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Welcome to the latest issue of Cointelegraph’s decentralized finance newsletter.
A new year is upon us, and expectations for DeFi innovation, utility, and mainstream adoption are greater than ever. Read on for the first stories of 2022.
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Terra Research proposes new utility for TerraUSD and LUNA
Decentralized algorithmic stablecoin issuer Terra this week released an ambitious proposal through its research team Extends its TerraUSD cross-chain deployment (UST) Stablecoins for five projects: Ethereum, Polygon, and Solana.
The lengthy governance post titled “UST Goes Interchain: Degen Strats Part 3” details the methodology and procedures for Terra’s native token, Luna, and can deploy $139 million in TerraUSD (UST) to “bring a great UST use case to Ethereum DeFi.”
The proposed strategy has garnered 3,500 views and 6 responses from community members calling themselves Lunatics, and Terra will deposit between $250,000 and $50 million in UST to increase the stability of each new partner project. A community-led governance vote is expected to determine confirmation in the near future.
DeFi liquidity provider and market maker Tokemak will receive $50 million in UST for up to six months, and lending platform Rari Fuse will receive $20 million in UST over the same period. Yield aggregator Convex Finance will receive $18 million, while OlympusDAO will receive $1 million in UST bonds and $425,000 in LUNA rewards for three months.
The distribution of UST across numerous projects will support Terra in accelerating quantitative goals, such as its market cap in the stablecoin market.At the time of writing, Tether’s USDT Circle leads with roughly $78 billion USD/USD In second place with $43 billion, followed by Binance’s BUSD with $14 billion, and lastly UST with a market cap of $10 billion.
“US$1 million UST bound forever with Olympus and 3,3 OHM”
– Olympus DAO (@OlympusDAO) January 6, 2022
In a recent tweet, Terra founder Do Kwon revealed his ambitions to bring the network-native asset UST to the forefront of the stablecoin market, ahead of stalwarts such as USD Coin, Tether, and Binance USD (BUSD).
related: Terra (LUNA) Hits Record $20B TVL, Overtaking Binance Smart Chain
New service Aave Arc aims to boost institutional adoption of DeFi
Decentralized lending platform Aave (AAVE) Announce Launch its permissionless lending and liquidity pool, Aave Arc, this week’s goal is to facilitate more institutional participation in fully regulated and compliant decentralized financial services.
Thirty organizations gained primary whitelist entry to the service, including digital asset custodian Fireblocks, as well as Anubi Digital, Canvas Digital, SEBA Bank, GSR, and crypto yield aggregator Celsius.
After successfully completing prerequisites such as know-your-customer and anti-money laundering protocols, the firms will gain exclusive access to “safely participate in DeFi as liquidity providers and borrowers,” a market that has surged 10 times in total value. 12 months – from $30 billion to $300 billion.
Aave CEO and founder Stani Kulechov shared the potential to expand the DeFi market by implementing this new service, stating:
“DeFi represents a powerful wave of financial innovation, including transparency, liquidity and programmability – something traditional financial institutions have been unable to access for too long. The launch of Aave Arc brings these institutions into DeFi time in a compliant manner for the first time. .”
related: Institutional Crypto Investors Can’t Escape Inflation Without Staking
WonderFi acquires Bitbuy parent company for $162 million
DeFi platform WonderFi Technologies agrees to acquire First Ledger Corp, the parent company of Bitbuy, Canada’s first regulated cryptocurrency exchange, spent $162 million this week to expand the reach of cryptocurrencies and DeFi across the country.
Backed by prominent billionaire investor Kevin O’Leary, WonderFi details its approach to funding the acquisition by issuing 70 million new shares, paying $15.7 million in up-front cash And $23 million in deferred cash paid through maturing vendor recall notes. 12 months. Among other things, the team said it would “retain nearly all existing Bitbuy employees and enter into employment agreements with key members of the management team.”
Founded in 2016, Bitbuy was licensed by the Ontario Securities Commission last November to become a fully regulated cryptocurrency exchange in Canada. The platform has over 375,000 users and over $3.4 billion in transaction volume. In May 2020, the Toronto-based exchange launched a global First 1:1 Bitcoin Deposit Insurance Scheme for its customers.
Commenting on the importance of the licensing market in the digital asset ecosystem, WonderFi CEO Ben Samaroo said:
“The integration of Bitbuy’s suite of products will accelerate and expand the reach and scope that WonderFi can offer the market and will drive the company’s long-term growth and value.”
related: Kevin O’Leary Says His Crypto Assets Could Reach 20% of His Portfolio
Token performance
Analysis data shows that the total value locked in DeFi fell slightly by 6.5% in a week to $131.8 billion, largely in line with the overall market downturn.
data from Cointelegraph Market Pro Top 100 DeFi Tokens by Market Cap Mainly Bullish, TradingView Shows Last 7 days.
Secret (SCRT) led the week with 26.6%. chain link (association) rose 24.2%, while Fantom (FTM) almost fully replicated last week’s gains, rising a further 23.4%. yearning for finance (YFI) and Dai — yes, the stablecoin — were fourth and fifth this week with 8.2% and 0.03% shares, respectively.
Interviews, features and other cool stuff
Thank you for reading our roundup of the week’s most influential DeFi developments. Join us again next Friday for more stories, insights and education in this dynamic space.
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