Research Summary
The report provides an in-depth analysis of various DeFi topics, including the performance of Synthetix Perps, MakerDAO’s balance sheet transformation, Curve Finance’s revenue growth, and the performance of Perennial V2, Kwenta, Aave’s GHO, and Redacted’s rlBTRFLY token. It also highlights the dominance of USDT in the Ethereum network and its growth on the Tron network.
Key Takeaways
Synthetix Perps’ Performance
- Impressive Milestones: Synthetix Perps has reached over $200 million in open interest, with nearly $120 million attributed to non-ETH/BTC markets. It has also surpassed $38 billion in trading volume, with $10 billion traded in the last three months, averaging a daily volume of $110 million.
- Profitability: Synthetix Perps has generated over $7.5 million in fees in the past 90 days, averaging $83,000 in daily fees, demonstrating its profitability for liquidity providers.
MakerDAO’s Balance Sheet Transformation
- Shift in Assets: MakerDAO has shifted from stablecoin exposure to Real-World Assets (RWA), now holding up to $2.89 billion, primarily in off-chain T-Bills. The return of the bull market has increased the demand for crypto-backed loans, leading to a decrease in stablecoin holdings and a $270 million sale of T-Bills in November.
- Revenue Generation: MakerDAO’s annualized revenues have exceeded $200 million, with T-bills accounting for 55% and Maker loans for 37%.
Curve Finance’s Revenue Growth
- Revenue Increase: Curve Finance’s weekly revenue has increased by approximately 350% to 460% since August, with crvUSD borrowing fees now constituting 50% of Curve.fi’s revenue.
- Significant Revenue Generator: crvUSD, a stablecoin by Curve DAO, has become a significant revenue generator since its inception in May, accounting for 70% of Curve DAO’s weekly revenue and 53% of total revenue when including LP profits.
Performance of Perennial V2 and Kwenta
- Perennial V2’s Performance: Perennial V2, an on-chain derivatives platform, showcases $19 million in liquidity and over $200 million in volume. It has averaged $6.2 million in daily volume and reached a 24-hour all-time high of $23.3 million in early December.
- Kwenta’s Dominance: Kwenta, a decentralized derivatives trading platform on Optimism, commands 90% of Synthetix V2’s volume and 92% of fees, generating $300k/day in revenue. Its volume has surpassed dYdX’s since September, increasing its share from 10% to 15%.
Performance of Aave’s GHO and Redacted’s rlBTRFLY Token
- Aave’s GHO: Despite challenges with its peg, GHO’s supply continued to grow, reaching its cap in November. However, only 1.4k wallets have been involved in swapping GHO, pointing to a relatively small and active trading base.
- Redacted’s rlBTRFLY Token: Redacted’s rlBTRFLY token has paid out nearly $16 million in cumulative rewards since a tokenomics revamp, with 73% of BTRFLY locked and an approximate APR of 30%. A significant upcoming unlock event for Redacted is scheduled for December 27, with 27k BTRFLY set to be released.
Actionable Insights
- Monitor Synthetix Perps: Given its impressive performance, it would be beneficial to keep a close eye on Synthetix Perps for potential opportunities.
- Understand MakerDAO’s Shift: Understanding MakerDAO’s shift from stablecoin exposure to Real-World Assets could provide insights into the evolving DeFi landscape.
- Assess Curve Finance’s Growth: Curve Finance’s significant revenue growth, particularly from crvUSD, could offer valuable insights into the potential of DeFi protocols.
- Explore Perennial V2 and Kwenta: The performance of Perennial V2 and Kwenta suggests that these platforms could offer interesting opportunities in the DeFi space.
- Consider Aave’s GHO and Redacted’s rlBTRFLY Token: Despite challenges, Aave’s GHO and Redacted’s rlBTRFLY token have shown significant growth, indicating potential opportunities for those interested in DeFi.
