DeFi Weekly Report | Uniswap V3, new token economy oSushi, MakerDAO proposes more RWA

Dear DeFi enthusiasts,

Remember just last week when ETH broke the $3000 mark? Now it's over $4000. And we haven't sold a single one, HODL!

This week's headlines include: Uniswap V3 is now live on the Ethereum mainnet; Charm introduces Alpha Vaults, a passive market-making strategy designed for Uniswap V3; Andre Cronje proposes SushiSwap updates tokenomics, introducing governance token oSushi; three institutions propose RWA as collateral assets in MakerDAO, and more.

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This week's highlighted opinions include: Why does Yearn Finance founder Andre Cronje dislike dog coins? Uniswap founder Hayden Adams amazed by the capital efficiency of Uniswap V3? And Ethhub co-founder Anthony Sassano to share some cool facts about Shiba Inu coin SHIB?

And the coins we recommend for this week are: UNI, DPI, SHIB!

1. Important Events This Week

✨ Top Headlines of the Week

Uniswap V3 Launched on Ethereum Mainnet

Decentralized exchange platform Uniswap announced the official launch of its V3 version on the Ethereum mainnet. The Uniswap team also introduced liquidity migration contracts and user interfaces to help liquidity providers migrate their liquidity from Uniswap V2 to V3, which also applies to migrating funds from SushiSwap. The major change in the V3 version is expected to significantly increase the capital efficiency of liquidity providers, with the team stating that "capital efficiency is expected to increase by 4000 times compared to the V2 version."

Charm Introduces Alpha Vaults, a Passive Market-Making Strategy Designed for Uniswap V3

On-chain options protocol Charm Finance launched a new protocol called Alpha Vaults, which automatically manages liquidity on Uniswap V3 to concentrate liquidity and generate higher returns, periodically rebalancing to reduce impermanent loss. The returns from Alpha Vaults are in the form of ERC-20 Tokens, making them composable.

Andre Cronje Proposes Updating Tokenomics for SushiSwap, Introduces Governance Token oSushi

Yearn Finance founder Andre Cronje and Sushiswap community governance member 0xMaki jointly proposed the introduction of a governance token called oSushi. Users can stake Sushi to obtain oSushi, which cannot be transferred or traded, and can only be used for staking and voting, primarily to determine whether projects can be listed on Onsen and the release of Sushi token rewards for listed projects. This move aims to alleviate the increasing selling pressure on the Sushi token.

Rari Capital Experiences Vulnerability Due to Integration with Alpha Finance

DeFi automated portfolio management protocol Rari Capital announced on Twitter that its ETH fund pool was attacked due to a vulnerability arising from integration with Alpha Finance Lab's protocol. The rebalancer has removed all funds from Alpha. The team stated that they are currently investigating and evaluating the situation and will release a full report soon. Data shows that approximately $14 million was transferred by the attacker. The Alpha team mentioned that the funds on Alpha Homora are safe.

Three Institutions Propose Real-World Asset (RWA) Collateral Community Proposal on MakerDAO

Three institutions have submitted a community proposal (MIP6) to MakerDAO to add supply chain finance assets as real-world assets (RWA) to MCD. The three institutions are Centrifuge, PandaCredit, and NAOS Finance. PandaCredit uses Centrifuge's model and Tinlake protocol to initiate and manage asset collateral.

🚀 DeFi Protocols

Liquidity increased by $100 million! Uniswap V3 Tutorial

Wootrade Signs Strategic Partnership with dYdX to Provide Trading Liquidity Support

Value DeFi Faces Another Hack

⛓ Blockchain

Ethereum Community Proposal Delays Difficulty Bomb to the First Week of December

Facebook Stablecoin Diem's Division Researching STARK Proof System, Project Winterfell Open-Sourced

Five Strategic Investment Funds Focusing on Solana Ecosystem, Totaling $100 Million, Launched

Cloud Service Provider Amazon Launches Chia Mining Solution

Huobi Ecosystem Chain (HECO) Initiates Global Node Election, Candidates Need to Stake 5000 HT

OKExChain Mainnet Upgraded, Enables Metamask Transfer Function

🖼 NFT

Sotheby's to Hold NFT Art Exhibition and Auction from June 3 to June 10

NFT Platform Bitski Completes $19 Million Series A Funding Round, Led by a16z

🏛 Exchanges, Regulations, Institutions

Ark's Fund Plunges for Days, Betting on Coinbase Dropped by 30%, Cathie Wood: I Love This Opening

Citigroup Considering Offering Cryptocurrency Services

ING Bank of the Netherlands: DeFi More Disruptive to Banks Than Bitcoin

Grayscale CEO Bets $1 Million on FTX to Short Dogecoin, WSB: Don't Push Us

2. Insights from Industry Leaders

Yearn Finance Founder Andre Cronje: I don't like Dogecoin.

Uniswap Founder Hayden Adams: Can $520 million in liquidity create $630 million in trading volume?

Ethhub Co-Founder Anthony Sassano: Here are some cool facts about Shiba Inu coin...

3. Data Indicators

Data collected this week from: DeFi Pulse as of 2021/5/10.

Overview of DeFi Market Data

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 weighted index of DeFi provided by Set Protocol.

Top Ten DeFi Projects by TVL

4. Weekly Coin Picks: UNI, DPI, SHIB

Ethereum breaks $4000, Uniswap V3 launches, and besides DeFi ecosystem, the focus of this week's coin prices is also on the Dogecoin universe. The coins we are particularly interested in this week are:

Uniswap UNI: The successful launch of V3 and support from Charm Finance is a significant achievement for decentralized exchanges that should not be underestimated. The token price does not seem to have an immediate rapid response, which may be related to the high Gas Fee of Uniswap V3. However, despite the high Gas Fee, there are still users, indicating its value, and we always believe that the price comes from its value.

DeFi Pulse Index DPI: Ethereum nurtures the DeFi ecosystem, and Ethereum's value is closely linked to the value of DeFi. Amid the atmosphere of news from Uniswap, dYdX, MakerDAO, and others this week, it is difficult to pinpoint which DeFi coin stands out. So why not invest in the DeFi index? DPI is an index token launched by Set Protocol and DeFi Pulse, representing a basket of DeFi blue-chip coins.

Shiba Inu SHIB: After the Dogecoin frenzy, who will be the next meme coin to rise? Currently, Shiba Inu seems ready to take the baton. This week, Elon Musk mentioned wanting to adopt a Shiba Inu dog, and both eToro and Binance have listed SHIB, causing its market value to surpass many high-quality projects. Should we FOMO into it?

5. Weekly Memes

#Ethereum pic.twitter.com/0lcFjgUXQA

— ETH Memes (@EthereumMemes) May 8, 2021