DeFi Bulletin: TVL Recovers, Osmosis Slashes Token Inflation by 50%

The decentralized finance (DeFi) sector continues to attract heightened attention from cryptocurrency investors. ForkLog has compiled the most important events and news of the past weeks into a digest.

Key DeFi Segment Metrics

TVL in DeFi protocols rose to $45.27B. The leader is Lido with $14.6B, followed by MakerDAO ($6.34B) and AAVE ($5.81B).

TVL in Ethereum applications rose to $26.76B. Trading volume on decentralized exchanges (DEX) over the last 30 days stood at $59.1B.

Uniswap continues to dominate the non-custodial exchange market — accounting for 63.9% of total volume. The second DEX by volume is PancakeSwap (11.6%), the third is DODO (5.7%).

Chibi Finance Team on Arbitrum Conducted Rug Pull Worth $1M

The developers of the DeFi project Chibi Finance on the Arbitrum network were accused of carrying out a rug pull. The pools of the platform’s liquidity were drained of user-owned 555 ETH (~$1M).

Experts PeckShield found that the attackers sent the funds to Tornado Cash. The project’s team closed its website, as well as its Twitter and Telegram accounts.

MakerDAO Increases US Treasuries Holdings to $1.2B

The DeFi platform MakerDAO raised the volume of US Treasury bonds in reserves from $500m to $1.2bn.

Participants explained the initiative as an attempt to fortify the balance sheet with liquid and low-risk traditional assets.

The platform also sharply reduced the share of the stablecoin USDC in the total collateral for borrowing in DAI. On March 13 the indicator reached a peak of 4.4B USDC locked in the PSM mechanism. As of writing the amount deposited in the stablecoins service barely exceeds $521M.

The dominant share is attributed to various versions of “wrapped” Ethereum. The combined WETH and WSTETH exceed 69%. The total value of assets locked in the protocol is ~$6.3B.

DEX Osmosis Slashes Token Inflation by 50%

The Osmosis community, the largest DEX in the Cosmos ecosystem, approved a proposal to change the project’s tokenomics, which reduces inflation by 50%.

The OSMO 2.0 initiative marks a transition from early coin distribution to a “long-term asset sustainability.” After the cut, the native token inflation rate stands at about 11%.

Representatives of the DEX also announced a possible introduction of a mechanism to burn platform revenues, laying the foundations for a deflationary model.

The Osmosis leadership is currently discussing changes to liquidity pool fees. The proposal also expands staking options for OSMO holders, allowing them to earn rewards for token conversions within the protocol.

Also on ForkLog:

• PancakeSwap launched on the Polygon zkEVM network.
• The founder of Frax supported a more “aggressive” token buyback for the project.
• AlloyX will launch a solution for investments in tokenized loans.