GM Digest #259 — Magpie MIP-24 | Ethena BTC | Synthetix on Base
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Magpie MIP-24
• @magpiexyz_io is calling vlMGP to vote on the MIP-24
• MIP-24 proposes a strategic reallocation of MGP tokens to areas vital for the Magpie ecosystem's sustainable growth
Liquidity Mining: Reduce from 45% to 11%
Strategic Investor: Increase from 5% to 15%
Liquidity and Exchanges: Increase from 1.1% to 6.1%
Ecosystem: Double from 9% to 18%
Community Treasury: Double from 10% to 20%
Ethena Onbards BTC
• @ethena_labs has integrated BTC as a backing asset for $USDe, boosting its scalability potential by over 2.5 times
• With BTC open interest at $25bn, up from $10bn in a year, it offers superior scalability and liquidity for delta hedging compared to ETH
• This move enhances $USDe's robustness, particularly in bull markets, and will be transparently reflected in Ethena's dashboards starting tomorrow
Synthetix on Base
• @synthetix_io V3 is now active on Base, enabling users to deposit USDC to earn trading rewards and participate in USDC/SNX LP incentives
• In Synthetix V3, users can provide liquidity by depositing USDC to earn fees without minting stablecoins. There's a 24-hour lockup period for withdrawals after deposit. Additionally, two incentive programs (USDC and $SNX) reward liquidity providers to boost Perps V3 Base growth
• Additionally, Perps V3 introduces native cross-margining, gradual liquidations, low-latency settlements, and NFT-controlled accounts
• Initial deployment on Base features USDC as collateral. Fee distribution: 20% to integrators, 40% for $SNX buybacks, and 40% to liquidity providers
Introducing Kandel
• @MangroveDAO launches Kandel, its first on-chain AMM strategy on Blast
• Kandel aims to optimize profits by buying low and selling high, leveraging the spread between Bids and Asks
• Currently it offers automated trading strategies available on WETH/USDB, mwstETH-WPUNKS:20, and mwstETH-WPUNKS:40 markets
• Kandel makes a profit from the spread by reposting offers instantly on the blockchain. It operates like a market-making bot, leveraging interactions between buyers and sellers
• Mangrove is an order book-based DEX where liquidity is provided through promises to trade rather than locked commitments
Javelin x Hyperlane
• Javelin, a creation by @nodekitorg, enables atomic execution of cross-rollup transactions, enhancing synchronous composability between different blockchains within a single block
• Javelin utilizes @Hyperlane_xyz's message passing standard to facilitate cross-rollup communication. By integrating Hyperlane's permissionless interoperability, NodeKit ensures seamless atomic execution across rollups without requiring changes to original Hyperlane smart contracts
• Additionally, Javelin instances are staked for greater crypto-economic security, with potential further enhancement through a proof aggregation system. This advancement mainly benefits bridging, lending, and DEX aggregation use cases
Introducing Essential
• @intentessential introduces Essential — the first declarative, intent-centric L2 blockchain
• Essential's executionless blockchain is underpinned by Pint, a constraint-based DSL for "programmable intents". Pint is optimized for developers, making it easier to write complex but secure applications
• Essential is an optimistic rollup on Ethereum allowing builders to build complex products more simply. A declarative blockchain allows state updates to be achieved without the need for execution. By focusing on outcomes rather than execution, Essential creates a more efficient and user-friendly blockchain ecosystem
Frax Singularity Roadmap
• @fraxfinance announced that their governance proposal for the Frax Singularity Roadmap has been passed introducing changes to the Frax protocol
• The first major change is turning on the fee sharing switch for veFXS holders. Additionally, the $FXS buybacks via the liquidity engine on Fraxtal will go live soon as well
• sFRAX cap rate will be increased to 50% APY with a floor rate of 5.40% meaning that sFRAX will have the benchmark rate in DeFi until large portions of the FRAX supply is staked, after which the APY converges to 5.40% at 100% of the supply in sFRAX
• Frax will also be partnering with @ethena_labs to allocate 250M FRAX to sUSDe lending pools in @MorphoLabs + Fraxlend & POL in Curve boosting Frax’s cash flow, funding sFRAX APY and increasing sUSDe<>FRAX liquidity
• Lastly, there will be a revamp of sfrxETH to be backed by @eigenlayer AVS validators through strategic partnerships, giving holders points & additional yield
Misc News
• @GearboxProtocol announced Season 2 of Ethena allowing users to earn up to 180x sats
• @ether_fi StakeRank Season 2 is on now with over 50m ETHFI rewards allocated. Users who stake for 5 weeks or more will attain max rank
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*