GM Digest #198 — Puffer Top LRT | Lybra TVL Down Bad | Cadence Stables
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Puffer is Now One of the Top LRT Protocol
• @puffer_finance has almost reached $350m in TVL after a few days of launching Crunchy Carrot Campaign (Puffer Point Program)
• Phase 2 has already started and users can now get 2x Puffer points until Feb 9 (Puffer is native restaking so users will be able to earn EL points as well)
• Puffer is the most stacked LRT out of all the other restaking projects — it’s backed by tier 1 VCs & backed by Binance
Lybra’s Depeg & Decline in TVL
• @LybraFinance has seen a sharp fall in TVL from $240m to $80m in a span of one day. eUSD (its stablecoin) had depeg to 0.8 and now back up again to 0.9
• $LBR has taken a dive from $0.9 about a week ago to $0.5. The team has not yet shared what further caused the huge decline in TVL and huge depeg in eUSD
• My hypothesis based on what I’m seeing: $LBR has continued to go on free fall since the start of January. Since ETH depositors have a lot more options to farm for rewards in LRT protocols & less incentives to farm on Lybra since $LBR price has been declining, TVL moves away to other LRT protocols. The eUSD stablecoin being not so stable further exacerbates the problem with investors losing trust in the product
Cadence Stablecoin
• @CadenceProtocol is set to introduce its stablecoin soon after its launch. The stablecoin, built on Canto's Application Specific Dollar (asD) protocol, allows third parties to create a stablecoin by supplying NOTE, Canto's native stablecoin
• The supplied NOTE is then placed in the Canto Lending Market, earning a 4-5% yield backed by Real World Assets (RWAs) like TBills
• When users deposit NOTE into Cadence's multi-asset liquidity pool (CLP), Cadence Stable is minted in the background and added to the pool, generating demand and liquidity
• This stablecoin will play a crucial role in Cadence Perpetuals, serving as collateral and a staking mechanism. In the long term, it will offer a 4-5% yield, liquidity for swapping, and diverse use-cases, such as gas payments
Algebra Tokenomics
• @CryptoAlgebra is updating its tokenomics to align with its transition from a DEX to a B2B protocol, addressing a surplus of unused tokens and substantial growth in project development
• The new tokenomics will be closely tied to the Integral V4 DEX Engine and future releases
• The current ALGB token will retain its role in fee distribution for Algebra V3-powered DEXes, with a reduction in circulating supply through the ongoing BBQ campaign
Re7 MetaMorpho Vault
• @Re7Capital is launching the Re7 WETH MetaMorpho vault on @MorphoLabs
• The vault lends ETH against liquid staking tokens (LSTs) and liquid restaking tokens (LRTs), diversifying ETH yield sources and tapping into the potential of LSTs
• The MetaMorpho Vault provides liquidity to vetted LST/ETH and LRT/ETH markets, reducing depositor risk and enabling attractive yields
• This initiative addresses the challenge of finding diversified, risk-adjusted yield on ETH, especially with staking driving down base rates
OPNX Shuts Down
• @OPNX_Official informed their users that they will be officially shutting down in February
• Users were told to settle their positions before February 8 8am UTC. After this time, all open positions will be settled automatically. Users were also told to withdraw all funds from OPNX.com by February 14 as the withdraw function will be disabled after this date. Users who want to have a copy of their transaction history should also export their data by February 14
• The price of $OX fell to $0.008 upon the news but has since bounced back up and is now sitting at $0.011
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*