Competitive positioning in LSD market and

Ahoy, and blessed 2023! In lawsuit you missed it, cheque retired DoD’s Top 5 Memes of 2022 recap post. Two speedy announcements:

• DoD Scheduling - In 2023, Dose of DeFi volition beryllium published doubly a period aka each different week. One a “short version” of charts, tweets & links and 1 “long version” that’s a heavy dive into stablecoins, MEV, DeFi infrastructure oregon immoderate our hearts fancy.

• DXdao is looking for a caller Treasury Manager! DXdao manages a $30m treasury on-chain and has trailblazed the usage of decentralized and sovereign treasury tools. For a limb up, accidental “Dose of DeFi reader” successful your application.

With marketplace stagnation successful DEXs and lending protocols, DeFi’s astir competitory and absorbing conflict is for ETH’s LSD oregon liquid staking derivatives. Staking ETH earns you a nice 4.3% yield but that means you person to fastener up your ETH. ETH LSDs are liquid tokens that correspond a assertion connected staked ETH. The astir fashionable 1 is Lido’s stETH, which has a 70% marketplace share, but Coinbase’s cbETH has chipped into Lido’s pb successful caller months. Lido has the archetypal mover advantage, which is wherefore it is truthful ingrained into DeFi protocols arsenic Dragonfly’s Tom Schmidt points retired successful the tweet above.

Given the magnitude of ETH stored connected Coinbase’s exchange, it’s an casual marketplace for it to participate (better than NFTs), truthful it shouldn’t beryllium a astonishment that they were capable to drawback truthful 15% marketplace stock truthful quickly. We’ve long wondered wherefore they haven’t launched a tokenized BTC to vie with WBTC. Coinbase should instrumentality enactment of Tom’s critique due to the fact that this is an incredibly important marketplace for them. In the future, Coinbase volition marque small from speech fees. Instead, it volition beryllium a trusted gateway to DeFi for the wide market. Coinbase already owns 50% of USDC and has a easy-to-use wallet and browser extension. cbETH fits good successful this merchandise suite, but Coinbase volition request to bash much to reorient their concern astir the inevitable emergence of DeFi and on-chain activity.

DeFi had conscionable implicit $500m successful TvL astatine the opening of 2020, and portion a batch has happened successful the intervening 3 years, but not overmuch alteration successful the constitution of the assets connected Ethereum. Ethereum continues to beryllium astir fractional of each worth the web is securing. Stablecoins person consistently grown implicit this clip period, approaching all-time-high’s implicit the past fewer months arsenic crypto prices declined and investors fled to stablecoins. DeFi tokens are a sliver of wide worth conscionable arsenic they were astatine the opening of 2020. CoinMetrics goes into further item connected this successful their latest post, The State of DeFi Tokens successful 2023.

• ConsenSys opens backstage beta for its zkEVM Link

• Ondo launches tokenized treasuries and firm bonds Link

• Bloomberg: Mike Novagratz wants to punch SBF & Barry successful the look Link

• Guide to Web3 information tools Link

• Uniswap metrics compared to Robinhood’s Link

• Bitcoin blockchain present disposable to query connected Dune Link

• MEV: The adjacent 5 years [James Prestwich/Nomad]

• The Web3 maturation stack [Shayon Sengupta & John Robert Reed/Multicoin]

• Onchain markets successful 2022 [Parsec Finance]

• Generating unafraid randomness connected Ethereum utilizing SNARKs [Paradigm]

• MEV interaction connected Curve [EigenPhi]

• Follow-up analyses of LP Profitability successful Uniswap V3 [0xfbifemboy/CrocSwap]

• What Uniswap v4 mightiness look similar ]Michael Cohen/xToken Terminal]

• Why the steepest borrowing complaint whitethorn beryllium the champion complaint [JP Koning/Moneyness]

That’s it! Feedback appreciated. Just deed reply. Written successful Nashville, wherever it’s cold, but getting excited for Mexico adjacent week.

Dose of DeFi is written by Chris Powers, with assistance from Denis Suslov and Financial Content Lab. Caney Fork, which owns Dose of DeFi, is simply a contributor to DXdao and benefits financially from it and its products’ success. All contented is for informational purposes and is not intended arsenic concern advice.