Oh and happy new year 2023! In case you missed it, check out Roundup article of the 5 best DoD memes of 2022. Two quick announcements:
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DoD Planning – In 2023, Dose of DeFi will be released twice a month, i.e. every two weeks. One is a “short version” of charts, tweets and links and a “long version” which is a deep dive into stablecoins, MEV, DeFi infrastructure or whatever takes our fancy.
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DXdao is looking for a new Treasury Manager! DXdao manages a Cash flow of $30 million on-chain and has been a pioneer in the use of decentralized and sovereign treasury tools. For a boost, say “DeFi Reader Dose” in your app.
With the market for DEXs and lending protocols stagnating, the most competitive and interesting battle in DeFi is over ETH's LSD or liquid staking derivatives. Staking ETH earns you nice yield of 4.3% but that means you have to lock your ETH. ETH LSDs are liquid tokens that represent a claim on the ETH staked. The most popular is Lido's stETH, which has a 70% market share, but Coinbase's cbETH has taken the lead in Lido in recent years. last months. Lido has first-mover advantage, which is why it is so ingrained in DeFi protocols that Tom Schmidt from Dragonfly points out in the tweet above.
Considering how much ETH is stored on the Coinbase exchange, it's an easy market to get into (better than NFTs), so it shouldn't be surprising that they were able to capture a share of market by 15% so quickly. We have I wondered for a long time why they didn't launch tokenized BTC to compete with WBTC. Coinbase should take note of Tom's criticism as this is an extremely important market for them. Going forward, Coinbase won't make much from exchange fees. Instead, it will be a trusted gateway to DeFi for the mass market. Coinbase already owns 50% of USDC and has an easy-to-use wallet and browser extension. cbETH fits well into this product suite, but Coinbase will need to do more to reorient its business around the inevitable rise of DeFi and on-chain activity.
DeFi had just over $500 million in TvL at the start of 2020, and while a lot has happened in the past three years, Ethereum's asset mix hasn't changed much. Ethereum continues to represent approximately half of the total value secured by the network. Stablecoins have steadily risen during this period, approaching all-time highs in recent months as cryptocurrency prices have fallen and investors have fled to stablecoins. DeFi tokens represent a share of the overall value, just as they were at the start of 2020. CoinMetrics gives more details on this in its latest article: The State of DeFi Tokens in 2023.
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ConsenSys opens a private beta for its zkEVM Link
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Ondo Launches Tokenized Treasury Bills and Corporate Bonds Link
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Bloomberg: Mike Novagratz wants to punch SBF and Barry in the face Link
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Web3 Data Tools Guide Link
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Uniswap metrics compared to Robinhood Link
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Bitcoin blockchain now available for querying on Dune Link
That's it! Comments appreciated. Just hit reply. Written in Nashville, where it's cold, but looking forward to Mexico next week.
The dose of DeFi is written by Chris Powerswith the help of Denis Suslov And Financial Content Lab. Caney forkwho owns Dose of DeFi, is a contributor to DXdao and benefits financially from it as well as from the success of its products. All content is for informational purposes and does not constitute investment advice.