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DeFi Market data review in September: New public chain, Q4 market or will embrace a turning point?

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The performance of public chain and Layer 2 is greatly differentiated, Solana, Avalanche, Fantom and others are on the rise.

Original title: "Review of DeFi Market in September: Solana, Avalanche, Fantom and other emerging public chains perform well"

Original author: PANews

New public chains like Solana, Avalanche, and Fantom attracted the most funding and asset performance in September. There should be a causal relationship, and the improvement of data leads to the improvement of the valuation of the public chain. Ethereum value is spilt, but the performance of public chain and Layer 2 is greatly differentiated. BSC, Heco, Polygon, etc., which were active in the early stage, are unsatisfactory now.Solana, Avalanche, Fantom and others are on the rise and there are more opportunities.

Contention between Layer 1 and Layer 2

According to Defi Llama, as of September 30, total lock-up volume (TVL) in Defi agreements across the public chains totalled $186.7 billion, Among them were Ethereum with $123.2 billion, BSC with $15.7 billion, Solana with $8.39 billion, Terra with $81.4, Polygon with $4.18 billion, Avalanche with $3.68 billion and Fantom with $2.15 billion.

Solana, Avalanche and Fantom showed strong growth, with TVL up $5.06 billion, $1.57 billion and $1.4 billion, respectively, in the past 30 days. Ethereum, BSC and Polygon, which have been active in the past few months, have lost their competitiveness, with TVL dropping by $5.72 billion, $2.72 billion and $1.36 billion in the past 30 days, respectively, as the advantages of emerging public chains in ecological incentives have emerged.

In the emerging public chain,Solana ecology is dominated by decentralized exchange (DEX) and revenue aggregator type projectsSaber, Raydium, Orca, Sunny, SolFarm and Serum attract the most funding. Because revenue aggregators can get the extra governance of their own projects while earning DEX and transaction fees. Token, usually easy to attract more capital. But in the revenue aggregator, you only need to pledge. Token mining does not have much effect on ecological improvement, and leads to repeated calculation of TVL.

Other parts of Solana's ecosystem, such as mortgage-lending projects Larix and Port Finance, both locked up under $150 million, have received less attention.

A similar situation occurs in China.In Fantom, the three items with the highest TVL, AnySwap, SpookySwap and Curve, are all DEX.Next up, Beefy Finance is a multi-chain revenue optimization platform.

Avalanche's ecology is relatively balanced,Benqi, a loan-oriented project, has attracted the largest amount of funding in the Avalanche ecosystem, accounting for about $1.5 billion of TVL, under the incentive of the Avalanche Foundation's liquidity mining program. Trader Joe's also got $1.4 billion in TVL for its borrowing and leveraged trading concept.

In Layer 2 platform, Arbitrum and StarkWare have obvious advantages.First of all, ArbiNYAN because The fair distribution mechanism of token helps Arbitrum to attract a large amount of funds, among which the maximum locked funds had exceeded $1.8 billion, accounting for 88% of the total lock-up volume of Arbitrum. But with the project & NBSP; With tokenNYAN's price down, funds in ArbiNYAN are now down to around $1 million. By Arbitrum withdrawal to Ethereum Layer 1 needs 7 days of waiting period, a lot of funds may continue to look for opportunities in Arbitrum.

StarkWare is powered entirely by dYdX, a decentralized derivatives exchangeBy the end of Epoch1, dYdX had done $11.1 billion worth of transactions in 24 hours. Ten times V3. According to dYdX's official data as of September 30, the current deposits in the liquidity pool are $816 million, dYdX for the margin of the perpetuity contract: L2 Perpetual Smart Contract has $558 million in trading margin and close to $700 million in open interest. Total funds deposited in dYdX should be greater than $1.3 billion.

Although the Optimism of the main network is earlier than that of Arbitrum, it does not get the first-mover advantage.The current Optimism feature is imperfect and may require downtime for upgrades.The main projects include Synthetix, Uniswap V3, option Protocol Lyra and Hop Protocol.

Due to the fraud proof mechanism of Optimistic Rollup, it takes 7 days to withdraw assets from L2 to L1 using Optimism and Arbitrum official cross-chain bridge.DeGate, cBridge, Anyswap and Hop Protocol all put forward the scheme of rapid withdrawal from L2 to L1.However, due to the small amount of funds in current Optimism, these cross-chain Bridges provide greater support to Arbitrum.

The StarkWare withdrawal used by dYdX is divided into two steps, first sending a coin request, waiting for Layer 2 to issue blocks every 6 hours or so, after which the user needs to send a transaction in Layer 1 to withdraw funds. On top of this, dYdX also offers a quick withdrawal feature where the liquidity provider immediately sends money to the withdrawal in Layer 1, but charges 0.1% of the principal, with no additional Gas charges.

DeFi subdivided domain data

Decentralized exchanges

DEX's spot trading volume has generally maintained a small increase this year, except for a surge in trading volume caused by sharp market fluctuations in May. Uniswap still accounts for the majority of spot transactions in the Ethereum DEX, followed by SushiSwap and Curve. Beyond the ecology of Ethereum,PancakeSwap still trades well, overtaking SushiSwap as a whole and second only to Uniswap.

As dYdX's incentive rules became more understood,And the price of DYDX has increased, as detailed in PANews' previous article (https://www.panewslab.com/zh/articledetails/1632828609546413.html). The trading volume of dYdX may change periodically with the Epoch, with a surge in trading volume near the end of each Epoch. At the end of Epoch0 and Epoch1, dYdX's 24-hour trading volume topped $1 billion and $11 billion, respectively, both surpassing Uniswap V3's trading volume at the time. From September 30 to October 7, dYdX launched its first trading contest, awarding 250,000 USDC prizes, which generated about $1.9 billion in trading volume in a single day.

anotherPerpetual contract platform MCDEX has also opened transaction mining and liquidity mining on ArbitrumAnd is about to start trading mining on BSC.

NFT transactions have become significant and occupy more resources in the Ethereum network. According to Ultrasound. Money, OpenSea destroyed the most ETH among dapps in the last 30 days, at 34,906 ETH, which was about 3 times that of Uniswap V2 and 4.8 times that of Uniswap V3. Monthly active users of OpenSea on Ethereum alone reached 280,000 in September, up 28.7% from August, according to Dune Analytics. Even if the NFT market cools off after the end of August, OpenSea is currently trading close to $100 million a day on Ethereum, up from $40 million a day in early August.Overall OpenSea transactions on Ethereum fell 12.5 percent in September from August%, the number of transactions rose by 2.9%.On Polygon, OpenSea showed similar numbers, with September transactions down 12.9% month-on-month, but the number of transactions up 138.5%.

Yearn founder Andre Cronje has launched an NFT trading platform on Fantom that looks and functions much like OpenSeaArtion"And plans to deploy it on ethereum, Avalanche, Polygon, and more. Compared to OpenSea, Artion has lower minting and transaction costs and does not have to pay a 2.5% commission fee to the platform. Andre posted a GIF on Twitter with the caption: 'It's not about the money, it's about sending a message.' This was seen by many as a vampire attack on OpenSea because OpenSea was slow to issue coins.

Mortgage lending

Total borrowing fell as markets fell,In the past month, it fell from $28.9 billion to $25.4 billion, down about 12 percent. Aave V2 still holds the lion's share and has an even greater advantage due to its expansion into Polygon, with ethereum and Polygon borrowing a combined $10 billion, compared to $6.5 billion for MakerDAO and $6.2 billion for Compound.

NFT lending is also beginning to be used.Currently, NFT items such as games are not being used effectively, and EnterDAO's mission is to change that. It includes LandWorks, MetaPortal, and MetaPass products. LandWorks is an Ethereum-based metacosmic land rental market that allows landowners to earn passive income from assets they hold and tenants to use them without buying land. It will start with Decentraland and expand to other games. MetaPortal integrates portals into the metasverse to search and find games. MetaPass NFT is a collection of NFT that EnterDAO will release as collectibles and passes for exclusive participation in Web3 events, games, virtual places, and more. Currently, EnterDAO is in the mining phase of Epoch2, providing high APY single coin mining opportunities for NFT projects such as ILV, SAND, MANA and AXS.

StableCoin

According to CoinMarketCap, the current primary Stablecoin and its flux are USDT 68 billion, USDC 31.7 billion, BUSD 13 billion, DAI 6.47 billion, UST 2.67 billion, TUSD 1.33 billion, USDP 946 million, USDN 550 million, HUSD 480 million. The flux of TUSD decreased slightly, the flux of USDP (former PAX) almost remained unchanged, and the flux of other stablecoins increased slightly. The flux of HUSD was surpassed by USDN.

Algorithm Stablecoin Olympus is probably the most promising one right now,With a market cap of more than $1.7 billion, OHM has generated 1,000 times more revenue for its early participants. Of course, there are big risks.

Earnings class

Yield aggregation/optimization agreements tend to provide better returns and automatically reinvest with returns. In addition to Carefree and Yearn on Ethereum, Sunny on Solana and Tranchess and Alpaca on BSC have also gained good market share. Since funds from income agreements are usually deposited into other agreements to obtain income, this portion of TVL is double-counted.

BTC anchor currency

As of September 30, the number of BTC anchor coins on Ethereum increased from 272,907 to 283,960, continuing a slight increase. RenBTC's issuance increased from 14,574 to 17,069, a significant increase.

summary

Due to ethereum performance limitations, transactions require high Gas fees, and NFT-type projects have occupied more resources, so ethereum value spills over to other public chains and Layer 2. During the rapid development of public chains such as Solana and Avalanche, products such as DEX, lending, revenue aggregation and leveraged trading can bring users high returns.

With the development of Layer 2, Arbitrum and Optimism may also have many opportunities. Judging from ArbiNYAN's performance, mining funds pursue more safety rather than innovation. When they pile up, the project valuation will increase in the short term, but be careful of the subsequent death spiral.