DeFi Weekly #42

Compound v2, #DefendCrypto, DAI on Coinbase

Latest this week

  • Compound’s v2 protocol has generated plenty of buzz in the community with their interest bearing tokens. “cTokens” represent ownership inside Compound’s liquidity pool but also pay interest to those who hold the tokens. Financial primitives/money legos are going to start being used in more interesting ways. Imagine an ICO where the community locks $5m worth of DAI inside a smart contract, but rather than giving the DAI to the team, cDai is given instead. With a 10% APR on lending, the team would have access to $500k/year to execute on their roadmap. As milestones are hit the community can choose to put more DAI inside the pool or decide to unlock DAI to be spent by the team directly. Speculators are going to start becoming more sophisticated about how they utilise their idle crypto assets overall.

  • KIK did an ICO for $100m last year. Now the SEC is after them for selling a security. In response, KIK’s created a $5m for the community to collectively fight back against the SEC. Two camps have formed around this: KIN is a useless token and should be fought against & if KIK loses this case it sets the tone for future ICOs or tokens. Circle also announced how they’re being forced to delist certain tokens due to regulatory pressured. Regardless of the KIK outcome, it’s becoming painfully obvious that teams with a US presence and a token are going to have difficulties. I wonder what happens when MakerDAO or 0x come under the same pressure. There’s no doubt both are legitimate projects but both violate the Howey test in various ways.

  • DAI is finally listed on Coinbase after popular demand. I personally thought that USDC would gain traction within the community as Coinbase and Circle are trusted brands. However it seems that anything which comes in the way of being trustless/unregulated doesn’t gain traction amongst the DeFi crowd. DAI volume is still dwarfed in comparison to USDC, Tether and others. However on platforms such as Dharma and dYdX, USDC barely has any volume in comparison to DAI. MakerDAO is pretty much the central bank of Ethereum as stability fee prices influence the cost of capital throughout the ecosystem.

On Chain Statistics

Total Locked in DeFi: $516M. Not much change from last week with the recent price drop.

Biggest Gainer: Synthetix has been climbing up the ranks rapidly and currently at #5.

Interesting Stat: Cost of borrowing DAI on dYdX is 22% APR!

Community Submitted Links

  • What happens when the bar only accepts DAI:

Project Updates

  • Liquidity Network has the honor of being a platinum sponsor for the Crypto Valley Conference 2019 from 24th - 26th June 2019 at Zug, Switzerland

  • Liquidity Network is running a survey to collect users' opinions about current exchange ecosystem. Please participate here

  • With AirSwap Instant, we rolled out three wallet integrations to make token trading easier for traders: Portis, Equal, and Ledger.

  • Our feedback board via Canny is live and full of activity. If there’s something you want to see on AirSwap, head over to and submit your request!

  • AirSwap Instant 2.0 was released to the public just over a month ago. Our focus for this new version was to maximize usability and simplicity of Ethereum token trading. If you haven’t given it a try, we invite you to make a trade today!

One thing we need help with:

AirSwap is hiring! If you’re interested in what our team is working on at AirSwap, please submit an application in the “Careers” section here.

  • We reached a big milestone this week, our platform is feature complete for launch!

  • Deployed updated platform to staging environment on Kovan, mainnet to follow

  • Still finalizing our solidity refactor based on recommendations from our security audit

  • Drafted an update to our website to support MPX and minting platform launch

  •  LQD can now be traded on Uniswap.

  • New bounty on Gitcoin! Developers wanting to start with Liquidity can create a Liquidity Burner, a fork of the awesome Burner wallet!

  • Liquidity Canvas competition is back, full details can be found here.