⚡Total DeFi TVL Passes $100 Billion
⚡Total DeFi TVL Passes $100 Billion
Plus ERC404s, Dymension launches into hype, and more
The Dynamo DeFi newsletter covers trends, on-chain analysis and tools in crypto each week. Be sure to also check out my YouTube for more regular content.
📈Trends and Narratives
Dymension Launches into Hype
This week saw the much-anticipated launch of Dymension and their DYM token. Dymension allows developers deploy app-chain rollups (dubbed “RollApps”) with just a few clicks. One way to think about this is that they’re borrowing components from the IBC and Cosmos SDK to standardize the way that modular rollups are built.
This thread by Frens Validator goes through in detail how Dymension works and why chains might deploy using it:
If you received the DYM airdrop and are looking for what to do with it, this thread by 2Lambroz.eth goes through some strategies for staking and DeFi.
Ways to Capitalize
Stake DYM and vote on governance
Learn about upcoming RollApps
Research other projects in the modular stack, including those that are released like Celestia and unreleased like Movement
ERC404 Token Mania
This week, we saw a new token ‘standard’ explode. It’s not an official ERC token standard (hence the name designation ‘404’, as in 404 Not Found), but essentially ERC404 is a hybrid of ERC20 & ERC721 tokens. Some are calling them “semi-fungible tokens”
The big picture is that ERC404s are NFTs with more inherent liquidity due to fractionalization of the NFT into tokens.
Is it here to stay? Is it safe? We don’t know yet - welcome to crypto. The ETH development community has not vetted the token standard for security flaws, so there could be serious vulnerabilities discovered at any time.
Pandora is the front-runner of the 404 narrative, running up to a $200M market cap in 9 days. K
Ways to Capitalize
*Beware of scams as many will look to capitalize on crypto users’ lack of understanding of these new tokens*
Research further. Every big thing in crypto once started as a niche new tech. If ERC404s are here to stay, understanding what they are will allow you to react quickly.
New ERC404 token launches will likely do well (capital will rotate quickly).
Keep an eye out for new token standard equivalents on different chains, like Solana’s new SPL22 tokens. The first of these was GH0ST, which I **mentioned in the Discord for premium subscribers** at a $2M market cap (it’s now $14M at the time of writing).
Watch for unique applications of this tech, like games and Telegram bots.
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🔢On-Chain Analysis
Total DeFi TVL Pushes Past $100B
Total DeFi TVL passed $100B for the first time since 2022. For context, total TVL currently sits roughly where it was in April 2021 and September 2021. So far, the growth leading up to this level has been much slower and steadier than it was in 2021.
Data Posted to Celestia is Up Only
We’ve been covering Celestia in this newsletter as a key component of the modular stack and its potential to become an important piece of infrastructure. However, quantifying Celestia using traditional blockchain metrics has been a challenge. One way to measure Celestia’s usage with this cumulative data posted to it—at a minimum the COO of Celestia seems to think that’s an important metric.
🛠️Tool Spotlight
Find Airdrops You’re Eligible for with Bankless Claimables
With multiple airdrops being announced each week, one question I’ve been receiving frequently is how to keep up with which airdrops you’re eligible for.
One powerful tool to do this is Bankless Claimables, formerly known as Earnifi. Enter your address and it tells you which airdrops you’ve already qualified for.
📅Key Events This Week
Macro Events
📊 FOMC member Bowman speaks - Feb 12th
📊 FOMC member Barkin speaks - Feb 12th
📊 US CPI Data - Feb 13th
📊 FOMC member Barr speaks - Feb 14th
📊 FOMC member Waller speaks- Feb 15th
📊 FOMC member Bostic speaks- Feb 15th
📊 US PPI Data - Feb 16th
📊 FOMC member Barr speaks- Feb 16th
📊 FOMC member Daly speaks- Feb 16th
Token Unlocks
🔓 DYDX (0.6%) - Feb 13th
🔓 CYBER (15.93%) - Feb 14th
🔓 SAND (9.19%) - Feb 14th
🔓 PSP (0.8%) - Feb 14th
🔓 EUL (0.53%) - Feb 15th
🔓 APE (2.61%) - Feb 17th
Launches
Note that these launches are mostly unvetted by the Dynamo DeFi team and this isn’t an endorsement of any of them.
🚀 Unilend V2 launch - Feb 12th (Source)
🚀 Onyx Protocol V2 launch - Feb 12th (Source)
🚀 Durango Avalanche Upgrade - Feb 13th (Source)
🚀 MainnetZ DEX Launch - Feb 16th (Source)
That’s all for this week. For more frequent content, follow me on Twitter and YouTube.
Until next time,
Patrick Scott
Dynamo DeFi