Before this week’s Debrief, we have some exciting news we announced on Friday: introducing Delphi Labs, the next step in Delphi Digital’s evolution.
Our goal with Delphi Labs is simple: to pull together the sharpest intellectual capital and allocate it to help build the most promising projects in the space.
We have already been working with many of the most ambitious projects in the space such as Aave, COMP, Synthetix and THORChain, among many others. In doing so, we’ve come to realize that the scarcest resource these projects face isn’t money, but talent.
Similar to what SushiSwap and THORChain are already doing, we see a future where “core teams” dissolve away and a broad “exit to community” gets built and governed by independent teams from all over the world. We intend for Delphi Labs to be the leading contributor to this future.
Delphi Labs will initially focus on token economics & development, areas where we have a proven track record. Over time, our goal is to expand our capabilities to anything that can help the projects we contribute to, guided by their needs and our ability to find exceptional talent.
The vision for the crypto space is nothing less than re-architecting how finance, the internet, and gaming work from the ground up. To execute this vision, we need even more builders and contributors to enter the space. If this vision speaks to you and you believe you can contribute, we want to hear from you.
Our goal is to become a leading contributor in building this decentralized future. Read more about Delphi Labs here.
Codename BONSAI! by John Jimin Noh and Medio Demarco
- Raydium is an Automated Market Maker (AMM) recently launched on Solana. Raydium offers lower transaction fees and higher throughput relative to competing AMMs deployed on Ethereum. An aspect that makes it unique, is that it provides and sources liquidity to Serum‘s central limit orderbook (CLOB).
- SushiSwap’s proposal, ‘BONSAI!’, outlines a plan for a potential partnership between Raydium and Sushi. SushiSwap’s liquidity would be ported over to Solana, fed into Raydium and then plugged into Serum. This would prove the liquidity that Raydium needs to thrive.
- Decentralized pools via BONSAI offer lucrative rewards for liquidity providers in the form of double yield. High incentives would likely attract participants who will also have access to fast and feeless transactions.
- SUSHI aims to be the main source of liquidity anywhere and BONSAI could be an important step to becoming that center point.
Loopring Leads L2 Adoption by Ashwath Balakrishnan
- Loopring has settled $590 million of volume in 2021 thus far. Initially, Loopring’s DEX ran off a central limit order book (CLOB), like most centralized exchanges. In late 2020, Loopring decided to switch to an automated market maker (AMM) as part of Loopring v3 in order to attract liquidity. Since then, it has been responsible for 60–90% of Loopring’s total volume.
- The number of wallets interacting with Loopring has grown since late December. This tells us that a fair number of Ethereum users have actually migrated to Loopring’s L2 after getting priced out of using mainnet DEXs such as Uniswap.
- Loopring v3 has close to $250 million of value locked. However, Loopring’s native token, LRC, accounts for over 40% of the protocol’s total value locked. This metric has been decreasing, which is a healthy sign, but needs to fall much lower to build liquidity beyond LRC.
- Traditionally, we’ve seen applications build out their core functionality and then focus on scalability. With Loopring, the opposite is true. As one of the first DEXs deployed on L2 infrastructure, Loopring chose to scale first and attract users later.
Visualizing Value Flows In & Out Of Avalance by Can Gurel
With the launch of the cross-chain Avalanche-Ethereum (AEB) bridge and community built decentralized exchange Pangolin, one after the other, Avalanche undeniably went through a very successful and exciting few weeks. Avalanche’s native token, AVAX, whipsawed from a $1bn circulating market cap up past $4bn and has now settled back at $2bn all over the course of the past 20 days. The rise of AVAX was mainly driven by the launch of Pangolin’s governance token, PNG, which was allocated 95% to community liquidity miners. As a consequence of such a generous distribution, liquidity in Pangolin rose from zero to $250m in just a few days. All these achievements sparked a lot of attention and allowed a perfect environment for many DeFi users to test drive Avalanche’s relatively new C-Chain blockchain.
As mentioned, we will continue to iterate on the design of our Delphi Debrief based on your feedback—so please let us know which section you enjoy the most and what else you’d like to see!