LD Track Weekly Report (2023/06/27)

Summary

Stablecoin: The overall market value of the stablecoin sector has not changed much this week, but BUSD and TUSD have been affected by Binance, and their market value has changed significantly.

LSD: The ETH pledge rate rose to 19.43% last week, an increase of 1.46% month-on-month. Last week, 23,358,800 ETHs were locked in the beacon chain, corresponding to a pledge rate of 19.43%, an increase of 1.46% month-on-month. The ETH pledge situation has gradually broken away from the regulatory pressure of the US SEC and returned to a normal growth trend; among them, there are 632,200 active verification nodes, A month-on-month increase of 1.39%, 92,400 verification nodes entered the queue, a month-on-month increase of 2.30%.

Ethereum L2: The total lock-up amount of Layer 2 TVL is 9.68 billion US dollars, and Zksync era is still leading the rise. The TVL exceeds 600 million US dollars, an increase of more than 20%. At the same time, the activity on the Zksync chain surpasses arbitrum. With Offchain Labs releasing the Arbitrum Orbit development tool and Matter Labs releasing the ZK Stack for developing Hyperchain, the layer 2 battle has spread from the ecology itself to the broader L3 network and RaaS fields.

DEX: Dex combined TVL 15.15 billion, a decrease of 0.66 bln from last week. The 24-hour trading volume of Dex was 2.05 billion, and the 7-day trading volume was 17.99 biliion, a decrease of 0.64 billion from last week. The popularity of Uniswap V4 is superimposed on the leading target of BTC funds sinking track, and UNI led the rise this week.

Derivatives DEX: Last week (June 19th to June 25th), the overall trading volume of derivatives DEX increased compared with the previous week, and the trading volume has increased for three consecutive weeks. The weekly trading volume of the 6 major derivatives DEX agreements is about 15 billion US dollars, an increase of about 25%.

Source: defillama, LD Capital

According to data from defillama.com, the current total market capitalization of the stablecoin sector is about US$128.7 billion, an increase of only about US$400 million compared to last week. It can be seen from the supply curve of stable coins that the current supply of stable coins is generally in a downward trend. Although the encryption market experienced a relatively large rise last week, it seems that there is no new large capital entering the market. It is very likely that institutions have entered the market. Market expectations (BlackRock's application for BTC Trust/Volatility Shares to launch a 2x BTC strategy ETF) brought about internal capital flows.

Source: Dune Analytics, LD Capital

According to data from Circle’s official website, as of June 22, the total circulation of USDC was 28.5 billion U.S. dollars, and the reserve was 28.6 billion U.S. dollars, of which 3.8 billion U.S. dollars in cash and 24.9 billion U.S. dollars were held by the government money market fund Circle Reserve Fund. In the past week, Circle issued a total of USD 900 million in USDC and redeemed USD 600 million in USDC, increasing circulation by about USD 300 million.

Source: Circle official website, LD Capital

Since March 2023, the types of collateral in MakerDAO have undergone great changes. The amount of USDC used as collateral in MakerDAO's anchored stability module (PSM) has dropped from 4 billion US dollars to about 500 million US dollars. The main reason is that MakerDAO is diversifying its balance sheet.

At the same time, the share of Ethereum derivatives stETH as collateral increased significantly, from $650 million to around $1.1 billion.

Source: makerburn.com, LD Capital

LSD

Beacon chain verification node growth gradually recovered

Source: LD Capital

ETH staking yield falls back to 4.3%

Source: LD Capital

Among the three major LSD agreements, in terms of price performance, LDO has a weekly increase of 11.3%, FXS + 8.1%, RPL -6.9%; from the perspective of ETH pledge volume, Lido has a weekly increase of 2.06%, Frax + 1.77%, Rocket Pool + 1.74%.

Pay attention to the LDO tiered reward sharing proposal: This proposal aims to expand Lido's market share, provide potential pledgers with the ability (to use Lido to pledge a minimum of 2,500 ETH in the next 1-2 years) and evaluate new projects that can promote the Lido market. 5% of the pledge income collected by the Lido treasury (within 12 months), 0-50000 ETH pledgers can share 30% of the income, and then increase step by step, and more than 700,000 ETH pledgers can share 50% of the income % . (Proposal details:

Ethereum L2

TVL

The total amount of Layer 2 TVL rose significantly last week, with an overall increase of about US$1 billion compared with last week, and a total lock-up amount of US$9.68 billion.

Data source: l 2b eat

Op Mainnet and Zksync Era saw higher gains, and Zksync Era still led the rise, with a TVL of more than 600 million U.S. dollars, an increase of more than 20%.

Cross-chain funds

Arbitrum cross-chain funds are relatively active, and TVB data has exceeded 30,000 Ethereum for two consecutive weeks.

Activity on the chain

The activity on the chain Zksync surpassed arbitrum, sorting zksync era > arbitrum > optimism > Starknet.

Event Review

Decision

On June 22, Offchain Labs released the Arbitrum Orbit development tool, which aims to help developers more easily develop and manage their own Arbitrum Rollup and AnyTrust chains on the L3 blockchain Arbitrum Orbit. Previously on March 16 of this year, Arbitrum lauch launched Arbitrum Orbit, allowing developers to easily and permissionlessly launch their own Layer 3 blockchains within the Arbitrum ecosystem. After April 27th, AltLayer's RaaS solution (Rollups-as-a-Service) claimed to support Arbitrum Orbit.

Optimism

On June 22nd, Optimism launched its third retrospective public product round, which will distribute 30 million OPs this fall to builders, creators, and educators who are positively impacting the Optimism Collective.

On June 24, Optimism changed its name to OP Mainnet.

zkSync Era

On June 26, Matter Labs released the ZK Stack for the development of Hyperchain. Hyperchain developers can choose to create a Layer 2 network parallel to zkSync Era, or run a Layer 3 network on top of it. At the same time, zkSync Era will be regarded as The first Hyperchain, chains can be cross-chained through Hyperbridges.

ZK Stack and Hyperchain can correspond to the Op Stack and Superchain concepts of OP Mainnet respectively, and at the same time superimpose zkSync Era L3 similar to Arbitrum Orbit. It can be seen that the fierce competition between layer 2 has spread from the ecology itself to the broader L3 network and RaaS field. At present, the leading development is OP Mainnet, which is supported by Base and Opbnb. How will the major Layer 2 public chains develop in the future? Let's wait and see if the magical powers attack the city and conquer the territory.

DEX

Dex combined TVL 15.15 billion, a decrease of 0.66 bln from last week. The 24-hour trading volume of Dex was 2.05 billion, and the 7-day trading volume was 17.99 biliion, a decrease of 0.64 billion from last week. The popularity of Uniswap V4 is superimposed on the leading target of BTC funds sinking track, and UNI led the rise this week.

Ethereum

ETH L2/sidechain

BTC L2/sidechain

Everything L1

Derivatives DEX

Figure: Weekly trading volume changes of 6 major derivative DEX agreements

Source: tokenterminal

TVL picked up significantly this week. As of June 25, GMX TVL has risen by 13.26% this week, with the most returning funds, rising from 540 m to 623 m. Both DYDX and MUX saw an increase in TVL on the 30th, and the monthly growth rate was between 3% and 5%. Level TVL rose more than 50% this week, basically recovering the decline in the past 30 days. The performance of Gains network and Apollo X is relatively weak, and the 30-day and 7-day TVL are still in a downward trend, but the decline is not large.

Source: Defillama

The rapid return of GMX TVL, mainly the recovery of earnings. Since Binance was sued by the SEC in early June, the market volatility has intensified and the trading volume of derivatives has increased. At the same time, there have been several large-scale liquidations in the market, and the protocol revenue has increased significantly.

As can be seen from the figure below, on arbitrum, the agreement fee income exceeded US$3 million on June 14, and exceeded US$1.7 million on June 19, much higher than the usual US$100,000 to US$500,000.

Figure: Schematic diagram of GMX protocol income (left: Arbitrum, right: Avalanche)

Source: GMX

GMX’s pledge rate also returned to 80% this week, reaching a new high. Previously, the pledge rate had peaked at 79% in mid-April. The increase in the pledge rate, in addition to being affected by the increase in protocol revenue, may be related to the fact that the GMX community is voting to modify the multiplier point mechanism.

GMX's multiplier point system is designed to reward users who stake for a long time. Staking GMX can get multiplier points, which can be used to boost GMX's staking yield. The current multiplier point APR is 100%, that is to say, when the user pledges 1,000 GMX for one year, the user can get 1,000 points.

According to community discussions, GMX has been in operation for more than a year since the end of 2021, and the accumulated number of multiplier points is getting higher and higher, currently about 50% of the protocol revenue. This is not conducive to the entry of new stakers. Therefore, the new proposal proposes that after the accumulated multiplier points of pledged users exceed a certain percentage of the pledged tokens, the excess points can no longer be used to boost the staking yield. Users can add new pledged tokens to use their own multiplier points.

Voting is currently underway and will close on June 27th. Currently, the option to limit the multiplier credits to 150% has 65.4% support.