Stablecoin Market Share, TVL Growth, and a CRV Farming Saga

AUG 12, 2021 • 4 Min Read

Ashwath Balakrishnan + 1 other

Disclosure: Delphi Ventures and members of our team have invested in LUNA, ETH, SOL, DYDX, CVX, CRV, and YFI. These statements are intended to disclose any conflict of interest and should not be misconstrued as a recommendation to purchase any token. This content is for informational purposes only and you should not make decisions based solely on it. This is not investment advice.

Metus vulputate eu scelerisque felis. Nulla facilisi cras fermentum odio eu. Scelerisque fermentum dui

faucibus in ornare quam viverra orci sagittis. A iaculis at erat pellentesque adipiscing commodo elit. In

fermentum et sollicitudin ac orci. Ultrices sagittis orci a scelerisque purus. Faucibus ornare

suspendisse sed nisi lacus sed viverra tellus in. Mauris cursus mattis molestie a iaculis at erat

pellentesque adipiscing. Volutpat diam ut venenatis tellus in metus vulputate. Eu consequat ac felis

donec et odio pellentesque. Eu mi bibendum neque egestas congue quisque egestas diam. Quam

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Iaculis nunc sed augue lacus viverra vitae congue eu consequat. Gravida neque convallis a cras.

Nunc scelerisque viverra mauris in aliquam sem. Non odio euismod lacinia at quis risus sed vulputate

odio. Purus faucibus ornare suspendisse sed. Turpis egestas maecenas pharetra convallis posuere

morbi. Nec feugiat nisl pretium fusce id velit ut. Nunc congue nisi vitae suscipit tellus mauris a diam.

Posuere sollicitudin aliquam ultrices sagittis orci. Urna nec tincidunt praesent semper. Turpis nunc

eget lorem dolor sed viverra.

suspendisse sed nisi lacus sed viverra tellus in. Mauris cursus mattis molestie a iaculis at erat

pellentesque adipiscing. Volutpat diam ut venenatis tellus in metus vulputate. Eu consequat ac felis

donec et odio pellentesque. Eu mi bibendum neque egestas congue quisque egestas diam. Quam

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Iaculis nunc sed augue lacus viverra vitae congue eu consequat. Gravida neque convallis a cras.

Nunc scelerisque viverra mauris in aliquam sem. Non odio euismod lacinia at quis risus sed vulputate

odio. Purus faucibus ornare suspendisse sed. Turpis egestas maecenas pharetra convallis posuere

morbi. Nec feugiat nisl pretium fusce id velit ut. Nunc congue nisi vitae suscipit tellus mauris a diam.

Posuere sollicitudin aliquam ultrices sagittis orci. Urna nec tincidunt praesent semper. Turpis nunc

eget lorem dolor sed viverra.

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Market Update

BTC has gotten beaten up across market sessions today, currently down 3.2% for the day. ETH is down by 4.2%, and the chart looks primed for a short-term pullback. Overall, the market looks much weaker than it has over the past week, but this isn’t a sign of a structural trend reversal.

USDT Slips, USDC and BUSD Catch Up

  • Over the last year, USDC has become a critical lego for the DeFi stack across different blockchains. On Ethereum, which remains the dominant smart contract protocol, USDC has been not-so-subtly eating into USDT’s market share. Tether is still the largest stablecoin by a significant margin, especially since USDT supply on other protocols (apart from Ethereum) have grown at a faster pace.
  • BUSD’s market share also expanded over the same time horizon, likely fueled by Binance Smart Chain’s growth earlier this year. DAI remained fairly stable, not losing or gaining much market share.

What Bear Market?

  • Total value locked in Terra’s DeFi stack breached it’s ATH from Apr. 2021. This is, for the most part, driven by price appreciation of LUNA and other Terra ecosystem tokens. But there are a slew of protocols set to launch on Terra in the coming months, some of which incorporate completely new dynamics to existing primitives.
  • Ethereum and Solana’s TVL haven’t grown at the same rate as Terra’s in recent months, but the growth is nevertheless impressive as they approach their previous ATHs. For both of these networks, TVL growth is mostly driven by price appreciation of locked tokens rather than a burst of inflows.

The Power of Token Incentives

  • dYdX announced the launch of its native governance token earlier this week. The project will airdrop tokens to past users, but has also set up a liquidity mining program. As you would expect, this kicked off a rush of capital into dYdX to farm the new token. dYdX’s TVL is up nearly 4x in the last 12 days.

Gaming CRV Farming

  • While Twitter goes crazy over penguin NFTs, there have been a few things in DeFi that flew under the radar. One key DeFi project we’re watching is Convex Finance. As a fledgling (3-month-old) protocol, Convex Finance has achieved a new milestone by officially flipping Yearn in terms of CRV earned per day. The imminent 15% reduction in CRV emissions this month could also serve as a catalyst as the battle for CRV emissions intensifies.
  • BadgerDAO and Yearn have surprisingly deployed significant portions of their TVL into Convex vaults, which paves the way for Convex to dominate Curve-based strategies (Convex currently holds $5.07 billion in TVL). On top of just trading at a TVL/FDV ratio of 0.1, each CVX in circulation currently has a claim to approximately 4.3 locked up veCRV – which gives Convex considerable amounts of political leverage over Curve liquidity gauges. Perhaps Convex Finance could further benefit from Andre’s latest product tease?

Notable Tweets

Yield Guild’s treasury report for July 2021.

Dune Analytics raised $8 mn in a Series A funding round led by Union Square Ventures.

Introducing the Alpha Finance DAO!

Create a free account to continue reading

Go Pro at 40% off

Immediately access the entire catalog of research for Delphi, Office Hours & private Discord

Ashwath Balakrishnan + 1 other