Welcome to the latest edition of Cointelegraph’s Decentralized Finance (DeFi) newsletter.
In a week that Rari Capital hit the $ 1 billion TVL milestone, read on to find out why OlympusDAO is getting four-digit amounts for its most popular protocol.
What you are about to read is a shorter and more concise version of the newsletter. For a full rundown of DeFi developments over the past week, subscribe below.
Celsius Network raises $ 400 million to expand institutional service
Cryptocurrency lending platform Celsius Network announced this week a $ 400 million raise in capital led by Canadian pension fund Caisse de dépôt et location du Québec (CDPQ) and public company WestCap, leading the company to valuation at more than $ 3 billion.
The company has announced its intention to use the funds in a twofold strategy: improving its institutional offering of products and services, and doubling its workforce to nearly 1,000 employees worldwide.
Celsius Network CEO Alex Mashinsky revealed to Cointelegraph the financial impact the platform is having on the credit sector:
“With more than $ 25 billion in assets and more than $ 850 million in income paid to more than 1.1 million users, Celsius has returned ten times more to the crypto community than any other lender.”
This funding news coincides with increased political scrutiny of crypto lending platforms in the United States. In September of this year, Celsius encountered legislative opposition from the Texas State Securities Board and the New Jersey Office of Securities, which threatened to cease their activities because of the alleged sale of unregistered securities.
Even so, Celsius has consistently maintained its innocence of wrongdoing and was ready to communicate and cooperate with regulators.
Rari Capital breaks USD billion into TVL
The DeFi Rari Capital protocol surpassed the Total Locked Value (TVL) of $ 1 billion this week to hit an all-time high of $ 1.225 billion. based on analytical data from the DeFi Pulse rating platform.
The eight-digit figure represents a monumental increase from $ 500 million two weeks ago to just $ 100 million three months ago. Launched in July 2020, Rari provides an automated performance optimization strategy for DeFi participants who want to ensure the highest possible return on their investment.
Several of its liquidity pools have attracted notable attention due to their lucrative returns, such as the USDC deposits, which offer an APY of 21.67%, and the Dai pool, which offers 26.43% APY.
Despite these above-average returns compared to the industry standard, it was the OlympusDAO in the Fuse Protocol’s Tetranode’s Locker that made headlines in recent months.
OlympusDAO is an algorithm-centric rebilling model where token balances fluctuate over time due to changes in token price and circulating supply. As of this writing, the OlympusDAO sOHM token is producing an enormous APY of 7.594%.
The growing DeFi volume in North America
According to data released this week by the analytics platform, the monthly transaction volume for cryptocurrencies in the North America region increased 1,000% over a one-year period from July 2020 to June 2021 under the burgeoning DeFi sector.
The Geography of Cryptocurrency Report found that monthly volume peaked at $ 164 billion in May 2021, before dropping to $ 100 billion in June. In addition, DeFi transactions accounted for 37% of the region’s total volume at $ 276 billion.
David Gogel, growth leader at the decentralized futures exchange dYdX, commented on the results that the higher volume in the records was driven by private customers:
“Right now, DeFi is targeting crypto insiders. They are people who have been in the industry for a while and have enough cash to experiment with new assets. “
Analytical data shows that DeFi’s total locked down value increased 8.11% to $ 146.89 billion over the week.
Data from Cointelegraph Markets Pro and TradingView show that the top 100 DeFi tokens by realized market capitalization varied over the past seven days.
The Perpetual Protocol (PERP) secured first place on the podium with a respectable 29.7%. RenBTC (renBTC) took second place with 6.03%, while Wrapped Bitcoin (wBTC) came in just third with 6.00%.
Thank you for reading our roundup of this week’s most influential DeFi developments. Come back next Friday for more stories, ideas and education in this dynamically moving space.