DEFI

DeFi Weekly Report June 2021 Week 3 | What happened with TITAN, MakerDAO Lightning Minting, Ethereum Testnet Upgrade

share
DeFi Weekly Report June 2021 Week 3 | What happened with TITAN, MakerDAO Lightning Minting, Ethereum Testnet Upgrade

What happened to TITAN? MakerDAO initiates Flash Mint, Instadapp issues governance token INST and airdrops, Ethereum testnet plans London upgrade starting June 24

Dear DeFi enthusiasts,

This week, DeFi token prices continue to be weak, but from on-chain data, you can see that Ethereum and the cryptocurrency market still have a bright long-term outlook. This week's headlines include what happened to TITAN? Matic's hot mine pit blood volume returns to zero, Kubin: I fled early; MakerDAO initiates Flash Mint for quick minting, proposes raising the debt ceiling; Ethereum testnet plans to begin the London upgrade on June 24; Instadapp issues governance token INST, airdropping approximately 11% to Maker, Compound, and Aave users, and more.

Advertisement - Please scroll down for more content

This week's selected insights include: EthHub co-founder Anthony Sassano looks back on the past year and anticipates the developments for the next year, what clues can be seen? AAVE Community Director Marc Zeller does not recognize algorithmic stablecoins? Also, Uniswap founder Hayden Adams tells us what achievements Uniswap has made again!?

This Week's Headlines

What Happened with TITAN? Matic's Red-Hot Mining Pool Blood Loss, KooBee: I Bailed Out Early

IRON Finance started on the Binance Smart Chain (BSC) and later supported Polygon MATIC. IRON is a stablecoin protocol with a "partially collateralized token" mechanism, where IRON stablecoins can be minted by collateralizing USDC and TITAN.

According to discussions among netizens, the sequence of events in the incident was as follows:

  1. TITAN faced massive sell-offs, triggering a death spiral.

  2. Due to IRON's price peg being off, you could redeem 0.75 USDC and 0.25 TITAN with a 0.9 USD worth of IRON. In theory, this mechanism could create arbitrage opportunities to stabilize IRON.

  3. However, whales frequently arbitraging led to many TITAN being released into the market. Many people sold out of panic, causing the price of TITAN to keep falling. This continual drop in TITAN's price led to a further decline in IRON's price peg, continuing the death spiral.

  4. Although IRON briefly restored its price peg 15 minutes later, IRON Finance had proudly posted that it was a pity that users sold out of panic, a post that has since been deleted. However, IRON quickly lost its price peg again, causing the death spiral to continue and TITAN's price to drop further.

  5. Ultimately, TITAN plummeted almost to zero, and IRON's peg fell to around 0.6 USD.

MakerDAO Proposes Flash Minting and Increasing Debt Ceiling

Stablecoin issuer MakerDAO has proposed to activate the Flash Mint module and increase the debt ceiling. The specific proposal includes: 1. Activating the Flash Mint module with a maximum minting amount of 500 million DAI, with users paying a 0.05% fee; 2. Increasing the general debt ceiling (dust), where all treasury types except PSM-USDC-A, ETH-B, and ETH-C will increase the debt dust parameter from 5000 DAI to 10000 DAI.

Instadapp Issues Governance Token INST, Airdropping Approximately 11% to Maker, Compound, and Aave Users

DeFi aggregator platform Instadapp announced the issuance of the governance token INST, with a total supply of 100 million INST to be distributed over 4 years: 55% to Instadapp community members, 23.79% to current team members, 12.07% to investors, 7.85% to future team members and ecosystem partners, and 1.27% to advisors. Additionally, Instadapp unveiled the INST token airdrop plan, allocating 11% of the total issuance to users with positions on Maker, Compound, or Aave mainnets, with the airdrop amount dependent on the position size. Users can claim the airdrop by upgrading their accounts to DSA v2 on the Instadapp protocol and moving their positions to v2.

Ethereum Testnets to Begin London Upgrade on June 24

Ethereum testnets will undergo the London upgrade, which includes the EIP-1559 change to Ethereum 1.0 gas fee market and the postponement of the difficulty bomb to December 1, 2021, among other updates. After the successful upgrade, the OpenEthereum client will no longer be in use.

Industry Insights

EthHub Co-founder Anthony Sassano: Reflecting on the past year and what's to come in the next year...

AAVE community director Marc Zeller: Algorithmic stablecoins, can they be considered stablecoins?

Uniswap founder Hayden Adams: Uniswap becomes the first DEX to surpass 300 billion in trading volume

On-Chain Data

Ethereum Block Utilization Rate Approaching 100%

Due to different block capacities on each blockchain, comparing on-chain transaction volume alone may underestimate certain blockchains with relatively smaller capacities. However, observing block utilization rates reveals that Ethereum's block utilization rate is close to 100%, indicating strong on-chain demand. Once block space is freed up in the future, transaction volume could significantly increase.

Ether Whales Reach All-Time High

The number of wallets holding over 10,000 Ether continues to rise, surpassing 1200 addresses, reaching a new all-time high.

Data Shows Institutions Selling Bitcoin

Institutional Bitcoin holdings had been steadily increasing, providing upward momentum to the cryptocurrency market. However, data indicates that institutions started exiting around May 21, which could be interpreted as a lack of confidence in the market or a reduction in positions to manage risk.

Exchange Net Flows Turn Negative

In general, funds flowing into exchanges are usually for selling, while outflows indicate HODLing intentions. After experiencing a period of net inflows from May to June, there is currently a reversal in fund flows, with the first appearance of net outflows.

Weekly Coin Pick

Instadapp (INST): Instadapp is a tool for users and developers to manage and build their DeFi portfolios. Recently, it issued tokens and distributed airdrops to Maker, Compound, and Aave users. Users who have used these three platforms should not forget to claim their INST! This could be one of the most cost-effective transactions recently (considering gas fees).

Weekly Meme

Author Bio

  • Raizel / YouTuber promoting Bitcoin and DeFi, "Brain Chill Blockchain"

  • Thomas / DeFi enthusiast working in chip design in Boston

  • Anderson / Founder of Dapp Pocket & Cappuu, believes in DeFi deposits over bank deposits

Partners

Coinomo, previously Cappuu, makes it easy to start using DeFi and investing in cryptocurrencies! You can deposit USD stablecoin USDC, invest in various DeFi products for around 5-15% annual returns without gas fees, and buy/sell mainstream cryptocurrencies like BTC, ETH. Feel free to use the exclusive invite code 'DEFIER' for downloading and receive OMO tokens as a bonus.

This article is not investment advice. Thank you for reading the DeFi Weekly Report. Feel free to join or discuss in the Taiwan DeFi group. If you enjoyed it, please subscribe, share, and receive the latest DeFi Weekly Report and articles every week.