TLDR Crypto 2022-04-21

MakerDAO is launching on StarkNet, an Ethereum layer 2 scaling solution on April 28. StarkNet uses zero-knowledge rollups to process large batches of transactions quickly and cheaply while preserving a significant portion of users' privacy. Integrating with StarkNet will allow MakerDAO users to make faster withdrawals and reduce DAI minting times. It could bring transaction times down to a few seconds. The MakerDAO team will implement StarkNet features according to a multiphase roadmap.

Bastion, Near's largest decentralized finance protocol, is launching a token that will trade on Trisolaris, a decentralized exchange on Aurora, Near's EVM-compatible layer. BSTN will allow holders to give input into the development of the protocol and the ability to vote on fee models, gauges, and staking. There will be an airdrop of tokens on launch day. BSTN holders on Trisolaris will be able to earn yield for providing liquidity. BSTN tokens can also be staked in the Bastion app or Aurora Realm, a lending market for Aurora ecosystem assets.

Coinbase NFT has launched in beta. The platform curates and showcases a number of NFT collections, but users are able to access any Ethereum-based collection. There will be no transaction fees on the platform for a limited time, after which there will be a low single-digit fee. Users can create Instagram-like profiles to showcase their NFTs. The platform will be available to all users over the age of 18 in the coming weeks.

This Twitter thread discusses a strategy for profiting off liquidations on Compound. Loans can be liquidated for 50% of their total collateral at a 5% discount. Accounts can be liquidated when the oracle says the account has too much debt to be covered by collateral. Liquidators can compete with each other to win liquidations. There is a high capital requirement to use this strategy.

Near's USN stablecoin is similar in design and incentive structure to Terra's UST. It will rely on three stability mechanisms: reserve funds, on-chain arbitrage contracts, and StableSwap. Near has more than $800 million in ecosystem funds, $350 million of which will be given in DeFi incentives and grants. This Twitter thread looks at several Near projects to present the case that its USN launch will mean that Near adoption will skyrocket within a short period.

The stage is set for a massive Near ecosystem boom in the next few months. Aurora is an Ethereum Virtual Machine (EVM) layer built on top of Near that offers cheap fees, compatibility with tools like Metamask and Etherscan, and EVM compatibility for building apps. Two interesting projects on Aurora are NearPad and Rose. NearPad is a DeFi platform with a decentralized exchange, and Rose aims to be a liquidity layer for the ecosystem. Both projects have the potential to become huge in the long term.

This thread introduces Collateralized Debt Position (CDP) and Yeti Finance. CDP is an approach to creating stablecoins by locking collateral into a smart contract. It provides liquidity by converting volatile assets into stable assets. Yeti Finance is a decentralized borrowing protocol built on Avalanche. It allows users to mint a stablecoin (YUSD) with a 110% collateral ratio, so $110 of assets can only mint $100 of YUSD.

ApeCoin reached a one-month high on Wednesday. Crypto exchange Gemini recently listed the token on Gemini Earn, its lending program. Yuga Labs' Otherside metaverse project is rumored to be preparing for land sales, with packages starting at 600 APE. The land sales will also come with airdrops for owners of Bored Ape Yacht Club and other Yuga Labs' NFT collections. Otherside is expected to launch before the end of April.