⚖️Pendle TVL Surges On stETH Inflows
In today's newsletter, we start by discussing Pendle, a DeFi yield trading protocol whose TVL recently reached a record $127M. Meanwhile, Compound's COMP token has skyrocketed on speculation of an airdrop from its founder's new venture. Finally, Ethereum developers are proposing a circuit breaker mechanism to safeguard against sudden asset drains from DeFi protocols.
✍️ In today’s newsletter:
- Pendle's TVL has doubled since Ethereum's Shanghai upgrade
- COMP has outperformed since its founder announced a new venture
- Ethereum developers propose ‘circuit breaker’ to guard against DeFi exploits
📈 Markets in last 24 hrs:
|Arch WEB3||0.86pts||↙ -1.93%|
|↳ FINANCE||0.92pts||↙ -0.85%|
|↳ INFRA||0.76pts||↙ -0.91%|
|↳ CONSUMER||1.06pts||↙ -1.22%|
Learn more about Arch Indices here.
Watch our video on the ongoing NFT crash. And check out our podcast with Neal Gorevic, the Chief Marketing Officer at ConsenSys.
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Pendle Attracts Over $125M In TVL With ‘Discounted Assets’
TLDR Pendle, a DeFi protocol which enables splitting of yield-bearing tokens into their principal and yield components, hit an all-time high of $127M in Total Value Locked (TVL) on July 4. The project's PENDLE token has rallied more than 1700% this year.
Projects like Equilibria and Penpie are vying for governance control as the 'Pendle Wars' get underway.
SO WHAT Yield stripping is a common practice in traditional finance, and has the potential to become a major DeFi primitive. The growing popularity of Pendle also aligns with the broader trend of "LSTfi" - applications built around liquid staking tokens.
“Phat Contract: Smart Contracts. Now Smarter.“
Phala Network, a leading computation infrastructure platform recently released Phat Contract, an off-chain program running on Phala Network which helps users to connect smart contracts anywhere while the app gains internet access.
Phat Contract is the optimal solution for implementing Web3 Functions.
In web3, ensuring efficient interaction with massive off-chain data while maintaining trustworthy and secure information has become exceedingly challenging. Therefore, Phat Contract enables smart contracts to extend their capabilities to the rich off-chain world, making smart contracts even smarter.
Use cases of Phat Contract are:
- SocialFi developers can enable their smart contracts to read data from any API, including user profile stats like followers, posts, comments, and post stats.
- Cross-chain DEX aggregators that enable users to swap tokens between various blockchains while ensuring the best possible price and minimal slippage in one-click.
- Self-owned oracles where any smart contract can access a wide range of data from both on and off-chain data sources.
Phala launched a no-code experience for Phat Contract that allows developers to deploy pre-built templates for specific use-cases called Blueprints. The first Blueprint is a LensAPI Oracle, which makes it easier than ever to deploy a programmable web3 oracle in the Lens ecosystem and unlock the full potential of web3 social applications.
You can check out Phat Contract templates here.
Compound Token Surges After CEO Steps Down And Unveils New Venture
TLDR Compound Finance's COMP token has doubled in value in two weeks, despite its CEO stepping down to start a new venture, Superstate. Market speculation of a potential Superstate airdrop to COMP holders may be contributing to the surge. Other early DeFi project tokens, such as MakerDAO's MKR and AAVE, have also gained ground.
SO WHAT The creation of Superstate could indicate a trend of DeFi pioneers exploring opportunities in regulated markets.
Ethereum Developers Propose ‘Circuit Breaker’ To Deter Hackers
TLDR Ethereum developers proposed a circuit breaker mechanism (EIP-7265) that would freeze token outflows if they exceed a predefined limit, adding a layer of security against sudden asset drains from DeFi protocol hacks. Ethereum's next upgrade, Dencun, is also in development, aimed at significantly improving the scalability of Layer 2 rollups.
SO WHAT The circuit breaker proposal could protect users' funds in DeFi, enhancing security and potentially boosting user trust. However, some concerns have been raised that malicious administrators could misuse the feature.
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