From Zero to an 8.75% Crypto Savings Account

Also, DEX.AG is launching a new interface, most DeFi protocols can unilaterally change their code on you, and collateral swaps are now a thing.

Hello Defiers! Here’s what’s going on in decentralized finance,

  • DEX.AG unveils new trading interface
  • MakerDAO’s Dai Savings Rate was raised by 1ppt to 8.75%
  • Most DeFi projects have admin keys, Chris Blec shows
  • Aave’s flash loans enable a loan collateral swap in one transaction

and more :)

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Exclusive: DEX.AG Unveils New Interface Today

Decentralized exchanges are increasingly adopting the look and functionality of their centralized counterparts. The latest one to make strides in this direction is DEX.AG.

DEX.AG, the dex aggregator owned by Concourse Open, today plans to upgrade its trading platform with an interface called Expert Trading, according to Concourse Open co-founder Scott Lewis. The new site will include a live order book and price charts, while the previous interface focuses on simplifying the experience with only a few, straightforward options.


Image source: Concourse

The shift comes as dex users demand some of the more sophisticated features available in centralized trading venues. Last week 1inch also made strides in this direction and launched limit orders.

A live order book allows traders to split up a larger trade to get a better price for each smaller order. The platform includes prices from decentralized and centralized exchanges to help users asses what platform is offering the best rates and whether there are any arbitrage opportunities.

Dex volume has gained steam this year, with Kyber and Uniswap approaching $20 million of tokens traded per week. Dex aggregators like DEX.AG are lagging though, with weekly trading volume averaging $1.7 million in the past three months, according to Dune Analytics.

[More on Dex aggregators here: Dex Aggregator Game Heats Up With 0x as the Latest Player]


How to Earn 8.75% on Your Savings

The “DeFi central bank” has raised its savings rate to just under 9 percent, which means anyone can start earning that right now on a dollar-pegged digital asset.


Flash Loans Enable First Collateral Swap

Things in DeFi are getting weirder.

Developer David Truong created the first collateral swap in DeFi (maybe anywhere?). He swapped the underlying collateral in a MakerDAO vault —that’s the assets locked up to use as collateral for Dai— with another asset in a single transaction. He used Aaave’s flash loan feature and Uniswap Exchange to do the swap.


Most DeFi Projects Can Single-Handedly Change Code

Most DeFi projects can unilaterally make changes to their code, content creator Chris Blec said in a video.

Teams behind 10 out of 13 projects Blec reviewed, including Compound, TokenSets, Synthetix and dYdX, have the power to upgrade their contracts. Only Uniswap and InstaDApp are fully decentralized, while MakeDAO has a decentralized governance system which decides on changes, according to the spreadsheet.


Things I wish I knew before building Ethereum #DeFi dapps: Andre Cronje

Developer Andre Cronje shares his experience in building a DeFi dapp with, main conclusion is that it’s very expensive and hard to do with no token. “Almost $20,000 out of pocket for my free, fee-less, open source project […] I don’t know how hard this has to be for a complete new entrant into the space.”


More social money! Tom Schmidt created TOM, which he is exchanging for memes.


Tom Schmidt @tomhschmidtToday, I'm excited to introduce $TOM, the first time the general public has gotten access to bespoke meme creation services:


9:28 PM ∙ Feb 4, 2020125Likes6Retweets

Also, here’s an idea for anyone looking to build a cool DeFi project:


DeFi Italy (defi-italy.eth) 🇮🇹 @DefiItalyWe can build an @idlefinance for borrowers. It locks ETH in the lending platform which maximizes your borrowing power. When interest rate changes and another platform can give you more DAI, your debt is swapped thanks to #FlashLoans @compoundfinance @MakerDAO @AaveAave @bzxHQ10:06 AM ∙ Feb 5, 202048Likes8Retweets

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. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access at $10/month or $100/year, while free signups get only part of the content.

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About the author: 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.