LayerZero launches their V2, bringing technological innovations to the omni-chain interoperability layer. New modular L2 chain, Mode Network, goes live, rewarding users who bridged to their chain in a Manta-Blast style campaign, while Cosmos liquid staking solution, Stride, began their campaign to airdrop STRD tokens to TIA liquid stakers.
Overview
Total Value Locked (TVL) across all chains grind higher as the market recovers from the dip the week prior. Notable outperformers to the trend include newly launched L2, Mode Network, which amassed a TVL of just over $23 million and Move-based L1, Sui, which saw a jump of 22% in their TVL, surpassing the $500 million mark this week.
Source: https://coinmarketcap.com/chain-ranking/
Welcome to Alpha Central
DWF Ventures discusses tokenomics and how tokenomics can be designed well to align incentives and behavior.
TL;DR:
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Token prices affect perception of tokens and token prices are affected by tokenomics
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Incentives and rewards encourage holding of the token. This can be achieved through staking, liquidity provision, or trading rewards.
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Buyback and burns are also useful in reducing supply and reducing dilution of token holders
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Tokens with higher community allocations, long vesting for private investors and team with spread out emissions tend to do better
Ethereum: LayerZero V2 Live
Omni-chain interoperability layer, LayerZero, goes live with V2. V2 brings to the protocol universal messaging, modular security, permissionless execution, unified semantics and V1 compatibility.
ETH liquid staking protocol, Swell Network, introduces rswETH, a native liquid restaking token for EigenLayer, enabling users to earn Swell’s pearls, EigenLayer points while still enabling them the flexibility to use their tokens in DeFi.
Other Product Launches and Updates
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Abracadabra, the protocol behind stablecoin MIM, has been exploited for approximately $7 million. The issue has since been mitigated and investigations are underway. The MIM token depegged during the period to 77 cents but has since almost fully repegged.
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Morpho Blue and MetaMorpho Vaults are now live on the DeFi suite product, Instadapp. Morpho Blue and MetaMorpho Vaults are lending focused products built on Ethereum.
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Curve Finance Omnipool protocol, Conic Finance announces V2, bringing to the platform better liquidity allocations for improved diversification for liquidity providers, liquidity pool token bonding to acquire discounted tokens and more.
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Native ETH restaking protocol, EtherFi, announces Mega Week, a period where EigenLayer points are distributed from the EtherFi treasury to new and existing stakers on the platform.
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Money market platform, Sturdy, releases borrowing on V2. Users can now recursively borrow to multiply their lending yields through leverage.
L2s: Mode Network, the New Hot L2 on the Block
Modular DeFi L2, Mode Network, goes live, opening up their Mode Sunrise campaign at the same time. 550 million MODE, or 5.5% of the token supply has been set aside for the campaign. Users can bridge to the chain now from Ethereum to start earning points.
Other Product Launches and Updates
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Cross-chain bridging platform, Orbiter Finance, announces plans to launch the Orbiter Rollup, a zero-knowledge rollup to bring unified liquidity to the Ethereum ecosystem.
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Web3 API service, API3, announces plans for the OEV Network, an L2 built on Polygon’s Chain Development Kit, which is designed to recapture value lost on-chain due to oracle extractable value (OEV).
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Optimism-based leveraged trading protocol, Pika, announces Pika V4, introducing native USDC for their vault, improved PnL calculation on vaults, enhanced oracle contract and account abstraction support.
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Arbitrum options protocol, Dopex, sunsets its signature Single Staking Option Vaults (SSOVs) as they shift focus to their latest Concentrated Liquidity Automated Market Maker (CLAMM) product.
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Cross-chain borrowing platform, Pike, is now live on mainnet. Pike is powered by Wormhole and currently spans Ethereum, Base, Arbitrum and Optimism. Users can now borrow and lend ETH, USDC, ARB and OP on the platform.
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Perpetuals decentralized exchange (DEX), ZKX, launches ZKX OG Trade on StarkNet. ZKX OG Trade is a gamified trading competition, where traders engage in PVP battles across 30 minute periods on major crypto assets such as BTC, ETH and SOL.
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Movement Labs introduces M2, the first Move-based L2 on Ethereum. M2 enables users to interact with M2 through either the Ethereum Virtual Machine (EVM) client or the Move client, meaning that both EVM and Move smart contracts can migrate to the chain.
Cosmos: Liquid Staking TIA with Stride
Cosmos liquid staking protocol, Stride Zone announced an airdrop for Celestia stakers that staked their TIA tokens as stTIA. 5 million STRD tokens will be allocated to TIA stakers with Stride over the next 5 months, with the STRD tokens claimable six months from when they were allocated.
Another Week, Another Airdrop
Solana DEX aggregator, Jupiter Exchange, launches their airdrop and token, JUP to eligible wallets this week. 1.35 billion tokens, or 13.5% of total supply, is currently circulating. The token launch drew flak from critics discussing the way the token launch was a disguised token sale while their supporters refute these claims.
Rollup-as-a-Service provider, AltLayer, opens registration for Celestia stakers for their share of the ALT token airdrop. The allocation accounts for both natively staked TIA tokens and liquid staked TIA tokens with Milkyway Zone.
RollApp service provider, Dymension, completes the redistribution of the airdrop allocation after the claim period ended a week earlier. Users can now check their new allocations and the airdrop will occur on the Dymension genesis block.
Perpetuals and options DEX, Aevo, launches their farming program and airdrop. The program is centered around fees, volumes and loyalty on the platform, which will translate to the AEVO airdrop when the program ends.
Solana dynamic liquidity protocol, Meteora, launches their points program as well, which will lead to the eventual launch of the MET token and airdrop.
Tweet of the Week
PudgyPops takes a dig at airdrop farmers as the protocols to farm only continue to increase.
Stay updated on your favorite projects and stay tuned for next week’s edition, and keep supporting your favorite projects, degens!