Latest Trends and Analysis in the DeFi Field

sUSD Continuous Decoupling Issue

Since the SIP-420 proposal was approved at the beginning of the year, sUSD has experienced a de-pegging phenomenon and recently fell below 0.9 USD. Although the "delegated pool" mechanism introduced by the proposal has improved the minting efficiency of SNX, it has also brought some issues:

• The market still has concerns about the endogenous collateral of SNX-sUSD.
• sUSD supply increases, Curve pool is severely imbalanced
• Users no longer actively manage their debt and cannot repair the peg through arbitrage.

Solving the de-pegging issue requires increasing sUSD demand or incentive measures. Although Synthetix's design is relatively advanced, there are still doubts in the market about algorithmic stablecoins. Future development depends on whether the project team can rebuild market confidence.

veCAKE Governance Controversy

Recently, the veCAKE model has been attacked by governance, causing the cakepie protocol to face liquidation. The controversy centers on Pancake's belief that cakepie guides CAKE emissions to low-efficiency pools, harming its interests.

However, this result does not violate the principles of the ve mechanism. Cakepie plays a role similar to Convex, obtaining returns by accumulating governance rights. A better solution might be to promote market competition or set incentive caps, among others.

The founder of Curve proposed a quantitative assessment method to compare the efficiency of CAKE locked in cakepie with an equivalent amount used for voting in "premium pools" and buyback burns. According to his experience, the veToken model can achieve up to three times the efficiency of direct token destruction in reducing token circulation.

BUIDL Continues to Grow

BUIDL( actual assets ) TVL increased by 24% over the past 7 days, approaching a breakthrough of 2.5 billion dollars. The latest growth of 500 million dollars may come from the Spark protocol under MakerDAO. RWA business continues to grow, but has not yet been well integrated into the Decentralized Finance ecosystem, showing a state of "disconnection with retail investors."

The United States Repeals the DeFi Broker Act

The United States has officially abolished the IRS DeFi crypto broker rules, which is a significant boon for the DeFi sector. The relaxation of regulatory attitudes may unleash more room for innovation.

Uniswap Launches Liquidity Mining

Unichain has launched liquidity mining with a $5 million UNI token reward across 12 pools. This is the first mining initiative by Uniswap in 5 years, aimed at guiding liquidity to Unichain.

Euler Expansion and TVL Growth

Euler has expanded to the Avalanche chain, with its TVL entering the top 10 of lending protocols. Within a month, the TVL grew by 50%, mainly due to incentives from Sonic, Avalanche, EUL, and others.

Cosmos IBC Eureka Launch

Eureka based on IBC v2 is officially launched, supporting cross-chain transactions between Cosmos and EVM. Each transaction consumes gas that will burn ATOM. Currently supports Ethereum mainnet and mainstream assets in Cosmos. Recently, the cross-chain inflow to Cosmos hub reached 1.1 billion USD, bringing new value drivers for ATOM.

Other Dynamics

• AaveDAO has officially started the buyback of tokens.
• The Pendle proposal will launch the PT token on Aave.
• Berachain updates POL reward distribution rules and introduces a new guardian committee.
• OlympusDAO adjusts strategy to cope with new regulations
• Yearn's yBGT has landed on Berachain

After experiencing high growth, Berachain has entered an adjustment period, and the official team has made modifications regarding the incentive distribution issue. Although there has been a recent outflow of TVL, it remains one of the major Decentralized Finance public chains. Its subsequent development is worth ongoing attention.