DEX front-ends vs 1inch

And regulators try to wrap their heads around DeFi

No GameStop hot take here but back maybe next week.


Chart of the Week: 1inch DEX flows

One of several great charts from Messari’s Ryan Watkins in an overview of leading DEX aggregator 1inch, which posted more than $6bn in total volume in January. The chart above shows the breakdown of flows from 1inch to DEX’s. Curve has been a big recipient of 1inch flows, because - as Ryan notes - a trader’s stablecoin of choice may not be the most liquid for the desired token, so 1inch uses Curve to optimize the trade route.

There is also some insight into front-end usage:

Clearly, most traders are going to 1inch, Uniswap or Sushiswap with most other DEX’s highly reliant on flow from 1inch. The volume from 1inch can be viewed as a metric for LP size and capital efficiency. Interestingly, Uniswap and Sushiswap have almost identical volume from 1inch.

Tweet of the Week: First whispers of regulation

Stablecoins have already ushered in a new crypto political age, and now the explosive growth of DeFi is catching the eye of regulators. As Crypto Mom points out, it will be a brand new approach because they can’t lean on companies for enforcement. The on- and off-ramps will likely be a target and stablecoins’ reliance on the banking system does give regulators some leverage, as do front-ends and mobile apps, but it’s hard to imagine regulators being able to ban dapps or DeFi protocols. Coin Center just released a podcast today on “DeFi and the SEC”.

Odds and Ends

  • DXdao* expands to Arbitrum Link

  • Parsec, a Bloomberg-like interface for DeFi, raises $1.25m & launches Link

  • YAM and UMA’s uGas synthetic expires and begins settlement process Link

  • Loopring unveils new tokenomics for LRC Link

  • Alpha Homora, which offers yield farm with leverage, launches v2 Link

  • Sushi introduces MISO - Minimal Initial Sushi Offering Link

  • Derivatives platform Opium introduces novel liquidity mining campaign Link

  • Chainalysis: Criminals moved $34 million in crypto through DeFi in 2020 Link

Thoughts and Prognostications

That’s it! Feedback appreciated. Just hit reply. Written in Brooklyn in an absolute blizzard.

Dose of DeFi is written by Chris Powers. Opinions expressed are my own. I spend most of my time contributing to DXdao*. All content is for informational purposes and is not intended as investment advice.