• DeFi Rate
  • Posts
  • This Week In DeFi – January 12

This Week In DeFi – January 12

Author

Alex Miguel
January 12, 2024

Happy Friday, DeFi readers!

This week…

  • PayPal’s PYUSD picks up momentum

  • Polymarket volume soars on ETF decision

  • USDC issuer Circle files for IPO

  • Bitcoin L2 Bitfinity valued at $130M after token rounds

PayPal’s PYUSD picks up momentum

PayPal’s stablecoin $PYUSD appears to be finally getting some momentum, as the token grows more than 70% over the last month. 

PYUSD has become part of the third-largest liquidity pool on Curve, as the FRAXPYUSD reached $135 million in total value locked (TVL) since its creation on December 27. 

Additionally, Aave appears to be about to pass a vote to onboard PYUSD onto its v3 protocol on Ethereum, with 99.99% in favor of the move.

Together With Animus Technologies

Your chance to outperform bitcoin

What if you had a chance to outperform the best-performing major asset class in the last decade?

Since launching in 2020, Animus Technologies has returned 260.85% vs bitcoin 80.83% on an outright & risk-adjusted basis using proprietary AI and sentiment analysis. They also recently won Bitcoin Magazine’s ‘Bitcoin Alpha Competition’, receiving $1 million in seed capital.

The team is looking at taking on a limited number of new clients. Book a call today to see if they are right for you.

Polymarket volume soars on ETF decision

Decentralized prediction market, Polymarket, saw users place over $12 million in bets on whether the SEC would approve spot Bitcoin ETFs before January 15. 

The bets concluded on January 10 when the SEC approved the trading and listing of 11 spot Bitcoin ETFs.

Despite the approval, some users who bet against it have contested the outcome, citing terminology discrepancies in the SEC's official statement.

Polymarket has also seen increased activity in predictions for a spot Ether ETF approval by May 31.

Together With Ryze

Stop Waiting For The Next Bull Market

What if you were able to take advantage of short term price movements while you wait for the next bull market?

That’s exactly what Ryze offers, through the ultimate binary options trading experience. Binary options offer investors a way to trade against the market with only two possible outcomes: receive a fixed amount or nothing based on if you are right or wrong.

Ryze is simplifying non-custodial crypto binary options through a fast-paced and exhilarating solution. Stop waiting for the bull market and score a bonus trade when you open your first position!

USDC issuer Circle files for IPO

USDC stablecoin issuer Circle has confidentially filed for an initial public offering (IPO), submitting a draft registration statement S-1 form to the US SEC. 

Details on its share quantity and pricing are yet to be determined, pending SEC review and subject to market conditions.

Circle had previously explored IPO possibilities in 2022 with a $9 billion valuation. Its USDC stablecoin has a market cap of over $25 billion, standing as the second-largest stablecoin in the crypto ecosystem.

Bitcoin L2 Bitfinity valued at $130M after token rounds

Bitcoin layer-2 network Bitfinity has raised $7 million in funding via token rounds, reaching a total valuation of $130 million.

Investors in the funding rounds included Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital, and Draft Ventures. 

Bitfinity is EVM-compatible and aims to launch its mainnet in late January or early February, enabling Ethereum developers to build Bitcoin-enabled decentralized applications.

Will the Bitcoin ETF lead to mass DeFi adoption?

This week’s SEC approval of not just one, but eleven different Bitcoin ETFs marks a monumental achievement for crypto as a whole – signalling a significant step towards greater legitimacy for cryptocurrencies, and dispelling any notion that they’re solely associated with criminal activity.

One crucial aspect of the ETF approvals is its role in market education and awareness.

In a sense, the move is a big fat stamp of approval from major financial players on the legitimacy of the crypto industry, opening the floodgates for previously-hesitant groups and individuals to participate in the ecosystem.

Chainlink founder Sergey Nazarov agrees, recently saying: “Considering the size and user base of the entities creating these ETFs, their impact on our industry could be substantial.”

A whole host of developmental talent has been sidelined from crypto for a long time – whether it was simply blocked via stigma, or just from a lack of general awareness that the industry exists.

In addition, the approval of Bitcoin ETFs will very likely foster the growth of DeFi. As more builders and investors recognize the potential to develop applications on the Bitcoin blockchain, it could propel DApps to the next level.

With a DeFi ecosystem rapidly blossoming on the Bitcoin chain through Ordinals inscriptions, BRC20 tokens, Stacks and much more, this may shortcut the route from Bitcoin to DeFi and development on other chains. 

Even better, hype has been building for a potential Ethereum ETF as soon as May. A little too hopeful? Perhaps. But it may be closer than we think.

Interest Rates

Highest Yields: Nexo Lend at 10% APY, Aave at 3.99%

MakerDAO Updates

DAI Savings Rate: 5%

ETH Stability Fee: 5.00%

WBTC Stability Fee: 5.54%

Highest Yields: Compound at 10.3% APY, Nexo Lend at 10%

Top Stories

Gif by CrypTalks on Giphy

gas station car GIF by Shell
Winter Solstice Ocean GIF

Stat Box

Total Value Locked: $57.78B (up 7.4% since last week)

DeFi Market Cap: $81.48B (up 7.4%)

DEX Weekly Volume: $24.87B (up 10%)

DAI Supply: 5.30B (up 0.1%)

Bonus Reads