Why are some DeFi protocols skyrocketing lately? News or fundamentals?

I usually don’t look much to my portfolio (mainly during a bear market) in order to not go nuts and keep my mental health, BUT… this week I’ve decided to take a closer look.

I have a little bit of everything. BTC and ETH followed by trends like DeFi, Infrastructure, Web3, Security and Metaverse.

Even though some protocols still far away from its ATHs, it really caught my attention how some of mine are really pumping on the last 30 days. I’ve done a little research about what could have happened, but I didn’t find anything solid.

Aave \~ 50%: Their safety module is always stressed by Gauntlet Network (they have pretty well known algorithms) to test the protocol’s ability to keep the platform solvent. The new V3 uses a more aggressive calibration for risk parameters (also optimized with the help of Gauntlet) and reserve factors.

Pancake \~45%: They’ve announced a partnership with Binance that will allow their users to easily access PancakeSwap. I believe this can really increase its TVL. I’m farming there for a long time. It’s a secure platform. Smart contracts are publicly visible and verified. They’ve been audited and approved several times (Certik, Slowmist and Peckshield). Busd bnb and cake bnb pairs have great liquidity and apys.

KalmyApp \~30%: They’ve done an AMA recently, but they were already making regular announcements on the development of upcoming products. I’m farming there for about 6 months. They’ve also been audited several times by Hacken and PeckShield (same as Pancake). Leverage yield farming is becoming very popular, mainly do to inflation rise. I don’t believe that is possible to beat inflation without this tool anymore. Even my safe play here (busd lending) usually returns over 20%+.

Curve: \~20%: Smart contracts are audited by Trail of Bits. TVL is growing fast since October. Their pool is always readjusting internal price and if you really understand about mathematics, you’ll see that v2 whitepaper is pretty interesting mainly regarding dynamic fees and reppeging.

What could be driving this pump? Inflation, news, fundamentals?

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34 thoughts on “Why are some DeFi protocols skyrocketing lately? News or fundamentals?”

  1. IMO, people are starting to realize that it’s more profitable to stake, or farm, or provide liquidity with assets instead of just HODL them.

    This way, they are able to accumulate more while they wait for prices to moon.

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  2. I read an article on tech crunch recently, detailing the TVL of DeFi protocols. Currently, it’s 3x up from a year ago despite being a few % down, that’s quite impressive. Curve took the top spot and I think Luna followed with immense growth. Generally, I believe the unavoidable inflation prompted investors to search for a hedge against the declive of their monetary value, thereby using these DeFi protocols. It’s probably just getting started cos there’ll be more to come. DeFi could most likely take the lead one more time

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  3. It’s the Cefi crackdowns forcing people into Defi. BlockFi and Celsius have both been hit. Others too but I don’t remember any names.

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  4. Cause if someone is going to charge you fees for trading it might as well be other people providing LP and those operating networks.

    Plus when everyone’s chopping “stake” interest across the board in cex’s might as well move to a dex

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  5. Honestly HBAR has been doing pretty well. Ubisoft joing the GC and the HBAR Foundation launching 4 funds to ramp up its mass adoption and already bringing in a bunch of names… it’s gotta be doing great this year.

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  6. I’d like to think that it’s fundamentals that cause that. You mentioned solid projects, a lot of people are using those especially when the market is down or has bearish tendencies. Even some smaller projects like KALM can be highly productive in these uncertain times, it’s not just that we seeing big ones pumping or keeping the pace right now.

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  7. With the market down, I believe people are becoming more interested in them. At the very least, they contribute effective ways for increasing yield during a bad market.

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  8. 4 pool with frax and UST is the biggest thing out there right now. I don’t hold Luna but they’re killing the stablecoin game, especially with anchor giving 20% apr. Olympus and balancer partnering with tribe for a new rari pool to incentivize borrowing or something, some people love rari pools but with the overcollateralization of the Ichi that caused a 90% pullback it’s something to be careful of

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  9. Well, CDC also reduced their APR by a wide margin, plus govt crackdown (Celsius is no longer offering any APR to Americans, at least).

    All this new capital is flowing in partly due to that. Also, dexes are starting to get more sophisticated/developing really fast.

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  10. Regulatory crackdown on CeFi lending platforms like BlockFi and Celsius may be driving people away from those platforms and into DeFi.

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  11. I think it might be some bullish news. Because the fundamentals have been there even before the dip started. Just like how SYLO pumped after it had a partnership with FLUFS world.

    So possibly bullish news but I can’t see any significant pump on most of this gem you listed.

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  12. I think people are beginning to stake massively. DAFI protocol offers huge rewards on staking on their V2 super staking pool and also offers another 25% on their restaking portal

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  13. Why HODL when you can earn a passive income on your assets?

    With more education, more and more people will realise the benefits of DeFi and will join it!

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  14. I have no clue what project can make me wealthy, but without some extra efforts…maybe someone knows is Farcana Metaverse the one? Or I should find smth else?

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  15. One big thing is that people are realizing that DeFi protocols (the good ones) generate more revenue than L1s (besides ETH). The other major factor is the Curve wars, and various projects using locked veTokens for gauges. Locking and voting for bribes is probably the best way to generate a steady stream of income in all of DeFi right now.

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  16. Beanstalk is exploding with some of the highest yields on BEAN (the stablecoin) and the BEAN/ETH pool.

    Both way in the triple digit yields.

    You can also buy pods which are eventually redeemable for $1 each – the only question is when they’re redeemable. You can get ones in the back of the line for around $0.05 so it’s a guaranteed 20x in USD terms.

    Beanstalk is an exciting protocol and there are t several ways to play it.

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  17. Cool to see how Spool is bringing all these together into a single vault. Rather than interacting with all the DeFi protocols one by one. A gateway that leads to the protocols automatically with a single pay of gas fees is another fundamental that seems to be getting big attention in DeFi.

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  18. From what I’ve seen, it is the news supporting the fundamentals of the DeFi protocols just as observed with Unido that got several millions of UDO tokens locked up for the beta-testing of the UnidoEP product.

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  19. This week, i actually haven’t noticed this DeFi protocol skyrocketing . Well, if they did, then there must have been a bullish news or fundamentals. I don’t really think inflation would pump them. Like when AXL announced listing on Gate exchange, we saw a significant pump.

    So I think news first, then fundamentals.

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  20. And Sphere will be king.
    At this time I hodl Titano, Libero, safuu, sphere, drip, react.
    I now just shave the daily interest every morning.

    Reply

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