Weekly Roundup – 2.17
By Exponential Team
Published Feb 16, 2023

Welcome to Weekly Roundup, where our team of experts selects buzzworthy pools, news, and announcements for you to have on your radar.

No need to HODL — trust fall into the arms of Weekly Roundup. We will never let you down. This week we’ve got new ratings, our most popular Degen Responsibly podcast episode yet, and more. 🤗
Don’t forget to hit the ⭐ follow links below, so you don’t miss a thing.
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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. Hope Lido’s mom puts their A on the fridge. ⭐
  1. Yearn ETH Market Making - ⭐ Follow
  • APR ~10%
  • Exponential Risk Rating: B
  • Yield source: Trading fees from cbETH-ETH volume and Ethereum validator rewards
  1. Notional USD Market Making - ⭐ Follow
  • APR ~7%
  • Exponential Risk Rating: B
  • Yield source: Interest earned for lending DAI, trading fees from cDAI-fDAI, and NOTE rewards
  1. Lido ETH Staking - ⭐ Follow
  • APR ~5%
  • Exponential Risk Rating: A
  • Yield source: Ethereum validator rewards
  1. Yearn CRV Staking - ⭐ Follow
  • APR ~45%
  • Exponential Risk Rating: B
  • Yield source: Curve fee sharing and re-invested CRV rewards

Check out the MVPs here.

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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. If not fren, why fren-shaped? 👿
  1. Sonne USD Lending - ⭐ Follow
  • Exponential Risk Rating: D
  1. Vires USD Lending - ⭐ Follow
  • Exponential Risk Rating: F
  1. Yearn USD Market Making - ⭐ Follow
  • Exponential Risk Rating: F
  1. UwU USD Lending - ⭐ Follow
  • Exponential Risk Rating: F

Step into the danger zone if you must.

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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. If tracking ever-changing protocol risks keep you up at night, you might opt for Optyfi.
  1. OptyFi - a yield optimizer that automates yield across strategies based on user risk preferences
  1. IPOR - an interest rate derivative DEX that allows users to hedge rate exposures via non-custodial interest rate swaps
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Did you miss our most popular Degen Responsibly episode yet?!
No FOMO, you can listen now to hear about:
  • How Overnight differentiates itself from competitors
  • Yield-generating stablecoins and associated risks
Listen to past episodes on Spotify, Apple Podcasts, or wherever you get your podcasts.
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Binance continues to be the main character – BUSD stablecoin will slowly unwind. US regulators this week sued stablecoin issuer Paxos after determining BUSD stablecoin is an unregistered security. Paxos has subsequently ceased issuance of new BUSD on Ethereum (Binance issues all non-Ethereum BUSD). Binance previously decided in September 2022 to give preference to BUSD as a trading pair on its centralized exchange. This major shakeup of the third largest stablecoin presents an opportunity for a decentralized stablecoin to gain share.
Another DeFi protocol suffers a flashloan attack. Playtpus, a popular stableswap exchange on Avalanche, was exploited via a flashloan attack that cost the protocol $8.5M in potential losses. The exploit led the protocol’s stablecoin, Platypus USD (USP), to depeg over 50% and fall to $0.48. FWIW, we rated Playtpus a ‘Watch Out’ due to low maturity, anonymous team, and governance risks. Don’t say we didn’t warn you. 💁
DeFi keeps its game face on amidst regulatory headwinds. Among the oldest German industrial conglomerates, Siemens AG is one of the first major firms to issue a fully compliant digital bond. The 60M euro bond was sold directly on-chain to three investors on the Polygon network without the need for any intermediaries. The bond proceeds were collected through traditional banking channels. Siemens highlighted multiple benefits of the move, including the ability to “execute transaction significantly faster and more efficiently.”
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Coming soon – investing on Exponential
Accredited investors will soon be able to invest in DeFi liquidity pools across major chains directly on our custodial platform.