GM Digest #38
Good Morning with Valuable Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
GMX Dethroned
L2 Perp DEX market has been heating up and newer platforms’ volumes are starting to catch up with GMX.
Daily volume over the past week:
HMX - $57M
Vertex $43M
GMX $41M,
HyperliquidX $38M
HMX & Vertex trade mining campaigns are live so we have to see if they can sustain their volume and Hyperliquid rode the FriendTech hype last week with their index.
HMX’s $HLP & Hyperliquid’s $HLP are printing from platform fees, traders PnL and liquidations from last week with 100% and 220% APR, respectively.
Meowl Discord Bot
Its trading bot is now integrated with over 100 Discord servers. Members can easily buy/sell tokens with MEV protection and directly access QuickswapDEX router to always find the best price.
MEOWL charges 5% buy and sell tax:
2% goes to stakers
1% goes to $MEOWL liquidity
2% goes to ecosystem fund.
50% of the fees generated by the platform and 2% of the token trading volume are converted to ETH and distributed to $MEOWL stakers.
Meowl is a suite of tools aimed to revolutionize the meme coin trading experience while adding an alternative income stream directly in Discord communities. $MEOWL price has been trading range-bound between $0.2 - $0.37 for the past 3 weeks
Thoughts: Both Discord & TG Bot simplify Defi experience have proven to find their PMF due to their ease-of-use. Users don’t have to sit down on the screen to execute trade, they can directly input commands on Discord & TG and instantly buy/sell tokens.
2nd RWA Default on MakerDAO
The largest borrower from Consol Freight’s Maker vault will most likely default on $1.7M, but Maker’s Treasury remains healthy at $56M. MakerDAO is on track to generate $90M/yr from RWA, especially from T-Bills and $DAI is paying out 5% APR. However, due to off-chain dependencies and under-collateralization nature of RWA, defaults are much harder to mitigate.
Maker has spent $$$ trying to mitigate defaults and create the proper legal structure to protect the protocol from bad debt. This event shows how difficult it can be to onboard and manage off-chain credit.
$2.8B of DAI collateral is currently invested in T-Bills generating $105M in revenue per year while borrowers with $1.2B in crypto collateral are paying $56M in interest to the platform. Maker is the first large DeFi protocol to take full advantage of high US interest rate environment and use some DAI collateral to purchase relatively liquid T-Bills similar to Tether and USDT.
Thoughts: Maker struggled to scale DAI without Peg Stability Module (1:1 swap with DAI) and relying on USDC so it branched out to RWA. The 2 defaults are insignificant dollar value-wise but it might influence how Maker will plan to progress from here without solely depending on T-Bills yield.
PhotoFinish Horse Racing
PhotoFinish is a GambleFi virtual horse racing game where you can buy and earn from horses NFTs or stake $CROWN to earn from other racers.
GambleFi narrative continues with more experienced teams and adoption. Protocols are starting to find their PMF and niches like arcade games, horse racing and casino games.
This Solana-based game was made by ThirdTimeGames and the team previously made 2 of the biggest & most downloaded mobile house-racing apps with more than 14m downloads
CROWN is the utility token of the ecosystem and users can stake it on game’s tracks to receive 20% of the race entry fee. A lot of the yield is subsidized by the platform in the form of $CROWN so the platform still need to find a sustainable fee model.
$CROWN already went up to $0.4 (7x from initial price of $.05) and is now trading at $0.3
Thoughts: Solana has seen increasing TVL since July and has maintain a fairly stagnant TVL during August market downturn. Solana hasn’t found its Gaming/GambleFi platform that fits the overall GambleFi narrative yet and PFL could potentially find its niche based on its recent traction
Parallax Vault Launch & TGE
Parallaxfin will launch 3 exclusive vaults to $PLX token holders.
⇢ Liquidity Farming Vault for Private & Public Round Participants with 2000% APY
⇢ Linearly Vested Single-Sided Staking Vault with Fixed 100% APY
⇢ Single-Sided Staking 3-month Locked Vault with Fixed 50% APY
TGE will happen today on Aug 28 where $PLX tokens could be used for revenue sharing & participation in vault strategies.
Thoughts: Since IDO Participants & Presale $PLX tokens will be unlocked at 35% & 15% of the total size at TGE. Initial price discovery is likely to be on the smooth size, considering IDO Participants & Presalers are aiming for $PLX price to 3-4x to recoup its principal based on the unlocked $PLX and since the vesting + cliff is 6 months and 10 months in total respectively, we won’t see aggressive selling during the first few wicks. Potential play is to snipe at TGE (Very Soon)
Friend Tech, Dead?
Friendtech key metrics such as activity, inflows, and volume have been dropping 3 weeks post-launch
Daily fees peaked at $1.7 million on Aug 21, but dropped over 87% to around $215,000 on Aug. 26
Despite a decent onboarding experience (onboarding directly from Twitter), UI/UX on the FT app has been lackluster for the most part. A lot of the KOLs opt to create private Discord or TG Group for keyholders instead of using the built-in chatroom due to its clunky experience
Thoughts: Personally think that Friend Tech has already found its PMF given how fast it grows during the first 3 weeks. Since it’s currently on an invite-only Beta, the next catalyst is gonna be when it’s open access for everybody. The UI/UX needs to be improved by a mile in order for them to continue scaling
gBOT x Bond Protocol
gBOT x Bond Protocol: Offering gBOT Bonds at Sharp Discount
The first $gBOT auction offers 700 $gBOT tokens at min price of $55 (-55% discount from the current market price). Tokens will be subjected to a 7-day vesting period
$gBOT has pumped 17% overnight with Perps TG Bot expected to be launched soon. The token has retraced 50% from its ATH, which could be a potential dip-buying opportunity.
Thoughts: With majority of the tokens of Presalers & Public Round Participants in esBOT token (365 vesting period), the sell-pressure will likely be capped at current level ($60 - $80). Next catalyst will be product launch would could likely propel its price due to the nature of low circulating supply of the gBOT token
Degen Section
Liquidity money $LIM — $LINQ Ponzi Beta Plays
There has been a trend of ponzi coins integrating LP pairs reflection instead of the usual token distribution. $LINQ has done 4000% gainz since the first few days it launched, currently trading at $36M MCap. $LIM is adopting a similar token model and is currently trading at $1M MCap
➥ $LIM CA: 0x9CdaFB9FAe77E7C1bd7CF28C389008ca8daCF48c
HiPvPGame $HIPVP — PvP Hilo TG Bot
GambleFi activities across chains have continued to sustain despite the market downturn. TG Bots offering ease-of-access to Defi products have also been performing well ($UNIBOT, $NEWS, $gBOT).
Combining the two, we get a Hilo gambling game directly on Telegram. Winners get all the tokens wagered in the game, 9% is split to protocol’s revenue sharing wallet, 1% goes to burn. $HIPVP MCap is currently trading at $400k
➥ $HIPVP CA: 0x0c0725282cbf037e6781fe84e0361b01daa88ddf
BookieBot BB — Sports Betting TG Bot
Bigger suite of Gambling products on Telegram. Holders of BB tokens are eligible for 2% of BB tax and 60% of BookieBot Winning fees. Upcoming Azuro Dashboard integration that will show bullish betting stats will go live next week. BB MCap is currently trading at $2.7M
➥ BB CA: 0x562e12e1E792643d168C1fa01c1b7198a0f83C9F
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*