Bitcoin is resilient around $13k, Ethereum hit $420, and DeFi TVL is at an ATH at $12 billion.
As DeFi continues to grow, decentralized exchanges will remain pivotal.
Here’s a thread on the outlook of the AMM market (Uniswap, Balancer, Sushiswap, LinkSwap, DODO).
Before we get into it, a brief explainer of automated market makers.
AMMs are a type of decentralized exchange where users pool liquidity, then trade with the coins in the pool. AMMs price liquidity with a formula (often x * y = k), algorithmically matching purchases and sales.
AMMs are starting to overtake centralized exchanges.
Uniswap alone did more volume than Coinbase in September. AMM liquidity pools can sometimes be deeper than centralized exchanges, sans trading fees (see image #1).
AMM also enable-chain arbitrage, a massive market.
There's been a bunch of buzz about @barn_bridge over recent days. The project's stablecoin seed pool has $180m just 24 hours after its launch. This makes it one of the biggest Ethereum yield farms ever.
But what exactly is BarnBridge?
An ELI5 Thread - 👇
DeFi is currently disjointed and risky compared to TradFi.
Yields differ wildly (see below), there are no fixed yield products, there is no yield curve, crypto is high vol, etc.
Those are issues that "degens" can disregard. But big money, maybe not so much.
There's no doubt that capital is entering DeFi at a rapid clip. DeFi Pulse is reporting that TVL has reached $11 billion — a 1,000% gain in just over six months.
But the aforementioned inefficiencies are preventing the next wave of capital.
Whoever is farming @barn_bridge / (starting in 24 hrs), I made a spreadsheet with the annualized yields of the stablecoin pool. USDC, DAI, and sUSD accepted.
Not an endorsement - seems to be one of the better, relatively safe stablecoin yield farms, though.
Here's a matrix for the yields on the / Uniswap LP pool, starting in eight days.
Yields are much higher as I assume TVL will be much lower due to potential impermanent loss risks.
Pool #1 (stablecoins) will be open for 25 weeks, with 32,000 BOND released a week.
Pool #2 (BOND/USDC LP) will be open for 100 weeks, with 20,000 BOND released a week.
In total, 2,800,000 tokens—28% of the total supply—will be distributed through these pools.