🔓DYDX Rallies Despite Enormous Looming Unlock

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DYDX has surged 60% in one week following the launch of dYdX's Cosmos-based appchain. However, the rally comes as tokenholders brace for DYDX's circulating supply to increase by 82% alongside a massive unlock event on Dec. 1.

The DeFi sector has been on fire recently, with volume on decentralized exchanges tagging an eight-month high. The market cap of DeFi tokens also reached its highest level since May, while Aave v3 posted a record high for daily borrowing activity,

Vitalik Buterin believes Plasma-based scaling solutions could make a comeback advocating for their use in EVM validiums. However, many Ethereans believe Plasma's functionality has been superseded by Layer 2 rollups.

And Spark Protocol, MakerDAO's lending protocol and first subDAO, has crossed $1B in TVL. The protocol is set to double its debt limit to $800M, likely driving further growth for Spark.

✍️ In today’s newsletter:

  • DYDX rallies ahead of unlock
  • DeFi sector celebrates multi-month highs
  • Vitalik vouches for Plasma scaling
  • Spark Protocol pushes past $1B TVL


📈 Markets in last 24 hrs:

BTC$36,549 -1.4%
ETH$2,061 0.71%
S&P 500$4,496 1.91%
GOLD$1,962 0.84%
Arch WEB31.05pts -1.31%
FINANCE1.00pts 0.08%
INFRA1.18pts -2.05%
CONSUMER1.13pts -3.74%
Arch WEB3

Learn more about Arch Indices here.


Check out our interview with Star Atlas CEO, Michael Wagner to learn more about the web3 gaming and Solana ecosystems. And watch our podcast with Brendan Malone of Paradigm to learn about the top web3 VC firm's new Policy Lab.


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DYDX Token Surges Ahead Of Massive Unlock

TLDR DYDX is up 60% in one week as investors move to buy up the token for staking to earn fee revenue from the newly-launched dYdX appchain. DYDX holders can earn fee revenue from trades executed via the dYdX protocol.

SO WHAT However, DYDX's impressive gains may be short-lived, with the token's circulating supply set to increase 82% amid a major unlock event on Dec. 1. The unlock was previously scheduled to take place in January, but was postponed due to the ongoing market downturn.

READ MORE: DYDX Token Surges Ahead Of Massive Unlock


DeFi Rebounds as Aave v3 Loan Volume Spikes to Record

TLDR The decentralized finance sector is enjoying multi-month milestones, with the market cap of DeFi tokens at its highest level since May and DEX-based trading volume at an eight-month high.

SO WHAT The impressive performance comes as yields are up across the DeFi sector amid the recent uptick in volatility. Aave v3 also celebrated a record for daily borrowing activity, suggesting many users are using DeFi protocols to access leveraged exposure to DeFi assets.

Read More: DeFi Rebounds as Aave v3 Loan Volume Spikes to Record

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Vitalik Advocates For Renewed Exploration Into Plasma-Based Scaling Solutions

TLDR Vitalik Buterin, the co-founder and chief scientist of Ethereum, believes recent advances in cryptography have solved many of the challenges associated with Plasma-based scaling solutions. Buterin vouched for greater research into the technology, suggesting Plasma could underpin EVM validiums.

SO WHAT Buterin co-authored a paper introducing Plasma back in 2017. While Plasma enjoyed popularity in 2017 and 2018, Layer 2 rollups have since superseded the technology as Ethereum's dominant scaling solution, in part due to their ease of EVM-compatibility.

Read More: Vitalik Advocates For Renewed Exploration Into Plasma-Based Scaling Solutions


Spark Protocol TVL Breaches $1B

TLDR Spark Protocol's TVL has pushed above $1B, ranking its as the 16th-largest DeFi protocol. Users drove an inflow of more than $200M in deposits during November alone.

SO WHAT Spark's growth has been propelled by high DAI yields and the promise of a future airdrop for early users. The trend is likely to continue as Spark will double its debt ceiling to $800M this week.

Read More: Spark Protocol TVL Breaches $1B



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