Since the approval of the SIP-420 proposal, sUSD has experienced a de-pegging phenomenon, recently falling below $0.90. This proposal introduced the "delegated pool" mechanism, aimed at improving SNX minting efficiency and reducing liquidation risks. However, the market still has concerns about algorithmic stablecoins with endogenous collateral, and the impact of the LUNA incident is still present.
Although the design concept is advanced, the insufficient demand for sUSD has led to its continued de-pegging. To solve this problem, the project team needs to increase the demand for sUSD or enhance incentive measures. In the long run, market acceptance of such stablecoins will be a key factor.
veCAKE Governance Attack Incident
Recently, the veCAKE model encountered a governance attack, leading to the cakepie protocol facing a withdrawal. Pancake believes that cakepie improperly guided CAKE emissions through governance power, but this behavior actually did not violate the operational principles of the ve mechanism.
This event has sparked discussions about the design of the ve model. Some believe that a better solution might be to set incentive caps or encourage more participants to compete for vecake voting rights, rather than direct intervention.
The founder of Curve proposed a quantitative assessment method by comparing the number of CAKE locked in Cakepie with the number of CAKE bought back and burned under hypothetical scenarios to determine its behavioral efficiency. Based on experience, the veToken model is approximately three times more efficient in reducing token circulation compared to direct destruction.
BUIDL Continuous Growth
The total locked amount of BUIDL continues to grow, increasing by 24% within 7 days, about to surpass $2.5 billion. The recent $500 million growth may come from the Spark protocol under MakerDAO. The RWA business maintains a growth trend, but has not yet integrated well into the DeFi ecosystem, showing a disconnection from the retail market.
Repeal of the US DeFi Brokerage Bill
The U.S. President signed a bill that officially repeals the IRS DeFi cryptocurrency broker rules. This move is seen as a significant boon for the DeFi industry and is expected to unleash more innovative potential.
Unichain Launches Liquidity Mining
Unichain, a subsidiary of Uniswap, has launched a new round of liquidity mining activities, offering a reward of 5 million USD in UNI tokens, involving 12 trading pools. This is the first time Uniswap has restarted liquidity mining since 2020, aiming to guide liquidity for Unichain.
Euler Expands to Avalanche
The Euler protocol has expanded to the Avalanche network, and its TVL has increased by 50% over the past month, entering the top ten lending protocols. The growth is mainly driven by incentives from platforms such as Sonic, Avalanche, and EUL.
Cosmos IBC Eureka Launches
The Cosmos IBC Eureka based on IBC v2 has officially launched. The new version supports the ATOM token burning mechanism, enabling cross-chain interactions between Cosmos and EVM chains. Currently, it supports the Ethereum mainnet and mainstream Cosmos assets, but has not yet expanded to L2 networks. In the past week, the cross-chain inflow of funds into the Cosmos hub reached $1.1 billion.
This upgrade brings new value drivers to ATOM and is expected to improve the past situation where ATOM struggled to benefit from the ecosystem explosion. However, the sustainability of capital inflows still needs further observation.
Other Decentralized Finance Updates
AaveDAO officially begins to repurchase tokens.
Pendle proposed to launch the PT token on Aave.
Berachain updates the POL reward distribution rules and introduces a new Guardian Committee.
OlympusDAO plans to adjust part of the POL liquidity to accommodate new rules.
Yearn's yBGT token lands on Berachain
After experiencing high growth, Berachain has entered a period of adjustment, and the official team has made modifications regarding incentive distribution issues. Although there has been some outflow of TVL recently, it still maintains a high level of activity. In the future, we will continue to pay attention to the integration of more protocols and the flow of funds.
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GasFeeSobber
· 08-17 14:34
Another luna is coming!
View OriginalReply0
FOMOSapien
· 08-17 11:49
Tsk, another incident. Which stablecoin can really be stable?
View OriginalReply0
GateUser-a5fa8bd0
· 08-16 18:29
Luna is a cautionary tale.
View OriginalReply0
MEV_Whisperer
· 08-16 00:16
Another LUNA is here~
View OriginalReply0
ShibaOnTheRun
· 08-14 21:30
It's going to repeat the mistakes of LUNA again.
View OriginalReply0
WealthCoffee
· 08-14 21:29
Luna's eternal pain.
View OriginalReply0
ZkSnarker
· 08-14 21:22
well technically, the algo stables saga continues... luna ptsd is real af
DeFi ecosystem hotspots: sUSD decoupling, veCAKE governance attack and BUIDL rise
Latest Trends and Thoughts in the DeFi Ecosystem
sUSD Continuous Depegging Issue
Since the approval of the SIP-420 proposal, sUSD has experienced a de-pegging phenomenon, recently falling below $0.90. This proposal introduced the "delegated pool" mechanism, aimed at improving SNX minting efficiency and reducing liquidation risks. However, the market still has concerns about algorithmic stablecoins with endogenous collateral, and the impact of the LUNA incident is still present.
Although the design concept is advanced, the insufficient demand for sUSD has led to its continued de-pegging. To solve this problem, the project team needs to increase the demand for sUSD or enhance incentive measures. In the long run, market acceptance of such stablecoins will be a key factor.
veCAKE Governance Attack Incident
Recently, the veCAKE model encountered a governance attack, leading to the cakepie protocol facing a withdrawal. Pancake believes that cakepie improperly guided CAKE emissions through governance power, but this behavior actually did not violate the operational principles of the ve mechanism.
This event has sparked discussions about the design of the ve model. Some believe that a better solution might be to set incentive caps or encourage more participants to compete for vecake voting rights, rather than direct intervention.
The founder of Curve proposed a quantitative assessment method by comparing the number of CAKE locked in Cakepie with the number of CAKE bought back and burned under hypothetical scenarios to determine its behavioral efficiency. Based on experience, the veToken model is approximately three times more efficient in reducing token circulation compared to direct destruction.
BUIDL Continuous Growth
The total locked amount of BUIDL continues to grow, increasing by 24% within 7 days, about to surpass $2.5 billion. The recent $500 million growth may come from the Spark protocol under MakerDAO. The RWA business maintains a growth trend, but has not yet integrated well into the DeFi ecosystem, showing a disconnection from the retail market.
Repeal of the US DeFi Brokerage Bill
The U.S. President signed a bill that officially repeals the IRS DeFi cryptocurrency broker rules. This move is seen as a significant boon for the DeFi industry and is expected to unleash more innovative potential.
Unichain Launches Liquidity Mining
Unichain, a subsidiary of Uniswap, has launched a new round of liquidity mining activities, offering a reward of 5 million USD in UNI tokens, involving 12 trading pools. This is the first time Uniswap has restarted liquidity mining since 2020, aiming to guide liquidity for Unichain.
Euler Expands to Avalanche
The Euler protocol has expanded to the Avalanche network, and its TVL has increased by 50% over the past month, entering the top ten lending protocols. The growth is mainly driven by incentives from platforms such as Sonic, Avalanche, and EUL.
Cosmos IBC Eureka Launches
The Cosmos IBC Eureka based on IBC v2 has officially launched. The new version supports the ATOM token burning mechanism, enabling cross-chain interactions between Cosmos and EVM chains. Currently, it supports the Ethereum mainnet and mainstream Cosmos assets, but has not yet expanded to L2 networks. In the past week, the cross-chain inflow of funds into the Cosmos hub reached $1.1 billion.
This upgrade brings new value drivers to ATOM and is expected to improve the past situation where ATOM struggled to benefit from the ecosystem explosion. However, the sustainability of capital inflows still needs further observation.
Other Decentralized Finance Updates
After experiencing high growth, Berachain has entered a period of adjustment, and the official team has made modifications regarding incentive distribution issues. Although there has been some outflow of TVL recently, it still maintains a high level of activity. In the future, we will continue to pay attention to the integration of more protocols and the flow of funds.