GM Digest #42
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Delayed ETFs Applications
• Market seeing red today as $BTC and $ETH fall -4% and -3% overnight
• This could possibly be due to the SEC pushing the decision for approvals for several BTC ETFs until October 16 - 19. SEC can choose to delay it again on Oct until March next year (which they’ll be forced to make a decision)
Thoughts: Beyond the overall macro, CT is mainly driven by ETFs News since the potential inflow of institutional capital hinges on whether these Bitcoin & ETH ETFs get approved. We’re two weeks away from the next potential bullish/bearing catalysts — The second week of Oct will be both Token2049 Conference and potential BTC ETFs approval week by SEC.
Base Defi Hub
• @BuildonBase TVL continues to climb up 74% in a day and is currently sitting at $365m.
• The trend is attributable to Aerodrome, Overnight, Compound which became the Top 3 Highest TVL Protocols on Base with $187m, $26m, and $22m TVL respectively
• This massively positions Base in a position to be an Upcoming / Attractive Defi Hub due to its growing Defi infrastructure
Thoughts: As Base’s TVL continues to climb, we could expect to see more inflows of liquidity into the chain and in turn, see more protocols moving to Base. With the current pace, we could potentially see an Arbitrum-like run that we’ve seen earlier this year
Aero flips Velo
• @Aerodromefi saw a 3479% increase in TVL in the past 24 hours and its TVL is currently sitting at $187m which flipped @Velodromefi at $166m
• Stablecoin farms on Aerodrome remain at 3-digit APRs with wUSDR/USDbc 115%, DAI+/USD+ 47%, and DOLA/USDbc 68%
Thoughts: For ve(3,3) protocols, it is always good to take advantage of the initial high yields upon launch. These APRs will not last forever. It is surprising to see how quickly Aerodrome’s TVL flipped Velo’s. With Aerodrome now being the leading DEX on Base, there could be a race among protocols to accumulate $AERO and direct incentives to their pool. Speculating on $AERO could be a play, but the R/R is better with yield farming as retails are already sophisticated enough to not participate in the Solidly flywheel by buying $AERO and locking it (Majority of the participants either Farm & Dump or Farm & Vote & Partial Dump)
Vela on Base
• @Vela_Exchange will launch on Base with its VLP (Sep 5) & Trading floor (Sep 6)
• SpaceBase Defense Program (Loyalty Program) — 25,000 esVELA added to both Arbitrum and Base to commemorate Vela arrival on Base
• Vela’s volume ranges between $5-10m on average. Their volume hasn’t been the same as their beta launch volume ($100-300m) and expanding to Base might change this
Thoughts: Perp DEX sector on Base is still nascent — KRAV Trade & DIP Exchange are the Top Perp DEXes with minimal volume. Vela could establish itself as the Top Perp DEX on Base starting with its SpaceBase Program + Trading Competitions amongst other campaigns
Stella Extend Incentive Program
• @stellaxyz_ will be extending their incentives program for Leveragoors and Lenders for another 2 weeks beginning 31st August.
• The APY for their strategy vaults currently sits at 3 digits. Top 3 performing vaults (realized yields) are ARB/USDC.e 63%, RDNT/ETH 79%, PENDLE/ETH 74%. Average leverage is ~3x with 7 days average position duration
Thoughts: Stella continues to list new pools with attractive yields while its ETH borrowing pool has been in high demand and often reaches capacity. In a sideway market, LPing on Stella is an attractive option, especially with extra $ALPHA rewards.
Mantle & Stargate
• Current options for bridging to Mantle is still quite limited with only 2 options: official mantle bridge and @symbiosis_fi
• @0xMantleDAO submitted a proposal for @StargateFinance deployment with liquidity pool support of up to $10M and 5k ETH ($85M)
• Mantle has one of the largest treasuries in DeFi with $3.4b and how the DAO is looking to spend to acquire users, boost liquidity and attract developers and teams to its L2
Thoughts: Official Mantle bridge only facilitate ETH Mainnet transfer and users will have to go through the extra steps to acquire MNT for gas while Symbiosis is relatively new with low TVL/liquidity. Mantle DAO understands the importance of having good infrastructure for developers & users and strong partnerships and integration in DeFi; expect to see them announce a lot of new partnerships in the upcoming months.
GMBL LBP
• GMBL raised $750k in Presale & $1.5m in Public LBP
• Public LBP ending price is $0.22 with $22m FDV. The ending LBP valuation had a 46% premium to the presale round at $15m FDV. TGE details will be announced soon.
• @GMBLComputer aims to be the “people’s casino” where stakeholders can earn from house earnings
Thoughts: $GMBL LBP closed 18 hours earlier than scheduled since the project reached its target quicker than they thought. Both rounds were sold out but the valuation is too high ($15m - $20m FDV) for a GambleFi project without a product yet. Get into $DMT or other TG Gambling Bots like $HIPVP instead
Robinhood Wallet
• Users can now make swaps on Ethereum — the crypto wallet is now integrated with 3 L2s: Arbitrum, Optimism, and Polygon
• Robinhood has over 23m users and its easy-to-use wallets for normies could potentially onboard millions of DeFi users over the next few years. Its users currently hold $2.5bn in ETH and when combined, make up the 5th largest holder of ETH
• @RobinhoodApp is a commission-free trading app for stocks, ETFs, and crypto
Thoughts: Allowing users to easily trade from their mobile hot wallet might not seem like a big deal to power users but Metamask Swap has proven that over 300k users are willing to pay 0.875% swap fee. Metamask Swap generates around $100-200k in trading fees per day and Robinhood wants to duplicate the model but for its stock traders.
CYBER Treasury Dump
• The Community Treasury dumped $5.2m $CYBER yesterday alongside @DWFLabs. DWF has been selling into the 200% pump over the past 4 days, but still has 130k $CYBER left
• Its @CoinList public sale in May 2023 sold 3m $CYBER at $1.8 to 9,500 investors
• @CyberConnectHQ is web3 social network that enables developers to create social applications.
Thoughts: DWF Labs has been involved in some wild price swings lately with YGG, CRV and CYBER. If you see DWF or UDAO, ape with caution.
JOE Listed on Bithumb
• Price shot up 35% to $0.31 overnight but the spike might be short-lived as its DEXs on Arbitrum and BSC have struggled to gain adoption while things remain quiet on Avalanche
• Listing pumps are very much alive. We could continue to see a flurry of listings for the rest of the year with Binance discussing listing small caps, Binance Japan increasing tradable pairs by 300% and 2 new CEXs in HK
• @traderjoe_xyz is the largest DEX on Avalanche with $82m in TVL and @BithumbOfficial is a leading CEX in Korea
Thoughts: TraderJoe has been slowly bleeding and their daily trading volume on Arbitrum has been stagnant at around $20m. Could be a potential short-term Short Play
Prisma Goes Live Today
• @PrismaFi will go live today at 9 am UTC and will initially support 5 LSDs namely wstETH, cbETH, rETH, sfrxETH
• This will be a guarded launch with caps on each collateral with interest rates being set at 0% at launch.
• Prisma is an LST-backed stablecoin that’s invested by high-profile Defi OGs like Curve, Convex, Frax, Conic, Coingecko, Llama Nodes, etc. Prisma gets full support from these backers and is poised to go head-to-head with Lybra
Thoughts: Given Prisma’s current backing, they have the potential to outcompete all the Lybra forks and go head-to-head with Lybra due to its liquidity incentives (potentially with Curve, Frax, etc)
Tigris New Oracle Architecture
• The current architecture makes Tigris the fastest decentralized platform in terms of order settlement, with almost-zero price slippage but there’s a front-running issue with bots
• @TigrisTrades is implementing something similar to Chainlink’s low latency oracles allowing zero slippage, guaranteed prices, and makes it easy for aggregators to aggregate Tigris into other platforms
zETH Liquidity Mining
• @ZeroLiquid_xyz introduces liquidity mining scheme for zETH/wETH on Curve. Incentives are paid in ETH, users can currently earn up to 130% APR
• Zero Liquid provides self-repaying, 0% interest loans on your LSD tokens without any risk of liquidation
Thoughts: This could be a potential farming opportunity while getting paid in ETH. I’m keeping my eyes on Prisma Finance first, considering it’s super hyped up and $PRISMA rewards could be more attractive
Degen Section
• $WAFFLE Wafflebot is gaining traction → It’s a bot on top of bot on top of bot, Botception. Users send it a contract address on TG and it gives you Otto simulations (Pre & Post-Launches ERC-20 CA Simulations). It also shows you Maestro, Banana, and Prodigy snipe analytics. The team is building additional bots — alerting users which pre-launches & post-launches CA are getting a lot of eyes from snipers. MCap is at $250k (90% up in the last 24 hr) → I’ve started DCA’ing in, could likely see a retracement from this point
• Pintswap TRIS NFT already 0.73 E Floor. A reminder that it’s never too late to bid for this as TGE is looming closer in 1.5 weeks. Pintswap could likely be the de-facto DEX for shitcoins & low caps. I currently hold about 5 NFTs and will likely start taking partial profits around 1.5 E and 2.0 E (It’ll run to these prices next week)
• $METAL is getting really good traction on both its NFT and $METAL tokens. They’re working on an $AIMBOT algo that finds the best launches to invest in. Both NFT & Token have massively pumped (and yes I’m sidelined lol)
• I’ve been rotating profits from shitcoins & low caps to ETH. Will liquid stake some of those ETH today on Prisma Finance (Launching today at 9am UTC). Hoping for some juicy $PRISMA rewards post-guarded launch
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*