Trouble viewing this email? View in web browser

Wednesday, 10 Nov 2021
Crypto Notes
Crypto Notes ₿ by Rohas Nagpal
By Rohas Nagpal

Here's a great value proposition

A digital subscription to Mint can be yours with a flat 10% off (Up to 25% with bank offers), at just ₹192 per month. But hurry, it's a limited period offer. Check out the convenient and affordable plans we have for you here.

All about Decentralized Finance (DeFi)

Over the last few weeks, we discussed Dogecoin (DOGE), Cardano (ADA), Binance Coin (BNB), Solana (SOL), Bitcoin (BTC), Ether (ETH), Filecoin (FIL), Polkadot (DOT), Polygon (MATIC), Chainlink (LINK), Theta and the Metaverse cryptos. This week we take on the top DeFi protocols.

     

Let's start with some interesting crypto news.

The overall market capitalization of cryptocurrencies crossed US$ 3 trillion for the first time ever. Bitcoin (BTC) hit a new all-time high of $68,530.34 on 9th November. Ether (ETH) hit a new all-time high of $4,837.59 on 9th November.

Enjin, a blockchain gaming platform, has made a $100-million fund for developing the metaverse ecosystem.

Siam Commercial Bank, Thailand's oldest bank, has acquired a majority stake in the country's largest crypto exchange Bitkub for US$ 536.6 million.

1. What is Decentralized Finance (DeFi)?

Decentralized Finance (DeFi) is an umbrella term for financial applications powered by public blockchains. The mindmap below shows the various aspects of DeFi.

In previous editions, I have covered the top 3 DeFi blockchains - Ethereum, Binance, and Solana. In this edition, I will cover the top 3 DeFi protocols.

2. Top 3 DeFi protocols

Curve DAO Token (CRV) incentivizes liquidity providers on the Curve Finance platform. veCRV is vote-escrowed CRV i.e. CRV locked for a period of time. The longer an investor locks CRV, the more veCRV they earn. CRV can also be staked to receive trading fees from the Curve protocol. Its Total Value Locked (TVL) is $21 billion.

MakerDAO is a decentralized organization while Maker Protocol is a software platform, that allows users to issue and manage the DAI stablecoin. Maker (MKR) is the governance token of the MakerDAO and Maker Protocol.

AAVE is 2 things - a decentralized finance protocol as well as a crypto token. As a protocol, it enables the lending and borrowing of crypto. Lenders deposit digital assets into liquidity pools. Borrowers put up crypto collateral and take "flash loans" using the liquidity pools. As a token, it gives holders discounted fees and also serves as a governance token by giving holders a vote in the protocol's development.

3. Metrics

DeFi metrics

Total value locked (TVL) represents the total of all assets deposited in the protocol earning rewards, interest, new coins / tokens, fixed income, etc.

  CRV MKR AAVE
TVL $ 21b $ 20b $ 17b
Mcap / TVL Ratio 0.09 0.16 0.26

Price metrics

  CRV MKR AAVE
Current Price: $ 4.96 $ 3200 $ 345
All-time high $ 60.50 $ 6,339.02 $ 666.86
All-time low $ 0.3316 $ 21.06 $ 25.97

Supply metrics:

  CRV MKR MKR
Cir. supply 413m 0.99m 13m
Total supply: 1.6b 0.99m 16m
Maximum supply: 3.3b 1m 16m

Note:

m = million and b = billion.

Circulating Supply is the number of coins / tokens in public hands.

Total Supply is the number of coins / tokens created minus the number burned.

Maximum Supply is the maximum amount of this crypto that can ever exist.

Figures have been rounded off for convenience.

Marketcap & Volume metrics:

  CRV MKR AAVE
Market Cap ($): 2b 3.1b 4.6b
Fully Diluted Mcap ($): 16b 3.2b 5.5b
Volume (24h) ($): 472m 243m 405m
Volume / Mcap ratio: 0.2 0.08 0.08

Note:

m = million and b = billion.

Market cap = Current Price x Circulating Supply.

Fully Diluted Market Cap is the market cap if the maximum supply was in circulation.

Volume (24h) is the fiat value of this crypto traded over the last 24 hours.

Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos.

Volume / market cap ratio = 24h Volume / Marketcap.

Total Value Locked = Total assets value currently staked or locked in the protocol.

Figures have been rounded off for convenience

Note: The data/graphs are from CoinMarketCap, Messari, and Future Money Wallet.

     

Were you forwarded this email? Did you stumble upon it online? Sign up here.

Rohas Nagpal is an author, an amateur boxer, a blockchain architect, a Tintinologist and a retired hacker.

Download the Mint app and read premium stories
Google Play Store App Store
View in Browser | Privacy Policy | Contact us You received this email because you signed up for Mint Top of the Morning or because it is included in your subscription. Copyright © HT Digital Streams. All Rights Reserved