Research Summary
The report provides an overview of the latest developments in the decentralized finance (DeFi) sector, focusing on Ethereum Reserve Dollar, a lending platform, and Equation, a PerpDex on Arbitrum. It also covers updates from various DeFi projects, on-chain data, macro metrics, and recent exploits and bugs in the crypto space.
Key Takeaways
Ethereum Reserve Dollar’s Innovations
- Decentralized Lending: Ethereum Reserve Dollar is a decentralized lending platform that allows users to borrow $USDE, a USD-pegged stablecoin native to the platform, using liquid staking derivatives and blue-chip DeFi tokens as collateral. The protocol maintains a minimum collateralization ratio of 110%.
- Blue-Chip DeFi Tokens: Ethereum Reserve Dollar is the first project to extend collateral support for blue-chip DeFi tokens, enabling $USDE to mirror the market dynamics of the entire ERC-20 DeFi ecosystem and reducing exposure to the price volatility of a single token.
Equation’s Unique Features
- PerpDex on Arbitrum: Equation is a PerpDex on Arbitrum with the BRMM LP model, allowing LPs to turn their volatile losses into temporary losses and traders to leverage up to 200x. The platform also offers high token issuance for holding a position, LP, and deposit into an insurance fund.
- Zero Fee Trading Event: In response to competitors GMX and HMX launching trading fee discount events, Equation has launched a Zero Fee Event.
DeFi Updates
- Project Developments: The report covers updates from various DeFi projects, including the launch of Nubit, the first Bitcoin-native data availability layer, Polygon zkEVM defi season, EIP-6963 support on Uniswap, Thorchain’s 2024 Q1 roadmap, and Fantom’s governance update.
- Security Audits: Ethereum Reserve Dollar has completed three security audits by Quantstamp, Halborn Security, and Peckshield.
On-Chain Data and Macro Metrics
- On-Chain Data: The report provides on-chain data, including the level of liquidation in crypto, protocol profits, and defi volume moving from Ethereum ETH into $SUI and SOL.
- Macro Metrics: The report also covers macro metrics, such as Saudi Arabia’s breakeven oil price and the 10-yr yield breaking out of its secular downtrend.
Exploits and Bugs
- Security Incidents: The report highlights recent security incidents in the crypto space, including the MangoFarm Frontend Attack and the hacking of crypto gateway CoinsPaid for over $7.5M.
Actionable Insights
- Monitor DeFi Developments: Keep an eye on the latest developments in the DeFi sector, including new project launches, updates, and security audits.
- Assess On-Chain Data and Macro Metrics: Regularly review on-chain data and macro metrics to understand market trends and dynamics.
- Stay Alert to Security Incidents: Stay updated on recent security incidents in the crypto space to understand potential risks and vulnerabilities.
