Overview
Total Value Locked showed a mild decline compared to a week ago, though LP fees and volume continue to post strong numbers. LP’s collected $1.24 million this week on $380 million swap volume, which suggests the average fee is ~0.32%.
Incentivized BAL Liquidity Mining
Yields increased around 3% compared to a week ago. Don’t forget to vote on the active proposal to boost your govFactor. Note that govFactor won’t be reflected on pools.vision, so if you vote just assume your yield is very slightly higher.
v2 Alpha Leak
In the wake of the COVER hack recently where the price went down by 99% after an infinite minting bug, there was renewed discussion about the weaknesses of using AMM style indexes. The key advantage is earning trading fees but the risk of losing everything as one of your tokens goes to zero is very real. As Mike points out, this is addressed in balancer v2 which will help make this index design more attractive.
Top Pools by Number of LP’s
Sorting by number of LP’s is not a perfect metric for a number of reasons, but I was interested to see the return of STA in the form of wSTA to balancer. In case you weren’t around back in June, the STA pool on balancer was hacked by using flash loans to exploit STA’s 1% transfer fee. wSTA is a balancer compliant ERC-20 token, so it isn’t vulnerable to the same exploit. The SNX/REN pool in the #1 spot here is the sBTC curve liquidity gauge incentive from the summer. I’d guess a majority of the 1088 LP’s have such a small amount it isn’t worth the gas to withdraw. It wouldn’t be a bad hold if the fee wasn’t set to 0.00%.
Governance
Ecosystem
FURUCOMBO’s LBP (Liquidity Bootstrapping Pool) sale which just ended hit ~$10M in volume