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【Dapp Pocket】DeFi Weekly Report, 3rd Week of January: Layer 2 solution Optimistic Ethereum soft launch

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【Dapp Pocket】DeFi Weekly Report, 3rd Week of January: Layer 2 solution Optimistic Ethereum soft launch

DeFi is Pumping! Holders of DeFi tokens should be feeling good this week. Besides coin prices, perhaps the expensive Gas Fee is also a sweet burden for everyone. So, this week's headline must focus on the progress of Layer 2 (L2) collaboration between Synthetix and Optimistic Ethereum OΞ, where SNX can now be migrated to L2!

Other highlights this week include: CREAM v2 launching zero-collateral protocol on lending platform Iron Bank; DeFi aggregator platform Furucombo completing token auction and initiating transaction mining; Yearn.finance proposing YFI staking rewards for YFI buyback to reward contributors, and more. Big shots of the week include Ethereum developer Eric Connor's expectations on DeFi token market value; Bankless' Ryan Sean Adams opposing mainstream recommendations for young people to invest in the crypto market; and the founder of yearn.finance, Andre Cronje, claiming to have just minted 100,000 YFI tokens!?

1. This Week's Highlights

✨ Top Headlines This Week

Gas Fee Savior! Layer 2 Solution Optimistic Ethereum Soft Launch, SNX Staking in Trial

The flourishing DeFi ecosystem on Ethereum has led to continuously soaring transaction fees. Optimistic Ethereum OΞ is an L2 project aiming to address this issue, allowing smart contracts on Ethereum to achieve cheap and efficient transaction results through it. Synthetix has currently enabled OΞ for testing its Layer 2 solution, where users can migrate their staked SNX to OΞ. Staking functionality post-migration will be launched next week.

CREAM v2 | Introduces Zero Collateral Protocol for Protocol Lending Platform Iron Bank

CREAM v2 recently unveiled the new product "Iron Bank," differing from the common p2p lending market by providing protocol-to-protocol lending services. In their announcement, Cream v2 describes how traditional P2P lending in finance is significantly smaller compared to corporate debt, with protocols playing the role of enterprises in the DeFi world. According to CREAM's plan, Iron Bank will allow yVault to borrow from it, enabling leveraged investment strategies. For instance, users can deposit DAI, borrow ETH through CREAM, and leverage Alpha Homora to enter SushiSwap's liquidity pool for leveraged returns.

Yearn.finance Proposes YFI Staking Rewards Buyback to Incentivize Contributors

Yearn.finance announced a governance proposal on Snapshot suggesting the use of YFI staking rewards to buy back YFI on the open market to reward contributors and further Yearn's operations. Additionally, the proposal aims to retire the YFI governance vault (yGov) to simplify the treasury's design and operation, as well as the YFI token mechanism, ensuring equal alignment of interests among all Yearn stakeholders.

Building in DeFi sucks! Andre Complains: Don't Be a Developer if You Don't Have the 'M' Mentality!

DeFi's iconic developer, Andre Cronje, has always been a straightforward individual. This week, Andre Cronje released another complaint article titled "Building in Defi sucks part 2". He mentions the extended time it takes to develop a project, longer than most people anticipate, and the immense pressure developers face from the community. The article also highlights, "No one is really waiting for your development; they are waiting for 'price action events.' They just want to use the 'story' of your product to make money." "When the token appreciates, it benefits the community and traders who shout out, but if it fails, everyone will blame you."

DeFi Aggregator Platform Furucombo Completes Auction and Initiates Trading Mining

Taiwanese DeFi project Furucombo concluded the COMBO token auction this week and launched AMM liquidity trading pools. Furucombo initiated a trading mining program this week, allowing users operating combinations like Combo on the platform for on-chain transactions to receive COMBO token rewards. Users holding COMBO tokens can choose to stake them to increase liquidity mining rewards.

🚀 DeFi Protocols

🏛 Regulation and Institutions

🎨 NFTs

2. Expert Views

Ethereum Developer Eric Connor: AAVE and SNX both made it to the top 20, what's next...

Bankless Advocate Ryan Sean Adams: Mainstream tells you to invest 1% in cryptocurrencies, but you shouldn't

Yearn.finance Founder Andre Cronje: Printed 100,000 YFI, thanks

3. Data Indicators

Data as of January 18, 2021. TVL (Total Value Locked) in Figure 1 indicates the assets stored in DeFi platforms; Maker Dominance shows the proportion held by the current largest project in terms of market value; DeFi Pulse Index is a DeFi weighted index from SetProtocol. Figure 2 displays the current top ten DeFi projects by TVL ranking. Source: DeFi Pulse.

4. Weekly Memes