1confirmation Newsletter - Issue #85
1confirmation Newsletter - Issue #85
Yield farming is the trend of the day in Ethereum, catalyzed by the recent Compound and Balancer token launches. Yield farming is is moving capital into and out of various protocols to earn yield (paid both from borrowers of protocols and new token issuances).
There's a few factors that have come together to make now an exciting time for yield farming on Ethereum:
There's been a proliferation of Ethereum-based lending (MakerDAO, Compound, Aave, etc) and trading protocols (Kyber, Uniswap, Balancer, etc) that have thousands of passionate users
Ethereum and the ERC20 token standard makes it easy for any of these protocols to create and issue tokens based on usage
Unlike traditional financial products, on Ethereum competition is high, anyone can use these products and switching costs are low so it's easy to move in and out of many different products
Our view is that some of the dynamics at play are out of whack (yields are unsustainably high and valuations are inflated in most cases) and short-term speculation is driving behavior, but the factors above will continue to drive adoption of open, global financial products on Ethereum over the long-term.
Required reading this week
What PoS and DeFi can learn from mortgage-backed securities — medium.com
Tarun Chitra and Alex Evans compare the financial derivatives hidden in PoS and DeFi to the mathematical equivalent of mortgage-backed securities.
Liquid Staking Report: Bridging Proof-of-Stake and Decentralized Finance — blog.chorus.one
Chorus One publishes a report on what happens when Proof-of-Stake and DeFi merge by examining implications and designs of tokenized staked assets.
Omen and the Next Generation of Prediction Markets — blog.gnosis.pm
After several years of development, Gnosis launches its long-awaited decentralized prediction market Omen.
Aquaponic Yield Farming — bankless.substack.com The Rise of Symbiotic DeFi Protocols
How does DeFi cross the chasm? — jessewalden.com
For a category that was unnamed and barely existed 2 years ago, growth in DeFi is incredibly impressive. Jesse Walden explores how DeFi can touch billions of end users beyond speculation use cases.
1confirmation portfolio reading this week
Augur v2 Launch & REP Migration — www.augur.net
Augur v2 will launch on the Ethereum mainnet on July 28th, 2020. Current REP holders will need to manually migrate to the new token address to participate in the Augur v2 reporting system.
Understanding staking with Nexus Mutual — medium.com
Since launch, Nexus Mutual has written $9.6M of cover, welcomed 899 members, and paid its first claims. Pooled staking will decrease the knowledge barrier and give better rewards to stakers.
Introducing Rally: Building New Ways for Content Creators and Fans to Thrive — medium.com
Rally forges an entirely new monetization path for creators by enabling them to create their own virtual economy and assets.
Cosmos Stargate Upgrade Overview — blog.cosmos.network
The Cosmos Stargate upgrade, coming later this year, will connect Cosmos-based chains together using Inter-blockchain Communication (IBC).