$COMP Frenzy Continues With Leveraged Yield Farming and Coinbase Listing
Also, dYdX adds USDT support for Bitcoin perpetuals, Bancor discovers vulnerability, Wyre launches Wallet Passes
Hello Defiers! Lots going on in DeFi
- How to maximize your COMP mining with Instadapp
- Coinbase lists COMP
- Bancor finds potential exploit
- Wyre allows dapp to connect with Apple and Google wallets
and more :)
🎙Listen to this week’s podcast episode with Aragon’s Luis Cuende:
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How to Maximize Your $COMP By More Than 4x
This week, we all witnessed a market frenzy to participate in liquidity mining as the Compound Finance team began distributing the $COMP governance token. Each day, smart contracts distribute 2,880 COMP to users of the protocol, 50% to suppliers and 50% to borrowers.
In the following video, I share a powerful way to earn more $COMP tokens by maximizing exposure to lending and borrowing on Compound, using flash loans to build a leveraged position with stablecoins, all thanks to a tool built by Instadapp.
Imagine you start off lending 100 DAI, but by the end, you're lending 300 DAI and borrowing 200 USDT, qualifying you to earn more $COMP tokens daily. This DeFi super power on Instadapp is appropriately named “Maximize $COMP Mining” and it allows anyone to increase their participation and rewards in Compound liquidity mining (aka COMP mining aka yield farming).
The best part about this is anyone can do it! That's the power of p2p DeFi applications. All you need is an Ethereum wallet, an internet connection, funds you're willing to risk, and a little courage.
To maximize $COMP mining on Compound, watch my video tutorial below and check out the DeFi superpower yourself on Instadapp: https://dsa.instadapp.io/compound
- You can find the Market Distribution Table for Compound which shows how many $COMP tokens are being distributed daily to the lenders and borrowers of 9 different markets: https://compound.finance/governance/comp
- Here's where I found the Gross Supply and Gross Borrowed amounts in the 9 markets across Compound, to calculate that borrowing against USDC or DAI collateral with USDT debt, would be the best way to maximize $COMP earnings: https://compound.finance/markets
- The tweet from Samyak Jain, CoFounder of Instadapp, which first inspired me how I can maximize $COMP mining is here:
Samyak Jain @smykjainI just went short on $USDT using $DAI as collateral on dsa.insatdapp.io/compound using maximum $COMP mining recipe. Looks like I'm earning way more than I'm paying interest with the current $COMP price hovering around ~$60. #YOLO
8:57 PM ∙ Jun 15, 202092Likes12Retweets
- For future DeFi tutorials, subscribe to The DeFi Dad Youtube channel here: (https://www.youtube.com/channel/UCatItl6C7wJp9txFMbXbSTg?view_as=subscriber) and follow @DeFi_Dad on Twitter.
Disclaimer & Risks
Instadapp and Compound did not pay me to produce this video. This is not financial advice and you should approach all DeFi applications, wallets, and protocols with caution. Please be aware there is always risk in using DeFi, including technical risks (ie smart contracts hacks), financial risks (ie liquidity crises), and potentially admin risk (admin key compromise, governance vulnerabilities). Also, there is risk in using leverage, especially if the dollar-peg for USDC, DAI, or USDT were to ever fail, which could cause an Instadapp leveraged position using this Maximize COMP Mining to be liquidated and lose invested funds.
Coinbase Lists COMP Four Days After Token’s Launch
COMP - the hot new governance token by Compound Finance - was listed on Coinbase Pro less than a week after its initial distribution on Monday. The announcement comes as COMP surges to $121 from $16 when it was first listed. That’s a fully diluted market cap of $1.2B, the highest in DeFi.
Coinbase Pro @CoinbaseProOn Monday, June 22, our COMP-USD and COMP-BTC order books will enter transfer-only mode, accepting inbound transfers of COMP in supported regions. Orders cannot be placed or filled. Order books will be in transfer-only mode for a minimum of 12 hours. blog.coinbase.com/compound-comp-…1:01 PM ∙ Jun 18, 2020187Likes47Retweets
COMP is the first out of 18 new tokens the exchange last week said was exploring whether to add. To some, that may come as no surprise, as Coinbase invested in Compound in 2018. COMP’s listing in a major US exchange makes the token more accessible for traders and developers at a time when Compound Lab’s team is stepping down to spur true decentralized governance.
The launch of COMP liquidity mining has caused assets in Compound to spike, with over $180M in new capital supplied to the leading lending protocol since Monday.
Bancor Discovers Vulnerability Hours After Code Update
By Sebastian Aldasoro
Bancor discovered a vulnerability in its code hours after releasing an update on its smart contracts. The team was able to save most of the $455k at risk, except for $135k in the hands of arbitrage bots.
The updated contracts mistakenly made public a function, which should have been restricted to the contract alone, allowing anyone to transfer tokens approved only for the contract to transfer. The team used the vulnerability to migrate $455,349 of funds at risk to a safe wallet. A new network contract was then pushed to ensure that an error like this does not recur.
Two arbitrage bots front-ran the transaction and made a profit of $135,229. Bancor contacted the bot owners and are working with them to return the amounts to the rightful owners in exchange for a bug bounty. Kanso Labs had audited the new set of smart contracts.
This is the second time that the on-chain liquidity protocol that enables automated market making on Ethereum gets hacked in the last two years. In 2018, $22.5M worth of ETH, NPX, and BNT, their native token, was stolen from the network. On that occasion, Bancor froze the $10M BNT that had been stolen. This decision reduced the hack’s impact but raised concerns regarding the protocol’s lack of decentralization.
The Bancor V2 upgrade expected to launch next month is undergoing security audits, including by Consensys Due Diligence.
Bancor’s bug is the latest of several vulnerabilities faced by DeFi protocols this year, including the bZx flash loan exploits in February, and the Maker DAO incidents of the Black Thursday. As the industry keeps growing and attracting a more significant amount of capital, the attack surface will get bigger. Hopefully, these incidents will also help prevent similar issues happening down the line.
dYdX Adds USDT for Bitcoin Perpetual Futures Firepower
dYdX added support for USDT on its permissionless Bitcoin perpetual futures, instantly supercharging the platform's flagship product with $5.7B in potential liquidity. The market is averaging oughly $1M in trading volume per day.
The move continues to solidify USDT’s role in decentralized finance. The stablecoin, which accounts for roughly 80% of total stablecoin market cap on Ethereum, is the largest borrow market on Aave and Compound Finance. The size of Compound’s USDT market is spurring growth in the platform as traders rush to deposit even more USDT to get COMP in return.
To fuel USDT support, dYdX partnered with Curve, allowing users to take advantage of the platform’s low-slippage liquidity pools to seamlessly convert USDT to USDC under the hood. With Curve recently breaking ATHs in 24H volume following the launch of COMP, it’s safe to say the liquidity aggregator is becoming a foundational building block for liquidity abstraction - just in time for their native governance token!
Curve @CurveFinanceTime for a quick announcement. Curve is working on decentralizing its ownership through a Curve governance token. All liquidity providers since the inception in January 2020 will be considered for the initial distribution proportionally. Details on supply/demand to follow soon!9:53 AM ∙ May 30, 2020216Likes36Retweets
Best highlighted by WBTC Cafe, we’re seeing top DeFi protocols leverage Curve’s infrastructure to lower barriers of entry and provide more diverse collateral opportunities. The addition of USDT is expected to be the first of many stablecoins supported by dYdX, all of which are set to fuel not only Bitcoin perpetuals, but others like ETH in the coming months.
Lasse Clausen @lalleclausenI see this as a big use case for @CurveFinance. Exchanges can stop diluting their liquidity among several stable-coin base pairs and just offer USD/X, while allowing users to deposit and redeem any stable-coin.
dYdX @dydxprotocol2/ HOW IT WORKS: dYdX integrates with @CurveFinance to convert USDT deposits into USDC which is ultimately held as collateral on the BTC Perpetual. Similarly, withdrawals to USDT are performed through an automatic stablecoin swap, powered by Curve. https://t.co/ZywLcQnBaK4:56 PM ∙ Jun 17, 202081Likes12Retweets
Wyre Releases Native Apple and Google Wallet Integration
Wyre, a fiat-to-crypto on/off-ramp, launched Wallet Passes for crypto applications to more easily connect with users on their mobile phones.
Wyre’s product allows dapps to create cards stored in Apple and Googles wallets, with QR codes that link back to the dapp, much like an airline boarding pass. Wallet passes also allow dapps to send push notification to users, to hopefully drive higher participation and make sure they’re not missing important developments, such as a governance vote.
Image source: Wyre Medium post
Creators, Communities, and Crypto: Fred Ehrsam
Pradigm’s Fred Ehrsam talks with Blake Robbins (Ludlow Ventures) and Jesse Walden, (ex a16z) about how creators and internet communities can use crypto and potential demand for tokenized products.
“Imagine Yeezy drops being done this way. As we’ve seen with the Chinese versions of sneaker marketplace StockX like Poizon and DoNew, most of the activity comes from people trading the shoes synthetically, “ Fred said. “The initial pitch for StockX was that you were never even going to get your physical shoes,” Blake said. “An investor friend of mine who saw that pitch was basically like, “I know the new Yeezys are coming out, I know they’re going to go up in price, just let me buy shares in it”
How does DeFi cross the chasm? by Jesse Walden
Crypto investor Jesse Walden discusses three potential narratives that may drive decentralized finance to go from niche to mainstream: 1. banking the unbanked, 2. becoming a casino for institutional investors, 3. non-financial consumer apps lead the way. Walden is most excited by the latter.
“My view is that DeFi gets a lot more interesting once there are mainstream users conducting real economic activity on-chain, beyond crypto speculation.”
Everyone wants to get their $COMP.
Tina.ThereIsNoAlternative @tzhen#CeFi farming #DeFi yield... @NexoFinance just put in 22mil USDT into @compoundfinance h/t @DeBankDeFi etherscan.io/tx/0x30a573662…
11:51 AM ∙ Jun 18, 202092Likes19Retweets
Ethereum addresses climbing to 2018 levels.
CoinMetrics.io @coinmetricsEthereum active addresses are approaching levels not seen since January 2018. Read more in this week's State of the Network: coinmetrics.substack.com/p/coin-metrics…
5:14 PM ∙ Jun 17, 202049Likes11Retweets
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The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money.
About the founder: I’m Camila Russo, a financial journalist writing a book on Ethereum with Harper Collins. (Pre-order The Infinite Machine here). I was previously at Bloomberg News in New York, Madrid and Buenos Aires covering markets. I’ve extensively covered crypto and finance, and now I’m diving into DeFi, the intersection of the two.