State of Seamless: April 2024

March was relatively quiet on the governance front but buzzed with excitement in terms of partnerships, rewards, and new feature rollouts. Let’s dive into the developments that shaped Seamless this past month.

Protocol Performance

Despite a challenging month for Seamless, where the Total Value Locked (TVL) saw a decline from $19.32 million to $15.22 million, marking a 21.22% decrease, there’s a silver lining with the performance of our native token, SEAM. SEAM began the month at $5.20 and closed at $5.60, registering a noteworthy increase of 7.69%.

Source: DeFiLlama

Spring Refresh: Seamless Protocol’s Landing Page Gets a New Look

Spring has sprung, and with it, the Seamless UX team has rolled up their sleeves for some digital spring cleaning. They’ve spruced up the Seamless Protocol’s landing page, making it sleeker, fresher, and ready to impress. It’s a much-needed facelift for one of Base’s top lending protocols

Source: Seamless Protocol’s Landing Page

ILMs Have Arrived: Revolutionizing Liquidity with Seamless

The highly anticipated Integrated Liquidity Mechanism (ILM) is now live on Seamless, marking the launch of the platform’s 3x leveraged wstETH/ETH looping strategy and opening up new avenues for users to amplify their rewards. ILMs are sophisticated smart contract strategies that leverage Seamless’s capital pools to maximize returns efficiently.

Exploring the wstETH/ETH 3x Looping ILM:

• Loop It Up: Imagine putting your ETH to work repeatedly in a loop; that’s what this does. More exposure, more potential gains.
• Set It and Forget It: Your rewards compound automatically. It’s like having a finance bot that never sleeps.
• Auto-Pilot: Changes in the market? The ILM adjusts your positions automatically — no panic needed.
• No Nasty Surprises: The fee story here is simple. What you see is what you get — no hidden charges.
• Low Cost, Big Crowd: Costs like gas fees get split among all users. It’s like carpooling, but for your crypto transactions.
• Why It’s Cool: You get to leverage up to 20x in the future — these aren’t your grandma’s rates.

Extra Goodies:

On the same note, Lido Finance is stepping in with over $25,000 worth of wstETH rewards for ILM depositors this April! And guess what? There’s potential for even more rewards down the line.

Takeaways:

• Automation is King: Auto-compounding and management? Yes, please.
• Transparent Fees: Unlike some platforms, Seamless doesn’t sneak in extra fees.
• More Leverage, Less Hassle: Thanks to smart contract magic, you get more out of your collateral than most places.

Dive Deeper with some of these resources:

• ILMs 101: Automated Growth Strategies To Magnify Your Rewards
• ILMs 102: Key Differentiators and A Leap Forward for Base DeFi
• ILMs 103: The Power of Auto Compounding and Capital Efficiency

Governance Proposals

Seamless Approves USDC Reward Incentives with Overwhelming Support

The Seamless community has unanimously approved SIP-5, a pivotal governance proposal in partnership with Gauntlet, to enhance USDC utility across its platform. This initiative allocates a $50,000 USDC grant to increase rewards for the Native USDC sToken markets on the supply side. Set to unfold over approximately 30 days, this strategy is designed to facilitate a smoother migration of liquidity from USDbC to Native USDC, consolidating stablecoin operations within the Base ecosystem.

Proposal Details:

• Targeted Market: Supply side of the Native USDC market.
• Implementation Date: The proposal was executed on March 19, 2024.
• Duration: Roughly 30 days from the start date.
• Reward Type: Distributed in Native USDC tokens.

With over 1.57 million votes cast in favor, the decision passed without opposition, highlighting strong community consensus. This move aims to create a less fragmented and more efficient future for stablecoin liquidity on the platform

Adjustments to Supply and Borrow Caps Approved

In response to evolving market conditions and the recent introduction of Native USDC rewards, the Seamless community has passed PCP-4, a proposal aimed at updating supply and borrow caps across several markets. The proposal was executed on March 28, 2024, after receiving a strong endorsement from the community with 1.77 million votes in favor.

Key Changes Outlined in PCP-4:

Supply Caps:

• USDbC: No changes.
• Native USDC: Increased from 2.7 million to 8 million to accommodate the growth spurred by the transition from USDbC and the new USDC incentives.
• wstETH: Doubled from 400 to 800, reflecting increased demand and confidence in the asset.

Borrow Caps:

• USDbC: Increased from 10 million to 15 million, providing more flexibility for borrowing against this stablecoin.
• Native USDC: More than doubled from 2.5 million to 6 million, facilitating further utilization.
• wstETH: A tenfold increase from 40 to 400, dramatically expanding borrowing capacity.

This proactive adjustment aims to better align the Seamless Protocol’s market parameters with current trends and demands, especially considering the swift uptake of Native USDC.

See you next month!

That’s a wrap on this month’s edition of “State of Seamless.” It’s been a big month, and there’s plenty more where that came from. We’re all set to keep these monthly updates coming your way, so make sure you’re tuning in for the latest scoop on Seamless.

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