Lucidity FinanceNavigating Borrow Rates Trends in DeFi: Insights from the AAVE & Compound Ecosystem
The evolving landscape of decentralized finance (DeFi) continues to draw both intrigue and investment from the broader cryptocurrency community. Among the myriad developments, one trend that stands out is the increasing borrowing rates of DeFi assets across lending protocols. This shift has implications for investors, borrowers, and the DeFi ecosystem at large. In this blog, we'll delve into the reasons behind these rising rates, compare various assets on the Ethereum network, and analyz...
Lucidity FinanceState of Personalization [Web2 v/s Web3]
Personalization has been a driving force behind the success of Web2 platforms, shaping user experiences and setting new standards for digital interaction. Whether it's the curated playlists on Spotify, product recommendations on Amazon, or the tailored content feeds on social media, personalization drives engagement to the extent that we almost take it for granted. However, such personalization is fundamentally absent in the web3 ecosystem, despite the wealth of available on-chain data. ...
Lucidity FinanceEnhancing Liquity with Lucidity's APY Prediction Models : A Case Study
Introducing Liquity V2Liquity V2 introduces several innovations to improve capital efficiency and user experience. One of the most notable features is the ability for users to set their own borrow APYs when creating collateralised debt positions (CDPs). The introduction of BOLD, the new stablecoin in Liquity V2, provides DeFi users with a fresh alternative for saving and earning, while also bringing more liquidity into the ecosystem.BOLDBOLD, Liquity’s new stablecoin, is designed to power mor...
Leverage liquidity layer of the DeFi stack.
Lucidity FinanceNavigating Borrow Rates Trends in DeFi: Insights from the AAVE & Compound Ecosystem
The evolving landscape of decentralized finance (DeFi) continues to draw both intrigue and investment from the broader cryptocurrency community. Among the myriad developments, one trend that stands out is the increasing borrowing rates of DeFi assets across lending protocols. This shift has implications for investors, borrowers, and the DeFi ecosystem at large. In this blog, we'll delve into the reasons behind these rising rates, compare various assets on the Ethereum network, and analyz...
Lucidity FinanceState of Personalization [Web2 v/s Web3]
Personalization has been a driving force behind the success of Web2 platforms, shaping user experiences and setting new standards for digital interaction. Whether it's the curated playlists on Spotify, product recommendations on Amazon, or the tailored content feeds on social media, personalization drives engagement to the extent that we almost take it for granted. However, such personalization is fundamentally absent in the web3 ecosystem, despite the wealth of available on-chain data. ...
Lucidity FinanceEnhancing Liquity with Lucidity's APY Prediction Models : A Case Study
Introducing Liquity V2Liquity V2 introduces several innovations to improve capital efficiency and user experience. One of the most notable features is the ability for users to set their own borrow APYs when creating collateralised debt positions (CDPs). The introduction of BOLD, the new stablecoin in Liquity V2, provides DeFi users with a fresh alternative for saving and earning, while also bringing more liquidity into the ecosystem.BOLDBOLD, Liquity’s new stablecoin, is designed to power mor...
Share Dialog
Share Dialog
Leverage liquidity layer of the DeFi stack.
Subscribe to Lucidity Finance
Subscribe to Lucidity Finance
<100 subscribers
<100 subscribers
2024 started strong for DeFi, with a mix of events through the first month. Restaking was one of the strongest narratives within the sector witnessing over $1.7B worth of inflows.
There were multiple developments within the leverage landscape throughout the month.
Starting with MakerDAO passing two executive votes, with the key highlight being an increase of Spark’s DAI debt ceiling from 800M to 1.2B.
Morpho labs continued to ship, with Blockanalytica together with B.protocol co-curated a flagship USDC vault on Metamorpho, and the transfer of ownership to Morpho DAO.
Euler launched Ethereum Vault Connector, to connect ERC4626 with other vault types, and support the development of lending protocols, stablecoins, yield aggregators, margin trading apps, etc.
Chainlink proposed building the DeFi Yield Index for lending rates for 4 largest assets
Curve hinted at launching LlamaLend
Stablecoins
One of the key events this month was USDC filing for an IPO. The stablecoin giant’s step will be a major headwind for the web3, especially the DeFi ecosystem. It can be particularly beneficial for the growth of Maker, USDC’s biggest decentralised competitor.
Growth of PYUSD (Paypal’s stablecoin) within DeFi also made noise - with FRAXPYUSD becoming one of the largest pools on Curve with competitive yields.
Parallelly, there were multiple developments within the decentralised stables ecosystem, starting with Aave labs proposing the integration of GHO across multiple networks, which was followed by a GHO hackathon that saw 777 participants.
LUSD’s presence also continued to expand, getting integrated on Wirex.
Security incidents
Radiant capital, a leading lending protocol on Arbitrum and BSC suffered a flash loan attack worth $4.5M in the first week of Jan. The DAO proposed to deal with the same through recapitalisation and debt resolution using the DAO treasury. Radiant soon introduced its v3 in the very next proposal.
2024 started strong for DeFi, with a mix of events through the first month. Restaking was one of the strongest narratives within the sector witnessing over $1.7B worth of inflows.
There were multiple developments within the leverage landscape throughout the month.
Starting with MakerDAO passing two executive votes, with the key highlight being an increase of Spark’s DAI debt ceiling from 800M to 1.2B.
Morpho labs continued to ship, with Blockanalytica together with B.protocol co-curated a flagship USDC vault on Metamorpho, and the transfer of ownership to Morpho DAO.
Euler launched Ethereum Vault Connector, to connect ERC4626 with other vault types, and support the development of lending protocols, stablecoins, yield aggregators, margin trading apps, etc.
Chainlink proposed building the DeFi Yield Index for lending rates for 4 largest assets
Curve hinted at launching LlamaLend
Stablecoins
One of the key events this month was USDC filing for an IPO. The stablecoin giant’s step will be a major headwind for the web3, especially the DeFi ecosystem. It can be particularly beneficial for the growth of Maker, USDC’s biggest decentralised competitor.
Growth of PYUSD (Paypal’s stablecoin) within DeFi also made noise - with FRAXPYUSD becoming one of the largest pools on Curve with competitive yields.
Parallelly, there were multiple developments within the decentralised stables ecosystem, starting with Aave labs proposing the integration of GHO across multiple networks, which was followed by a GHO hackathon that saw 777 participants.
LUSD’s presence also continued to expand, getting integrated on Wirex.
Security incidents
Radiant capital, a leading lending protocol on Arbitrum and BSC suffered a flash loan attack worth $4.5M in the first week of Jan. The DAO proposed to deal with the same through recapitalisation and debt resolution using the DAO treasury. Radiant soon introduced its v3 in the very next proposal.
No activity yet