This Week In DeFi – January 6
This week, SushiSwap explores new tokenomics, Vauld rejects Nexo's final acquisition proposal, TON launches a data sharing solution and a judge rules that customer funds belong to Celsius.
To the DeFi community,
This week, SushiSwap has announced that it will deprecate its Kashi lending platform and MISO token launchpad, due to poor design and a lack of resources.
The company will phase out contributions to these offerings in the first quarter of 2023 and focus solely on its core decentralized exchange, which has $390 million in total value locked.
SushiSwap is also in the process of designing new tokenomics, in an effort to boost liquidity and decentralization. The new proposed model involves time-lock tiers for emission-based rewards, as well as a token-burning mechanism.
Crypto lending firm Vauld has rejected rival Nexo's latest acquisition proposal due to concerns about Nexo's financial health and other issues. Vauld's committee of creditors (COC) also rejected the proposal.
Nexo's offer did not contain significant changes from its previous proposal, and Vauld continues to seek answers from Nexo regarding the company’s financial health and how it will treat claims from Vauld’s US-based creditors, following its recently-announced exit from the US market.
The TON Foundation has launched a decentralized file sharing and data storage solution called TON Storage, which allows users to transfer encrypted and backed up data files of any size on the TON blockchain network.
It functions similarly to peer-to-peer file sharing using torrents, but offers financial incentives to node operators on the network for hosting files for a set period of time.
TON Storage aims to increase the accessibility of the TON network and grow the ecosystem by allowing anyone to become a node operator and receive payments for hosting files, even with just one node. TON-secured sites can also be hosted on the network.
A US Chief Bankruptcy Judge ruled that more than $4bn in cryptocurrencies deposited in the "Earn Accounts" of the bankrupt crypto lender Celsius do not belong to the customers who made the deposits, but rather to the company's estate.
On top of other centralized platforms attempting to reach resolutions with their customers, Nexo is also finding itself under some scrutiny following Vauld’s acquisition offer rejection – could the platform be in trouble?
On the real DeFi side of things, protocols appear to be refining their economic models, as SushiSwap and Convex attempt to revamp tokenomics and/or incentives. What we are seeing appears to be a sharpening of decentralized protocols, as projects improve their efficiency and effectiveness for longevity to get through the bear market.
Ethereum staking platforms are also seeing rallies in token prices, as the Shanghai upgrade and enabling of ETH withdrawals becomes a more certain reality in the near future.
Highest Yields: Nexo Lend at 10% APY, Aave at 1.3% APY
DAI Savings Rate: 1.00%
Base Fee: 0.00%
ETH Stability Fee: 0.50%
USDC Stability Fee: 0.00%
WBTC Stability Fee: 0.75%
Highest Yields: Nexo Lend at 10% APY, Coinbase at 1.5% APY
Sam Bankman-Fried Pleads Not Guilty To Fraud Charges
NY AG files lawsuit against Alex Mashinsky, alleging he hid Celsius’ 'dire financial condition'
Genesis says it needs more time for lending crisis solution
Lido overtakes MakerDAO and now has the highest TVL in DeFi
Total Value Locked: $39.6B (up 1.8% since last week)
DeFi Market Cap: $35.16B (up 3.0%)
DEX Weekly Volume: $5.19B (down 4.6%)
[Tom Blackstone – Cointelegraph] – Balancer warns some LPs to remove liquidity ASAP because of a 'related issue'
[Mike Truppa – The Block] – DeFiLlama's new DEX Aggregator is showing early signs of adoption
[Shaurya Malwa – CoinDesk] – DeFi Tool Convex to Make Changes to Staking Service for Curve Token Rewards
[Mike Truppa – The Block] – Security firm Dedaub finds critical vulnerability in Uniswap smart contract