This Week In DeFi – May 20

To the DeFi community,

This week the Terra community is currently voting for or against a fork of the network, with a potential new chain that removes the UST stablecoin from the equation. Although the current governance voting is skewed highly in favor of the fork, a large proportion of the community appears to be highly against it instead looking for a large-scale burn of existing LUNA tokens on the original chain. A preliminary vote in the governance forum was highly against the fork, with more than 90% of votes being against it.

Mainstream trading app giant Robinhood has announced that it will be launching a non-custodial web3 wallet, to enable users to participate in DeFi and NFT markets. A blog post by Robinhood says the wallet will not charge network fees however how that will be achieved has not yet been disclosed.

Aave has launched its decentralized social networking platform on Polygon. Lens Protocol is designed to make it easy to build social media DApps, and is reportedly already equipped with 50 different compatible apps at launch.

The Uniswap Community is currently voting on whether the protocol should deploy on two new chains: Moonbeam and Gnosis Chain. If both chains are approved, Uniswap will officially be active on seven different chains the majority of which are currently Ethereum-based.

Adoption and development are still moving along nicely, as projects somewhat continue to silently raise funding, launch and expand to new networks. Decentralized social media is getting a significant new test as DeFi powerhouse Aave launches Lens Protocol, while existing DeFi projects such as Uniswap begin to test the waters on newer networks like Moonbeam and Gnosis. With Ethereum’s Proof-of-Stake coming to public testnet very soon, we are entering a very exciting period in the decentralized world indeed if one can put aside price action and the market-wide purge.

Nascent Layer-1 chains and scaling solutions alike are about to enter a nice and slow period of adoption and testing, perhaps to the benefit of developers and the wider ecosystem. A slower run-up in use and adoption during a bear market will reduce the downfalls of irrational exuberance, leading to healthier organic growth and less room for large errors or hacks. Healthy ecosystem development is here; no time is better to try out new protocols, test the future of finance, and maybe even collect some nice retroactive airdrops along the way.

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ETH Stability Fee: 0.50%

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Total Value Locked:$53.38B (down 13% since last week)

DeFi Market Cap:$53.0B (up 6%)

DEX Weekly Volume:$21B (down 46%)

DAISupply: 6.13B (up 2%)

[Joe Light Barrons] Celsius Faces a Revolt as a High-Yield Crypto Plummets

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[Ryan Browne CNBC] Investors withdraw over $7 billion from tether, raising fresh fears about stablecoins backing

Alejandro is a blockchain writer and consultant who has been involved in the space since early 2016. Being extremely passionate about this emerging technology, he has written content for a myriad of projects and news outlets.