Research Summary
The report provides an overview of the latest developments in the DeFi sector, including updates on protocol changes, governance proposals, and significant news in the crypto industry. It highlights key events such as the SEC’s approval of Bitcoin ETFs, Ripple’s planned share buyback, and the launch of new protocols and features by various DeFi platforms.
Key Takeaways
Protocol Updates and Launches
- Eigenlayer and Synthetix Protocol Changes: Eigenlayer is set to add three new LSTs and reopen deposits for all LSTs on January 29th. Synthetix plans to allocate 40% of protocol fees to buyback and burn $SNX, distribute another 40% to LPs, and the remaining 20% for perp integrators.
- Launch of Berachain and Merchant Moe: Berachain, an EVM-equivalent L1 powered by Cosmos SDK using Proof of Liquidity, has launched their Artio Testnet. Merchant Moe, a DEX and expansion of Trader Joe on Mantle Network, has gone live, distributing 2.5% of $MOE to $JOE stakers.
Significant Crypto News
- SEC’s Approval of Bitcoin ETFs: The SEC has approved Bitcoin ETFs, with total trading volume surpassing $1B minutes after market open. Grayscale leads with the highest fees at 1.5% while also having the highest AUM $29B $GBTC.
- Ripple’s Planned Share Buyback: Ripple is set to buyback $285M in shares, indicating a positive outlook for the company’s future profitability.
- BitGo’s Approval to Operate in Singapore: Crypto custodian BitGo has obtained in-principle approval to operate in Singapore, expanding its global footprint.
DeFi Governance Proposals
- Arbitrum DAO’s Incentives Program: Arbitrum DAO is voting to establish a long-term incentives program to distribute $ARB for protocols. The vote is set to pass as 50% of the votes are in favour of funding the program with 21M $ARB.
- Osmosis DAO’s Proposal to Burn $OSMO: Osmosis DAO is voting to burn $OSMO, reducing 1.86M $OSMO worth $3.6M from circulating supply annually. The vote is set to pass with 71% of the votes in favour of the proposal.
DeFi Exploits and Refunds
- Lenx’s Loss and Repayment Plan: Lenx, a $BTC liquidity and stablecoin protocol, lost 230 $ETH worth $600k in a sandwich attack while deploying LP on Uni V3, and is set to repay loses with 25% revenue earned from their treasury assets.
- Gamma Strategies’ Refund Plan: Gamma Strategies, a liquidity management protocol, expects to fully refund $6.2M in exploited funds to users within 8 months.
Actionable Insights
- Monitor DeFi Protocol Changes: Keep an eye on the changes in protocols like Eigenlayer and Synthetix, as these could impact the value and utility of their respective tokens.
- Assess Impact of Bitcoin ETFs: Evaluate the impact of the SEC’s approval of Bitcoin ETFs on the broader crypto market and individual investment strategies.
- Track Governance Proposals: Follow the progress of governance proposals in DeFi platforms like Arbitrum DAO and Osmosis DAO, as these could influence the platforms’ future direction and token value.
- Consider Risks of DeFi Exploits: Be aware of the risks associated with DeFi exploits, as seen in Lenx and Gamma Strategies, and consider the platforms’ plans for reimbursement when investing.
