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🥩LSTfi Takes Off As Developers Eye $17B Opportunity
DeFi Daily
GM Defiers!
DeFi protocols that leverage liquid staking tokens are on the rise. Meanwhile, Dan Elitzer, co-founder of venture firm Nascent, suggests that DeFi could benefit from eliminating or minimizing governance and oracles to enhance security.
Elsewhere, Kevin Rose, the founder of Proof Collective, stirred controversy within the NFT community. Finally, Deutsche Telekom, Europe's largest telecommunications provider, is set to join Polygon's Proof of Stake chain as a validator.
✍️ In today’s newsletter:
- Developers look to further integrate LSTs in DeFi
- Dan Elitzer says safer DeFi will minimize governance and oracles
- How Moonbirds became the "most fudded" NFT collection
- Polygon strikes deal with Deutsche Telekom
📈 Markets in the last 24 hrs:
| Ticker | Value | 24h |
|---|---|---|
| BTC | $27,705 | ↗ 0.42% |
| ETH | $1,864.6 | ↗ 0.14% |
| MKR | $688 | ↙ -0.29% |
| SPY | $412.07 | ↗ 0.08% |
| UNI | $5.451 | ↗ 0.41% |
| LDO | $2.081 | ↗ 0.19% |
🎬 WATCH
Watch our review of the Solana Saga phone. And check out our podcast with Blake West and Mike Sall, the co-founders of Goldfinch.
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Liquid Staking
Developers Aim To Bring New DeFi Strategies To $17B Liquid Staking Market
TLDR Liquid staking tokens (LSTs) are increasing in popularity within DeFi, with market leader Lido boasting $13B in total value locked (TVL). These tokens represent a significant proportion of the total Ether staked and enable users to earn staking rewards without running a node themselves. Many top DeFi protocols now support LSTs, and new protocols are entering the market to cash in on the boom, offering inflationary tokens as bonus rewards.
SO WHAT There are concerns surrounding the dominance of Lido, which currently controls 36% of all staked Ether. This could potentially undermine Ethereum's decentralized ethos and its network security.
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DeFi
Nascent’s Elitzer Says Oracle-Free DeFi is Emerging
TLDR Dan Elitzer, co-founder of venture firm Nascent, advocates for a minimization or elimination of governance and oracles in the DeFi sector to enhance its security. He highlights emerging "oracle-free" protocols, such as Ajna Protocol and Blend, which work to reduce potential attack vectors.
SO WHAT Elitzer's perspective underscores the evolving security challenges in the DeFi space. As the sector matures, the reduction or elimination of single points of failure could contribute to a more robust and secure DeFi ecosystem.
NFTs
Kevin Rose Catches Flak For Bored Apes Comparison
TLDR Kevin Rose, founder of Proof Collective, stirred controversy by suggesting that holders of Bored Ape Yacht Club (BAYC) NFTs who bought at peak prices are worse off than those holding Moonbirds.
The Defiant spoke to a few current and former holders to find out what really went down with the highly hyped collection.
SO WHAT This situation illustrates the challenges of managing and delivering value in NFT projects, and the importance of clear communication and decision-making that respects the rights of holders. If handled poorly, these issues can lead to significant community backlash.
Crypto Adoption
Polygon To Onboard Deutsche Telekom As Validator
TLDR Deutsche Telekom, Europe's largest telecommunications provider, is joining Polygon's Proof-of-Stake (PoS) Chain as a validator. The partnership aims to leverage the potential of blockchain technology for mass-deployable applications. Deutsche Telekom MMS, a subsidiary of the telecom provider, will also provide staking and validation services for Polygon Supernets.
SO WHAT This move continues Polygon's dedication to strengthening its PoS Chain, despite the recent launch of other Layer 2 scaling solutions. The partnership comes at a time when Ethereum transaction fees are rising due to increased on-chain activity driven by memecoin trading and Layer 2 activity.