ON–025: DeFi (Part 2)
Coverage on MakerDAO, Synthetix, Set Protocol, and Balancer.
Jun 12, 2020
- With increased liquidity, Balancer has been able to attract more volume. Cumulative volume has reached $14M since launch (in 70 days), with the most active pool (“MKR Bull”) accounting for 10% of that ($1.4M) just in the last 24h. This trend should intensify as liquidity grows and as more user-facing dapps integrate with Balancer to tap into its liquidity, finally bringing strong retail volume. And with the recent surge in volume, LP revenue (from trading fees) is starting to look really promising.
Source: Matteo Leibowitz’s amazing Balancer Dune Analytics Dashboard
- Experimentation around new pools has also been on the rise. There are now 236 pools, up from ~70 a couple of weeks ago. The flexibility of the protocol allied with powerful incentives seems to be waking up dormant liquidity: portfolios that were just sitting in a hold strategy are now beginning to see the opportunities of joining a Balancer pool. One good example is the currently most liquid pool: a 90/10 RPL/ETH whose tokens were just being held prior to joining a Balancer pool. The uneven weights configuration is a great way to kickstart liquid venues especially when there’s limited ETH or fiat at the LPs’ disposal.
The gut reaction I saw on twitter when $15mil got added in a 90/10 RPL pool was “they’re just farming BAL, that doesn’t add any value to Balancer”. Well now Balancer is the most liquid venue for RPL and did $200,000 24h trading volume on that pair.
— Mike McDonald (@mikeraymcdonald) 10:24 PM ∙ Jun 7, 2020