Decentralized Finance income market interpretation: Pendle TVLbig pump10 times, Convex lock-up amount rise17.5%

Original author: OurNetwork

Original translation: Deep Tide TechFlow

Today we will discuss the ‘yield-type’ protocol, which is a classification of the Decentralized Finance protocol created by Decentralized FinanceLlama. Although this term is somewhat vague, we can’t think of a more appropriate vocabulary at the moment, so we will use this term. In the yield category of DL, there are 500 long protocols, with a total TVL of 7.95 billion US dollars, which is a 74% decrease from November 2021 long, but still impressive for a new Decentralized Finance system.

Despite the ever-changing market, traditional participants and new entrants are competing for the same on-chain capital. However, some notable winners have emerged. The fixed interest rate lending protocol Pendle performed exceptionally well in the first half of 2024, becoming a leader in the overall category, with TVL rising from $300 million to $3.5 billion, a tenfold increase, despite the overall decline in the Decentralized Finance market. The value of PENDLE Token has also tripled since the beginning of the year. The protocol currently holds 44% of the TVL in the yield category and is expected to collect $22.6 million in annual fees. Overall, this is a remarkable achievement, and I look forward to seeing more on-chain research to explain how they have achieved this goal.

Friendly reminder: These Decentralized Finance returns are available to anyone in the world with a Wallet and internet connection! I encourage you to try some on-chain protocol to earn returns for yourself. Next, let’s delve deeper into this category.

Decentralized Finance Returns

Convex, Stake DAO, Tranchess, PENDLE, AURA

① Convex

MarcoV | Website | Dashboard

Convex locked CRV reached 385 million (+17.5%) in July

• Convex enables Curve.fi’s Liquidity Providers to earn enhanced CRV and Liquidity Mining rewards without locking CRV. On the other hand, it provides Money Laundering and enhanced CRV shares to CRV lockers, thus improving capital efficiency. Recently, due to the large-scale liquidation of CRV leading to a price drop, the total amount of CRV locked by Convex has rapidly increased to over 384 million (+17.5%) within a month. As shown in the chart below, Convex remains the largest entity locking CRV.

Dune Analytics - @Marcov

• By locking CVX, users can access the CRV locked by Convex to receive protocol rewards (currently 0.05%) and bribes (currently about 15%). You can also stake CVX to receive a 5.25% return. In July, we can see a slight decrease in the locked amount of CVX, while the amount of staked CVX has slightly increased.

Dune Analytics - @Marcov

• By dividing the total locked CVX by the number of CRV locked in Convex, you can get the number of CRV Tokens corresponding to each locked CVX, as the locked CRV increases and decreases slightly, this number has increased to 7.43. This means that locking 1 CVX Token can access 7.43 locked CRV.

Dune Analytics - @Marcov

② Stake DAO

Hubert | Website | Dashboard

Over 100 million CRV locked by Stake DAO

• Stake DAO is the preferred platform for generating returns on your Cryptocurrency. On Stake DAO, you can access opportunities for returns from long protocols, such as: Curve (Decentralized Exchange and lending), PENDLE, PancakeSwap, Yearn, Balancer, F(x). It allows users to provide liquidity, borrow, and leverage on long on-chain, and earn better rewards than directly using these protocols.

DeFiLlama

• This superior return is due to the stake DAO’s share in the governance token of the underlying protocol, which can receive enhanced rewards when providing liquidity. For example, on Curve, Stake DAO has just reached a level of locking in 100 million CRV, making it the second holder to reach this level after Convex.

Dune Analytics - @Marcov

• Stake DAO not only integrates with Curve, but also collaborates with more than ten protocols. Its success is closely related to its superior peg maintenance and the broader utility of stake derivatives.

defiwars.xyz

• Trading level Alpha: Finally, Stake DAO recently launched OnlyBoost, a product that simplifies decision-making and helps users find the best returns for specific pools by allocating user deposits to different ‘boosters’ (such as Convex and Stake DAO) to maximize returns. In this transaction, the user deposited $560,000 in the crvUSD lending pool. These funds were split: $303,000 through Convex and $257,000 through Stake DAO. This maintains 2.5 times the boost and the best returns for the pool.

③ Tranchess

Anthony Loya | 网站 | 仪表盘

Tranchess unlocked 101.58 million CHESS Tokens, equivalent to approximately $14.08 million.

• Tranchess is a Decentralized Finance protocol that offers products to enhance returns through QUEEN, BISHOP, ROOK, and CHESS Tokens, supporting various risk allocation assets such as BTC, ETH, and BNB. CHESS is the governance token, while veCHESS represents locked CHESS Tokens, granting voting rights and rewards. Tranchess V2 introduces instant exchange and an added rebate pool, enhancing asset allocation flexibility.

DeFiLlama

• During this period, the asset price Fluctuation significantly, reaching a peak of $0.1954 in December 2023, followed by a decline and a partial recovery to $0.1399 in July 2024. The volume shows significant peaks, especially on July 11, 2023, and November 11, 2023, indicating significant market activity. The Liquidity remains relatively stagnant, gradually decreasing from $1.03 million in July 2023 to $0.2536 million in July 2024. The significant unlocking events in the past few months have been accompanied by sharp price drops and low volume, such as on April 6, 2024, and June 2, 2024. Overall, the market exhibits dynamic behavior and shows signs of recovery in mid-July 2024.

DeFiLlama

• The unlock amount of CHESS Token is huge, about 101.58 million, and according to DefiLlama’s data, the stake amount has also decreased. Starting from March 28, 2024, the stake amount decreased from $12.29 million to $6.35 million as of July 30, 2024. There are long reasons for the decrease in protocol stake amount. Firstly, the introduction of liquid stake tokens (LRTs) and new stake models have caused greater competition in the field of Decentralized Finance.

Dune Analytics - @dragon_cat

• Trading Level Alpha: After June, there have been many six-figure funds among Tranchess’ stakers, which reflects that the protocol still attracts some stakers. For example, an account user staked 331,700.55 dollars of eQUEEN on June 3, 2024.

④ Pendle

Dan Anthony | Website | Dashboard

Pendle leads in the ‘yield’ category with a TVL of $3.5 billion.

Pendle is a protocol that splits the revenue Token into Principal Token (PT) and Yield Token (YT), with a volume exceeding 245 billion US dollars since January, and a monthly growth rate of 96%.

analytics.pendle.finance

• Pendle’s current TVL is $3 billion, which has reached $6.7 billion. The decline in TVL is due to pools expiring at the end of June, and Pendle has resolved revenue of over $3 billion.

analytics.pendle.finance

• Pendle currently accounts for approximately 40% (6 billion US dollars) of the sUSDe TVL on Ethena, making us the largest holder of sUSDe to date.

analytics.pendle.finance

• Trading Level Alpha: Tron’s founder Justin Sun purchased PT-eETH and PT-pufETH to earn fixed income. This link shows Justin Sun’s dashboard on Pendle. The transaction is conducted through long trades.

⑤ AURA

Owen Fernau | Website | Dashboard

Aura attracted 70% of the BAL (veBAL) Tokens locked by Balancer voting

• Aura Finance is a protocol with a TVL of over 4 billion US dollars, built on the Decentralized Exchange Balancer, whose TVL exceeds 8 billion US dollars. Aura interfaces with three key entities: BAL stakers, Balancer Liquidity Providers (LP), and AURA holders, all of whom can earn from the protocol. Aura has attracted 70% of all ‘voting-locked’ BAL (veBAL), which grants users the ability to vote and collect fees on the Balancer platform. Users gain these benefits through auraBAL, which earns additional rewards from Aura when staked or used for providing Liquidity.

Dune Analytics - @aura_finance

• The linkage between Aura issuance’s veBAL version auraBAL and the 80/20 BAL/ETH Balancer LP Token has deviated from the 1:1 ratio (veBAL is minted through 80/20 BAL/ETH LP Token). The ratio between these two tokens reached as high as 90% auraBAL in June. The ideal linkage ratio is 50:50.

Dune Analytics - @aura_finance

• Since the launch of the protocol in July 2022, Aura has generated over $250,000 in revenue almost every month, with only one exception. In August 2022, the revenue of the protocol reached $8.35 million, setting a new record.

Dune Analytics - @aura_finance

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