Loading...
Breaking down Ethereum 2.0 and its sweeping impact on crypto markets, weekly By Christine Kim Research Associate July 21, 2021 Sponsored by ETH Price -1.63% $1,788.27 Market Cap $208.80B Volume (24H) $20.26B (As of 7/20/2021 @ 19:58 UTC. ETH price % change over 24 hours.) If you were forwarded this newsletter and would like to receive it, sign up here.
Today, we’re diving into the valuation models and revenue analysis of decentralized finance (DeFi) protocols on Ethereum.
I’m your host, Christine Kim. Reply to this email any time with your thoughts, comments or queries. And between reads, chat with me on Twitter.
Welcome to another edition of Valid Points.
– Christine
Pulse check We’re excited to introduce new and improved graphics for our weekly pulse check on the Ethereum 2.0 Beacon Chain and CoinDesk’s Eth 2.0 validator. Moving forward, two graphics will replace my usual stream-of-consciousness writing in this section and give you a quick overview of activity on Eth 2.0 over the past week. The first graphic above illustrates the overall health of the Eth 2.0 blockchain through four metrics, including network participation rate, number of validators, total ETH deposited and share of total ETH supply deposited. Generally, the higher these numbers are, the greater the overall security and value of the Eth 2.0 Beacon Chain.
The second graphic above illustrates the overall health of the CoinDesk Eth 2.0 validator dubbed “Zelda.”
A message from DeversiFi You’ve heard of DeFi, but have you heard of DeversiFi? DeversiFi is the easiest way to access DeFi opportunities on Ethereum: invest, trade, and send tokens without paying gas fees. As the first platform to use StarkWare’s batching technology, and as a ZK rollup, we bring you security, privacy and control, without sacrificing any of the cornerstones of profitable trading (speed, liquidity, choice).
It's our mission to make DeFi accessible to everyone, so this summer we’re launching our full suite of tools - from managing your portfolio, to providing liquidity through our AMMs and earning rewards, DeversiFi is the place to be...So go on, what are you waiting for?
Click here to use DeversiFi today.
New frontiers Among DeFi applications, decentralized exchanges (DEXs) are the most profitable in terms of return for liquidity providers, token holders and protocol treasuries.
Here is a list of definitions and assumptions we used in our revenue analysis: Revenue is the total monetary value returned to token holders, liquidity providers and the protocol treasury from *only* the core business revenue (i.e., trading fees for decentralized exchanges, borrow interest for decentralized lending protocols). Earnings is strictly the share of revenue that goes to token holders and the protocol treasury. Total Value Locked (TVL) is the difference between the total amount deposited and the total amount borrowed from the protocol. Adjusted Total Value Locked (aTVL) is the total amount deposited into a protocol.Data for these metrics were aggregated from Token Terminal, DeFi Llama, DeFi Pulse and various other DeFi protocol dashboards such as Compound and Aave.
Similar to traditional finance, ROA differs significantly between industries and does not fully encompass a protocol’s success. Furthermore, because the ROA calculated in our model uses revenue only from the core business of each protocol, the resulting figure could vary if other revenue streams were added.
A message from zkTube zkTube, an Ethereum Layer2 scaling solution that focused on using zero-knowledge proofs to solving the congestion and high gas fees problem, has been combined cutting-edge cryptography and ZK-Rollup to improve throughput and TPS. zkTube is focusing on the development process to complete "cross-rollup". zkTube is the first application to adopts (PLONK) technology into mining functions. It is an environmentally friendly mining mechanism based on decentralized distributed energy management.
A message from CoinDesk The CoinDesk Quarterly Review 2021 Q2 After two consecutive quarters of strong price gains for most of the top crypto assets, Q2 2021 finally brought an end to market euphoria with a resounding crash.
Most CoinDesk 20 assets, which constitute 99% of the crypto market by verifiable volume, ended the quarter with negative returns. Meanwhile, protocol development for the world's largest cryptocurrencies by market capitalization, Bitcoin and Ethereum, reached new milestones.
CoinDesk Research's latest Quarterly Review dives into the trends, developments and technological progress that shaped the crypto markets from April to June 2021.
The full report is now available from the CoinDesk Research Hub.
Validated takes Anthony Di Iorio, one of the eight co-founders of Ethereum, plans to sell his blockchain software company Decentral Inc. and focus on other business ventures not related to cryptocurrencies. BACKGROUND: Di Iorio is looking to leave the crypto industry over concerns for his personal safety. He also mentioned that he wanted to focus on “larger problems,” stating that cryptocurrencies and blockchain technology are only “a small percentage of what the world needs.” (Article, Bloomberg)
After months of parabolic growth, the supply of dollar-backed stablecoin tether (USDT) has suddenly stopped climbing. BACKGROUND: Since the end of May, the market capitalization of USDT has stayed constant at just over $63 billion, while tether’s largest competitor, USDC, has shown modest supply growth from $22 billion to $26 billion over the same time period. One possible reason for the lack of supply growth in USDT is mounting user mistrust over the token’s reserve composition. (Article, CoinDesk)
Long-standing cryptocurrency management platform Shapeshift is executing a radical plan to fully decentralize its operations. BACKGROUND: In efforts to convert the company into a decentralized autonomous organization (DAO) run by token holders, Shapeshift is airdropping 340 million FOX governance tokens to past ShapeShift users and several well-known decentralized finance protocols, including Uniswap and Yearn. (Article, CoinDesk)
The Maker Foundation responsible for guiding the development of the original Ethereum DeFi application. MakerDAO has announced it too will soon shut down in efforts to fully decentralize its operations. BACKGROUND: Rune Christensen, the founder of MakerDAO, said in a blog post that the foundation will dissolve “within the next few months” as part of a plan to put more power back in the hands of MakerDAO token holders. (Article, CoinDesk)
Ethereum is gearing up for a backward-incompatible upgrade, also called a hard fork, in early August. BACKGROUND: Recently published community resources to help prepare users and dapps for the hard fork, dubbed London, include a countdown clock and an informative data visualization. (Blog post, Ethereum Foundation) Ethereum Classic, a version of Ethereum created in 2016, is preparing for a hard fork this Friday. BACKGROUND: The hard fork, code named Magneto, is aimed at enabling greater compatibility with the Ethereum network by mimicking some of the code changes rolled out on Ethereum back in April. (Blog post, Etherplan)
Factoid of the week
A message from CoinDesk Indexes The CoinDesk DeFi Index (DFX), benchmarking the investable DeFi sector, is now available for investors watching decentralized finance, the first true "sector" in cryptocurrencies.
It is the latest index by CoinDesk Indexes, the market standard for crypto assets since 2014. The DFX provides a market-cap-weighted benchmark for a representative basket of DeFi-sector cryptocurrencies, composed of assets suitable for long-term holding.
Find out more at coindesk.com/indexes/dfx, or email indexes@coindesk.com.
Open comms In case you're not a fan of this newsletter, you can unsubscribe here.
Valid Points incorporates information and data about CoinDesk’s own Eth 2.0 validator. All profits made from this staking venture will be donated to a charity of our choosing once transfers are enabled on the network. For a full overview of the project, check out our announcement post.
You can verify the activity of the CoinDesk Eth 2.0 validator in real time through our public validator key, which is: 0xad7fef3b2350d220de3ae360c70d7f488926b6117e5f785a8995487c46d323ddad0f574fdcc50eeefec34ed9d2039ecb.
Search for it on any Eth 2.0 block explorer site!
I'll be extending today's conversation on Ethereum 2.0 with Consensys’ Ben Edgington in a CoinDesk podcast series called “Mapping Out Eth 2.0.” New episodes air every Thursday. Listen and subscribe through the CoinDesk podcast feed on Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, IHeartRadio or RSS.
ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is.
Valid Points
A newsletter from CoinDesk
Copyright © 2021 CoinDesk, All rights reserved.
250 Park Avenue South New York, NY 10003, USA You can manage your preferences here or unsubscribe from all CoinDesk emails. |
Loading...
Loading...