After a relatively quiet period, the Avalanche ecosystem this week took new steps to solve the problem of cash flow being blocked in the ecosystem. What is that move and how is it implemented? Find out with today’s Avalanche Panorama #12 update.
Overview of Avalanche . ecosystem
- The new generation Avalanche Bridge promises to be officially deployed in the near future. The solution will help increase the performance of the old Bridge and scale to many different Chains.
- After Tether, the second largest stablecoin on the market, USDC, also announced that it will integrate many Blockchains, including Avalanche (details you can find out about). here).
- Chainlink Price feeds have been officially deployed on Mainnet.
- AAVE launched on the Avalanche ecosystem – offers great potential in the Lending segment.
Impressive numbers in the Avalanche . ecosystem
- The number of Validators participating in Staking reached 990 (up 35 since the beginning of July).
- The total amount of AVAX Burned has reached more than 137,000 AVAX ($1.3 million – $9.6).
- However, in June, the amount of Gas Fee Burned decreased sharply (decreased by about 45%).
Recently, the ecosystem has appeared a number of projects belonging to important pieces such as Lending and Synthetic Assets. Specifically:
- Aspen Protocol – a platform on Synthetic Assets.
- VCRED – Projects operating in the field of Flash Loan announced deployment on Avalanche.
- Vee Finance – a remarkable Lending Platform when receiving investment from AVATAR Ventures.
- Kuu Finance – Liquidity platform announced Partner with BenQi. This partnership will help stabilize BenQi’s operations.
- In addition, another outstanding project in the Trading segment was launched Onomy Protocol. And this platform also provides Lending feature.
Analyzing each piece in the Avalanche ecosystem
Lending & Borrowing
Lending & Borrowing is the highlight of this week’s Panorama issue. The integration of Chainlink Price Feeds I mentioned in Avalanche Panorama #09 opened the door for a series of Lending projects to work on Avalanche.
That’s the reason why there have been a lot of projects in the field in the past week Lending appeared on Avalanche. Among the new projects on the AVAX system I just mentioned above, there are 2 projects that I find the most prominent: Vee Finance & AAVE.
With Vee Finance, according to me, this is a simple Lending platform, currently there are no special features with the Testnet version. However, the project was invested by AVATAR fund – a fund established with a size of $20M with the goal of developing DeFi platforms on Avalanche.
The exact amount of capital raised has not been announced and this deal of AVATAR will be led by Huobi Ventures. With the investment by Venture Capital, Vee Finance will take more methodical steps to promote the development of the ecosystem.
In addition, there is also a top Lending platform in the market that is showing signs of expansion through Avalanche, which is AAVE.
If you compare through the Polygon ecosystem, you can see, with AAVE being deployed, Liquidity on Polygon is strongly bootstrapped.
Since AAVE was deployed on Polygon in April 2021, the whole system TVL has grown. Moreover, currently TVL on Polygon is at $6.57B, of which on AAVE has accounted for $3.2B (nearly 50% liquidity).
So this can be a sign for you to betting and trusting again Avalanche ecosystem.
If Lending wants to thrive, Bridge plays a very important role as a bridge to bring liquidity to the ecosystem.
In recent times, the biggest update to Bridge is the launch of a new generation of Avalanche Bridge with performance again 10 times faster and 5 times cheaper compared to the current Avalanche Ethereum solution. This has very important implications:
- Firstly, it will give a better user experience when doing it Cross-chain Transfer.
- As AAVE or other Lending Protocols grow, more programs will be deployed Liquidity Mining so that Bootstrap liquidity leads to volume APY will be higher than on Ethereum, Polygon, …
- That leads to an increased demand for cash flow transfer through Avalanche. In order for this process to not be interrupted, the Bridge must be smooth.
Currently, there is no information about the official time when the new generation Avalanche Bridge will be deployed. Please follow Avalanche’s information channels closely to get the latest updates.
If we look at the metrics of prominent bridges, AEB (Avalanche Ethereum Bridge) and Ren Protocol, we can see that the value continues to decline.
For AEB, current figures show no growth in value through Bridge.
Because the price of tokens at the time of writing has a very strong decrease, I will calculate it according to Value in ETH for comparison. Value in ETH via AEB has a slight increase, see here.
About Ren Protocol, the current renBTC on Avalanche is still nothing remarkable (the new number is only 1 renBTC).
Thus, in terms of data on Bridge, we have not seen any signs of money flowing into the ecosystem.
In the AMM array, Pangolin continues to remain the foundation AMM major in the ecosystem. However, recently I saw another DEX that is experiencing TVL growth, which is Trader Joe.
Currently, Trader Joe has climbed to the number 3 position among the platforms with the largest TVL in the Avalanche ecosystem. And as you can see in the picture above, Trader Joe is the only platform in the Top 10 that has witnessed the growth of TVL in recent times.
The explanation for this growth may lie in the revenue redistribution of the platform to the Holder of the project (which Pangolin currently does not have) and the design of more reasonable tokenomics.
In terms of trading volume, in general both the largest AMMs on this Avalanche system have decreased in volume, but Pangolin shows a larger decrease than Trader Joe’s. If we consider the Volume (7D)/TVL index, we will have the following:
Comparing some indicators & fundamental analysis, it can be seen that Trader Joe is proving to be a formidable competitor capable of competing with Pangolin in the AMM segment on the Avalanche ecosystem.
I can give some brief ideas about the Avalanche ecosystem as follows:
- The Lending puzzle piece with the participation of AAVE and Vee Finance and many other projects can bring a breath of fresh air to the Avalanche system.
- With Lending going to grow, the role of Bridge is very important. What you can pay attention to the Avalanche ecosystem in the near future will be located in “Deploying Next Generation Avalanche Bridge” & “AAVE Launching on Avalanche”.
- Considering the Bridge data, there is no significant change, it is still flat.
- About AMM, recently appeared a competitor capable of competing with Pangolin, Trader Joe with a more reasonable Tokenomics mechanism.
Thus, through Avalanche Panorama #12, I have updated and analyzed for you the events of the AVAX ecosystem. Hope you get a lot of value as well as important insights through the article, see you in the next Panorama issue!
#Avalanches #Lending #Piece #pushed