<aside> 💡 A bear market in the DeFi sector has been lasting for a long time, despite strength shown in total TVL.

</aside>

DeFi pulse index has significantly underperfomed.

Total TVL remains an uptrend, despite cliff dropping token prices

<aside> 💡 I think the reason for the downtrend in protocol’s token prices is because of their token is completely useless and prone to dumping as the “first resort” if a trader were to de-risk.

</aside>

<aside> 👇 However, innovations in DeFi are not stopping, and so does the team’s intent to improve their tokenomics.

</aside>

What’s New:

AAVE V3

<aside> 🗣️ AAVE v3 is a general upgrade to continue expanding to multi-chain; as well as increasing functionalities and capital efficiencies for borrowers and lenders

</aside>

• Cross-chain transactions will be made possible
• High-efficiency mode: high borrowing power for borrowers
• Isolation Mode: Allows for new assets to be listed while protecting the protocol
• Gas Optimization: Gas costs for all functions reduced by ~20-25%
• L2 Designs: Specific features for L2 networks
• Community: Facilitates & incentivizes community usage through a modular, well-organized codebase
• Risk Management: Provides additional protection through various risk caps & other tools

Sushiswap Trident

<aside> 🗣️ Building on top of bento box, Sushiswap is rolling out a completely new AMM that could overmatch the features of Uniswap V3 and a new routing system to maximise efficiency. The goal behind trident is to create a “ERC20” standard for AMMs - where any new innovative, inventive, blistering edge pool type can be built using IPool — a pool for trading decentralized options, a pool for infinitely many stablecoins, a pool for zero coupon bonds, and the list goes on forever

</aside>

Source

Overview: