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【Dapp Pocket】2020 Taiwan has DeFi! Introduction to Perpetual Protocol and Furucombo

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【Dapp Pocket】2020 Taiwan has DeFi! Introduction to Perpetual Protocol and Furucombo

Dear DeFi enthusiasts,

Congratulations on coming through this eventful year, and congratulations on the rapid growth of our focused area "Decentralized Finance DeFi" this year. This week's perspective is to give a preview of the new project in 2021 - DeFi in Taiwan - and to briefly introduce the high-quality DeFi projects in Taiwan that have made progress this week, Perpetual Protocol and Furucombo.

From March of this year until now, DeFi Weekly Report is delighted to witness the inaugural year of DeFi with all our readers. We have witnessed:

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  1. Total locked value in DeFi increased from 600M to the current 13B

  2. Influx of capital from liquidity mining

  3. The importance of contract security is heightened by flash loans

  4. YFI surpassed the price of Bitcoin in just a few weeks

  5. ETH has surged from a low of $100 to over $700

  6. The much-anticipated ETH 2.0 Phase 0 was achieved this year

Such achievements are inseparable from the contributions of the Ethereum infrastructure layer, various project development teams, promoters, and all DeFi users. In the new year, we look forward to continuing to bring you the latest DeFi news and the most professional perspectives for Taiwan. We also thank our readers for their strong support; you are the pillar supporting the development of DeFi.

Our Perspective

DeFi in Taiwan in 2020! Introduction to Perpetual Protocol and Furucombo

One of the new projects for 2021 is "DeFi in Taiwan"! Taiwan has not lagged behind in the DeFi wave this time. Many excellent DeFi teams have emerged in Taiwan, so we hope to introduce them one by one to you next year. As an opening today, let's briefly discuss the new developments of Taiwanese teams Perpetual Protocol and Furucombo.

Perpetual Protocol

Founded by serial entrepreneur Feng Yanwen, Perpetual Protocol is a decentralized perpetual contract trading platform. It officially launched on the mainnet last week and currently supports perpetual contract markets for BTC/USDC, ETH/USDC, and YFI/USDC trading pairs, allowing users to execute leveraged contract trades of up to 10x in a decentralized manner. This week, a trading competition is being held with a total prize pool of approximately 30,000 PERP.

Perpetual Protocol is the first project to achieve decentralized perpetual contracts through the use of vAMM (virtual automated market maker) technology. As the "virtual" part implies, vAMM itself does not store a real asset pool (k in x*y=k). Instead, real assets are stored in a smart contract treasury that manages all collateral supporting vAMM. Therefore, compared to traditional AMMs, vAMM does not require additional liquidity providers to bring liquidity to vAMM, as traders themselves can provide liquidity to each other, eliminating the problem of impermanent loss. In addition, Perpetual Protocol has also issued a governance token PERP, allowing token holders to participate in governance voting or stake PERP to receive a portion of trading fee income and weekly staking rewards.

Furthermore, Perpetual has partnered with oracle provider Chainlink to calculate funding rates. Smart contracts fetch price data from Chainlink every hour and use it as a reference to calculate how much funding rate should be paid by long or short positions. The funding rate is a periodic reward/fee that users in perpetual contracts will receive/pay. However, users from Taiwan and the United States are currently unable to use the platform's services.

Furucombo

Furucombo is a DeFi composition platform under the blockchain company DINNGO. It allows users who do not understand underlying code to connect operations from different platforms in the same transaction by dragging a few Lego-like cubes called Cube. In other words, Furucombo allows all users to use DeFi like playing with Lego blocks to unleash the "DeFi combination punch" of flash lending.

Furucombo went live in March 2020. In less than a year, the platform has achieved a total transaction volume of 170 million USD; accumulated over 7,800 users; listed 11 protocols that account for over 90% of DeFi transactions; inspired over 800 DeFi trading strategies; and is the only user interface in the market that supports flash lending. For DeFi traders, Furucombo undoubtedly reduces the entry barrier for non-technical users to build DeFi Lego blocks that include flash lending. However, Furucombo does not seek profit opportunities for users; it is a tool to make it more convenient for users to use DeFi and break down some industry barriers.

COMBO Token

Furucombo released its outlook for V2 this week, which includes listing more DeFi protocols; solving asset fragmentation issues in cross-chain transactions; introducing a DeFi trading fundraising system; and launching the governance token COMBO. In addition to participating in governance, COMBO holders can receive various token rewards from the Furucombo contract, protocol discounts, and profit sharing when Furucombo starts charging transaction fees to users in the future.

Conclusion: Taiwan's Diverse DeFi Ecosystem

Of course, in addition to the two Taiwanese teams mentioned above, there are many other excellent teams in Taiwan, such as the recently popular BlackHoleSwap and Hakka Finance; and the lending platform Cream Finance, which partners with the leading yield aggregator yearn.finance. Next year, the "DeFi in Taiwan" series will introduce these outstanding teams and their products one by one. In addition, we will also establish a Telegram group dedicated to discussing DeFi, including various interesting projects, technologies, and the ideas behind them. Readers interested in joining us to discuss DeFi matters are welcome to join. See you next year!

Weekly Highlights✨

Crypto Christmas! DEX Aggregator 1inch Exchange Airdrops Tokens, Qualify for Them

Decentralized exchange aggregator 1inch officially released its governance token 1INCH on Christmas Day! According to users' past usage, they can receive airdropped tokens. Wallets that have interacted with 1inch Exchange can claim the airdrop if they meet any of the following conditions: made at least one trade before September 15; made a total of four or more trades; or have traded a total amount exceeding $20. Additionally, 1INCH liquidity mining will start on December 27 at 8 AM Taiwan time.

DeFi Insurance Project Cover Protocol Possibly Attacked, Tokens Minted Out of Thin Air

Cover Protocol COVER was reportedly exploited for arbitrage worth two million USD on the evening of the 28th. The coin price plummeted from the $800 level to a low of $54. However, it was emphasized that this would only affect COVER's token price and not harm the protocol itself. Currently, the Cover team has patched the vulnerability, and white-hat hackers have returned 4,350 ETH. The official statement mentions the release of a brand-new COVER token, compensating liquidity providers based on a snapshot taken at a certain time before the attack occurred.

DeFi Perpetual Contract Platform Perpetual Protocol Launches First Trading Competition

Taiwanese team's DeFi perpetual contract platform Perpetual Protocol, which recently went live on the mainnet, has launched its first contract trading competition this week! The competition runs from 12/24 to 12/31 for one week, with prizes awarded for PnL Rank net profit, Volume Pool trading volume, and Win Ratio contract win rate, with a total prize pool of approximately 30,000 PERP.

DeFi Composition Platform Furucombo V2 Teased, to Introduce Governance Token

Taiwanese team's DeFi composition platform Furucombo announced the outlook for Furucombo V2 this week, which includes partnering with more developers and listing more DeFi protocols to maximize capital efficiency. Additionally, Furucombo will launch the governance token COMBO, with 52% allocated to community development, and COMBO holders can receive profit sharing from platform transaction fees in the future.

DeFi Investment Aggregator Hammer Finance Goes Live on Mainnet, Current APR Reaches 120%

Taiwanese team's DeFi investment aggregator Hammer Finance is now live on the mainnet. It currently offers a Balancer BAL/WETH 80/20 pool aggregator. Users holding BAL/WETH 80/20 pool BPTs can deposit them into Hammer, and the platform will reinvest the weekly BAL mining benefits into the fund pool for users to earn compound interest without manual weekly operations and Gas Fees. The platform will support more fund pools in the future.

🚀 DeFi Protocols

Synthetix Launches New Staking DAPP

Curve to Launch Aave V2 aToken Staking Pool

Curve Launches Idle Protocol Token Liquidity Pool

Opyn v2 Plans to Issue Options Backed by Yield Assets

After Uniswap and 1inch, Who Will Be the Next DeFi Protocol to Airdrop Tokens?

Community Tool COMP.vote Launched for Gas-Free Voting and Delegating on Compound Protocol

Hegic-Based Hedge Protocol Whiteheart Completes First Joint Curve Public IBCO

🚀 Liquidity Mining

Keep Network Initiates Next Phase of Liquidity Mining Program

Benchmark Protocol Launches Second Phase of Liquidity Mining Program The Press

Decentralized Financial Contract Platform UMA Launches Dapp Mining Program

SushiSwap Set to Launch New Liquidity Mining Incentive Program Onsen

🏛 Regulation and Institutions

A Turnaround? New SEC Acting Chairman Brings Positive News, Ripple's XRP Rebounds by 30%

China's First Digital RMB Insurance Policy Successfully Issued on December 15

Industry Insights

Ethereum Founder Vitalik Buterin: Looks like the XRP team has gone to a new level of madness

Uniswap Founder Hayden Adams: On-chain governance is not a cure-all but should...

Bankless Advocate Ryan Sean Adams: Among 10 projects, only Ethereum has not reached its ATH All-time High

Data Metrics

This week's data covers the period from 2020/12/22 to 12/28. TVL (Total Value Locked) indicates how much assets are stored on the platform; IPY (Interest Per Year) is the current lent funds * annual lending interest, i.e., the platform's annual interest income. Data Source: DeFi Pulse. (Unit: million USD)

Weekly Memes

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