Money Legos keep stacking! Finance Redefined 4/21-4/28

Happy Wednesday fellow DeFi degens!

I was expecting to spend a large portion of this edition of Finance Redefined analyzing Aave’s liquidity mining program. There was some anxiety from investors that the emission of 2,200 $AAVE per day (which would translate to roughly 5% of the ecosystem reserve fund of 2.8 million AAVE per year) might end up dragging down the token’s price as farmers earn and dump.

Turns out, it’s unnecessary: the program’s an unmitigated success. The AAVE token is up nearly 15% since the launch of liquidity mining to $462, and the protocol’s total value locked figure has surged to $11.8 billion — up from just over $7 billion since liquidity mining began.

Well-researched liquidity mining works. Only question now is, if the program is discontinued, how much of that TVL will be sticky?

Other narratives to keep an eye on:

Money legos keep stacking

At the start of the year there was speculation that in 2021 DeFi would see something of a novelty: one protocol acquiring another, likely via a governance token buyout. The Synthetix 2021 roadmap in particular opened the door to such a possibility, comparing it to acquisitions in TradFi and looking to Yearn’s merger/acquisition/collaboration spree for inspiration.

Large-scale mergers and acquisitions have yet to play out, however. There are some smaller examples brewing — Inverse Finance is currently looking to buy out Tonic for some $1.6 million, for instance — but instead what we’re seeing is a boom in deep integrations at the protocol and frontend layers.

On Monday, Badger DAO and RenVM launched the Badger Bridge, a new interface for depositing native BTC into Badger vaults with just a few clicks. The integration stands…

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