DeFi Metrics

September 28, 2022 in Crypto DeFi Digest

Since DeFi’s summer ‘20 peak, the general crypto narrative has indisputably shifted away from DeFi, to Web 3.0 and gaming. Granted, the next billion users to crypto are more likely to onboard through gaming than the 69th fork of Uniswap. Yet, many still rely on core DeFi principles to innovate continuously. NFT projects are incorporating airdrops and collateralization of NFT …

Bridging 101

August 11, 2022 in Crypto DeFi Digest

Although ETH remains the dominant Layer 1 for most on-chain activity, alternate Layer 1s have demonstrated product-market fit throughout the bull market run of ‘20/’21. Solana ($SOL) emerged as the ‘high-throughput chain’ focused on complex DeFi / gaming, BNB Chain ($BNB) offers easy fiat on/off-ramps through Binance CEX, while Avalanche ($AVAX) and Cosmos ($ATOM) are building application-specific blockchains that focus …

A Basic Walkthrough of Leverage Creation in DeFi

July 27, 2022 in Crypto DeFi Digest

Correction: In the first distribution of ‘DeFi Digest 14: A Reflection on Liquidity Dynamics Through the Contagion & GHO Stablecoin’, we incorrectly referenced Voyager instead of Celsius as having a 1.2b hole in its balance sheet. The amount lent to 3AC by Voyager was $350m in USDC and 15,250 BTC, with their current asset-liability mismatch unknown. In last week’s DeFi …

A Reflection on Liquidity Dynamics Through the Contagion and GHO Stablecoin

July 22, 2022 in Crypto DeFi Digest

Seeing the CeFi realm blowing up around us, it is perhaps pertinent to reflect and hammer the lessons into our collective crypto consciousness. Drawing from CeFi, DeFi and Everything in Between, it is clear now that Celsius, BlockFi, and Voyager Digital function as ‘CeDeFi,’ similarly to TradFi banking entities and are prone to the same weaknesses such as position opacity …

Crypto Event Summary – Avalanche House

July 18, 2022 in Crypto

Over Friday and Saturday last week, Avalanche Labs put on their second edition of ‘Avalanche House’ in Brooklyn (with the first one in Berlin). The team attended Friday afternoon’s session as outlined below and shared the following notes and perspectives from the panelists. Strategic Fundraising During a Bear MarketLydia Chiu (Ava Labs), Tom Schmidt (Dragonfly Capital), Nina Bambysheva (Forbes), Travis …

Airdrops

July 11, 2022 in Crypto DeFi Digest

Everyone in crypto has heard of airdrops. Anyone who’s anyone, however, has actually received them. Upon receipt of a highly anticipated airdrop, the pang of dopamine from the financial implications and being rewarded for participating in the digital economy does urge one to wonder: “Rekt pepe, what exactly are airdrops? Are they free money? Where do they come from? What …

CeFi, DeFi, and Everything In Between

June 28, 2022 in Crypto DeFi Digest

Over the past two weeks, we have seen the bear markets bringing out the worst in digital asset markets. Rumors of insolvency flew rampant in the face of volatility, affecting behemoths that were previously deemed ‘too sophisticated/large to fail.’ Celsius, which we covered in detail in The Tide Pulling Out, was one of the first to waver, fueling fears of …

Delta Neutrality I

May 31, 2022 in Crypto DeFi Digest

Fellow DeFi Enthusiasts, We hope this week’s  DeFi Digest finds you well. Evidently, these market (weather) conditions have shown to be inconducive to the strategies (crops) we’ve cultivated throughout the last 18 months. Like farmers adapting to changing seasons, we humble (yield) farmers need to pay close attention to our crops, leaning into robust strategies (crop species) that can weather …

Closing Thoughts on Algo Stables

May 23, 2022 in Crypto DeFi Digest

Closing Thoughts on Terra Earlier readers of DeFi Digest will remember our initial primer on Anchor Protocol and the update we published when Anchor introduced the Dynamic Earn Rate. While we attempted to quantify the runway LFG had before they needed to replenish the Yield Reserve, $LUNA’s sudden death spiral was difficult to predict. Instead, as detailed in last week’s …

Stablecoins II

May 5, 2022 in Crypto DeFi Digest

In the last issue of DeFi Digest, we discussed the need for stablecoins to have utility to maintain their pegs, before diving deep into the different kinds of stables. Now that we have a lay of the (stables) land, we extract essential lessons from stable projects which have come and gone before us. Then, we take a step back to …