Welcome to Weekly Roundup, where our team of experts selects buzzworthy pools, news, and announcements for you to have on your radar.
After a truly wild couple of weeks in crypto land, let’s take a deep breath and make some good choices, shall we? 🧘
The recent turbulence we've seen with FTX, Aave, and Mango makes it clear that now more than ever, risk is the next frontier DeFi needs to conquer.
That’s why we're building products to solve the biggest problem in DeFi – risk. Check out our latest blog post where we explain how we are tackling this problem through new products and tools.
Did you miss our third Degen Responsibly episode with @OriginProtocol on Twitter Spaces?
No FOMO – you can listen to it now and learn:
- How Origin is innovating stablecoins
- The value prop of stablecoins leveraging DeFi
- How you can earn 8% APY by simply holding $OUSD
- Related risks
Listen to past episodes on Spotify, Apple, or wherever you get your podcasts.
The best of the best. These pools have no major red flags, offer a competitive yield, and are at the top of the class – earning an A or B risk rating. Recent volatility has driven up market-making yields, and this week’s uptrend appreciated the value of reward tokens, boosting reward APYs. 📈
- Uniswap ETH-USD Market Making 5bp
- ~114% APR
- Exponential Risk Rating: B
- Yield source: trading volume on Arbitrum
- Uniswap ETH-USD Market Making 30bp
- ~68% APR
- Exponential Risk Rating: B
- Yield source: trading volume on Arbitrum
- Yearn CRV Market Making
- ~44% APR
- Exponential Risk Rating: B
- Yield source: CRV-yCRV trading volume and re-invested CVX and CRV rewards
- Notional ETH Market Making
- ~9% APR
- Exponential Risk Rating: B
- Yield source: ETH borrowing demand, trading fees from nETH-ETH volume, and protocol incentives
See the full shortlist here
New pools on the block. We review thousands of DeFi investments to find the most attractive pools for you. 😎
- Uniswap GMX-ETH Market Making
- ~190% APR
- Exponential Risk Rating: C
- Uniswap GMX-USD Market Making 1bp
- ~155% APR
- Exponential Risk Rating: C
- Gearbox ETH Lending
- ~9% APR
- Exponential Risk Rating: B
- Gearbox USD Lending
- ~8% APR
- Exponential Risk Rating: B
See all the new additions here
Don’t degen too close to the sun. These pools have major red flags at either the chain, protocol, or asset level, with a high likelihood of being exploited or failing 🙅.
- DeFiChain USD Market Making
- Exponential Risk Rating: F
- DeFiChain USD Market Making
- Exponential Risk Rating: F
- Reaper Farm ETH Lending
- Exponential Risk Rating: D
- Idle USD Tranched Lending (Junior)
- Exponential Risk Rating: D
Step into the danger zone here
New protocol reports
Protocols can be a pain to keep up with – let us help. Our team finds the most interesting protocols and breaks down what you need to know and why they need to be on your radar. This week, we’ve reviewed two new perpetual swap protocols and the newly launched Trader Joe V2. Pika(chu), I choose you!
JPow hinted rate hikes might be slowing down soon – but first, let’s see how the November jobs report shakes out. The payroll report for November is expected to show the slowest pace of new jobs in two years (down to 200K from ~260K in October). This follows Fed Chair Powell’s comments this Wednesday that suggested a ratcheting down of the pace of rate hikes from 75bps to 50bps. Both equities and crypto markets rallied from the news. We should see the latest employment report at 8:30 am ET.
Binance suggests its centralized exchange may not be around in a decade. Chief Strategy Officer Patrick Hillman stated the company’s centralized exchange might be obsolete within the next ten years as the industry shifts its focus towards DeFi. In the meantime, Binance is focused on building out its “proof of reserves” with a Merkle Tree analysis so customers can individually verify their assets on the platform.
Unsecured lending in DeFi is still a s%$t show. Prominent crypto trading firm, Auros, has missed a loan payment of 2400 ETH worth an eye-popping ~$3.1M (as of 11/30) on its M11 credit facility with Maple Finance. The missed payment has triggered the protocol’s five-day grace period – meaning Auros must pay back the loan, or it will go into default. Pool delegate M11, who was responsible for vetting and making the loan to Auros, stated the missed payment was due to a “short-term liquidity issue as a result of the FTX insolvency.” Not to brag, but we’ve previously called out the risks of uncollateralized lenders here.
Coming soon – trading on Exponential
Accredited investors will soon be able to invest in DeFi liquidity pools across major chains directly on our custodial platform.