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This Week In DeFi – January 27

This Week In DeFi – January 27

This week, Uniswap looks to deploy on BNB Chain, Aave soon to launch v3 and GHO stablecoin on Ethereum, dYdX delays its token unlock and Moody's develops stablecoin ratings.

January 27, 2023

To the DeFi community,

This week, a "temperature check" vote has been conducted in the Uniswap community, to gauge support for deployment of the decentralized exchange's V3 protocol to BNB Chain. 80% of UNI token holders voted in favor of the move.

Reasons for a possible move to BNB Chain include its large and growing user base, as well as high transaction speeds and low fees – making it a suitable platform for Uniswap's DEX services.

It is estimated that the move could attract at least $1 billion in additional liquidity and 1-2 million new users. 0xPlasma Labs, who floated the idea, is expected to submit a final proposal outlining the move in the coming weeks.

Uniswap Poll Shows 80% Support Decentralized Crypto Exchange's Move to #BNB Chain
— CZ 🔶 Binance (@cz_binance)
1:33 PM • Jan 23, 2023

Aave is expected to launch the latest version of its software on Ethereum on Friday, with AAVE token holders expected to approve the move in a vote ending 5pm Wednesday (Eastern Time). In addition to the v3 release, Aave's GHO stablecoin is expected to be released in the coming weeks.

Aave v3, has already existed on other blockchains for almost a year, with more than $5.5 billion in total value locked (TVL). The protocol includes a feature called "efficiency mode" that will offer a better loan-to-value ratio when borrowing assets correlated with their collateral, as well as a "portal" feature that will allow users to move liquidity across Aave's several blockchains.

In an interview with The Defiant, @AaveAave founder @StaniKulechov said Aave's $GHO stablecoin would be released “in weeks,” 👀 👻
While $GHO is widely anticipated, it’s just one of several benefits promised in the protocol’s latest software release.
— The Defiant (@DefiantNews)
8:42 PM • Jan 25, 2023

The dYdX Foundation has announced a delay in the release of 130 million DYDX tokens, worth around $300 million, which were originally scheduled for release on February 3rd. The tokens will now be released on December 1st instead.

The delay follows significant public scrutiny of the token's release schedule, which would have seen the token's supply increase by 88% in one week. The release schedule will now begin with 30% of the tokens entering circulation on December 1st, with the remaining tokens being released in tranches until June 2026.

So after hearing the news about dYdX changing its vesting date, I and @luigyGT were curious about exactly how they handled vesting in the first place.
What we found was not pretty 🧵
— Spreek (@spreekaway)
6:05 PM • Jan 26, 2023

Global ratings agency, Moody's, is developing a system to score up to 20 stablecoins based on the quality of attestations on the reserves backing them.

Moody’s already provides credit ratings for publicly traded crypto companies such as Coinbase Global Inc. and issues broader analysis reports on the sector. The project is still in early stages and will not represent an official credit rating.

scoop! credit ratings agency Moody’s is working on a scoring system for stablecoins as the asset class rises in popularity among crypto traders and tradfi firms alike.
still in early stages, it could include up to 20 tokens
on Terminal now 🖥️ web 🔜
— Emily Nicolle (@emilyjnicolle)
4:26 PM • Jan 26, 2023

Attention is well and truly back on development and progress over the last week, as several projects announce releases and/or voting on new and exciting developments.

Uniswap, the most popular decentralized exchange is considering deploying on BNB Chain to capture a whole new market segment, while Aave’s GHO stablecoin appears to be just around the corner, ready to follow its v3 protocol deployment on Ethereum.

Outside of Ethereum, we have Injective Protocol launching a massive $150 million incentive fund to improve adoption on Cosmos, which is still a new and budding network. China’s equivalent of “Instagram” has partnered with the lesser-known Conflux blockchain for NFT integrations, adding to centralized expansions into Web3.

One of the most interesting developments has been the announcement of Moody’s venturing into rating stablecoins, based upon the integrity of their reserve attestations – yet another nod of acknowledgement from the traditional finance space toward crypto and DeFi.

Most fun to watch over the next few weeks may be decentralized stablecoins, as we watch the eventual release of GHO and perhaps some pressure on Curve to launch crvUSD.