sUSD continues to decouple, a16z's RWA push into the Cosmos

This article analyzes the reasons behind sUSD's continued decoupling from the peg, the veCAKE governance attack, and the launch of Unichain's liquidity mining

sUSD continues to decouple, why has it not been repaired yet?

Since the SIP-420 proposal was passed at the beginning of the year, sUSD has been depegging and has recently entered a serious depegging range below $0.9. The key change in this proposal is the introduction of the "delegation pool". The design of the delegation pool is to encourage users to mint sUSD through this mechanism. The benefits are

* 200% collateral ratio (originally designed to be 500%+)

* Debt can be transferred linearly to the protocol

* After all transfers are completed, users do not need to repay

* The protocol resolves debt through profit and appreciation of $SNX

The advantages are obvious. It improves the minting efficiency of SNX while eliminating the liquidation risk of borrowers. If the market has strong confidence in SNX, it will enter a positive cycle.

But problems immediately emerged:

* The market still has severe PTSD for SNX - sUSD, an intrinsic collateral

* Lack of confidence and the increased efficiency of SNX minting have resulted in additional sUSD flowing into the market, and Curve Pool has seriously deviated

* Due to the design of the "delegation pool", users no longer actively manage their debts and cannot repay debts by purchasing low-priced sUSD in the market to arbitrage

The issue that everyone is most concerned about is whether it can be anchored back. This issue is very dependent on the project party, because the demand or incentives for sUSD must be increased. @synthetix_io is also very clear about this, but whether the market will pay for this kind of algorithmic stablecoin with endogenous collateral is unknown. The sequelae of LUNA are still too great, but from a purely design perspective, the design of synthetix is still advanced, and if it was born in that stable and grassroots period, it might be favored.

(This does not constitute a buy or sell recommendation, it only states the reasons why things happened for study and research)

DeFi sector rises as IRS broker bill is repealed and regulatory attitude shifts

The US president has signed a bill repealing the IRS DeFi crypto broker rules, which went into effect on April 11. The bill, which was passed by Congress in March, cancels provisions of the 2024 tax code that would have required crypto miners, mixers, and liquidators to report taxes on behalf of their users.

The move comes as the Biden administration is working to finalize a comprehensive crypto policy. It also follows a period of heightened scrutiny of the DeFi sector, with regulators warning of potential scams and abuses.

The crypto sector has seen mixed fortunes in recent months, with prices remaining largely rangebound and Bitcoin struggling to break through the $50,000 barrier. However, DeFi continues to grow rapidly, with total value locked in protocols hitting a record high of $2.41 trillion in April.

Those figures are sure to attract the attention of retail investors, especially as the thinking on DeFi has become more pessimistic in recent weeks.

Here are some recent developments in the DeFi sector:

* sUSD continues to depeg, but why hasn’t it been repaired yet?

* veCAKE governance attack, cakepie protocol faces liquidation

* Following the veCAKE governance attack above, Curve founder @newmichwill gave a quantitative calculation method:

* Measures the number of CAKEs that are locked as veCAKEs via Cakepie (these CAKEs are permanently locked).

* Compare a hypothetical scenario: If the same veCAKE is used to vote for the "Quality Pool" and all proceeds are used to buy back and destroy CAKE, how much CAKE will be destroyed?

* Through this comparison, it can be determined whether Cakepie's behavior is more efficient than directly destroying CAKE.

According to Michael's experience, on Curve, the veToken model is about 3 times more efficient in reducing the circulation of CRV tokens than directly destroying tokens.

* BUIDL continues to grow, up 24% in 7 days

* Last time we paid attention to the 2 billion mark, we are now close to breaking through 2.5 billion.

* The most recent increase of $500 million did not come from Ethena

* May have attracted new investor groups

* From the traces on the chain, it may come from Spark, a lending protocol under Sky (MakerDAO).

The RWA business has continued to grow, but has not been well integrated into the DeFi Lego, and is currently in a state of being "out of touch with the market and irrelevant to retail investors."

IRS DeFi Broker Bill Officially Repealed

On April 11, US President Trump signed a bill announcing the official repeal of the IRS DeFi crypto broker rules. The bill, which was passed by Congress in March, cancels provisions