Money Legos keep piling up !, 21.-28. April

Have a nice Wednesday DeFi enthusiast!

I was hoping to devote much of this issue of Finance Redefined to it Analysis of Aave’s liquidity reduction program. There were some fears on the part Investors believe that spending 2,200 AAVE per day (which is roughly 5% of the Ecosystem Reserve Fund’s 2.8 million AAVE per year) could drive up the price of the token due to the earnings of the farmers and the sale of you.

It turns out you don’t have to: The program is a complete success. The AAVE token has risen nearly 15% to $ 462 since the liquidity run started, and the total locked value of the log has increased to $ 11.8 billion. versus just over $ 7 billion since the liquidity began to run.

Money Legos keep piling up !, 21.-28.  April
Money Legos keep piling up !, 21.-28. April

Well-studied liquidity mining work. The only question now is: If the show is discontinued, how much of this TVL will remain?

Other news trending this week:

The money legos keep piling up

At the beginning of the year, there was speculation that decentralized funding would see something new in 2021: one protocol buying another, likely by buying governance tokens. The roadmap of Synthetix For 2021 in particular, he opened the door to this opportunity, compared it to shopping at TradFi, and was inspired by Yearn’s wave of mergers / purchases / collaborations.

However, the large-scale mergers and acquisitions have yet to take place. There are some minor examples Inverse finance is to attempt Buy tonic for around 1.6 million USD, For example, however, we are seeing a boom in deep integrations at the protocol and front-end levels.

On Monday, Badger DAO and RenVM have launched the “Badger Bridge”, a new interface with which native BTC can be stored in Badger vaults with just a few clicks. The integration is characterized for two reasons. The first is that it is clearly mutually beneficial: An easy way to get BTC throughput is attractive to users, which means Ren will see increased activity on his bridge (and therefore log charges), while Badger will also get an increase in your TVL.

However, the other angle is It’s the will with which Ren subordinated his brand and let Badger (who in my opinion has the strongest community) take over the landing page. Without the absurd token reviews, one might have been a buy target for the other, given the obvious needs each one satisfies. But by working together, Ren gets everything he wants from a protocol like Badger, and so does Badger with Ren.

This begs the following question: Why bother buying a different protocol when an easy-to-use integration can produce the same results?

Another prominent example is today’s announcement of the Balancer and Gnosis protocol. You can see the details in my article, but in fact Balancer v2 brings some exciting innovations to AMMs liquidity provisioning, and Gnosis CowSwap is a liquidity aggregator and off-chain transaction batch protocol that is supposed to decrease the miners’ extractable value. The combination of the two will make the DEX significantly more feature-rich from both a liquidity provider and a trader’s point of view, and possibly even position the Balancer and Gnosis protocols as competitors for them Uniswap v3.

In conversation with Cointelegraph, the CEO of Balancer, Fernando Martinelli, noted that such a deep collaboration would be impossible in the traditional financial world:

“Either protocol would be impossible to implement in traditional finance simply because there is no trust there (you always need an intermediary). Even if it were possible, combining these two protocols would be as difficult as it would be, Fidelity Index Funds (Balancer) to integrate with Nasdaq (Gnosis) on a single platform. “

Shopping can be an outdated model. Interoperability and composability mean protocols can benefit from each other without the need for hostile purchases.

However, the image problems have yet to be resolved. The Balancer and Gnosis Protocol isn’t exactly the best name.

Do you speak my language

The goal posts for Ethereum maximalists keep moving as organic activity spreads to other chains.

On Solarium, for example, COPE Y. STEP have attracted a significant community fan base and investment from key players (including funds other than known SOL backers). Alameda Research!), and this morning they announced one Hackathon with the aim of starting the hashtag “solanaszn”. Others have spoken of it “Summer Solana”, Like last year in DeFi summer, but whatever name you prefer, the competition is real.

Success has unsurprisingly led to some Observers try to criticize the thesis of the growth of SOL. While, as with any chain, there is much to be attacked, this is a growing criticism Solana’s signature language Rust is difficult and exotic.

In a statement to Cointelegraph, Solana’s founder and current president of the Solana FoundationAnatoly Yakovenko rejected this opinion.

“Rust is a modern, widely accepted language suitable for writing secure, high-performance code. It has been rated by 65,000 programmers as one of the most popular programming languages ​​for Stack Overflow. We are confident that this will be a key role.” Role in promoting the organic growth of our developer community to date “ he expressed.

He noticed that too The foundation had 2,000 developers programmed in Solana (He didn’t mention the methodology or definitions used to get the number, and it may seem a little pompous as a 2019 study by ConsenSys found there were around 1,300 Ethereum developers, and Electric Capital in 2020 the total number of ETH developers set around 2,300), and that Solana developers are not interested in “copying and pasting” Ethereum projects.

You’re also right about the stack overflow study, although a 2018 poll from the Rust blog showed it More than 20% of developers working with the language felt unproductive after a year.

Whatever your thoughts on Rust, it’s likely a problem that money can solve. And for that Solana steps on the gas pedal: The hackathon will have “up to a million dollars” in prizes and / or initial funding. I even think I could learn a difficult language for that amount of money.

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