Decentralized Finance Industry Biweekly Report

1. Industry Observation

1. The issuer of liquidity staking tokens LBTC for investing in Bitcoin on a certain trading platform is Lombard.

Lombard is a company focused on the development and issuance of LBTC. LBTC, as a security-focused Bitcoin liquid staking token (LST), allows individual and large institutional holders to earn returns and leverage their Bitcoin assets in Decentralized Finance. Through collaboration with Babylon, Lombard is committed to connecting the economic value and security of Bitcoin with the diversified opportunities of DeFi.

Since its launch in August, Lombard has captured 40% of the Bitcoin liquid staking market, with a total locked value of (TVL) exceeding $500 million or 8,500 BTC, and the number of users surpassing 12,500. To achieve the goal of connecting Bitcoin to Decentralized Finance, over 60% of LBTC has been used for Pendle's yield strategies, institutional lending on Maple Finance, and borrowing on platforms such as Morpho and ZeroLend. Lombard has also taken the lead in introducing the first Bitcoin liquid re-staking token through its partnership with ether.fi.

2. A trading platform has launched packaged Bitcoin KBTC

KBTC is a cross-chain ERC-20 token fully backed 1:1 by Bitcoin, designed to extend the value of Bitcoin to DeFi ecosystems such as Ethereum and the OP mainnet. KBTC not only brings liquidity to Bitcoin but also provides strict security guarantees, allowing users to verify on-chain reserves at any time. The launch of this token marks a new application scenario for Bitcoin in a multi-chain ecosystem and creates new opportunities for developers and investors.

The first-day partners include several well-known DeFi platforms such as deBridge, Gauntlet, and Yearn, highlighting the ecological integration potential of KBTC. The launch of KBTC allows Bitcoin to be more flexibly integrated into Decentralized Finance, becoming an important option for on-chain diversified asset allocation.

3. The new ZKsync proposal aims to distribute 300 million ZK tokens to DeFi users within 9 months.

ZKsync launched its first governance proposal "ZKsync Ignite" on the forum, planning to distribute 300 million ZK tokens to DeFi users over a period of nine months, with the goal of establishing ZKsync Era as the liquidity hub of the Elastic Chain. The plan aims to invigorate the DeFi ecosystem of ZKsync Era by enhancing the liquidity of assets like ETH, USDC, and WBTC, attracting liquidity providers and developers to participate. Additionally, the proposal requests 25 million ZK tokens to cover management fees. If approved, ZKsync Era will further solidify its position in the DeFi space, becoming a liquidity hub in the multi-chain ecosystem.

4. Aptos plans to integrate stablecoins such as Tether and USDY.

Aptos is driving its integration of Tether and USDY stablecoins to become a new foundation for global payment solutions. The integration of these stablecoins enables Aptos to achieve faster, lower-cost, and secure cross-border fund circulation, supporting applications such as Decentralized Finance and cross-border payments.

The Aptos network, with 27.7 million active addresses and a total transaction volume of 17 billion, also set a record of 326 million transactions in a single day in the third quarter of 2024, showcasing its exceptional transaction processing capabilities and stable low fee advantages. Its technology stack, including the latest Move 2 language, the Raptr consensus protocol, and the Block-STM v2 parallel execution engine, makes Aptos an ideal platform for DeFi, gaming, and payments, laying the technical foundation for future global financial applications.

5. The modular DeFi L2 network Mode has opened the second quarter airdrop claim.

Mode officially announced that the airdrop for Q2 is now open for collection, and the staking activities for Q3 are also underway. Q3 will be a key moment for Mode. As the first protocol on Superchain to adopt the ve-model, Mode focuses on staking ( without lock-up ), protocol voting, and dynamic governance for long-term growth, laying the foundation for the continuous evolution of DeFi and innovative governance models. The official calls this brand new governance mechanism a "governance game."

6. The Arbitrum ecosystem derivatives trading protocol Variational has completed a $10.3 million seed round financing.

The crypto derivatives trading protocol Variational has announced the successful completion of a $10.3 million seed round financing on the Arbitrum network. This round was co-led by Bain Capital Crypto and Peak XV Partners, with other participants including Coinbase Ventures, Dragonfly Capital, North Island Ventures, and Hack VC.

Variational was established in 2021, initially operating for two years as a proprietary market maker before transitioning to a DeFi protocol after becoming profitable. The first application of the protocol is the Omni platform aimed at the retail market, providing perpetual contract trading that allows users to engage in leveraged trading of new tokens, asset portfolios, and products such as yields/volatility. Additionally, Omni's liquidity providers (OLP) can pool liquidity from both centralized and decentralized exchanges and support community users in participating in deposits to earn yields.

Variational is currently testing on Arbitrum Sepolia and plans to launch an invitation-only mainnet before the end of the year, with a public mainnet scheduled for the first quarter of 2025. With the launch of the mainnet, the protocol's tokens will also be issued next year. Variational stated that although it is initially launched on Arbitrum, it does not rule out the possibility of expanding to other Layer 1 and Layer 2 blockchains in the future.

7. The European Commission approves the New York Stock Exchange and the Chicago Board Options Exchange (Cboe) to conduct spot Bitcoin ETF options trading.

The European Commission recently approved the listing of options trading for the spot Bitcoin ETF by the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (Cboe). This decision injects a significant force of financial innovation into the European and global markets, marking further legitimization and mainstream acceptance of Bitcoin in regulated markets.

With this approval, investors can not only hold the value of Bitcoin directly through a spot Bitcoin ETF, but also utilize options for more flexible investment strategies, such as hedging risks or engaging in leveraged trading. This move not only expands the application scope of Bitcoin as a financial asset but also helps enhance market liquidity and stability.

8. Pump.fun launches an advanced trading terminal and previews token issuance.

The Solana-based memecoin trading platform Pump.fun announced the launch of a new advanced trading terminal "Pump Advanced" for advanced users, and it has been announced that tokens will be issued in the future. This news has garnered widespread attention.

The Pump Advanced terminal provides various powerful features for high-frequency traders, including price charts, TOP holder statistics, advanced filters, and real-time updated discussion threads, aimed at meeting the needs of professional users. The platform allows users to log in through a non-custodial wallet and offers a 30-day fee waiver promotion. The Pump.fun team stated that the first batch of users will receive special rewards during the token issuance and revealed that all profits have been reinvested into the platform's development, with the goal of creating a platform that rivals or even surpasses certain trading platforms.

According to data, Pump.fun's daily revenue has reached or exceeded one million dollars multiple times recently, and it surpassed a cumulative fee of 100 million dollars at the end of August. Recently, it has once again triggered a surge in users due to the hot trading of the memecoin Moo Deng.

9. ApeCoin launches L2 Apechain mainnet on Arbitrum Orbit and goes live with cross-chain bridge.

ApeCoin announced the launch of its Layer 2 mainnet ApeChain on Arbitrum Orbit and officially launched a cross-chain bridge, providing more efficient capital circulation and yield opportunities for the Ape ecosystem. Now, users can transfer tokens to ApeChain through the official bridging website of ApeChain and earn native yields on APE, ETH, and stablecoins. Stablecoins will automatically convert to DAI after being bridged to ApeChain and will be deposited into sDAI accounts, accumulating yields based on MakerDAO's savings rate.

ApeChain's official website has been updated, not only providing cross-chain bridging functionality but also showcasing various partners and launched applications, further expanding the global exposure of the Ape ecosystem.

A certain NFT trading platform also announced that it will support ApeChain, becoming its first Launchpad and Marketplace based on ApeChain, providing issuance and trading services for projects in the ApeChain ecosystem.

10. Sushi releases Super Swap roadmap, which will launch multiple new liquidity protocols.

Sushi announced its latest Super Swap roadmap, further promoting the upgrade of liquidity and trading experience in decentralized finance ( DeFi ). Sushi has the most extensive exchange and aggregation features in DeFi, allowing users to trade seamlessly across over 35 blockchains through its multi-chain router Route Processor, enjoying the best exchange paths and rates. The release of this Super Swap roadmap will enable Sushi users to "swap any asset anytime, anywhere," and launch multiple new products and protocols.

New features include the Blade impermanent loss (IL) automated market maker (AMM) designed for professional traders, aimed at reducing the risks for liquidity providers while stabilizing the returns on blue-chip assets. In addition, Sushi plans to launch an innovative DeFi perpetual contract native protocol called Kubo, as well as ALM smart pools, to help liquidity providers achieve robust returns in a multi-chain environment.

Sushi's expansion plan also includes several newly launched native DEXs, each targeting different blockchain ecosystems:

• Saru: Designed for the ApeChain ecosystem, aimed at expanding liquidity for NFTFi and GameFi.
• Susa: Based on Layer N blockchain, providing a CeFi-like low-latency, high-efficiency liquidity trading experience.
• Wara: Designed specifically for Solana, connecting EVM and Solana's cross-chain liquidity through Route Processor technology.

To celebrate the Super Swap roadmap, Sushi will hold a series of community interaction activities including the "SWAP ANYTHING" brand event, AMA, a new FAQ section, YouTube tutorial series, Gaxle NFT issuance, and provide rewards for loyal supporters.

11. A trading platform plans to launch its native blockchain network Ink in 2025.

A cryptocurrency exchange platform announced that it will launch its first native blockchain network "Ink" in Q1 2025. This is a Layer 2 blockchain based on Optimism Superchain and running on the Ethereum ecosystem. The launch of Ink aims to create a seamless and efficient entry point for users into Decentralized Finance, providing a bridge between centralized and decentralized finance.

Ink is based on the open-source OP Stack of Optimism, enjoying the security of Ethereum and standardized collaboration, which will make it a part of the Superchain, sharing security, governance, and scalability capabilities with other blockchains.

Core Features of Ink:

• Simplified DeFi entry threshold: Ink allows users to more easily transition from the centralized world to the on-chain DeFi ecosystem through aggregation and a frictionless approach.

• Seamless Interoperability: As a member of Superchain, Ink inherits the security of Ethereum and enhances the scalability of Decentralized Finance applications.

• Support for Developers: Ink provides comprehensive documentation, expert guidance, and financial support to assist developers in realizing their ideas, further promoting the development of Decentralized Finance.

Ink will become a significant achievement accumulated by the trading platform in the crypto field for many years, dedicated to bringing Decentralized Finance to a wider range of users and allowing developers to explore new financial revolutions in this DeFi-centric environment.

12. Ethereum The Verge Roadmap: Reducing Node Operating Costs, Promoting Blockchain Universal Verification

One of the great advantages of blockchain is that anyone can run a node and verify its correctness, making it difficult for a few to manipulate chains running on either PoW or PoS consensus. Even if most nodes agree to change the rules, as long as some nodes choose not to accept, the old rules will continue to be followed, and they will still receive support from users running fully verified nodes.

However, this guarantee relies on a sufficient number of users being able to run full validating nodes. Currently, regular laptops can execute nodes, but the costs are relatively high. Ethereum's "The Verge" roadmap aims to reduce the cost of running nodes, allowing smartphones, watches, and even browsers to perform node validation.

At the core of The Verge is the implementation of stateless validation technology, which means that nodes do not need to store the complete chain state, but instead validate through a witness mechanism. This technology includes innovations such as Verkle trees and STARKs. As these technologies mature, the storage requirements for Ethereum nodes will significantly decrease, further enhancing the degree of decentralization of the network and increasing user participation.

2. Decentralized Finance Data Dashboard

1. TVL