Huobi Ventures Weekly Report #11

Huobi Ventures Weekly Insights

Insight provided by Pengfei HuangFu of Huobi Ventures

Over the past month, you may have seen the term “DeFi 2.0” appear on Twitter with the hot discussions about Olympus DAO and its forks. But what is “DeFi 2.0”? And why it is important?

Let’s start from recapping DeFi 1.0. The DeFi1.0 stage led by Uniswap shows the disruptive ability of decentralized finance, and the new financial paradigm triggered by decentralized exchange has gradually shown its power. Up to now, the Total value locked by DeFi protocols is more than $250 billion. However, DeFi has been eclipsed by the explosion of the NFT in 2021. Yield “seekers” are beginning to explore new ways to generate capital. And this forces DeFi developers to make new innovations, leading to the transformation from DeFi 1.0 to DeFi 2.0.

Picture from Defillama

Capital Efficiency

Generally, DeFi 2.0 is aiming to solve the existing limitations in terms of Scalability, Liquidity, Centralization, Security & Capital efficiency. First things first, let’s talk about the key issue of existing DeFi protocols — capital efficiency. A major problem of DeFi 1.0 is that assets are locked in liquidity pools but most of them remain static and unused.

We can get into details by looking at three most important DeFi tracks:

1. AMM/DEx: CFMM (constant function market maker) is the infrastructure of any blockchain ecosystem, and it helps attracts a huge amount of TVL. However, most of assets is inefficiently utilized because constant function market maker spreads the liquidity to all price range. Uniswap V3 offers concentrated liquidity but the high gas fee prevents users from frequently changing positions. The relocation to Arbitrum may display the essence of Uniswap v3. Another protocol that can free out the liquidity of AMM is Unbound finance.

2. Lending: The utilization of assets staked in Lending protocols is usually low, resulting in a low APY, which is the key factor DeFi users look at. One protocol that we can expect for is Clearpool, which provides risk adjusted return according to user’s risk appetite.

3. Aggregators: Just as what Coin98 Insight mentioned, Users receive AGtokens after depositing assets/liquidity into protocols and they have nowhere to stake the LP tokens, thus lose the extra revenue from DeFi Lego.

Huobi Ventures Latest Update

We are honored to announce that Huobi Ventures, one of the world’s largest and prestigious crypto ventures, has invested in X Protocol

Thanks for the support, we are poised to achieve the next milestone and would be glad to contribute to the Huobi Ecosystem.

Portfolios Weekly Status

[All Art]

VR exihibition is live. Details

[Animoca Brands]

Animoca Brands will talk about the exploration of the paradigm shift in Gaming and Sports, and how the Metaverse will change audience engagement via NFTs. Details

[Automata]

Automata Network launches official mainnet. Details

[Biconomy]

· Biconomy raises $11.5M in public sale of native token BICO. Details

· Biconomy partners with Argoapp on the common vision of simplifying Web3 for devs & making blockchain mainstream. Details

[Clearpool]

The Clearpool Whitepaper explains the problem digital asset institutions face in DeFi lending, most prominent — over-collateralization and the risk of liquidation — while also proposing how. Details

[Clover]

Clover will be participating in the first parachain auctions batch, from November 11th until December 16th. Details

[Connext]

Connext routers. Details

[Cyclos]

Cyclos is giving away 50 more Alpha mainnet tickets to lucky winners.(experienced DeFi users encouraged we want you) Public address loudspeaker. Details

[deBridge]

We are happy to announce that Testnet 2.0 is finally public with tons of new features and overall improvements that have been added. Details

[Divergence]

New Beta on arbitrum is launching on Nov 4. Details

[dTrade]

dTrade welcomes firefly protocol to the family as its parent platform. Details

[HurricaneSwap]

Hurricane Swap trading competition in Nov 1st-8th.

[InsurAce]

· InsurAce.io is happy to announce it has listed MCDEX. Details

· InsurAce has officially launched API. API is designed to provide live, accurate data to dashboards and partner protocols, as well as providing direct integration that allow users to access InsurAce services directly. Details

[Kibo Finance]

AU21 Capital backing Kibo Finance. Details

[OpenOcean]

OpenOcean Atlantic Version launched on Ethereum. Details

[PoolTogether]

Proposal 40 has passed. Details

[Project Seed]

House of Chimera will release a research paper about Project SEED on 04/11/2021. Details

[Rangers Protocol]

Rangers Protocol reached strategic cooperation with DeHero, 2nd NFT transaction volume on BSC. Details

[ROCO Finance]

ROCO Finance announced strategic partnership with HoopGames and PeraFinance. Details

[Spacemesh]

Spacemesh TweedleDev 208 is ready for the community to join. Details

[Zkswap]

ZKS has completed the seventh token burn scheme on November 1st, 2021, with a total of 14,097 ZKS burnt in the last month. Details

About Huobi Ventures

Led by Huobi CFO Lily Zhang, Huobi Ventures is a wholly-owned subsidiary of Huobi Group focusing on Huobi global investment. Composed of four divisions — strategic M&A, strategic investment, asset management and global cooperation, Huobi Ventures has already launched three funds targeting typical fields: Blockchain, HECO and NFT. We aim to empower further growth of Huobi Global, and create a global community with our partners for mutual benefits.

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Focus on Huobi’s venture investment portfolio and supporting innovative blockchain projects through long-term strategies. Twitter:@HuobiVentures

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Huobi Ventures

Huobi Ventures

Focus on Huobi’s venture investment portfolio and supporting innovative blockchain projects through long-term strategies. Twitter:@HuobiVentures

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