The decentralized finance (DeFi) landscape continues to evolve at a rapid pace, with major shifts in infrastructure strategy and regulatory progress shaping the future of the ecosystem. This biweekly report dives into two pivotal developments: MakerDAO’s potential migration to a Solana-based application-specific blockchain and the ongoing journey toward U.S. Bitcoin spot ETF approval. We’ll also examine key DeFi metrics, including stablecoin rankings, total value locked (TVL), and decentralized exchange (DEX) activity.
MakerDAO Explores Independent App Chain on Solana Codebase
On September 1, Rune Christensen, founder of MakerDAO, reignited community discussion with a proposal titled “Explore a fork of the Solana codebase for NewChain.” The post outlines a bold vision: building NewChain, a standalone application chain derived from Solana’s codebase, as the final phase of MakerDAO’s “Endgame” roadmap.
NewChain represents the culmination of MakerDAO’s transformation — a complete reimplementation of the protocol outside Ethereum. While still in the discussion phase, this marks a significant departure from its roots as one of Ethereum’s flagship DeFi projects. The proposed shift aims to unlock two core advantages:
- Enhanced Security & Recovery Options: In the event of governance attacks or technical failures, a dedicated chain enables rapid hard forks to restore integrity.
- Economic Optimization: Running on its own chain allows MakerDAO to capture more value through reduced transaction costs, minimized MEV (Maximal Extractable Value), and the ability to use MKR or DAI as gas fees.
What makes this proposal surprising is the choice of Solana’s codebase — a high-performance, non-EVM environment — over Ethereum-compatible frameworks. This suggests a strategic pivot toward performance and autonomy, even if it means leaving Ethereum’s security and network effects behind.
This move echoes dYdX’s recent transition. After operating on Starkware’s Layer 2, dYdX migrated to its own Cosmos SDK-based chain due to limitations in supporting an on-chain order book. The dYdX community has now approved the V4 protocol and token migration, with plans to shut down its Ethereum-based platform within months.
MakerDAO and dYdX are leaders in their respective domains — lending and perpetuals trading. Their exits signal a maturing DeFi sector where protocols demand full control over execution, economics, and user experience. However, this trend raises concerns about Ethereum’s long-term dominance in DeFi.
Notably, Ethereum co-founder Vitalik Buterin responded by selling his remaining 500 MKR tokens — a symbolic gesture reflecting skepticism about the direction.
Core Keywords: MakerDAO, DeFi, application chain, Solana, Endgame, dYdX, Ethereum
Bitcoin Spot ETF: How Close Are We to SEC Approval?
The approval of a Bitcoin spot ETF in the United States remains one of the most anticipated milestones in crypto adoption. Such a product would open the floodgates for institutional capital, offering regulated exposure without custody risks.
Canada led the way in 2021 with Purpose Bitcoin ETF listing in Toronto. Since then, U.S. interest has surged, with filings from major financial players including Fidelity, VanEck, WisdomTree, Skybridge Capital, and NYDIG.
GrayScale’s GBTC has long served as a proxy for Bitcoin investment among institutional investors. In 2020, GrayScale applied to convert GBTC into an ETF. After repeated rejections, including a second denial in June 2022, the firm took legal action.
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A turning point came on August 29, 2023, when a federal appeals court ruled that the SEC’s rejection was unjustified. The unanimous 3–0 decision — with judges from both Democratic and Republican parties — signaled growing bipartisan support for fair treatment of crypto assets.
Despite this win, the SEC retains significant discretion. It can delay decisions indefinitely by extending review periods — a tactic used repeatedly, including with ARK Invest and 21Shares’ joint ETF application filed in May.
Nevertheless, momentum is building. In July 2023, BlackRock entered the race with its own Bitcoin spot ETF filing. The market reacted strongly — Bitcoin surged over 20% — underscoring confidence in BlackRock’s track record: 255 approvals out of 256 previous ETF submissions.
ETFs lower barriers for retail investors by eliminating wallet management and private key risks. For institutions, they provide compliance-ready access. Beyond capital inflows, ETF approval could drive greater regulatory clarity and investor protections — crucial steps toward market maturity.
Historically, Grayscale’s accumulation fueled the last bull run, with GBTC trading at a 20% premium. Today, GBTC trades at a persistent discount, reflecting outflows during the bear market. A successful conversion to ETF status could reverse this trend and reignite institutional demand.
DeFi Data Insights: Stablecoins, TVL, and DEX Activity
Stablecoin Market: TUSD Overtakes BUSD
As of September 5, the combined market cap of the top five stablecoins reached $120.6 billion — a slight 0.35% increase from the previous period and nearly back to early August levels.
A notable shift occurred as TrueUSD (TUSD) surpassed Binance USD (BUSD) to claim fourth place. This reflects Binance’s ongoing stablecoin replacement initiative amid regulatory scrutiny.
Total Value Locked (TVL): Continued Decline
Total value locked across all chains stands at $626.2 billion as of September 5 — continuing a downward trend observed over recent months.
Despite the broader decline:
- Ultron rose in ranks with $766.26 million in TVL, overtaking Optimism ($688.87 million) to secure a spot in the top 10.
Liquid Staking Derivatives (LSD) showed signs of recovery, with staked value rebounding to $190.85 billion.
- Lido (stETH): 73.23%
- Coinbase (cbETH): 10.73%
- Rocket Pool (rETH): 7.92%
DEX Volumes Hit New Lows
August was a tough month for decentralized exchanges. Trading volume plummeted to $221.9 billion — less than half of July’s activity — signaling weak market sentiment and reduced liquidity.
On Base chain, Aerodrome emerged as a leader with over $183 million in TVL, becoming the largest DeFi protocol on the network.
Frequently Asked Questions (FAQ)
Q: Why is MakerDAO considering a move away from Ethereum?
A: MakerDAO seeks greater control over performance, security, and economic design. By launching its own app chain using Solana’s codebase, it can optimize transaction speed, reduce costs, and implement custom governance recovery mechanisms.
Q: What does NewChain mean for DAI holders?
A: If implemented, DAI would likely be bridged to NewChain. Users may benefit from faster transactions and lower fees. However, cross-chain bridging introduces new risks that will need robust security measures.
Q: Will a Bitcoin spot ETF definitely be approved soon?
A: While no guarantee exists, recent court rulings and strong institutional interest suggest approval is more likely than ever. Delays remain possible, but momentum favors eventual greenlighting.
Q: Is declining TVL bad for DeFi?
A: Not necessarily. TVL fluctuations reflect macro conditions and capital rotation. Some protocols are prioritizing sustainability over growth, which may lead to healthier long-term ecosystems.
Q: Why did TUSD surpass BUSD?
A: Regulatory pressure on Binance has led to BUSD being phased out in favor of USDP and other alternatives. TUSD gained traction due to its transparency and audit practices.
Q: Can DEXs recover from low trading volumes?
A: Yes. Volume tends to correlate with market volatility and broader crypto sentiment. Innovations like intent-based architectures and improved liquidity models could reignite interest.
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