Celsius brings in $ 400 million and Raris returns 7.5 K%, 11-15. October


Welcome to the latest edition of Cointelegraph’s DeFi newsletter.

In a week that Rari Capital hit the $ 1 billion TVL milestone, read on to learn why OlympusDAO is raising four-digit sums with its most popular protocol.

What you’re about to read is a shorter, more concise version of the newsletter. For a full breakdown of what DeFi has done over the past week, subscribe below.

Celsius Network raises $ 400 million to expand institutional service

Cryptocurrency lending platform Celsius Network announced this week a $ 400 million fundraising led by Canadian pension fund Caisse de dépôt et Placement du Québec (CDPQ) and public company WestCap, with the company’s valuation at over 3 Billion US dollars.

The company has announced its intention to use the funds in a twofold strategy: improving its institutional product and service offering and doubling its workforce to nearly 1,000 employees worldwide.

Celsius Network CEO Alex Mashinsky revealed to Cointelegraph the financial impact the platform is having on the credit sector:

“With more than $ 25 billion in assets and over $ 850 million in income paid to over 1.1 million users, Celsius has returned ten times more returns to the crypto community than any other lender.”

This funding news coincides with increased political scrutiny of crypto lending platforms in the United States. In September of that year, Celsius faced legislative opposition from the Texas State Securities Board and the New Jersey Bureau of Securities, which threatened to cease their activities over the alleged sale of unregistered securities.

Even so, Celsius has consistently maintained its innocence of wrongdoing and was ready to communicate and cooperate with regulators.

Rari Capital shatters $ 1 billion at TVL

DeFi protocol Rari Capital surpassed the Total Value Locked (TVL) of $ 1 billion this week and hit an all-time high of $ 1.225 billion, according to analysis data from the ranking platform DeFi Pulse.

The eight-digit figure marks a monumental increase from $ 500 million two weeks ago to just $ 100 million three months ago. Rari was launched in July 2020 and offers DeFi participants an automatic return optimization strategy who want to get the highest possible return on their investment.

A number of its liquidity pools have received notable attention for their lucrative returns, such as the USDC deposits, which offer an annual percentage return (APY) of 21.67%, and the Dai pool, which offers 26.43% APY.

Despite these above-average returns compared to the industry standard, it was the OlympusDAO in the Fuse Protocol’s Tetranode’s Locker that really made headlines in recent months.

OlympusDAO is an algorithm-centric rebase model where token balances fluctuate over time based on changes in the token price and the supply in circulation. At the time of writing, the OlympusDAO sOHM token provides a seismic APY of 7.594%.

North America’s rising DeFi volume

According to data released this week by the analytics platform Chainalysis, the monthly transaction volume for cryptocurrencies in the North American region increased by 1,000% over a period of one year from July 2020 to June 2021 due to the thriving DeFi sector.

The annual Geography of Cryptocurrency Report found that monthly volume peaked at $ 164 billion in May 2021, before dropping to $ 100 billion in June. In addition, DeFi transactions accounted for 37% of the region’s total volume of $ 276 billion.

David Gogel, growth manager at the decentralized futures exchange dYdX, commented on the results that the largest recorded volume was driven by private customers:

“At the moment, DeFi is aimed at crypto insiders. They are people who have been in the industry for a while and have enough money to experiment with new assets. “

Token services

Analytical data shows that DeFi’s total locked down value rose 8.11% to $ 146.89 billion over the course of the week.

Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens performed by market capitalization diversified above the last seven days.

Perpetual Protocol (PERP) secured first place on the podium with a respectable 29.7%. RenBTC (renBTC) finished second with 6.03%, while Wrapped Bitcoin (wBTC) came just third with 6.00%.

Analysis and deep dives of the last week:

Thank you for reading our roundup of this week’s most influential DeFi developments. Come back next Friday for more stories, insights, and education in this dynamically evolving space.

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