This Week In DeFi – August 19
This week, CoinFund raises $300M for a new Web3 fund, Tether takes back the spotlight and Unstoppable domains launches as app for managing yourWeb3 identity.
This week, web3 investment company CoinFund has announced a new $300 million fund with backing from institutional investors, family offices and crypto founders. Managing partner David Pakman says he has “never seen a bigger opportunity” in his 30-year tech career than crypto and web3.
The fund, named “Ventures 1”, will continue to back CoinFund’s portfolio companies as they aim to raise Series A funding, while also seeking out new investments.
Stablecoin leader Tether has regained some traction following USDC’s token freezes amidst the Tornado Cash saga, as its market cap rose $2 billion since the controversy. Tether is also attempting to clear up its own image, recruiting BDO Italia to provide periodic attestations for its USDT reserves. The company has also stated it aims to obtain a “complete audit” in the future.
Unstoppable Domains has launched a new app to enable users to manage their Web3 identity on-the-go. iOS users can now mint and manage decentralized domains on their mobile device, as well as build a profile card to share their digital identity.
The app also supports WalletConnect for easy connections to 180+ DApps, as well as its own “Login with Unstoppable” service that controls the sharing of your data.
Dogecoin has rallied this week following the launch of Dogechain, a smart-contract compatible network based on Polygon Edge. The platform, powered by wrapped DOGE, is already home to multiple decentralized exchanges and dog-themed tokens.
Many users have already bridged their tokens to the new chain, in hopes that they will receive an airdrop of Dogechain tokens.
Ethereum’s potential proof-of-work fork appears to be losing hype, as price crashes on BitMEX futures and Poloniex. Token markets fro ETHPOW are now forecasting a price of around $50 – representing a relatively insignificant fraction of the current $1865 market price.
Despite a very strong ideology behind retaining the proof-of-work algorithm, it looks like the market and ecosystem participants have made a very clear, unanimous choice to back the proof-of-stake upgrade.
Meanwhile, the stablecoin market remains at war. Huobi’s HUSD has drifted significantly from its $1 peg, despite supposedly being fully-backed by reserves. Acala’s aUSD also had its own troubles, fighting off a smart-contract exploit to get back to its own peg. It seems almost no stablecoin is 100% safe right now – especially following USDC’s freezing of tokens last week.
Tether has capitalized on the stablecoin ecosystem mess, making a push for greater transparency as competitors struggle. Monthly attestations from BDO may not be enough for Tether naysayers, however it will be one step in the right direction for the infamous company.
Can they make good on renewed promises of an audit, though? It will be a pleasant surprise indeed, if so.
Highest Yields: Nexo Lend at 10% APY, BlockFi at 6.75% APY
DAI Savings Rate: 0.01%
Base Fee: 0.00%
ETH Stability Fee: 0.50%
USDC Stability Fee: 1.00%
WBTC Stability Fee: 0.75%
Highest Yields: Nexo Lend at 10% APY, BlockFi at 7.50% APY
Federal Reserve Releases New Guidelines for Crypto Bank
Tornado Cash Sanctions Are Spiraling Into Compliance Nightmares
CME Group to Offer Ethereum Futures
Buzz Over Potential Ethereum Hard Fork Token Fizzles as Price Tanks
Total Value Locked: $49.34B (up 11% since last week)
DeFi Market Cap: $49.80B (down 6.6%)
DEX Weekly Volume: $12B (no change)
[Osato Avan-Nomayo – The Block] – Aave says on-chain wallet address censorship would require DAO consensus
[Sujith Somraaj – Decrypt] – Acala Stablecoin Edges Back to Dollar Peg After Burning 1.29B aUSD
[Osato Avan-Nomayo – The Block] – HUSD stablecoin loses US dollar peg, drops to $0.90 as liquidity shrinks
[Oliver Knight – CoinDesk] – Troubled crypto lender Hodlnaut files for creditor protection in Singapore