GM Digest #43

Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril

Why the Market is More Red

• The sell-offs started with the SEC delaying six spot Bitcoin ETF applications until 2nd week of October.

• Further sell-offs are exacerbated by long liquidations with the crypto derivatives market closing over $100m+ in long positions over the last 24 hr

• Stronger US Dollar has continued to gain strength. Thereby, pushing down Crypto market prices due to their negative correlation

• BTC & ETH retraced another -1% overnight and altcoins are experiencing 20-50% further drawdown

Thoughts: Heavy sell-offs tend to be followed by a relief rally that lasts few hours to a day max. Altcoins that get 40-60% burnt tend to rebound back some of the retracement. Dip-buying on solid picks during this time could generate 1.5x - 2.0x on average depending on the picks & and the overall market → Buy when others are fearful, Sell when others are euphoric

Base: Top #8 Chain in TVL

• @BuildonBase continues to dominate, outranking Solana ($307m) & Mixin ($377m). Base TVL now sits at $390m — the only green chain amidst the red market

• Majority of TVL is driven by @Aerodromefi, @Overnight_fi, @beefyfinance, @Stargatefinance, @CurveFinance, and @MoonwellDefi

Thoughts: First stage of Defi Ecosystem has been established and Aerodrome has proven to come out on top (DEX War). Money market & Perp DEX Wars are coming next. Will let you know if something interesting is out — so far I see SonneFi for Native Money Market and Krav & DIP for Perps

Base Opportunities

• @Aerodromefi Yield Farming Opps are still looking attractive with stable pools at 20-40% (albeit down from triple-digits yesterday)

• @SonneFinance arrives on Base and is providing double-digits liquidity mining incentives on Borrowing & Lending on Base

• @BasebotTeam #1 Trading Bot on Base. Their NFT Mint is going on right now and it’s pretty cheap (0.0012 E per NFT). NFT Holders will be eligible for $BBT Airdrop

Thoughts: Less interesting low cap opportunities as market is red — investors’ propensity to invest in risk-on assets (without USPs or forks) are reduced. Bigger players with better & experienced teams are starting to win a large part of the market share in their subsequent sector. Nobody wants to invest in Univ2 forks without any USPs any more, we’re past that stage

gBOT Update

• @GBOTofficial & @GMD protocol has issued an official explanation and formal apology for the recent incident that caused confusion and loss of trust in the community

• Recap: $gBOT holders woke up to -99% drawdown in gBOT price → What happened was that the gBOT team got into an OTC deal and “was struck by an intricate scam”. The scammer was able to get his hands on large amount of gBOT and was dumping on the market. The team removed LP pool quickly and immediately launched new contracts and airdropped them to the users

• Since trust was already breached, $gBOT price has been slowly bleeding since then and now sits at $44, lower than Presale & Public Rounds’ prices

Thoughts: Again… Still don’t get why they’re doing OTC after successful rounds of Presale & Public lol. What a cluster f**k this is. Abort all GMD Eco coins (if you haven’t already)

peUSD on Abritrum

• @LybraFinanceLSD ‘s peUSD is making its way into the Arbitrum ecosystem. peUSD is a DeFi-friendly, Omnichain version of its own interest-bearing stablecoin- eUSD (v2 Upgrade)

• Users can now obtain peUSD either from minting directly from a non-rebasing LST (eg: rETH, wstETH) or converting eUSD to peUSD on Arbitrum

• The yield on eUSD is currently sitting at 19% on Lybra v1. V2 Mining Program will start on Sep 7, offering a 1.5x bonus for the first week

Thoughts: Lybra launched its v2 and Omnichain feature just in time for Prisma’s launch - its potential competitor. There is definitely interest in Prisma seeing how their guarded launch was quickly capped. Will be interesting to see if Lybra’s TVL will grow since it is now omnichain

HMX on Mobile

• @HMXorg is now available as a Progressive Web Application (PWA) for Mobile Users

• HMX continues to dominate the perp market with volume higher than GMX despite having only $21m TVL (vs. $480m by GMX)

• $HMX price has retraced -13% from its recent high at the end of August. Could be a good dip-buying opportunity given its metrics and its improvement in UI/UX, catering towards mobile users

Thoughts: With the success and adoption of Friendtech, mobile interfaces are attractive for users to use and this can be especially true for perps as users are more familiar with CEXes when it comes to trading perps. $HMX could see a rise in volume with this new feature

Vertex Token Launch in October

• @vertex_protocol teases its token launch to be on October

• Vertex has been running a trading loyalty program for a few months now, offering future airdrops to traders

• Vertex received $8.5m in investment by Tier-1 & Tier-2 VCs and is poised to be a Leading Perp DEX with a Comprehensive Product Suite (Spots, Perps, Money Markets, AMMs, Orderbook, Unified Cross Margin, etc)

Thoughts: Gonna be monitoring this closely, could see HMX-type run if MCap & FDV is attractive 👀

Amphora Soft Launch on Mainnet

• @AmphoraProtocol is a vault-based lending market where users can lend and borrow sUSD (v3) against collateral (ETH and Curve Pool Tokens) while also earning yield farming Convex LP positions

• Users deposit sUSD for $USDA, auto-rebasing token that gains interest from lending market without the need to manually claim

• Amphora has soft-launched on Mainnet and has been audited by Code4rena

Thoughts: This protocol is still very early and has not received audits by an external team at the moment so would be careful when experimenting with this protocol. But it is built around the Synthetix ecosystem and is worth keeping an eye out for

MakerDAO to launch its own chain

• @MakerDAO is currently undergoing a major, multi-year overhaul “Endgame” that includes breaking up Maker into smaller SubDAOs which are independent entities

• Final phase of the plan is to roll out a new chain under the codename “NewChain” (wat is dis naming sense?). The objective is to make the ecosystem more resilient to governance attacks and technical failures

• NewChain is a long-term project that will likely take at least 3 years and MakerDAO is eyeing Solana’s codebase to provide the high-speed performance on NewChain

Thoughts: Another project leaving to start their own chain. It is interesting to see projects start their own chains and could signal an “app-chain future”. $MKR received a short pump on this news which signals a positive signal from the market about this news. Rune mentioned that this vision takes at least 3 years to roll out so I won’t be expecting any short to mid-term plays on this

Top Picks (Low Caps)

• WaffleBot — retraced 60% from yesterday and form support around $0.0001 ($100k MCap) level. Now, it’s going to start ranging between $0.00014 ceiling & $0.0001 floor until the next bullish catalyst or when we have a relief rally. Once the market picks up, Maestro & Banana continue to find their PMFs, WaffleBot analytics & sniper bot will be extremely valuable → and $WAFFLE which is required to access their bot will be even more valuable as well (token-gated bot)

• Metal — retraced 16% from yesterday with support around $0.016 - $0.018 ($1.8m MCap) level. PA holding on extremely well relative to other bots. Aimbot-style Alpha Bot, Fresh Wallet analysis, and automated trading bot are a great suite of bot products. The premise of getting alpha/alerts and instantly/automatically ape is great. The team has recently pick a couple of community members to test the Metal sniper bot in the upcoming week — based on how that goes, we could see some movements in $METAL during the next 5 days

• Flash Analytics — token just launched a few hours ago. Pumped massively to $200-300k. It’s Discord Bot with Top Low Caps & CA Analytics. Feels pretty intuitive and easy to use. Not much value accruing on $FLASH token right now due to 0/0 tax and the product is currently free to use. $FLASH will likely run once token-gated access is implemented

• Newsly — 30% retracement from yesterday. During red boring days, Newsly may not have a lot of utilities due to its “news trading” core feature. Even though you can do basic CEX trades with simple TG commands, it might be better R/R to buy the dip on other picks for now (but worth monitoring this)

• HiPVP — barely any retracement at all. Possibly one of the top teams in the space and bullish metrics to boot → $35k in Revenue, $370k wagered, 1.5% supply burnt, 1500+ games played, all of this from the past 5 days. The team is currently working on the second game and the MCap is still at $1m

Top Picks (Medium Caps) → More on this coming tomorrow

*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*