revenue of the agreement is also declining, and the yield rate has also dropped significantly. The rate of return on funds of leading agreements decreased, which led to the outflow of some funds. The TVL of GMX peaked at about 695m in mid-to-late April, and has gradually declined since then. The current TVL is 616m, a monthly decline of 11.8%.
【Stablecoin】
According to data from defillama.com, the current total market capitalization of the Stablecoin sector is about 129.92 billion US dollars. The market capitalization of USDC has been showing a downward trend, while the market share of USDT has continued to grow. The overall market capitalization of the Stablecoin sector has not changed much .
According to the latest data from Circle’s official website, as of June 1, the total circulation of USDC reached 29 billion U.S. dollars, and the total amount of funds reserves reached 29.1 billion U.S. dollars. In the past week, USDC issuance fell back to 700 million US dollars, and the redemption volume reached 800 million US dollars.
Circle will launch native USDC on Arbitrum on June 8, 2023. The native USDC will eventually replace the currently circulating USDC version Bridged USDC bridged from Ethereum. Before the native USDC launch on June 8th, Arbitrum will rename USDC’s Ethereum bridge version to “USDC.e” on the block explorer
【LSDFi】
The current ETH pledge rate is 18.67%, an increase of 4.24% month-on-month; from the endogenous perspective of the Crypto market, the allocation value of ETH and mainstream LSD protocols is reiterated. Last week, the amount of ETH pledged reached 19.2628 million, a month-on-month increase of 1.95%, and the number of beacon chain queues reached 93,900, a month-on-month increase of 21.69%. It is in the stage of rapid growth; at present, from the endogenous perspective of the Crypto market, it is necessary to reiterate the allocation value of ETH and mainstream LSD protocols.
Figure: Steady growth of beacon chain verifiers
Figure: ETH pledge rate of return dropped slightly
Among the three major LSD protocols, the growth rate of Lido continues to accelerate, and the growth rate exceeds that of Rocket Pool and Frax under a high base. Last week, Lido’s ETH pledged volume increased by 3.68%, Rocket Pool’s increased by 3.53%, and Frax’s ETH by 2.32%. An increase of 59.00%, Frax currently pledges 234,900 pieces, an increase of 77.56% since the Shanghai upgrade.
Through the horizontal comparison of different protocols and the vertical comparison of the protocol itself, it can be found that Lido's recent growth has been accelerating, and the year-on-year growth rate has surpassed Rocket Pool and Frax. Analyzing the logic behind it, or due to the current force that promotes the increase in Ethereum’s pledge volume, new user funds have begun to account for an increasing proportion (at the beginning of Shanghai’s upgrade, operators and node-side forces were stronger, and withdrawals were the high growth of Rocekt Pool) ;As an emerging protocol of LSD, Frax does not occupy users' minds as well as Lido, which is reflected in the strong correlation between business growth and yield. Recently, due to the increase in Frax ETH pledge volume and the queue status of some ETH, its yield advantage has been weakening. For the reduction of business growth rate.
At the current stage, the LSD track structure maintains the previous judgment: due to the complex business structure and the cross-border network effect caused by the construction of the first-mover advantage, the Matthew effect will continue to strengthen in the future evolution of the LSD track structure; a large number of small LSD The development of the protocol business is unsustainable, but there is still room for new projects to explode in the market. At present, the dynamic deposit pool of Rocket Pool remains cleared, and the queue of Minipool drops to 542; Frax CR maintains 94.75%.
Frax founder Sam introduced FraxV2: build a point-to-point Ethereum pledge matching market between users and operators, adjust the interest rate through a fully competitive market, in order to provide users with higher yields in the case of nodes without permission, At the same time, operators need to provide collateral to prevent the confiscation of beacon chain funds caused by improper operations; the Lido community voted through the proposal to pledge about 20,000 ETH to the treasury, which is expected to bring an additional income of 2 million US dollars to the treasury every year; Rocket Pool rETH has logged into zkSync Era; SSV is currently expected to launch the game mainnet.
The overall performance of LSDFi’s existing targets was poor last week. LSDFi has formed a rapid capital rotation with traces. At the current stage, we should focus on new targets, a large number of agreements that are really dedicated to solving market pain points, or teams and investors. A strong "regular army" is entering the market.
【Ethereum L2】
The total amount of Layer 2 TVL remained almost unchanged from last week, with a total lock-up amount of USD 9.06 billion.
Among them, the TVL of arbitrum and ooptimism dropped slightly, while the TVL of zksync era still maintained a strong growth trend and has risen for more than three consecutive weeks.
Starknet growth has slowed.
Cross-chain funds
Last week, the number of Arbitrum ETH Cross-chain increased significantly, and the total number of Cross-chain bridges exceeded 2.5 million ETH; the number of zkSyncETH Cross-chain dropped significantly from nearly 10,000 last week to about 4,000;
The data of StarkNet and optimism have not changed much compared to last week. The recent on-chain activity is still generally in the order of arbitrum > zksync era > optimism > Starknet.
events of the week
1. Circle will launch native USDC on the Arbitrum chain. At present, the total amount of USDC in Stablecoin on the Arbitrum chain is 1.15 billion US dollars, accounting for 62.7%, which is much higher than USDT’s 400 million US dollars and Dai’s 148 million US dollars. Liquidity.
2. The price of OP dropped before and after the large-amount unlock on May 31, and the lowest price fell to around $1.36 before rebounding. At the same time, optimism will usher in a major upgrade of Bedrock this week (June 7).
On May 31, a total of 128.5m OP were distributed, of which 110.5m received OP were transferred to the centralized exchange on the same day, accounting for 86%. As of June 4, no new on-chain records transferred to CEX have been found. At present, 18 million OP distributed are still in the receiving wallets. Since some wallets have OP holdings before distribution, the current total OP balance of each receiving wallet is 37.16 million.
OP unlocks data on the address chain
3. The mainnet of Starknet v0.11.2 is launched, officially activating Cairo 1. Developers can deploy Cairo 1 smart contracts on the mainnet. Starknet tweeted that Starknet will achieve 3-digit TPS capability on the testnet in the next month.
【DEX】
Dex combined TVL 17.18 billion, 10mln less than last week, 24-hour trading volume 1.21billion, 7-day trading volume 12.29biliion. Curve has grown faster on Polygon and Arbtrum in the past week. Mute's TVL exceeds Velocore and ranks third on the Zksync Era chain.
Ethereum
ETH L2/sidechain
BTC L2/sidechain
Alt L1
Dex Section Project Updates
1. Tricrypto-NG launched
Tricrypto-NG and crvusd are two of Curve’s biggest updates this year. Curve’s new TriCrypto pool could have a significant impact on Uniswap’s market share. TNG offers various improvements over the previous Tricrypto, including ERC20 compatibility, low gas fee approval methods, and better price oracles. By reducing gas fees and replacing USDT with USDC, Curve is expected to attract more transaction traffic.
2. Trader Joe's growth in TVL and trading volume this week is impressive. The Auto Pool of Trader Joe v2.1 started to be deployed on June 1st, and The General is the first Auto-Pool to be deployed on AVAX-USDC (Avalanche) and ETH-USDC (Arbitrum). The General automatically rebalances Liquidity positions to maximize fee income; and reacts to market trends and asset imbalances, making it adaptable to most markets and environments. In the future, The General will also be used for other Liquidity pools.
【Derivatives DEX】
Last Derivatives DEX still maintained an overall downward trend, and the cumulative trading volume of the six major agreements was $6 billion. Due to the decline in trading volume, the revenue of the agreement is also declining, and the yield rate has also dropped significantly.
Figure: Weekly trading volume of major Derivatives DEX
Figure: Main Derivatives DEX Weekly Agreement Revenue (FEE)
For the Derivatives DEX of the fund pool model, one of the important narratives is that the income of the agreement is distributed to token pledgers and fund pool LPs. Around the agreement income, a rich ecology is formed.
Taking GMX as an example, in February and March 2023, the APR of GMX pledges will remain at around 10%, and the APR of GLP will remain at around 20%. Around GLP, various products have been formed, including the direction of hedging the downside risk of GLP and enhancing the income of GLP. However, the rate of return decreased after April. At the lowest point, the APR of GMX token pledge was 1.5%, and the rate of return of GLP was 5%.
The rate of return on funds in leading agreements has decreased, leading to the outflow of some funds; second-tier agreements and new agreements provide higher rates of return, attracting some funds to enter.
The TVL of GMX peaked at about 695m in mid-to-late April, and has gradually declined since then. The current TVL is 616m, a monthly decline of 11.8%.
The following are the incentives for token stakers and fund pool LPs of the protocols with the top TVL rankings. In addition to protocol income, protocol tokens may also be used as one of the incentives. Protocol income denominated in ETH is more stable. The volatility of protocol tokens is higher, and if the protocol develops well, the possibility of obtaining excess returns is also higher; but if the protocol does not develop smoothly, token incentives will lead to continuous selling pressure, and token prices will continue to fall.
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