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Newsletter #8: Total Value Locked in DeFi Tripled in a Month

Newsletter #8: Total Value Locked in DeFi tripled in a month. Plus, exciting news about the Eth2 Medalla testnet.

by Nicole AdarmeAugust 20, 2020

A DeFi Snapshot

Total Value Locked (TVL)

Between 2018 and the end of Q2 2020, DeFi accumulated over $1B USD into the ecosystem. Since the end of the quarter, that number has tripled to ~$4.5B USD in a month, according to DeFi Pulse. Below we also plot the TVL chart for major protocols monitored in our system – the total number adds up to ~$3.3B just from those 9 major protocols.

TVL August 2020.png

DeFi Daily Active Users (DAU)

In Q1 2020, we had ~62k active users seen across major DeFi protocols. The number went up to ~80k in Q2. Since late July and early August, we have seen Balancer emerge and capture a tremendous amount of users on the network. 

DAU August 2020.png

Quick Codefi Hits

  • New to the Newsletter and to Codefi? Check out this explainer video about ConsenSys Codefi.

  • Are you ready to stake? The SKALE Auction goes live on Codefi Activate on August 17th. Check out our bidding instruction guide for the auction and learn more about SKALE on the Activate website.

  • The SKALE Launching & Stake webinar is an in-depth AMA of what to expect and how to get prepared for the auction on August 17th. Watch the on-demand webinar now.

  • Introducing Codefi Markets, providing secondary trading for digital securities. Codefi Markets enables OTC peer-to-peer trading for tokenization platforms and issuers seeking to provide secondary markets for their investors.

  • In case you missed it, check out Codefi Data’s Q2 2020 DeFi Report, a complete analysis of protocol and ecosystem performance from April to June.

  • Ready for Ethereum 2.0? In July, the Medalla multi-client testnet went live and developers began staking GoETH to validate the network. Learn more about validating, staking GoETH, and next steps for the testnet leading up to the Beacon Chain launch in a few months. Introducing the Deposit Launch Pad for Ethereum 2.0.

  • The ConsenSys Partner Program offers technology partners, systems integrators, application firms, and software vendors access to custom benefits and new business opportunities with our leading blockchain products. Access to, support for, and training of Codefi products is just one of the benefits of joining the Partner Program.

  • ConsenSys Codefi Feedback: TLDR; we want to get to know you better and it’ll take a minute. 

Codefi Spotlight: The Eth2 Deposit Launch Pad

Like all great missions, launching the world computer of tomorrow requires a platform that guides, strengthens, and fuels its journey across the bounds of our digital space. In July, we announced the go-live of the Eth2 Launch Pad application, which marks the entry point for validators to commence their journey on the Eth2 chain. It’s time to get your testnet ETH ready!

Over the past few months, Codefi Activate and the Ethereum Foundation (EF) have been heads down to make it easier for users to stake and become a validator on Ethereum 2.0. The result of this effort is the Eth2 Launch Pad, an application designed to securely guide you through the process of generating your Eth2 key pairs and staking your 32ETH into the official deposit contract. The Launch Pad was designed for self-validators, that is, hobbyists who intend to run their own validator and are comfortable running commands in a terminal screen on their computer.

Initially, the Launch Pad is only compatible with the Eth2 Medalla testnet, which went live on August 4. The testnet is designed to provide ample time to ensure the Beacon Chain functions without error. Following the testnet phase, the Eth2 Launch Pad will continue to act as an entry portal for validators to stake real ETH for the Mainnet.

In 2019, we began digging into the Eth2 ecosystem to explore where Codefi Activate could add value to the roll out of Eth2 and fill existing communication gaps between the protocol builders, service providers and existing ETH holders with the approaching release of Phase 0. We have since focused our mission on developing educational resources and insights on Eth2 economics, as well as industry and validator research, the findings of which were recently released as the Eth2 staking ecosystem report.

Shortly after DevCon V we connected with Carl Beekhuizen, who was leading the deposit Command-Line-Interface (CLI) effort at the Ethereum Foundation (EF). Beyond the code, Carl has also focused on the user experience of ETH holders becoming validators for the first time. Given our existing Eth2 research efforts and our experience with launching networks, collaborating with the EF and Deep Work Studio was a congruent next step to ensuring the launch of Phase 0 was built in a way that prioritized user experience, but also articulated associated risks and educational information for users to feel comfortable setting up their own Eth2 validators.

Over the past few months we have been hard at work researching, designing, and building the Eth2 Launch Pad and we’re excited to share the outputs of this effort with you!

The Eth2 Launch Pad was open-sourced during the Ethereal Summit on May 8th, allowing users to host the application locally. Since its initial release, it has been great to see immediate engagement and feedback from the community. We continue to encourage teams and users to provide feedback!

Final Remarks

Thanks for sticking through this newsletter. Follow us on Twitter, learn more on our website, and let us know your thoughts. Whether you’re interested in working with us, for us, or you just want to say hello, please feel free to contact us.

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Till next time,

The ConsenSys Codefi Team