In the last few months, we’ve seen a flurry of novel and exciting lending protocols come to market, such as Morpho, DYAD, Fluid, or Tapioca; even more are expected in the coming months, such as Liquity V2 (Bold) or Euler V2. All are innovative, in the arena, trying things to the point that I wonder if we’re not experiencing a lending protocol renaissance after a few years of rehashing the same concepts.
Today, I want to address Velodrome/Aerodrome, a genuine success story in DeFi. I’ve covered DEXes extensively on this blog, especially Curve: this article will compare the two models and explain how Velodrome improved on the veCRV template.
First, let me start with a disclaimer: there are two core components to a DEX that everyone needs to be aware of to understand what follows:
I’ve resigned from the GHO Liquidity Committee and would like, in this blog post, to share more context on its adventures and the learning we can draw from it.
Onchain message from tokenbrice.eth Signer removal transaction For those whose first reaction will be “ain’t ready all of that,” here is a recap of the main shortcoming I see in the committee that led to my decision:
Proudly introducting The DeFi Collective
Historically, financial systems have been mismanaged by states, corrupted by entrenched private interests, and unable to deliver an equitable, fair, and transparent baseline to enable unfettered value exchanges.
Over five years ago, I discovered the (back then) nascent decentralized finance ecosystem and was promptly convinced it embodies a credible attempt to deliver a neutral value exchange layer, freed from the influence of states and able to resist the corruption attempts of private actors.
Wild new stablecoins are constantly appearing, and with the multiplication of chains, layers, and viable stablecoin models the trend is not stopping anytime soon. Navigating the stablecoin landscape is turning into a critical skill for DeFi.
While centralized stablecoin models are easier to evaluate, decentralized stablecoins harness various complex mechanisms, making it harder to compare their data face to face.
It’s been four months since Maverick is out, and a few days since the MAV token joined the fray. Yet, most of DeFi is still scratching its head regarding how Maverick delivers 2-3x the capital efficiency of its top competitor, Uniswap.
So the time was right for a deep dive into the innovations brought by the model and the new paradigm it fosters regarding liquidity management: liquidity shaping.
Solidly/Velodrome forks have been popping up like mushrooms, especially across the popular layer 2 like Arbitrum or zkSync. Solidly is now the top #3 forked protocol in DeFi and one of the rare cases where the forks (such as Velodrome) are the market leaders.