This paper describes a pioneering design for Automated Market Makers called Auction-Managed AMMs. Addressing informed trader loss and uninformed trader fee revenue optimization issues, this concept allows players to bid to manage pools and dynamically adjust swap fees. The design optimizes transaction fees, benefiting liquidity providers and retail investors and potentially attracting more liquidity than traditional AMMs, thereby enhancing efficiency on DeFi platforms.

Sturdy Finance has launched the Sturdy Subnet Bittensor subnetwork on testnet as part of its efforts to build yield optimization infrastructure. Sturdy, backed by Pantera and Y Combinator, utilizes a groundbreaking architecture that experts claim could cut risk while maintaining liquidity. Furthermore, the Sturdy Subnet opens up opportunities for DeFi protocols and off-chain funds to increase yields in a secure, decentralized manner.

Over 64,000 Synthetix users received a memecoin airdrop on Optimism by Synthetix's founder to test reduced fees post-Dencun upgrade, resulting in total fees of around $4,000.

Limitless, a novel protocol, is aiming to replicate Uniswap's impact on DeFi in the area of leverage trading. Leveraging Uniswap's Automated Market Maker for asset pricing, Limitless eliminates reliance on oracles for price feeds and instead provides yield-earning opportunities for liquidity providers while cutting counterparty risk. This opens up the possibility of having permissionless, perpetual market launches for all new tokens, instead of having to wait for them to be listed on a CEX, and offers liquidation-free leverage trading, potentially revolutionizing the DeFi derivatives landscape.

1intro, Solana’s first Liquidity Bootstrapping Platform, aims to alleviate current problems faced by Solana users, specifically addressing unfair launches, token liquidity issues, and the prevalence of scams. Designed for fair token distribution and price discovery, 1intro plans to evolve into a comprehensive DEX platform, offering trading functionalities and tools with a community-focused strategy. It has introduced features like "Refer and Earn" to boost user engagement.

Murphy Labs has released the beta version of the Strateg. Protocol, a DeFi platform enabling users to devise, manage, and invest in crypto asset strategies, on the Polygon PoS network. Strateg. leverages ERC-4626 tokenized vaults, offering strategists the ability to adjust investment parameters and monetize their expertise. It is still in beta, with V1 to launch after the protocol is tested and smart contracts are audited.

This article provides a deep dive into the Jupiter Perpetual Exchange, a new offering from the leading decentralized exchange (DEX) aggregator in the Solana ecosystem. It analyzes Jupiter's dominance in Solana DeFi, the growth and economics of its perpetual futures product, and the potential for further expansion of the perpetual exchange.

The founder of AAVE discusses the risks and potential pitfalls of supposed arbitrage opportunities, focusing on the example of sDAI and DAI in the MakerDAO ecosystem.

Defi Llama has added support for narrative tracking, giving analysts the average performance per category weighted by market capitalization.

Pendle has seen extreme growth driven by airdrop points programs, and boasted an ATH TVL of $6.7B. The much-anticipated V3 upgrade will help it become the centralized exchange of interest rate derivatives, being the first of its kind even among traditional finance. With the interest rate swap market being worth $500 trillion, and blockchain providing the backbone for trustless, guaranteed swap delivery, Pendle's TVL could skyrocket. In the short term, permissionless market listing, new L1 listings, and Bitcoin restaking could usher in new highs for Pendle.

Stablecoin issuers and lending protocols have a symbiotic relationship that has been increasingly closer aligned. Stablecoin issuers like MakerDAO are lending protocols through their collateralization, and lending protocols like Aave are arguably a specific type of stablecoin issuer. The specialization of lending protocols has changed the market structure, and stablecoin lenders will become the primary users of lending platforms.

deUSD uses stETH and sDAI as collateral and earns yield by shorting perpetual derivatives, like Ethena's USDe. When funding is favorable, it hedges using longs and holds T-bills in negative funding environments. Permissionless mints and redemptions will go live in December, and deUSD will be the default collateral in the Elixir ecosystem.

Aave has launched its V3 protocol, powered by ZKsync's zero-knowledge technology, on the Era Mainnet, enhancing transaction efficiency, security, and scalability within the DeFi space. This integration is expected to broaden Aave's user base, attract institutional investors, and support privacy-focused DeFi applications.

Decentralized finance is a return to the core principles of finance, offering transparent and non-discriminatory access to financial services. It democratizes lending, trading, and other activities traditionally restricted to accredited investors. DeFi's core functions of lending and trading are foundational to economic growth and represent pure forms of income generation.

Euler v2 marks a significant milestone for the project, bringing major advancements to the DeFi space with a focus on modularity and security. The team invested heavily in security and transparency after overcoming the setbacks from last year's exploit. It aims to set new standards in onchain lending and borrowing.

Technological and social developments are prereqs for advancements in DeFi, which mirror the gradual evolution of internet technologies from dial-up to high-speed broadband. The upcoming launch of Sonic aims to overcome several technological barriers in blockchain, such as latency and user onboarding, potentially enabling not only financial dapps, but also broader apps, similar to how credit scores revolutionized traditional finance.

Coinbase has officially released cbBTC, an ERC20 token backed 1:1 by Bitcoin. This will allow millions of BTC holders to access DeFi apps across the @base and Ethereum ecosystems, with more chains to follow.

Ramon Recuero introduces Musubi, a new platform designed for seamless asset swaps across the Ethereum network without the need for custodial wallets. Musubi aims to address the issue of fragmented liquidity within the Ethereum ecosystem, allowing users to swap assets as if they were on a single chain. This initiative is part of a broader effort to create a more integrated and cohesive DeFi environment. The platform emphasizes that creating Layer 2 solutions that replicate existing liquidity pools is counterproductive. Instead, Musubi seeks to enhance the user experience by aligning incentives across the ecosystem and promoting integration. The name "Musubi" reflects a deeper philosophical concept of interconnectedness, which resonates with the Kinto brand's mission. Key features of Musubi include non-custodial chain-abstracted swaps, ensuring that assets remain insured within the Kinto wallet. The platform is designed to work for users, finding the best liquidity across chains and executing swaps efficiently. Security is a priority, with Kinto's identity layer minimizing fraud and providing enterprise-grade security through wallet insurance and advanced user experience features. Users can expect benefits such as reduced slippage, lower gas fees, and simplified access to liquidity without needing to navigate complex bridging processes. The swapping process is streamlined, allowing users to complete transactions in under a minute. Musubi has partnered with several leading companies to enhance its functionality, including Socket for chain abstraction and Turnkey for non-custodial wallets. The platform is not limited to swaps; it plans to extend its capabilities to other DeFi primitives like lending, borrowing, and real-world assets, all while maintaining a seamless user experience. In summary, Musubi aims to unify fragmented liquidity within the Ethereum ecosystem, promoting a more efficient and user-friendly approach to asset swaps. The initiative is positioned as a significant step towards a more interconnected financial system on the blockchain, with a focus on security and user experience. Users are encouraged to try Musubi and participate in the transition to a chain-less future in Ethereum finance.