An article to understand the major progress of DeFi in June
Editor's Note: This article comes fromFirst class warehouse blockchain research institute (ID: first_vip1)Editor's Note: This article comes from
First class warehouse blockchain research institute (ID: first_vip1)
First class warehouse blockchain research institute (ID: first_vip1)
, Author: Jaden, Jill, Gisele, reprinted with authorization by Odaily.
Before 312, the value of assets locked in DeFi reached a maximum of approximately US$1.25 billion. After 3 months of recovery, it finally returned to the level before 312 in early June. As of June 27, assets locked in DeFi reached $1.6 billion.
Let's take a look at the progress of the "DeFi Big Three" in June.
Compound（COMP）, #23
Progress in June:
*Project progress is sorted in order of ranking, and the ranking selects the data from the Coinmarketcap website on July 2, 2020.
secondary title
On June 16th, Compound began to distribute the governance token COMP to users, and distributed 2,880 COMP to users every day for four years. For details of the token distribution, please refer to the DeFi monthly report of the first class warehouse in May.
view:
July 1: The Compound community overwhelmingly approved the proposal to adjust the distribution rules of COMP tokens. The new proposal will distribute tokens based on the total borrowing value of each asset pool.
view:
When the COMP token was first launched, it triggered a frenzy of "lending is mining", and the capital scale of Compound's lending pool also exceeded 1 billion US dollars. Compared with Maker's capital pool, which has been maintained at around US$500 million for a long time, Compound broke through US$1 billion in one fell swoop, raising the ceiling of DeFi.
image description
Compound capital pool size, screenshot time 2020-6-28
Behind the DeFi national carnival, we can't help thinking:
It may be because the assets lent from Compound can be deposited into the platform again, and new assets can be lent again, and the cycle repeats; the final asset scale can be up to 1/(1-x) times, and x represents the specified asset Mortgage rate. Therefore, the total assets of the Compound lending pool we have seen so far contains a part of the leveraged virtual value.
For example: without considering currency price fluctuations and liquidation, deposit 10,000 US dollars in the USDC pool (mortgage rate 75%), and theoretically can lend 40,000 US dollars in the limit state. And because the USDC pool has the highest mortgage rate among the tokens supported by Compound, if calculated in the most extreme state, when the asset size of Compound increases by 900 million U.S. dollars, it will cost at least 225 million U.S. dollars. Even if not all participating users can mine at the limit state, it also shows that the current asset scale of Compound is inflated.
2) The borrowing rate of BAT in the compound fund pool is unique, why is it BAT?
Borrowing and lending of tokens in the Compound fund pool
Under the current high COMP price, whether it is deposit mining or borrowing mining, it is basically profitable, so users consider how to expand their "computing power" to obtain the highest income. In COMP's model of lending and mining, "computing power" refers to the interest generated by deposits/borrows. 2880 COMP per week will be allocated to each asset pool in equal proportions according to the scale of borrowing (or deposit) interest generated by each asset pool. The interest from the asset pool will be distributed in half to all depositors and borrowers, and the COMP will be distributed in proportion to their contribution/interest. Therefore, interest is similar to computing power. Users who maximize their interests will choose the operation method that can obtain the largest proportion of interest (computing power) under the same amount of funds. In the design of Compound, the interest rate models of different mortgage assets are different, and the asset scale is also different. The combined effect of the two is the core consideration factor for users to choose the target.
Asset interest rate models can be roughly divided into 4 categories: the first category BAT/REP/ZRX, the second category ETH/USDC, the third category USDT/DAI, and the fourth category WBTC, as shown in the figure below:
image description
Representative diagram of the interest rate model for each type of token (the purple line represents the borrowing rate, the green line represents the deposit rate, and the black line represents the loan/deposit ratio)
It can be seen that in the "current" state, if the user holds 1 million funds, he will choose BAT as the target of the operation, because the current borrowing rate of the BAT pool is the highest, and the interest that can be contributed is also the highest (according to the current The underlying price, deposit and loan interest rates and other factors, the current interest generated by borrowing is greater than the interest on deposits, so only the highest borrowing interest rate can be selected here), and the final result is that the most COMP is obtained. But this is already the performance after the BAT deposit interest rate has risen. At the beginning, BAT's loan/deposit ratio was relatively low, and the corresponding borrowing interest was not so high. Then why did everyone choose BAT at the beginning? See the table below for answers.
3) What impact might the new COMP allocation rules have?
image description
MakerDAO (MKR), #27
Progress in June:
Current interest rate model for DAI
Progress in June:
view:
Increase of ETH debt ceiling: On June 6, the implementation proposal was passed to increase the ETH debt ceiling by 20 million. The current debt ceiling is 140 million.
July plan:
July plan:
Aave (LEND), #47
Progress in June:
The team is currently planning to redesign the liquidation system, optimize the mortgage auction mechanism of the Maker agreement, improve the dependence on DAI liquidity and the threshold for user participation.
Progress in June:
view:
Increased bug bounty: Aave has been holding bug bounty activities since its mainnet launch, increasing the initial maximum bounty from $25,000 to $250,000, which is currently the highest bounty offered by DeFi projects.
July plan:
Aave's asset management scale reached 100 million US dollars within 6 months of the mainnet launch, which is a milestone success for Aave. However, while the assets are rising rapidly, the requirements for security are also higher. Fund security It is the top priority of the development of the DeFi industry. In order to ensure the safety of funds, Aave has been regularly reviewing the code base since its launch, and has maintained a long-term cooperation with the blockchain security company ConsenSys Diligence. This time, it directly expanded the bug bounty tenfold in order to improve the security of the protocol.
July plan:
Uniswap market integration has been completed, and the next plan is to integrate TokenSets.
June DeFi New Project Express
summary
1) podToken is an option protocol on the chain. The biggest highlight is that it supports aToken as option collateral (margin). Or the underlying asset can be purchased at a greater discount. For the buyer, the target asset price can be hedged at a lower cost.
