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This Week In DeFi – July 21

This Week In DeFi – July 21

This week, Uniswap announces its own DeFi aggregator, Synthetix dives into perpetuals contracts, Chainlink launches its interoperability protocol, and Aave finally launches its GHO stablecoin.

July 21, 2023

To the DeFi Community,

This week, Uniswap founder Hayden Adams has announced UniswapX, a new open-source aggregator protocol.

UniswapX looks to become an open network of “fillers” that compete to fill swaps with on-chain liquidity, including pools across all versions of Uniswap, or private inventory. The protocol will also feature gas-free execution, which would authorize fillers to pay gas fees on behalf of the swapper. This enables users to trade without the need for a chain’s native network token.

UniswapX has been launched as an opt-in beta feature on the official Uniswap front-end.

https://twitter.com/Uniswap/status/1680955621343129600

Synthetix has decided to dive into perpetual futures contracts, with plans for a new platform called Infinex. The protocol will run on the Layer-2 scaling network, Optimism, and is designed to run in tandem with Synthetix itself.

Infinex seeks to address some of the challenges associated with centralized exchanges, however is likely to compete directly with established decentralized perpetual exchanges such as dYdX.

The platform will be governed by the Synthetix token, and users will require only a username, password and email address to sign up.

https://twitter.com/DefiantNews/status/1679838219201028097

Chainlink has rolled out an early-access version of its cross-chain interoperability protocol (CCIP), which is designed to seamlessly link apps across both public and private blockchains.

The protocol is supposed to differ from traditional bridges with wrapping mechanisms, instead using smart contract-enabled mechanisms between audited token pools on different chains.

The Chainlink team says that CCIP will enable users to deposit collateral on one blockchain and borrow assets on another, as well as providing various other benefits.

https://twitter.com/chainlink/status/1682012600182226944

Aave has finally launched its GHO stablecoin on Ethereum mainnet, enabling users to mint the token against assets deposited in its v3 protocol.

GHO will be offered at a fixed interest rate of 1.5%, and AAVE stakers will receive a 30% discount. Borrowers will continue to earn yield on their assets while borrowing GHO, and the Aave DAO treasury will receive all fees generated by the stablecoin.

The launch comes after a near-unanimous passing of a governance proposal on July 14.

https://twitter.com/0xMughal/status/1681388943617716224

The big-guns in DeFi have been busy at work this week – and it shows. With several high-profile releases and launches, development in the sector is anything but dead.

Uniswap, Synthetix, Chainlink and Aave have all made significant announcements, despite the market remaining extremely quiet in terms of price action.

Centralized finance continues to lose market share as Coinbase is forced to sunset its crypto-backed loans feature, while customers in four states will no longer be able to stake additional assets on the Coinbase platform. On the other hand, Compound Finance has seen an uptick in activity – perhaps showing a migration to DeFi as interest rates and accessibility become more attractive to users.

A further tightening of stablecoin and crypto regulations is on the horizon, as the G20’s Financial Stability Board (FSB) makes new recommendations, and US politicians look to improve clarity and definitions around the crypto industry.

The Layer-2 trend also continues, as projects appear to be giving up on competing with Ethereum as a Layer-1 chain. This time, Celo bites the bullet, opting instead to facilitate a scaling network for Ethereum and transition to a Layer-2 using the OP Stack.