Data-Driven Analysis of Cryptocurrency Markets, Kaiko

Kaiko

Data-Driven Analysis of Cryptocurrency Markets

Kaiko is the leading cryptocurrency market data provider for institutional investors and enterprises. We empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information. Our mission is premised on the idea that high-quality data drives market efficiency and greater transparency throughout the industry. For each of our enterprise clients, we build custom data plans designed for a range of use cases.

Crypto

<ul>
<li>The best design often goes unnoticed. DeFi lending and borrowing stalwarts Aave and Compound have proven themselves to be great design: critical for day-to-day functioning but largely taken for granted.</li>
<li>This becomes apparent when a competitor experiences an exploit, highlighting the reliability of Aave and Compound</li>
<li>When last we checked in on these protocols in December they were in a period of change.</li>
</ul>


The best design often goes unnoticed. DeFi lending and borrowing stalwarts Aave and Compound have proven themselves to be great design: critical for day-to-day functioning but largely taken for granted.
This becomes apparent when a competitor experiences an exploit, highlighting the reliability of Aave and Compound
When last we checked in on these protocols in December they were in a period of change.


Leveraging LSDs: The Next Era of Lending and Borrowing

<ul><li>Silvergate is in deep trouble. On March 1, the “crypto bank” revealed in a regulatory filing that it could soon be “less than well capitalized.”</li><li>The news prompted Coinbase, Paxos, Galaxy Digital and a host of other large crypto enterprises to drop Silvergate as a banking partner. Why does this matter? </li><li>The “fiat problem” has long plagued crypto markets: to buy bitcoin, you at some point need to interact with the traditional banking system.</li></ul>

Silvergate is in deep trouble. On March 1, the “crypto bank” revealed in a regulatory filing that it could soon be “less than well capitalized.”The news prompted Coinbase, Paxos, Galaxy Digital and a host of other large crypto enterprises to drop Silvergate as a banking partner. Why does this matter? The “fiat problem” has long plagued crypto markets: to buy bitcoin, you at some point need to interact with the traditional banking system.

<ul><li>Price Movements: BTC gained another 10% this week despite news that Genesis had filed for bankruptcy, with a reported $5bn in liabilities.</li><li>Market Liquidity: Trade volume on the largest Asia-based exchanges fell to multi-year lows amid a tough regulatory environment in the region. </li><li>Derivatives: BTC open interest has dropped 25% as a short squeeze hits derivatives traders.</li></ul>

Price Movements: BTC gained another 10% this week despite news that Genesis had filed for bankruptcy, with a reported $5bn in liabilities.Market Liquidity: Trade volume on the largest Asia-based exchanges fell to multi-year lows amid a tough regulatory environment in the region. Derivatives: BTC open interest has dropped 25% as a short squeeze hits derivatives traders.

Credit/Macro/Crypto Analyst, Former Credit/MA PM

Rose Choy

<ul>
<li>The crypto lending market has been decimated with casualties from both lenders and borrowers after the FTX fallout and credit crisis. </li>
<li>Most centralized lenders have been annihilated while DeFi platforms withstood the shock. The demand for lending has cratered and this will test the viability of existing platforms given lower volumes.</li>
<li>However, we will likely see new platforms emerge that have the necessary lending, trading and risk management expertise from traditional finance that could propel further institutional participation in crypto. </li>
</ul>


The crypto lending market has been decimated with casualties from both lenders and borrowers after the FTX fallout and credit crisis. 
Most centralized lenders have been annihilated while DeFi platforms withstood the shock. The demand for lending has cratered and this will test the viability of existing platforms given lower volumes.
However, we will likely see new platforms emerge that have the necessary lending, trading and risk management expertise from traditional finance that could propel further institutional participation in crypto. 


Crypto Lending Series #3: Light at the End of the Tunnel?

<ul><li>Aave and Compound are two of DeFi’s stalwarts: the two largest lending and borrowing protocols on Ethereum, each with a TVL over ten times larger than the third largest protocol.</li><li>Both protocols have functioned nearly flawlessly this year while a growing number of centralized entities have been failing in often spectacular fashion.</li><li>Aave has accumulated just $2.17mn of bad debt (most of which was generated in a recent, likely unprofitable, exploit covered here) relative to its $3.2bn TVL, while Compound has just $65,000 to its $1.5bn TVL. </li></ul>

Aave and Compound are two of DeFi’s stalwarts: the two largest lending and borrowing protocols on Ethereum, each with a TVL over ten times larger than the third largest protocol.Both protocols have functioned nearly flawlessly this year while a growing number of centralized entities have been failing in often spectacular fashion.Aave has accumulated just $2.17mn of bad debt (most of which was generated in a recent, likely unprofitable, exploit covered here) relative to its $3.2bn TVL, while Compound has just $65,000 to its $1.5bn TVL. 

United States

AAVE is a decentralised Finance (DEFI) protocol that allows users to borrow and lend crypto. Holders of AAVE get discounted fees on the platform and are allowed to vote on the future of the protocol

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Aave (XVV DAR CURNCY)

Leveraging LSDs: The Next Era of Lending and Borrowing

DeFi lending and borrowing stalwarts Aave and Compound have proven themselves to be great design: critical for day-to-day functioning but largely...

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Silvergate is in deep trouble. On March 1, the “crypto bank” revealed in a regulatory filing that it could soon be “less than well capitalized.”

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FTT Returns From the Dead

Price Movements: BTC gained another 10% this week despite news that Genesis had filed for bankruptcy, with a reported $5bn in liabilities.

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A Comparison of Aave and Compound

Aave and Compound are two of DeFi’s stalwarts: the two largest lending and borrowing protocols on Ethereum, each with a TVL over ten times larger...

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