October 1, 2023

Weekly DeFi Rabbit Hole by zj.valz

🐰 Contents:

1. Stablecoin flows
2. Smart Money Movement
3. Top L1/L2 Financials
4. Top DAPP Financials
5. Movement Analysis
6. TLDR

1. Stablecoin flows:

Top 10 Chain (In terms of Stables Mcap)

Top inflows:

1. StarkNet
2. Cardano
3. Kava
4. Conflux
5. Stellar

Top outflows:

1. smartBCH
2. Hedera
3. Oasis
4. MultiversX
5. Linea

2. Smart Money Movement:

Top Smart money inflows (including stablecoins):

1. USDC
2. Silo Finance
3. Dai
4. wstETH
5. DMT

Top Smart money outflows (including stablecoins):

1. USDT
2. Curve.Fi USD
3. mkUSD
4. Wrapped ETH
5. CAL

Top Smart money inflows (excluding stablecoins):

1. wstETH
2. DMT
3. Link
4. WSM
5. Unibot

Top Smart money outflows (excluding stablecoins):

1. Wrapped ETH
2. Cal
3. Rollbit
4. Wrapped ETH (Arb)
5. Banana

3. Top L1/L2 Financials:

Fees-Generated

1. ETH
2. Tron
3. BTC
4. BSC
5. zkSync Era

Revenue

1. ETH
2. Tron
3. zkSync Era
4. Arbitrum
5. Base

DAUs

1. Tron
2. BSC
3. Near
4. BTC
5. Polygon

Active Developers

1. ETH
2. Polkadot
3. Cosmos
4. Solana
5. BTC

Code Commits

1. ETH
2. Polkadot
3. Solana
4. Cosmos
5. BTC

4. Top DAPP Financials:

Fees-Generated

1. Lido
2. Friend.tech
3. Uniswap
4. MakerDAO
5. PancakeSwap

Revenue

1. Friend.tech
2. MakerDAO
3. Lido
4. PancakeSwap
5. Metamask

P/F Ratio

1. Mummy Finance
2. Nether.Fi
3. Equilibre
4. ApeX Protocol
5. HMX

P/S ratio

1. Equilibre
2. Nether.Fi
3. X2Y2
4. Level Finance
5. Buffer Finance

Holders Revenue - Cumulative revenue attributable to holders 24 Hours

1. Curve
2. PancakeSwap
3. Venus
4. Synthetix
5. Velodrome

DAUs - Daily

1. Pancakeswap
2. Uniswap
3. Stargate
4. 0x
5. Metamask

Trending Applications

1. Paraswap
2. GMX V2
3. Trust Wallet
4. Gnosis
5. GMX

Trending Categories

1. Infrastructure (ARB)
2. Tokens (OP)
3. Tokens (Polygon)
4. Tokens (OP)
5. Infrastructure (OP)

Raises - Recent funding rounds

5. Movement Analysis:

Stablecoin flows:

• Total stablecoin market cap continues to remain relatively flat this week with a slight decrease of -0.41%.
• Starknet, Cardano, and Kava saw the most significant stablecoin inflows.
• SmartBCH, Hedera, and Oasis saw the most significant stablecoin outflows.

Smart Money Movement:

• Smart Money has an aggregated portfolio allocation of 40% ETH/ETH Variant, 40% Alts, and 20% Stablecoin this week.
• DMT, Link, and WSM saw the largest Smart Money inflow this week.
• Cal, Rollbit, and Banana saw the largest Smart Money outflow this week.
• Smart Money continues to trim their position in Banana but started increasing exposure to Unibot.
• DMT is experiencing significant accumulation by a single whale, do not ape blindly just based on the large inflows going into the token.

L1/L2 movement:

• Arbitrum revenue overtook Base this week as the L2’s on-chain activity picks up with the upcoming $41.5 million Arbitrum grants program.
• Base fees and revenue still revolve around the success of Friend.tech, which could be problematic, given the speculative and reflexive nature of the protocol and the sustainability of the flywheel once the airdrop ends.

DAPP movements:

• While Friend.tech continues to dominate the fee and revenue leaderboard, keep a clear head and do not fomo into the keys trading given how the game is rigged against traders. More details of key trading mechanics can be found here.

• Alpha drop by @apes_prologue

• Arbitrium DAPPs are looking attractive in the short-mid term with the upcoming grant program. Notable DAPPs seeking grants can be found here.

• Raises that caught my eye this week include:
• Supra - A low-latency interoperability infrastructure to provide a shared security paradigm across a variety of Oracle services. This includes securing external data on-chain, cross-chain consensus via their bridgeless HyperNova, automation, VRF, and more;
• IYK - A self-service portal for brands, musicians, artists, and creators to deploy digi-physical experiences without the need for technical knowledge;
• Rated - An independent provider of third-party node and node operator ratings, robust data pipelines, comprehensive infrastructure dataset for Ethereum; and
• Fhenix - A L1 powered by Fully Homomorphic Encryption (FHE) encryption to smart contracts.

6. TLDR:

• The difficult month of September comes to a close with with BTC and ETH continuing to range sideways. However, on-chain activity remains lacking as liquidity and attention is currently focused on Friend.tech.
• Arbitrum is starting to look attractive with the upcoming grant program which will inject much-needed liquidity and attention into native DAPPs. Betting on strong native protocols that will receive the bulk of the grants could be a good +EV play.

Conclusion

Sources: