Binance Labs invests in Bitcoin liquid staking token LBTC developer Lombard | Snap DeFi Biweekly Report October

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1. DeFi Industry Observation

1. Binance Labs invests in Bitcoin liquid staking token LBTC issuer Lombard

Binance Labs announced an investment in Lombard, a company focused on developing and issuing LBTC. LBTC, as a security-focused Bitcoin liquid staking token (LST), allows both individual and large institutional holders to earn yields and leverage their Bitcoin assets in DeFi. By collaborating with Babylon, Lombard aims to connect the economic value and security of Bitcoin with diverse opportunities in DeFi.

Since its launch in August, Lombard has captured 40% of the Bitcoin liquid staking market, with a total value locked (TVL) exceeding $500 million or 8,500 BTC, and the number of users surpassing 12,500. To achieve the goal of connecting Bitcoin to DeFi, over 60% of LBTC has been used for Pendle's yield strategies, institutional lending on Maple Finance, and lending on platforms like Morpho and ZeroLend. Lombard has also partnered with ether.fi to introduce the first Bitcoin liquid re-staking token.

Official announcement: https://www.binance.com/en/blog/ecosystem/binance-labs-invests-in-lombard-to-connect-bitcoin-to-defi-4826217132625427247

2. Kraken launches wrapped Bitcoin KBTC

Kraken has launched kBTC, a cross-chain ERC-20 token fully backed 1:1 by Bitcoin, aimed at extending Bitcoin's value into DeFi ecosystems such as Ethereum and OP mainnet. kBTC not only brings liquidity for Bitcoin but also provides strict security guarantees, allowing users to verify on-chain reserves at any time. The launch of this token marks a new application scenario for Bitcoin in a multi-chain ecosystem and creates new opportunities for developers and investors.

Initial partners on the first day included well-known DeFi platforms such as deBridge, Gauntlet, and Yearn, highlighting kBTC's potential for ecosystem integration. The launch of kBTC enables Bitcoin to be more flexibly integrated into decentralized finance, becoming an important choice for on-chain diversified asset allocation.

Official announcement: https://blog.kraken.com/news/kbtc

3. ZKsync's new proposal aims to distribute 300 million ZK tokens to DeFi users within 9 months

ZKsync launched its first governance proposal "ZKsync Ignite" on the @TheZKNation forum, planning to distribute 300 million ZK tokens to DeFi users over nine months, with the goal of making ZKsync Era a liquidity hub for Elastic Chain. The plan, drafted by @merkl_xyz, aims to inject vitality into the ZKsync Era DeFi ecosystem by enhancing the liquidity of assets such as ETH, USDC, and WBTC, attracting liquidity providers and developers to participate. Additionally, the proposal requests 25 million ZK tokens to cover management fees. If approved, ZKsync Era will further solidify its position in the DeFi space, becoming a liquidity hub in the multi-chain ecosystem.

Official announcement: https://x.com/zksync/status/1846904535651852340

4. Aptos plans to integrate stablecoins like Tether and USDY

Aptos has rapidly risen in two years and is pushing to become a new foundation for global payment solutions by integrating stablecoins like Tether and USDY. The integration of these stablecoins allows Aptos to achieve faster, lower-cost, and secure cross-border fund circulation, supporting applications in DeFi and cross-border payments.

While the Aptos network boasts 27.7 million active addresses and a total transaction volume of 17 billion, it also set a record of 326 million transactions in a single day in Q3 2024, showcasing its excellent transaction processing capabilities and stable low-fee advantages. Its tech stack, including the latest Move 2 language, Raptr consensus protocol, and Block-STM v2 parallel execution engine, positions Aptos as an ideal platform for DeFi, gaming, and payments, laying a technological foundation for future global financial applications.

Official announcement: https://aptosfoundation.org/currents/2-years-of-aptos

5. Modular DeFi L2 network Mode opens second season airdrop

The modular DeFi L2 network Mode has officially announced that the second season airdrop is now open for collection, and the staking activities for the third season have also commenced. The official expressed gratitude to users participating in the second season and reminded users that airdrops can only be claimed on MODE's official dashboard to prevent scams.

The third season will be a critical moment for Mode. As the first protocol on Superchain to adopt the ve-model, Mode will focus on staking (not locking), protocol voting, and dynamic governance for long-term growth, laying the foundation for the continuous evolution of DeFi and innovative governance models. The official refers to this new governance mechanism as "governance games."

Official announcement: https://x.com/modenetwork/status/1847344754616676414

6. Arbitrum ecosystem derivatives trading protocol Variational completes $10.3 million seed round financing

Cryptocurrency derivatives trading protocol Variational announced that it has successfully completed a $10.3 million seed round financing on the Arbitrum network. This round was co-led by Bain Capital Crypto and Peak XV Partners (formerly Sequoia India and Southeast Asia), with other participants including Coinbase Ventures, Dragonfly Capital, North Island Ventures, and Hack VC.

Founded in 2021, Variational initially operated as a proprietary market maker for two years before transitioning into a DeFi protocol after becoming profitable. The protocol's first application is the Omni platform aimed at the retail market, offering perpetual contract trading that allows users to leverage trade new tokens, asset combinations, and yield/volatility products. Additionally, Omni's liquidity providers (OLP) can aggregate liquidity from centralized and decentralized exchanges and support community users in participating in deposits to earn yields.

Variational is currently testing on Arbitrum Sepolia and plans to launch an invite-only mainnet before the end of the year, with a public mainnet set for Q1 2025. With the mainnet launch, the protocol's token will also be issued next year. Variational stated that while it is initially launching on Arbitrum, it does not rule out the possibility of expanding to other Layer 1 and Layer 2 blockchains in the future.

Source: https://www.theblock.co/post/322653/arbitrum-crypto-protocol-variational-funding

7. European Commission approves NYSE and Cboe for spot Bitcoin ETF options trading

The European Commission recently approved the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (Cboe) to list options trading for spot Bitcoin ETFs. This decision injects significant financial innovation into the European and global markets, marking further legitimization and mainstream acceptance of Bitcoin in regulated markets.

With this approval, investors can not only hold the value of Bitcoin directly through spot Bitcoin ETFs but also utilize options for more flexible investment strategies, such as hedging risks or engaging in leveraged trading. This move not only expands the application scope of Bitcoin as a financial asset but also helps enhance market liquidity and stability.

Source: https://x.com/martypartymusic/status/1847403478898835581

8. Pump.fun launches advanced trading terminal and previews token issuance

The Solana-based memecoin trading platform Pump.fun announced the launch of a new advanced trading terminal "Pump Advanced" for high-level users and previewed future token issuance in X Spaces, attracting widespread attention.

The Pump Advanced terminal offers various powerful features for high-frequency traders, including price charts, TOP holder statistics, advanced filters, and real-time updated discussion threads, aimed at meeting the needs of professional users. The platform allows users to log in via non-custodial wallets and offers a 0% fee promotion for the first 30 days. The Pump.fun team stated that the first batch of users will receive special rewards during the token issuance and revealed that all profits have been reinvested into platform development, aiming to create a platform that rivals or even surpasses Binance.

According to data from The Block, Pump.fun's daily revenue has recently reached or exceeded one million dollars multiple times, and it surpassed $100 million in cumulative fees by the end of August, with a recent surge in user activity due to the hot trading of the memecoin Moo Deng.

Official announcement: https://x.com/pumpdotfun/status/1847730806334378287

9. ApeCoin launches L2 Apechain mainnet on Arbitrum Orbit and cross-chain bridge

ApeCoin announced the launch of its Layer 2 mainnet ApeChain on Arbitrum Orbit and officially launched a cross-chain bridge, providing more efficient capital circulation and yield opportunities for the Ape ecosystem. Users can now transfer tokens to ApeChain through the official bridging website and earn native yields on APE, ETH, and stablecoins. Stablecoins will automatically convert to DAI upon bridging to ApeChain and will be deposited into sDAI accounts, accumulating yields based on MakerDAO's savings rate.

The ApeChain official website has been updated to not only provide cross-chain bridging functionality but also showcase various partners and launched applications, further expanding the global exposure of the Ape ecosystem.

Magic Eden also announced support for ApeChain, becoming its first Launchpad and Marketplace based on ApeChain, providing issuance and trading services for projects within the ApeChain ecosystem.

Official announcements:

https://x.com/apecoin/status/1847731593437155673

https://x.com/apecoin/status/1847773568429330791

https://x.com/apecoin/status/1848022073051889910

https://x.com/MagicEden/status/1847758312672284846

10. Sushi releases Super Swap roadmap, introducing multiple new liquidity protocols

Sushi announced its latest Super Swap roadmap, further promoting the upgrade of decentralized finance (DeFi) liquidity and trading experience. Sushi boasts the most extensive swapping and aggregation features in DeFi, allowing users to seamlessly trade across over 35 blockchains through its multi-chain router Route Processor, enjoying the best exchange paths and rates. The release of the Super Swap roadmap will enable Sushi users to "swap any asset anytime, anywhere" and introduce several new products and protocols.

New features include the Blade automated market maker (AMM) designed for professional traders to reduce the risks of impermanent loss (IL) while stabilizing blue-chip asset yields. Additionally, Sushi plans to launch a native perpetual contract protocol called Kubo and innovative features like ALM smart pools to help liquidity providers achieve robust yields in a multi-chain environment.

Sushi's expansion plans also include several newly launched native DEXs targeting different blockchain ecosystems:

• Saru: Designed for the ApeChain ecosystem, focusing on expanding liquidity for NFTFi and GameFi.
• Susa: Based on Layer N blockchain, providing CeFi-like low-latency, efficient liquidity trading experience.
• Wara: Specifically designed for Solana, connecting EVM and Solana's cross-chain liquidity through Route Processor technology.

To celebrate the Super Swap roadmap, Sushi will host a series of community engagement activities, including the "SWAP ANYTHING" brand event, AMAs, a new FAQ section, YouTube tutorial series, and Gaxle NFT issuance, providing rewards for loyal supporters.

Official announcement: https://www.sushi.com/blog/swap-anything

11. Cryptocurrency exchange Kraken plans to launch its native blockchain network Ink in 2025

Kraken announced that it will launch its first native blockchain network "Ink" in Q1 2025, which is a Layer 2 blockchain based on Optimism Superchain and operating within the Ethereum ecosystem. The launch of Ink aims to create a seamless and efficient entry point for users into DeFi, providing a bridge between centralized and decentralized finance.

Ink relies on Optimism's open-source OP Stack, benefiting from Ethereum's security and consistent standard collaboration, making it part of the Superchain and sharing security, governance, and scalability with other blockchains.

Core features of Ink:

Simplified DeFi entry barrier: Ink allows users to more easily transition from the centralized world into the on-chain DeFi ecosystem through aggregation and frictionless methods.

Seamless interoperability: As a member of the Superchain, Ink inherits Ethereum's security and enhances the scalability of DeFi applications.

Support for developers: Ink provides rich documentation, expert guidance, and funding support to assist developers in realizing their ideas, further promoting the development of DeFi.

Ink will be a significant achievement of Kraken's years of accumulation in the crypto space, dedicated to bringing DeFi to a broader audience and allowing developers to explore new financial revolutions in this DeFi-centric environment.

Source: https://www.bloomberg.com/news/articles/2024-10-24/crypto-exchange-kraken-plans-to-launch-its-own-blockchain-early-next-year?srnd=homepage-europe

12. Ethereum The Verge roadmap: Reducing node operating costs to promote blockchain verification for all

One of the advantages of blockchain is that anyone can run a node and verify its correctness, making it difficult for a few to manipulate chains running on either PoW or PoS consensus. Even if most nodes agree to change the rules, as long as some nodes choose not to accept, the old rules will continue to be used, and they will still receive support from users running complete validating nodes.

However, this guarantee relies on a sufficient number of users being able to run complete validating nodes. Currently, ordinary laptops can execute nodes, but the costs are high. Ethereum's "The Verge" roadmap aims to reduce the operating costs of nodes, allowing smartphones, watches, and even browsers to perform node verification.

The core of The Verge is to achieve stateless verification technology, meaning that nodes do not need to store the complete chain state but verify through a witnessing mechanism. This technology includes innovations like Verkle trees and STARKs. As these technologies mature, the storage requirements for Ethereum nodes will significantly decrease, further enhancing the network's decentralization and increasing user participation.

Source: https://vitalik.eth.limo/general/2024/10/23/futures4.html

2. DeFi Data Dashboard

1. TVL Data

Solana's TVL (Total Value Locked) returned to second place this week, while it's worth noting that Sui's TVL remains within the top 10 this week, closely followed by Aptos, which also uses the Move language.

https://defillama.com/chains

2. Stablecoin Data

The total market capitalization of stablecoins is currently reported at $172.44 billion, with a 7-day decline of 0.11%. Among them, USDT accounts for 69.68%, while USDe, launched by Ethena Labs, has slightly increased to 1.52%, becoming the fourth largest stablecoin.

https://defillama.com/stablecoins

3. DEX Data

According to the latest data, Uniswap still maintains its leading position in the decentralized exchange (DEX) market. Raydium grew by 36.29% this week, surpassing PancakeSwap in weekly trading volume to rank second. DEX performance on the Solana chain has been impressive this week, with Solana's on-chain DEX trading volume reaching $16.317 billion in the past 7 days, ranking first across all chains.

https://defillama.com/dexs

https://defillama.com/dexs/chains

3. SnapFingers DeFi Radar

At a time when both BTC and ETH have returned to previous highs, we can expect a return of DeFi, but not in the form of DeFi Summer. As the bubbles of restaking are punctured one by one, high TVL can no longer represent DeFi indicators and can only serve as a reference coordinate.

Of course, there are opportunities for new public chain DeFi projects to launch, but these cannot last. The real indicators are the number of interactions with the DeFi, even if it is not the node with maximized transaction fees or extremely high TVL. Under the mainstream narratives of Crosschain liquidity and Crosschain Intend (divided into cross-multi-chain, cross-EVM chains, and cross-OP Stack), the protocols that can be called the most in this environment will become the winners of this round.

Every wave of DeFi will have new unicorn players, emphasizing the replacement of CEX. However, in this market with a high frequency of bull-bear transitions, DeFi that can cooperate with CEX or even integrate CEX liquidity will be more favored. The Japanese and Korean communities are starting to move towards DeFi, playing a new indicator role in the market. The highest practicality or those who gain Japanese and Korean users will achieve the highest profits in the 2025 market.

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【Disclaimer】: The market has risks, and investment requires caution. This article is for communication and learning purposes only and does not constitute any investment advice. Not Financial Advice, Do Your Own Research.

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