🏦MakerDAO Could Boost DAI Savings Rate to 8%
MakerDAO's MKR token has broken the $1,000 mark for the first time since October 2022. Meanwhile, Layer 1 blockchain Avalanche is betting on asset tokenization with a $50 million incentive scheme.
However, it's not all sunny in DeFi, as we dissect the aftermath of the recent exploits on Conic Finance, a painful reminder of the inherent risks that come with the quest for high yields.
✍️ In today’s newsletter:
- Rune proposes a temporary increase to the DSR to boost growth
- Avalanche launches $50M fund to purchase tokenized RWAs
- Conic Finance exploited for $4M
📈 Markets in last 24 hrs:
|S&P 500||$4,567||↙ -0.02%|
|Arch WEB3||0.89pts||↙ -0.27%|
|↳ FINANCE||0.94||↙ -0.09%|
|↳ INFRA||0.80pts||↙ -0.24%|
|↳ CONSUMER||1.05pts||↙ -0.92%|
Learn more about Arch Indices here.
Watch our video on the Worldcoin controversy. And check out our podcast with Nicolas Liochon, Global Lead for Linea, which is a new zkEVM rollup by Consensys.
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MakerDAO Considers Boosting DAI Savings Rate To 8%
TLDR MakerDAO could soon offer the highest native stablecoin yield in DeFi, should a proposal pass to boost the DAI Savings Rate to 8%. MKR has rallied 25% in a week, breaking the $1,000 barrier for the first time since October 2022.
SO WHAT The price action could indicate traders are frontrunning anticipated MKR buybacks. A DSR yield of 8% would be highly competitive, exceeding the current yield on US Treasuries.
This innovative new protocol eliminates the need for oracles and governance, ushering in a new era for lending and borrowing systems in DeFi.
The Ajna Protocol is a non-custodial, permissionless lending and borrowing system. Ajna expands the universe of accepted collateral tokens in DeFi, letting users instantly borrow against almost any fungible or non-fungible tokens. Lending options are expanded as well, enabling users to lend any fungible tokens. The protocol consists of asset pair pools and offers unique features including perpetual loans, permissionless pair creation, and immutability.
Ajna's mission is to improve DeFi lending and borrowing protocols by giving users a truly decentralized system with more options and less systemic risk.
Ajna is built without governance, which means that the protocol cannot be altered or updated. It’s designed without price feeds, commonly referred to as “Oracles,” to remove a common point of failure.
Six security audits were conducted by five industry-leading audit firms & platforms Sherlock, Trail of Bits, Quantstamp, Prototech Labs, and Code4arena.
The protocol has been launched on Ethereum mainnet, with other network launches planned in the coming months. Ajna can be accessed through third party applications like Summer.Fi and soon others.
Avalanche Doubles Down On Asset Tokenization with $50M Fund
TLDR Layer 1 blockchain Avalanche has introduced a new incentive scheme, Avalanche Vista, aimed at encouraging asset tokenization on its network. The initiative has allocated $50 million to purchase a wide range of asset types including equity, credit, real estate, commodities, and blockchain-native assets.
SO WHAT The move comes amid growing interest in real-world assets (RWAs) within the DeFi space, as evident by the expansion of MakerDAO's RWA portfolio and estimated total value locked in RWA protocols reaching nearly $1B.
Conic Finance Users Flee After Hackers Steal $4M
TLDR Conic Finance, a protocol providing diversified exposure to Curve liquidity pools, faced two exploits last week leading to a loss of $4.1 million. The security incidents have significantly impacted investor trust in the platform, leading to a 72% reduction in TVL and a 57% drop in its native token, CNC.
SO WHAT These ongoing incidents underscore the inherent risks of new DeFi protocols, especially those offering high yields through increased smart contract complexity, offering a fresh reminder of the trade-offs in the risk-reward spectrum of yield farming.