Weekly Yields

Shanghai & DeFi Regulations: Crypto Weekly Newsletter #048

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Ethereum's Shanghai upgrade is completed. USA's and Europe's DeFi regulation proposals. Crypto trading moves to Twitter. Arbitrum's ARB Token Surges.

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Weekly Yields
Danail Velchovski
April 17, 2023
Apr 17


Last week, Ethereum completed a major update called the Ethereum Shanghai (Shapella) hard fork. This caused the entire cryptocurrency market to perform its best since June of last year. Users and validators can now easily access their staked ETH, and Nansen has released a public dashboard to track ETH withdrawals, making monitoring investors’ behavior easy.

Thus far, around 890k ETH have been un-staked, with the first several days after the Shanghai upgrade showing low withdrawal activity.

Market update

Despite reaching a 10-month high at $30.816, Bitcoin has netted a week-on-week performance of -0.41%. Ethereum, on the other hand, surged by +9.10%, closing down on the YTD performance of BTC at +73.78% vs. +77.80%.

Among the leading cryptocurrencies, SOL (+18.87%), AVAX (+15.40%), and ADA (+10.33%) have shown the best performance in the past week.

Data from Apr 17, 2023, at 20:10 UTC via Messari.io.

Latest news:

Arbitrum’s ARB Token Finally Wakes Up

The leading Layer-2 protocol Arbitrum was at the center of attention in the past few months with the hype building towards their ARB token launch. After a not-so-great initial performance and several hiccups surrounding governance proposals, the token has finally woken up at a +32.20% gain in the last seven days.

Chart Source: Artemis

Compared to Aptos, another recently hyped project, Arbitrum’s fundamentals are more robust, and the network usage has been steadily growing both before and after the ARB launch. Additionally, an ARB accumulation spree by whales and investors might be a reason for the surge, according to crypto analysts.

Twitter Partners With eToro To Enable Crypto & Stocks Trading

Twitter will allow users to buy and sell cryptocurrency and stocks through the popular trading site eToro. The functionality is accessible by using its “cashtag” feature, which involves placing a dollar sign in front of the stock ticker. This is Elon Musk’s first attempt to turn Twitter into a super app, offering its users financial services through social media.

💡 In an interview with Morgan Stanley, Elon Musk said:
“I think it’s possible to become the biggest financial institution in the world, just by providing people with convenient payment options.”

U.S. SEC Moves Toward DeFi: Decentralized Platforms Are Exchanges

The U.S. Securities and Exchange Commission (SEC) has reopened a proposal from last year that would now explicitly target transactions on DeFi platforms, labeling these protocols as exchanges that need to be regulated.

The proposal was expanded in Jan 2022 to capture a broader swath of trading activity in the U.S. The securities agency read last year’s comment letters from the crypto industry, and a divided commission voted 3–2 to approve what amounts to a response to that criticism.

The updated proposal now uses more direct language that includes DeFi in the widening definition of regulated exchanges, and it details its estimates on how much that change is expected to cost the industry.

In France: Central Bank Proposes Regulation of DeFi Projects

The French central bank has issued a report stating that DeFi projects may be required to adhere to governance and security norms as regulators seek to expand proposed cryptocurrency laws to include more blockchain-based structures.

The report proposes a certification mechanism for smart contracts covering code security, governance, and new regulations to prevent intermediaries from selling highly leveraged products to retail investors. The ACPR, the French central bank’s supervisory arm for banks and insurers, is seeking opinions on its proposal until May 19. The report also calls for extending planned European Union consumer protection rules to cover DeFi.

Other news

Our research

Read our latest research articles in one click.

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DeFi Weekly Stats

Top Stablecoin Yield Pools (Single Exposure Filter)

USDC and DAI remain central to DeFi stablecoin yield farming, with Conic Finance’s USDC pool having a 30d Avg APY of 14.41%, while Gains Network’s DAI pool offers 13.85%.

The top 3 Stablecoin Yield Pools By 30d Average APY (TVL>$30M) as of Apr 17, 2023. Data: DefiLlama

Top Blue-Chip Coins Yield Pools (Single Exposure + High Confidence Filters)

Coming from third place to first, Lido’s STSOL pool leads this week’s ranking of blue-chips at 6.83% 30d Avg APY, followed by Venus’ WBNB at 5.89% and Ankr’s ANKRBNB pool at 3.12%.

The top 3 Blue-Chip Coins Pools By 30d Average APY (TVL>$30M) as of Apr 17, 2023. Data: DefiLlama

Top ETH Liquid Staking Derivatives Pools

The leaders in Ethereum liquid staking remain the same, with Frax leading the way at 6.52% for the SFRXETH pool, followed by Stafi’s RETH at 6.49% and Lido’s STETH at 4.78%.

The top 3 ETH LSD Pools By 30d Average APY (TVL>$30M) as of Apr 17, 2023. Data: DefiLlama

Final word

The DeFi market can be overwhelming due to its scattered information, steep learning curve, and numerous choices. This makes it difficult for both novice and experienced investors to navigate. As DeFi continues to expand and evolve, finding a solution that simplifies this complex ecosystem becomes increasingly necessary, making it more accessible to everyone.

To solve these issues, we’ve developed the first version of the next-gen AI assistant, making DeFi investing easy and straightforward.

Max Yampolsky,
CEO at One Click Crypto

This is not financial advice. This newsletter is strictly educational and does not provide investment advice, solicit the purchase or sale of assets, or encourage readers to make financial decisions. Please use caution and conduct independent research.

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Danail Velchovski

Danail masterfully combines his deep knowledge of blockchain technology and his strong writing skills to deliver crisp, comprehensive content. With his early immersion in the web3 domain, he navigates the complexities of this revolutionary technology with ease, turning intricate concepts into engaging, digestible pieces. His research acumen and keen insight into the rapidly evolving world of decentralized networks make him an invaluable asset in educating audiences about web3's potential and its ever-evolving landscape.

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