Loading...
🔴OP Sinks Amid Massive Token Unlock
DeFi Daily
GM Defiers!
We start by looking at this week's major token unlocks, led by Optimism. Curve Finance's new stablecoin, crvUSD, is holding its peg remarkably well, outperforming other decentralized stablecoins during their equivalent first month. Meanwhile, the overall crypto market is gaining momentum with Ether and Bitcoin reaching three-week highs, thanks to the progress in U.S. debt ceiling negotiations. A potential game-changer is on the horizon for DeFi interest rates as MakerDAO considers boosting the Dai Savings Rate to 3.3%.
✍️ In today’s newsletter:
- Optimism team and investors unlock 9% of token supply
- Curve's new stablecoin maintains tight peg
- Markets rally on debt ceiling deal
- MakerDAO mulls increase to DAI Savings Rate
📈 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 zkSync airdrop tutorial. And check out our podcast with Blake West and Mike Sall, the co-founders of Goldfinch.
Layer 2
Optimism Sinks Ahead of Major Token Unlock
TLDR Layer 2 rollup Optimism's token has been battered this week ahead of a massive token unlock of over 300M OP tokens for core contributors and early investors.
SO WHAT This situation highlights how token supply dynamics can significantly impact a token's value. Investors should consider these factors when investing or participating in crypto projects.
SPONSORED SHOUTOUT
Introducing Proof of Talk, Web3's most anticipated content-driven summit, taking place at the majestic Louvre Palace, Paris on June 14th-15th, 2023.
Engage with 75+ thought leaders and pioneers in a space dedicated to restoring trust in the decentralized revolution. Expect fiery talks, innovative keynotes, and invaluable networking opportunities that go beyond the ordinary.
Day 2 ignites the entrepreneurial spirit, fostering meaningful connections between investors and startups. This event is your gateway to the future of Web3. Limited public tickets now available. Experience the unforgettable, shape the future.
Book your spot today! #ProofOfTalk #web3
Stablecoins
Curve’s crvUSD Trades Within 0.5% Range For First Month
TLDR Curve Finance's month-old stablecoin, crvUSD, is demonstrating impressive stability, with its price fluctuating less than 0.5% since launch. Users have minted 4.7M crvUSD, ranking it as the 42nd-largest stablecoin protocol.
SO WHAT Amid regulatory disruptions and other challenges in the stablecoin sector, there remains high demand for stablecoins like crvUSD, which offer resilience to price volatility and regulatory interference.
Markets
Bitcoin and Ether Rally To 3-Week Highs
TLDR Markets rallied after US politicians agreed in principle to increase the nation's debt ceiling The proposed deal suspends the debt level until 2025, enabling the federal government to issue new debt. The DeFi sector has also seen gains, reaching a combined market capitalization of $48.5B.
SO WHAT The movements in Ether and Bitcoin illustrate the continued sensitivity of the crypto markets to macroeconomic news. DeFi projects that build atop liquid staking tokens (LSTs), like Lybra Finance, are gaining momentum.
DeFi
MakerDAO Mulls Proposal To Boost DAI Savings Rate
TLDR MakerDAO is considering an increase to the Dai Savings Rate (DSR) from 1% to 3.3%. This is the yield users earn by depositing their DAI tokens into the Maker protocol. Other major lending protocols like Aave and Compound currently offer rates below 2.6% on major stablecoins.
SO WHAT If the DSR increase is approved, MakerDAO could become a more attractive platform for stablecoin depositors, potentially drawing liquidity away from other DeFi lending protocols. It's expected to impact supply-borrow rates across all secondary markets, as the availability of low-cost liquidity decreases.
🔎 OUR REPORTERS ARE WATCHING
🌍 ELSEWHERE
- Hong Kong and UAE central banks collab on crypto rules, fintech development (Cointelegraph)
- Former Coinbase Employee, U.S. SEC Settle Insider Trading Charges (Coindesk)
- Ethereum NFTs Can Be Migrated to Bitcoin, But There's a Catch (Decrypt)