Dai on Different Networks #6 - August 5, 2021

Dai on Different Networks #6

If you missed last week’s update, here’s a link to Dai on Different Networks #5.

Overview

Where is my Dai (General)

This week’s overview shows a decrease of 2.4% of DAI circulation in DEXs and L2 solutions, and an increase of 2.5% in Lending and ‘Other’.

Dai on Rollups

Rollup Solution Circulating Dai Weekly Movement
Optimism 4,040,811.37 20.53% increase
Loopring 1,491,202.21 0.82% decrease
zkSync 793,856.64 0.86% decrease
Aztec 2.0 30,499.50 4.76% decrease
Hermez 10,853.06 0.00% increase

Where is my Dai (L2s)

Special thanks to @SebVentures. Bookmark his site for accurate, easy-to-read tracking for Maker analytics of all kinds.

Circulating Dai by Platform

As of 08/12/2021

Solution Circulating Dai Dai Holders
Avalanche 9,978,886 unknown
Binance Smart Chain 262,233,468.25 40,808
Fantom 39,329,994.62 2,973
Klaytn 64,698,600.24 5,054
Polygon 388,834,531.42 31,246
xDai 19,390,574 unknown

Circulating Dai on BSC, Fantom, and Avalanche has remained steady for over a month, but Polygon is still experiencing volatility, with another 7.9 million Dai moved off-chain last week - though the exodus has slowed considerably.

Klaytn also saw around 6 million Dai enter its network as KlaySwap pools continue to grow.

Tokens Bridged by TVL

This chart includes tokens across a number of chains, including Polygon, Loopring, Solana, Avalanche, Fantom, BSC, DeversiFi, Nerve, Harmony, RSK, Fuse, zkSync, OMG Network, Near, Aztec, Hermez, and Immutable X.

Multi-Chain News

Poly Network Hack

On August 10th, Poly Network - not to be confused with Polygon (MATIC) - found itself the victim of a multi-chain hack that saw the loss of over $600 million in funds.

The project was launched in August of 2020, with the backing of the teams behind NEO, Switcheo, and Ontology. The platform’s goal was to simplify the process of bridging and swapping tokens between several blockchain ecosystems including Binance, Ethereum, Polygon, NEO, Ontology, and HECO.

For technical insight into the hack, read the Twitter thread below:

Ok here's how the Poly Network hack actually worked. If I'm reading the contracts correctly, it's pretty genius.

— God-like Natural Number Creator Person (TM, R) (@kelvinfichter) August 10, 2021

DAOMaker Hack

August 12th saw another hack, this time affecting DAO Maker, a crowdfunding platform running on the Ethereum network. The breach saw a loss of over $7 million.

Per Decrypt, the attack was first reported by Wu Blockchain and was implemented using an exploit to access a company wallet with administrator privileges.

DAO Maker’s response can be read in the Twitter thread below:

SHO Contract Exploits

DAO Maker Statement regarding the recent events, the situation is taken care of, and all other DAO Maker contracts are safe.

Read Full Statement: https://t.co/g55dI6Wt1U

TLDR;

-Total of 7M was stolen from 5521 users; the average user lost $1250 USD.

1/

— DAO Maker (@TheDaoMaker) August 12, 2021

By Platform

Avalanche

Top Holders Circulating Dai Proportion
Pangolin 2,412,253 24.1736%
Other 7,566,633 75.8264%

Current Events

BENQI and Avalanche Launch $3 Million Liquidity Mining Initiative To Accelerate DeFi Growth

  • BENQI, an algorithmic liquidity market protocol, and the Avalanche Foundation are collaborating on a joint liquidity mining program to celebrate the launch of the BENQI protocol on August 19, 2021.

Trading card giant Topps and Bundesliga partner to release Bundesliga 2020-2021 Season Celebration NFT Collection by Topps

  • The Bundesliga 2020-2021 Season Celebration NFT Collection by Topps, powered by the Avalanche blockchain platform, will feature top players, rising stars, memorable moments from the 2020-2021 season.

Bridges

Binance Smart Chain

Top Holders Circulating Dai Proportion
Binance Hot Wallets 139,101,123.95 53.0448%
PancakeSwap 33,775,480.66 12.8799%
Venus (vDAI) 22,902,965.04 8.7399%
ApeSwap 4,293,908.47 1.6386%
MDX 3,549,925.54 1.3547%
Paraswap 3,487,285.97 1.3308%
AlpacaSwap 2,507,261.71 0.9568%
Other 54,615,516.91 20.0545%

Source

Current Events

Binance Pay Bringing Crypto Payments to Shopify and Others, DAI included!

  • Binance is partnering with Alchemy Pay to allow for crypto payments on Shopify, among other e-commerce sites. DAI is being included in the launch.

Wrapped Bitcoin Vault launches on Binance Smart Chain

  • Bitcoin Vault is expanding its activities into the Decentralized Finances (DeFi) space by launching wrapped Bitcoin Vault (wBTCV) on Binance Smart Chain (BSC). The token will allow BTCV enthusiasts to participate in DeFi activities.

Bridges

Fantom

Top Holders Circulating Dai Proportion
Curve 34,861,838.47 88.7569%
SpookySwap 2,850,698.43 7.2577%
Compound 205,968.72 0.5244%
Other 1,411,489.00 3.461%

Source

Current Events

Atari DEX, Smart Wallet Bring New Level of Functionality to Atari Chain, Make It Ready for Prime Time

  • Atari Chain has launched the Atari decentralized exchange (DEX) and the Atari smart wallet on the Fantom OPERA chain.

Band Protocol Collaborates With Fantom Mainnet

  • The oracle solution, Band Protocol, has launched a validator node on Fantom OPERA.

Bridges

Klaytn

Top Holders Circulating Dai Proportion
KlaySwap LP KUSDT-KDAI 42,528,942.88 65.7339%
KlaySwap LP KXRP-KDAI 6,090,064.77 9.4130%
KlaySwap LP KLAY-KDAI 4,319,380.74 6.6762
KlaySwap LP KORC-KDAI 4,131,155.57 6.3852%
Other 7,629,056.28 11.5007%

Source

Current Events

Samsung ‘Will Join Kakao’ to Trial Offline Payments for South Korea’s CBDC

  • Two Samsung affiliates are reportedly set to join a number of Kakao subsidiaries in piloting the Bank of Korea’s CBDC prototype – with reports that the electronics giant will test offline payments using its Galaxy smartphones.

Polygon (formerly MATIC)

Top Holders Circulating Dai Proportion
Aave 179,902,187.50 46.2627%
Quickswap 55,606,413.47 14.2994%
Iron Finance 44,401,977.61 11.4182%
SushiSwap 30,362,453.94 7.8079%
UniSwap 18,158,674.63 4.6696%
PolyCat 12,740,698.79 3.2778%
Balancer 8,124,634.36 2.0893%
ApeSwap 4,062,831.93 1.0448%
Other 35,474,659.19 9.1303%

Source

Current Events

After Iron Finance’s explosion and deflation, SushiSwap and PolyCat have seen the highest increase in DAI usage this week, with respective increases of 144.394% and 34.113%.

PolygonPunks become the 1st ‘NFT Punks’ on Polygon (Matic)

  • The project aims to recapture CryptoPunk’s success, but on the Polygon network.

Polygon (MATIC) Gets Integrated into Axelar for Cross-Chain Communication

  • Axelar is a decentralized interoperability network that connects blockchain ecosystems that aims to provide a seamless cross-chain transition for users and developers on the Polygon chain.

xDai

Top Holders Circulating Dai Proportion
HoneySwap 2,688,362 16.5366%
CHAI 599,897.07 3.0937%
STAKE ? ?%
BAO ? ?%

Source

We’ll continue to track xDAI’s daily transactions to better understand DAI’s flow through its network.

Transactions per day

  • Its Governance token (STAKE) can be swapped to through numerous chains and DEXs, which makes the tracking of input DAI a challenge. STAKE’s top pair on HoneySwap is STAKE-xDAI with 312,307 in xDAI currently pooled, or a 3.7113% increase from last week.

Current Events

How xDai Will Adopt EIP-1559

  • When the transition happens, xDai transaction fees will be divided into priority fees and base fees. Priority fees will be sent to validators, and base fees will be burned. This means xDai will be burned on every block.
  • The burn will create a mismatch between burned xDai and the Dai used to create xDai, which will still be locked in the bridge contract. To maintain token & bridge equilibrium, the extra Dai in the contract must also be reduced in the same exact proportions.
  • The team is developing a mechanism to use the extra Dai to buyback-and-burn STAKE on Ethereum. This process will create a deflationary mechanism for STAKE with the aim of enhancing overall POSDAO security.

Bridges

Thoughts?

Have anything you’d like to see added to these breakdowns? Leave a message in the comments or DM me, @seth, or @JerryAG.

Thanks for reading!

Tracking Tools

DAI

Block Explorers

Bridge Metrics

DEX

Misc

This is for informational purposes only. We do not endorse any of the projects referenced in this update. Always do your own research before making investments and/or using DeFi products and services.

6 Likes

Wow, starting to get a lot going on in these.

Curious how Tether doesn’t seem to spread to other chains very quickly. Looking more and more like it’s us and USDC in for the long haul.

4 Likes

Want updates via email?

Maker Relay and Dai on Different Networks are now available on Substack!

5 Likes

How amazing to see DAI running on several L2’s, some I didn’t even know about, I’ll look into them. good research work @alec.

It would be interesting to see a pie chart of where mostly all the DAI is minted, in which sidechains, l2 or in which ETH On-chain protocol it is.

I didn’t quite understand how it looks more and more like us can you explain?

3 Likes

This is really great feedback.

2 Likes

Just when you look at Tether and BUSD, they are used in very different ways. A lot less smart contract usage, and in that pie chart notice how small the Tether slice is, despite their enormous market cap?

Anyway, it was only a thought. It could be completely incorrect :sweat_smile:

3 Likes

Some time ago I felt like writing something about that, as DAI is the default currency of DEFIs.

We have a similar thought.

Legend has it that great minds think alike. :wink:

3 Likes

Definitely cool to see. Don’t want my own bias to warp the data, but it is looking more and more like a two-man race.

Source

Not a bad position to be in!

Thank you, very much appreciated!

And love that idea. I’ll work on getting something together.

1 Like

Really liking these reports!

You guys are eating more of my time to digest this. This is both a good and bad thing…

One thing to ask which may help delegates here. Can we get a summary section highlighting basic key points of importance from the reports that might highlight changes, potential issues. I like detailed reports but I also like summaries from the people who scrutinize this data producing these reports to help highlight things to look at or important structural market changes etc. It helps me focus on what I really need to look at that is important from what is basically non-changing or unimportant.

5 Likes

Thank you! Also tend to agree. I’ve been considering ways to consolidate - especially when it’s more stagnant.

Would something like a weekly snapshot and a detailed monthly report be more useful?

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