Hey Everyone,
Welcome to this week's edition of the DEXTF Newsletter!
You can follow the community conversations on Discord, Telegram, Twitter, and Reddit!
DEXTF updates
Our new website is now live!
We published episode 7 of DeFi Jabs
Mega DEXTF giveaway is underway. Do join in!
For those that want to dig into what’s DEXTF, this is a good start:
Also, DEXTF is hiring! If you think this is you, reach out to us. DMs are open.
Portfolio Metrics
[As of 28th October 2021].
Please refer to the DEXTF website for the latest APRs:
DEXTF/ETH is offering a 20% APR
XTF LPs can currently earn a 16% APR
You can earn $DEXTF by providing liquidity on whitelisted fund tokens (XTF2) on Uniswap (10K tokens daily).
Current TVL is US$1,588,800
You can invest by buying on Uniswap or on the DEXTF app
Here’s a quick guide on how to buy
Concept of the Week
⚖️ DeFi 2.0
In the last few weeks, a new narrative seems to have begun to identify a set of projects paying for liquidity instead of renting it. Enter DeFi 2.0.
DeFi has succumbed to its speed of innovation after realizing that decentralizing finance also means decentralizing loyalty. Because liquidity mining rewards are loyalty points used to pay for a "temporary" allegiance to increase TVL. The cutthroat competition with food memes and scams has made rug pulls and liquidity draining games all the more hazardous.
To put it bluntly, DeFi 2.0 is regressing to how firms consolidate resources to achieve economies of scale and scope. Centralizing liquidity requires the LPs to cast a vote of confidence in the token received in exchange.
Interestingly, DeFi 1.0 has created the demand that DeFi 2.0 will solve through its Protocol-owned Liquidity (or Value).
Furthermore, DeFi 1.0 or, better yet, TraDeFi had increased yield opportunities for stablecoins, leading to over-reliance and ponzi-like rewards from algorithmic stablecoins.
Therefore DeFi 1.0 was mainly characterized by wealthy investors depositing stablecoins to "farm" governance coins that may or may not have any value.
Another interesting consideration is how the risk management will change for smart contracts containing this protocol-owned value. Arguably, since the funds are still obtained for free (by the protocol), the competition for DeFi 2.0 will shift to target a different angle. APYs will not be the deciding factor for depositors; now, an ulterior barrier has materialized: users need to ensure and trust that the protocol has a future.
Suddenly, depositors have found themselves venturing into the wild, into the world of real DeFi, where free money does not exist.
Semper Fortis
DEXTF Team