With the sector rebounding, which DeFi protocols with catalysts are worth watching?
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With the sector rebounding, which DeFi protocols with catalysts are worth watching?
Several upcoming major catalysts.
Navigating Web3 tides with focused insightsWritten by: Thor Hartvigsen
Compiled by: TechFlow
Over the past few weeks, the DeFi sector has started showing signs of movement, with some tokens surging 100–200% overnight.
Why?
This article outlines several upcoming major catalysts—narrative drivers and buying triggers that deserve attention:
GainsNetwork
Gains Network is a decentralized perpetual exchange on Polygon featuring:
- 38 tradable tokens;
- 22 stocks;
- 10 forex pairs;
Gains Network is already seeing significant new user inflows, and its native $GNS token has risen 200% since October.
$GNS has two upcoming catalysts:
- Gains Network will soon launch on Arbitrum;
- A new DAI vault—enabling you to earn real yield on your $DAI across other parts of DeFi.
Both are significant and appear highly promising for long-term adoption.
The current market cap of the $GNS token is $120 million, roughly one-quarter of GMX’s market cap. With new users expected from the Arbitrum launch, this could positively impact price at some point. More trading volume means more fees flowing to GNS stakers, who receive 32.5% of all fees generated by gTrade traders.
GMD Protocol
GMD Protocol is a new Arbitrum-native protocol built atop GMX’s $GLP, allowing users to earn yield on USDC, ETH, or BTC separately.
$GMD is a low-market-cap token ($4.4 million) that has surged over 400% in the past month. Small-cap investments require extreme caution, but this is certainly a product worth watching.
Chainlink
$LINK staking has been long anticipated, and v0.1 will open for early access in just a few hours. Access for $LINK holders will follow in days.
While we often say "buy the rumor, sell the news," for $LINK this represents a long-term positive development.
Chainlink touches nearly every corner of the crypto industry. The implementation of staking will give $LINK an entirely new utility, as holders will earn a share of revenue generated by oracle services.
GMX
For a long time, GMX has been building its new synthetic asset model. This will enable a wide range of both crypto and non-crypto assets via Chainlink. It's expected to launch sometime in Q1 2023, though not yet officially confirmed.
GMX’s main limitation has been the number of tradable assets. With synthetic assets, both asset count and user base could grow significantly.
Another catalyst is the potential launch of GMX on Polygon Zero, which would be a positive signal.
Rage trade
Rage trade is a recently launched Arbitrum-native protocol. It features its own ETH-perp and a unique liquidity system called the “80-20 Vault.”
This allows users to deposit their liquidity positions into Rage to earn additional yield.
The Rage trade team is launching two new vaults built on top of GMX’s $GLP:
-
One enabling stable yield on USDC;
-
One offering delta-neutral yield from GLP.
The vaults will go live on December 12 for users with the "OG" role in their Discord channel, and open to all on the 13th.
Although Rage trade currently has no token, they’ve confirmed a future $RAGE token—strong airdrop vibes.
Beyond the above projects, several smaller catalysts also merit attention:
-
UmamiFinance is set to launch real-yield vaults, including a GLP delta-neutral vault.
-
Aave is launching its $GHO stablecoin. Revenue from $GHO will flow to $AAVE stakers. AAVE will also launch on Starknet in 2023.
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dYdX will launch its testnet in December.
I recommend focusing on zksync, which may launch its mainnet in Q1 2023. Zk-rollups could bring fresh narratives to DeFi, making this emerging ecosystem one to watch.
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Thor Hartvigsen
