Research Summary
This report covers a wide range of topics in the DeFi space, including updates on various protocols, governance proposals, upcoming launches, and news from the regulatory front.
Key Takeaways
Protocol Updates
- Arbitrum’s Incentive Program: Arbitrum has voted to distribute 50M $ARB to protocols for the Short-Term Incentive Program. The token distribution is set to occur on October 7th and November 4th.
- Yearn Finance’s $yETH Launch: Yearn Finance has launched $yETH, a basket of $ETH LSTs. The $yETH pool has $7.7M in TVL, and staking $yETH currently earns 18.7% APR.
- Banana Gun’s Revenue Flip: Banana Gun has flipped Unibot in revenue, generating 754 $ETH in the past week.
Governance Proposals
- Polygon’s Implementation: Polygon has begun the implementation of Polygon 2.0.
- Curve DAO’s Proposal: Curve DAO is proposing a stableswap implementation for $crvUSD allowing for pools like crvUSD-stUSDT and crvUSD-sDAI to be created.
- Aave DAO’s Discussion: Aave DAO is discussing using $1.6M in treasury assets to acquire $GHO for short term funding, with the goal of transitioning DAO expenses to being denominated in $GHO.
Upcoming Launches
- Frax Finance V3 Launch: Frax Finance V3 is expected to launch soon, allowing users access to US T-Bills yield on-chain through FraxBonds.
- Radiant Capital’s Expansion: Radiant Capital, an Arbitrum Money Market Protocol, is set to expand to Ethereum on October 3rd.
- Manifold Finance’s Launch: Manifold Finance, an infrastructure provider, is set to launch $mevETH, a liquid staking token, on September 22nd.
Actionable Insights
- Investigate the Potential of Arbitrum: With the upcoming distribution of 50M $ARB, there may be opportunities for protocols to benefit from the Short-Term Incentive Program.
- Consider the Impact of Yearn Finance’s $yETH Launch: The launch of $yETH could have significant implications for the $ETH market, particularly given the high APR for staking.
- Monitor the Progress of Polygon 2.0: The implementation of Polygon 2.0 could bring about significant changes in the DeFi space, making it a development to watch closely.
