GM Digest #107
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
AAVE Pauses Markets
• @aave paused Aave v2 on Ethereum, paused certain assets on v2 Avalanche, and Freeze certain assets on Aave V3 on Polygon, Arbitrum, Optimism
• This is done after a report of an issue on a certain feature of the Aave Protocol. No funds are at risk
Clone Protocol Hyper-liquidity
• @CloneProtocol is a DEX on Solana that allows you to trade any asset imaginable
• Clone, as the name implies, utilizes clAssets (cloned assets) that are similar to synthetic assets but not exactly the same. Unlike synthetics, cloned assets mirror just the price movement of assets. As a result, they are vastly more liquid (hyper-liquidity) and efficient
• The two main components of Clone Protocol are the ‘Clone Markets’ and ‘Clone Liquidity’. On ‘Markets’ you will be able to trade clAssets with instant settlement. On ‘Clone Liquidity’ you will be able to deposit assets and earn yield from the trading fees
• Currently on Devnet, but you might be able to gain access by joining their Discord
Thoughts: Solana, often criticized for not offering anything new and unique in its ecosystem, could truly benefit from more protocols like this one
FluxBeam Tokenomics
• @FluxBeamDEX offers two products built on Solana: a DEX and a Telegram trading bot
• They just revealed the $FLUXB tokenomics in anticipation of the token launch which is slated to come sometime in early November
• $FLUXB total supply will be 500 Million tokens, out of which 80% will be allocated to the public sale. The token will be purchasable on the FluxBeam DEX and Fluxbot
Thoughts: Given that the Solana eco is having a resurgence of sorts, with $SOL outperforming almost all major alts, it’s generally a good idea to buy new Solana eco projects at launch. However, with 80% going to public sale and all of them liquid on TGE, I would stay away from this one
Big Changes at OpenSea
• @opensea laid off 50% of its workforce (with severance package) in preparation for its 2.0
• @dfinzer Co-founder & CEO of Opensea has shared that the team took a step back and reimagined our operating culture, product, and tech from the ground up
• Re-orienting the team around Opensea 2.0, including the underlying technology, reliability, speed, quality, & experience
Thoughts: Attempt to become lean, moving fast, and getting ahead of the competition vs Blur. It’ll take a lot of effort to regain some of those market share back especially if Opensea doesn’t decide to launch its token
LayerZero Hype
• @LayerZero_Labs Airdrop frenzy has restarted after LayerZero has got SSL certificate for its layer . foundation domain
• Several CT guys indicated that getting an SSL certificate is usually followed by the announcement of airdrop a few days later (as seen from Arbitrum Foundation)
• Omnichain protocols utilizing LayerZero are seeing great hype and price action. A few of those include $RDNT and $STG
Thoughts: Radiant season is upon us. I’m excited for Radpie the most given its dLP that it’s been accumulating and its IDO valuation of $5m FDV. Knowing how $PNP unfolds, there’s a high likelihood that it pumps.
Convex Prisma
• cvxPRISMA is live on @ConvexFinance
• Users can claim $PRISMA without the 50% staking penalty directly on Convex (through cvxPRISMA)
• Bear in mind that the process is irreversible — you can’t convert cvxPRISMA back to PRISMA. However, you can convert it back on secondary market (but the liquidity there is so shit atm and the peg is <50%)
• Prisma TVL continues to rapidly rise to $341m, heavily contributed by Justin Sun. The TVL will likely continue to grow given the attractive APR given out for mkUSD and other pools on Prisma
Thoughts: Don’t like the model that Convex is employing. Convex is good for Curve because of its first entrant advantage, its focus on Curve, and the liquidity that goes into supporting the cvxCRV. Applying this model without liquidity to heavily support the peg of cvxPRISMA is not attractive for PRISMA holders at all. This is why I prefer Magpie Model, raising separate fundraise to fund the peg of specific projects
Misc News
@aave pauses several markets on Ethereum, Arbitrum, Avalanche, Polygon and Optimism due to a potential vulnerability. All funds are safe
• @Injective_ chooses @KAVA_CHAIN native USDT
• @ProtocolLiquid unveils updated roadmap
• @CoWSwap published a new CIP Draft proposing fees on the platform
More Arbitrum Picks
• Unpumped tokens will likely see a flow of liquidity, especially the lower caps one like $TND @Tender_fi. Only $200 MC with 0.05 MC/TVL, lower than $LODE which is 0.01. Even though Tender doesn’t get the STIP, it’s one of the native money market that’s undervalued, suggest picking up a small bag (liquidity not high so there’s some slippage there if you do large size)
• $USH unshETH. The overall PA of $USH has been declining since its hack in Jun - July. The backfund STIP proposal could propel $USH forward if there’s positive sentiment during the snapshot vote on Tuesday next week. Suggests taking a small position, it’s current MC is only $165k
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*