What DeFi Trends You Need to Be Keeping Up With
Capital Efficiency in DeFi | Ankr & Future of Liquid Staking | GammaSwap & Catalyst
GM, this is your Daily Bolt briefing.
In this weekend edition, we’ll be giving you some insights on the current crypto landscape from some of the top DeFi builders.
It’s important to keep a pulse on what is going on in the world of DeFi now so that when liquidity re-enters the market, you’re prepared. As such, we’ve included updates and thoughts from the Foundesr of GammaSwap and Catalyst on LSD-fi, impermanent-loss hedging, and more.
Stay Vigilant.⬇️
TODAY'S EDITION IS BROUGHT TO YOU BY ARBITRUM JANIS DEX
Janis is a community-owned decentralized exchange on Arbitrum One.
WETH ownership dividends will be distributed through single-deposit Revenue Sharing pools!
The majority of the funds earned by the DEX through trading fees, B2B services, and launchpads will be distributed this way.
Community Fairlaunch running June 9-12, Protocol beginning June 13
Only at: https://janis.capital
1/ Ankr - Concentrated Liquidity, Uniswap V3 and New Trends in DeFi
Preview: In Ankr’s Staking’s Twitter Space, 0xApollo from Thena Finance, unified from Chronos Finance, lamehillbilly from Glacier Finance, and Vladimir from Algebra Protocol discuss concentrated liquidity, risks associated with concentrated liquidity, and future trends in DeFi. Click here to listen to the full episode (45 mins).
Read our Note (7 mins) and save 38 mins.
Here are some key takeaways:
0xApollo says that concentrated liquidity is a unique feature of Uniswap V3. In traditional liquidity provision, as seen in Uniswap V2, liquidity providers (LPs) deposit their assets across the entire price range.
However, in Uniswap V3, he says that with the introduction of concentrated liquidity, the incentives for LPs have shifted. LPs are now incentivized more by token emissions than by fees.
lamehillbilly also notes that the higher fees generated from concentrated liquidity become an incentive for gauge voters more than for the liquidity providers.
He says that protocols such as Gamma and Arrakis can help manage liquidity and choose the right ranges.
0xApollo predicts that Liquid Staking Derivatives (LSDs) are going to be the next hot trend in DeFi.
He says that LSDs increase the capital efficiency of the DEX and reduce the need for emissions. LSDs are tokens that represent a staked asset and the rewards it generates. This allows users to stake their assets to secure a network while still being able to use those assets in DeFi.
He also adds that pairing an LSD with another asset can provide yield for the pair, reducing the need for additional emissions as incentives. This means that the pair itself generates yield, reducing the need for additional token emissions as incentives.
unified agrees with the potential of LSDs. He also talks about the possibility of stable derivatives derived from LSDs, like what LUSD is doing.
He also suggests that ETH, in the wake of liquid staking, could become one of the better investments of our lifetime.
Vladimir says that many DEXs are competing for liquidity and adds that it would be more efficient if DEXs could interact with each other and share liquidity for trades, paying extra fees if necessary.
2/ blocmates - Impermanent Loss, Multichain Narrative and Future of DeFi
Preview: In this episode of blocmates which took place on June 7th, Grant was joined by Devin from GammaSwap and Jim from Catalyst to discuss some of the latest narratives in the DeFi ecosystem including covered LSD-fi, Impermanent Loss Hedging, and how the current multichain landscape will evolve to an omnichain world. Click here to listen to the full episode (60 mins).
Read our Note (96 mins) and save 54 mins.
Here are some key takeaways:
Jim says that Catalyst is not just an Automated Market Maker (AMM) liquidity protocol, but also an aggregator. It provides tooling for roll-up builders, which is a significant advantage in the current blockchain ecosystem where roll-ups are gaining popularity.
He says that Catalyst's primary goal is to enable cross-chain liquidity, which is a critical need in the increasingly interconnected blockchain world. This means facilitating the creation of pools and liquidity providers (LPs) across various chains, thus enhancing the overall liquidity in the DeFi space.
He says that Catalyst V1 is a liquidity borrowing platform, which is a crucial service in DeFi. Borrowing and lending are fundamental components of any financial system, and Catalyst V1 aims to provide these services in a decentralized manner.
Jim says that there are plans for a V2 that includes feeless swaps and token incentives for borrowers and LPs. Feeless swaps would significantly enhance user experience, and token incentives could attract more participants to the platform.
Jim discusses the importance of interoperability and composability in the context of their protocol, Catalyst. He says that Catalyst is building base liquidity that allows for seamless value transfer and connection between different chains. This is a critical feature in the current blockchain ecosystem, where there are numerous chains with their unique features and advantages.
Devin describes GammaSwap as a liquidity protocol that has a specific focus on addressing the issue of impermanent loss, a common problem faced by liquidity providers in DeFi.
He says that GammaSwap's approach to this issue is to consider factors such as volatility and liquidity to hedge the protocol effectively. This hedging mechanism would enable the trading of perpetuals on new projects, thus expanding the range of financial instruments available on the platform.
Devin says that there is a possibility of creating multi-asset pools for GammaSwap. Multi-asset pools can provide more options for liquidity providers and traders, thus enhancing the platform's utility.
He says that GammaSwap would like to create a chain, but the current infrastructure adds more friction than they would like. He believes more developers will create chains as the necessary infrastructure develops, which would be beneficial for the entire blockchain ecosystem.
If you read these 2 Notes on Revelo Intel you would have saved: 1 hour and 32 minutes!
TODAY'S EDITION IS BROUGHT TO YOU BY ARBITRUM JANIS DEX
Janis is a community-owned decentralized exchange on Arbitrum One.
WETH ownership dividends will be distributed through single-deposit Revenue Sharing pools!
The majority of the funds earned by the DEX through trading fees, B2B services, and launchpads will be distributed this way.
Community Fairlaunch running June 9-12, Protocol beginning June 13
Only at: https://janis.capital