DEFI

DeFi Weekly Report | End of Dogecoin frenzy, 1inch and dHEDGE support Polygon, Yearn to v2

2021/5/19

Dear DeFi enthusiasts,

This week saw a long-awaited pullback in coin prices, with Ethereum experiencing a drop of over 30%. While it may be hard to stomach such a significant pullback if you focus solely on the numbers, shifting your attention to news and fundamentals, you'll find that despite the chaos surrounding various meme coins and Elon Musk's unpredictable statements, the fundamental strength of Ethereum and DeFi remains intact.

Headlines this week include: Is DOGE really going to be optimized? Musk: Optimizing block time and block size will surpass Bitcoin; 1inch Network expanding to the Polygon network; dHEDGE updating its V2 plan, planning to deploy on EVM-compatible chains like Polygon; yearn.finance is in the process of migrating multiple vaults from V1 to V2, and more.

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This week's featured insights include: Coinbase founder Brian Armstrong publicly revealing the key factors to Coinbase's success; which new feature at Binance has Binance founder Zhao Changpeng unable to resist praising? And Matt Huang, co-founder of the well-known crypto investment firm Paradigm, at this juncture, telling everyone that Elon Musk is a genius, what's the intention behind it?

Table of Contents

1. Weekly Highlights

✨ Top News of the Week

Is Dogecoin Really Going to Happen? Musk: Optimizing Block Time and Block Size will Outperform Bitcoin

Tesla CEO Elon Musk shared his views on Bitcoin and Dogecoin on Twitter, stating that Dogecoin, with optimizations in block time, block size, and transaction fees, will easily outperform Bitcoin. Musk even mentioned that he would only start developing a cryptocurrency that meets all his needs if Dogecoin fails to do so, which would be quite a hassle.

1inch Network Expands to Polygon Network

The decentralized exchange aggregator 1inch Network has expanded to the Ethereum Layer 2 Polygon network (formerly Matic). In the initial stage, the aggregator will be available for Curve, SushiSwap, and QuickSwap, with more protocols expected to gradually join in the future. The 1inch liquidity protocol and governance protocol are set to expand to Polygon in the coming weeks.

dHEDGE Updates V2 Plan, Planning Deployment on EVM-Compatible Chains Including Polygon

The decentralized asset management protocol dHEDGE has updated its V2 roadmap. Currently supporting Synthetix assets, V2 will use a set of smart contracts to support other blockchains and L2 networks such as Polygon, BSC, Avalanche, and Acala. Its V2 pools will also support Synthetix, Uniswap, and other protocols on Optimism.

yearn.finance Moving Multiple Vaults from V1 to V2

DeFi investment aggregator yearn.finance announced the migration of several vaults including crvSAAVE, yCRV, y3CRV, crvCOMP, crvSBTC, crvRENBTC, from V1 to V2. yearn.finance stated that withdrawal fees related to the migration would be waived within a limited time frame and advised users to migrate promptly.

Coinbase CFO: Coinbase Lending Business May Add ETH as Collateral

Coinbase CFO Alesia Haas mentioned that Coinbase hopes to expand the collateral range to include assets like Ethereum in the coming months or quarters as part of its lending business expansion strategy.

2. Insights from Industry Leaders

Coinbase Co-founder Brian Armstrong: If you can't stay calm during the euphoria of an uptrend, you won't be able to avoid the despair of a downtrend

Binance Founder Changpeng Zhao: Third-party developers can now integrate their Mini App into Binance

Paradigm Co-founder Matt Huang: Elon Musk is a national treasure-level genius, but no matter what he says, Bitcoin will continue to move forward

3. Data Indicators

Data for this week is sourced from: DeFi Pulse as of 2021/5/17.

DeFi Market Data Overview

TVL (Total Value Locked) refers to the total market value of assets stored in DeFi platforms; Maker Dominance shows the market share of the current largest project by market value; DeFi Pulse Index is a DeFi weighted index provided by SetProtocol.

Top Ten DeFi Projects by TVL

4. Weekly Coin Picks

There is a saying that goes, "Succeed as Xiao He did, fail as Xiao He did." In today's crypto world, the protagonist is none other than Tesla's founder, Elon Musk. For us, predicting Musk's next tweet is too difficult. All we can do is seize the opportunity to discover undervalued tokens when the market is called down by Elon. This week, the coins we will pay special attention to are:

Yearn.Finance YFI: As a leading DeFi investment aggregator and the flagship project of DeFi star Andre Cronje, investing in YFI at any time is not surprising. Recently, they did a Buy Back for the first time, indicating that the project is profitable, and are actively transferring liquidity from V1 to the more capital-efficient V2, showing that their V2 products are mature, and the future prospects are promising.

dHedge DHT: dHedge is a decentralized asset management protocol that has grown rapidly recently. This week, they released a highly anticipated V2 blueprint, including integration with Polygon, DHT Staking for improved capital efficiency, and more. Considering their investor background and project development prospects, DHT is currently ranked around 700, making it highly likely to be underrated.

Coinbase COIN: Yes, the last recommended "coin" is actually a stock. As the first publicly traded cryptocurrency exchange, they have not slowed down their development after going public. They have plans to add ETH to their collateral assets project and more. With the stock price correction from the listing to the current level, we believe that entering now is a very satisfying timing compared to the entry price of the Ark Female Stock God.

5. Weekly Memes

Karen Musk pic.twitter.com/oIhy0k9Ytj
— Lolli 🍭 (@trylolli) May 17, 2021