DeFi Pulse Farmer New Edition

DeFi Pulse released DeFi Pulse Farmer, top stories, developments, and trends from the past week in tandem with two key farming opportunities to keep an eye on.

The size of DeFi acutely shrunk again this week, with the ecosystem’s total value locked (TVL) declining from $58.79B to $55.25B since our last issue of the Farmer.

That’s not some major drop-off, right, but they’re certainly not in the “up only” environment they were in just a handful of weeks ago!

Instead, they’re now in the chop. Maybe DeFi’s TVL rips down soon, or maybe it rips up soon, but since the start of June the TVL’s been pinging tightly within the $65B to $50B range. Accordingly, perhaps continued chop is the safest bet for the near future!

As for brow-raising DeFi news this week, the ecosystem just experienced two fairly dramatic episodes:

• “The world’s first large-scale crypto bank run” — Iron Finance, a partial-collateralized stablecoin project on Polygon, saw the TVLs of its incentivized liquidity pools swell last week. Why? Farming demand for IRON and TITAN tokens created a positive feedback loop in which the APYs for some of Iron’s pools reached astronomical heights. At one point, the TITAN/MATIC pool on Sushi’s Polygon deployment was fetching +4M% APY! Yet when the TITAN price reached $65, whales started cashing out. The selloff turned into an all-out market panic as IRON lost its peg and TITAN quickly crashed to zero.
• The Curve and Alchemix kerfuffle — Alchemix’s alUSD allows users to take out a DeFi loan that repays itself overtime via yield farming. But to generate its revenues alUSD’s yield is considerably underpinned by a Yearn Vault strategy that farms and dumps Curve’s CRV token. This week this dynamic boiled over into a Curve governance proposal that, if passed, would cease awarding CRV rewards to Curve’s alUSD pool. The reason? To prevent “leveraged CRV farming.” Things have gotten a bit testy between the Alchemix and Curve communities since, though some ensuing glimmers of diplomacy do suggest there are productive ways forward.

Lastly, let’s finish up this column like we always do by recapping the best-performing DeFi tokens of the week. They just saw compelling 7-day rises from QUICK (+42%), MIR(+24%), KEEP (+20%), DDX (+13%), and BOND (+10%). In this span, the DeFi Pulse Index (DPI) declined 10.91% to reach $276.86.

What is DeFi Pulse?

DeFi Pulse is a site where you can find the latest analytics and rankings of DeFi protocols. Their rankings track the total value locked into the smart contracts of popular DeFi applications and protocols. Additionally, they curate The DeFi List, a collection of the best resources in DeFi, and DeFi Pulse Farmer, a newsletter covering the latest news and opportunities in DeFi.

📰 INFO:

https://yieldfarmer.substack.com/p/find-out-about-instadapps-pools-and