Gnosis Chain DeFi Deep Dive: Agave, StakeWise, CowSwap, Aura Finance, and sDAI πŸ“ˆπŸ”

September 22, 2023

As the DeFi space evolves and Gnosis’ ecosystem grows, it's crucial to stay informed about the trailblazing projects making waves. And that's our mission here. Every month in this new column, we'll bring you deep insights into innovative DeFi projects on Gnosis Chain. For our kickoff edition, we're highlighting five exceptional platforms, each offering a unique blend of innovation and utility. Dive in!

1️⃣ Agave: A Deep Dive into Decentralized Lending on Gnosis Chain πŸ“ˆ

Overview

Agave is a decentralized lending protocol that operates on the Gnosis Chain. Forked from the established AAVE protocol, it aims to offer a frictionless lending and borrowing experience with an emphasis on low transaction costs.

Key Features πŸ› οΈ

  • Interest Rate Models: Supports variable and stable interest rates.
  • Flash Loans: Offers flash loans for one-block arbitrage opportunities.

Best Borrow Opportunities πŸ“Š

  • USDT:
  • WBTC:

2️⃣ StakeWise: Maximizing GNO Staking Yields πŸ›‘οΈ

Overview

StakeWise enables users to stake GNO tokens in the Gnosis Beacon Chain. It utilizes a dual-token model to separate principal and rewards, thereby increasing the staking efficiency.

Key Features πŸ› οΈ

  • Liquid Staking: Allows staked GNO to be utilized within the ecosystem.
  • Automated Reinvestment: Rewards accrue in rGNO tokens, which can be reinvested for a compounding effect.

Yield Opportunities πŸ“Š

  • Annual Percentage Rate (APR): Offers up to 5% APR!

3️⃣ CowSwap: MEV-Protected Trading with Yield Benefits πŸ„

Overview

CowSwap offers a secure and efficient trading environment, minimizing the impact of MEV on trades. It achieves this by using batch auctions.

Key Features πŸ› οΈ

  • Best Price Execution: Scans all on-chain liquidity providers for the best rates.
  • MEV Shield: Batch auctions eliminate the opportunity for MEV.

Yield Opportunities πŸ“Š

  • Slippage Savings: Lower slippage means more value retention, effectively improving the yield on trades.

4️⃣ Aura Finance on Balancer: Sophisticated Asset Management βš–οΈ

Overview

Aura Finance leverages Balancer's custom pools to offer complex asset management solutions. It uses Balancer's automated portfolio management to optimize yields.

Key Features πŸ› οΈ

  • Custom Pools: Allows the creation of pools with up to 8 different assets.
  • Automated Rebalancing: Rebalances pools to maintain desired asset weightings.

Yield Opportunities πŸ“Š

  • Boosted APR: Balancer’s USD/EUR Pool offers an APR range of 8-20%

5️⃣ sDAI: Bringing Mainnet Yields to Gnosis Chain πŸ’°

Overview

sDAI aims to bridge the DAI Savings Rate (DSR) from Ethereum to Gnosis Chain. The protocol will allow users to mint sDAI with their xDAI, accruing interest from the sDAI held in the Mainnet bridge.

Key Features πŸ› οΈ

  • Yield Bridging: Relays accrued DSR from Mainnet to a similar vault on Gnosis Chain.
  • Smart Contract Risks: Audited by two external firms to mitigate smart contract risks.

Yield Opportunities πŸ“Š

  • Projected Rates: Assuming a deposit of 25M DAI and 10M xDAI in the vault, the projected yield would be 12.5%.

Conclusion 🎯

Gnosis Chain is fast becoming a hub for DeFi innovations. Whether you're looking to lend, stake, trade, manage assets, or bridge yields, the ecosystem offers compelling technical features and yield opportunities. For those interested in the nitty-gritty, comprehensive documentation and community support are readily available. πŸ› οΈπŸ”—

----

About Gnosis Builders:‍

Gnosis Builders is a pioneering team focused on driving the adoption and development of the Gnosis ecosystem. With a mission to make blockchain technology more accessible and user-friendly, they actively contribute to the growth of decentralised applications, tools, and infrastructure.

About Gnosis Chain:

Gnosis Chain is an EVM compatible, community owned network that prioritises credible neutrality and resiliency, open to everyone without privilege or prejudice. Gnosis Chain is secured by over 150k validators around the world.

‍

---

Other ways to get involved

Participate in our community: t.me/GnosisBuildersCommunity

Reach out for support & resources: gnosis.builders/contact-us

Use Gnosis Chain apps: gnosis.builders/users

Find the right wallet for you: gnosiswallets.com

Get free xDai: gnosisfaucet.com

Build on Gnosis Chain: gnosis.builders/developers

Become a validator: validategnosis.com

Monitor validators: gnosispools.info

Gnosis Chain Stats: gnosismetrics.com

‍

Follow us on social media to be updated on our upcoming projects and progress:

Twitter, Youtube, Discord

‍