Welcome to the latest edition of Cointelegraph’s Decentralized Finance (DeFi) newsletter.
In a week where Rari Capital achieved the $1 billion TVL milestone, read on to find out why OlympusDAO is offering four-figure sums on its most popular protocol.
What you are about to read is a shorter, more concise version of the newspaper. For a comprehensive summary of DeFi’s development over the past week, subscribe below.
Celsius Network raises $400M to expand institutional service
Cryptocurrency lending platform Celsius Network this week announced a $400 million equity fundraise led by Canadian pension fund Casas de Dépet et Placement du Québec (CDPQ) and equity firm Westcap, raising the company’s valuation to more than $3 billion.
The firm has expressed intentions to use the funds in a two-fold strategy: to increase its institutional product and service offering, as well as doubling its workforce to approximately 1,000 employees worldwide.
Alex Mashinsky, CEO of Celsius Network, told Cointelegraph that the platform is having a financial impact on the lending sector:
“With over $25 billion in assets and over $850 million in yield to over 1.1 million users, Celsius has delivered a 10-fold higher yield to the crypto community than any other lender.”
This funding news coincides with increased political scrutiny for crypto lending platforms in the United States. In September of this year, Celsius faced legislative resistance from the Texas State Securities Board and the New Jersey Bureau of Securities, which threatened to cease the activity due to the alleged sale of unregistered securities.
Despite this, Celsius has consistently maintained its innocence of wrongdoing and stands ready to communicate and cooperate with regulatory agencies.
Rari Capital has acquired TVL. Earned $1B in
DeFi protocol Rari Capital crossed $1 billion in total value locked (TVL) this week to an all-time high of $1.225 billion, according to analytical data from ranking platform DeFi Pulse.
The eight-figure total marks a significant increase from $500 million two weeks ago and just $100 million three months ago. Launched in July 2020, Rari provides participants in the DeFi space with an automated yield optimization strategy to get the highest possible returns from their investments.
Several of its liquidity pools have attracted attention for their attractive returns, such as the USDC deposit, which offers an annual percentage yield (APY) of 21.67%, and the Dai pool, which offers an APY of 26.43%.
Despite these higher-than-average returns compared to the industry standard, it has been OlympusDAO within the locker of the tetranode of the Fuse protocol that has really stolen the spotlight over the past few months.
OlympusDAO is an algorithmic-focused rebase model whereby token balances fluctuate over time based on changes in token price and supply in circulation. At the time of writing, the OlympusDAO SOHM token is offering a seismic 7,594% APY.
North America’s Growing DeFi Volumes
According to data released this week by analytics platform Chainalysis, monthly cryptocurrency trading volume in the North American region increased by 1,000% in the one-year period from July 2020 to June 2021.
The annual Geography of Cryptocurrency report showed that monthly volume peaked at $164 billion during May 2021 and declined to $100 billion in June. Furthermore, DeFi transactions account for 37% of the total volume of the sector at $276 billion.
David Gogel, Growth Lead at decentralized derivatives exchange dYdX, commented on the findings that the largest volumes recorded were driven by retail consumers:
“Right now, DeFi is targeted at crypto insiders. These are people who have been in the industry for a while and have enough money to experiment with new assets.”
Analytical data shows that the total value locked in DeFi has increased by 8.11% to $146.89 billion throughout the week.
Data from Cointelegraph Markets Pro and TradingView show that DeFi’s top 100 tokens outperformed by market capitalization Diverse across last seven days.
Perpetual Protocol (PERP) introduced a . topped the podium with honored 29.7%. RainBTC (RainBTC) ranked second 6.03%, while Wrapped Bitcoin (wBTC) ranked third with 6.00%.
Last week’s analysis and deep dive:
Thanks for reading our summary of the most impressive DeFi developments this week. Join us again next Friday for more stories, insights and education in this dynamically moving space.