GM Digest #53
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Market in Deep Red Ocean
• Both BTC & ETH have continued to plunge deep into the red ocean with BTC trading at $25,000 & ETH at 1,555 level (-2.0% & -3.5% decline in the past 24 hours)
• Why are we dumping? This could likely be because
⇢ FTX Liquidations: Expectation of $3.4bn in Crypto Assets held by FTX to be liquidated in batches of $100 - $200m per week
⇢ US CPI Data: Due to the expected CPI of 3.6% vs last month result of 3.2%, The market is pricing in another interest rate increase (Good to note that Core CPI is one of the key consideration which is expected to come lower at 4.3% in Aug vs 4.7% Core CPI from July)
Thoughts: Huge pre-FOMC week this week, CPI & FTX Liquidation approval will both happen this Wednesday. Expect more volatility (likely in the price-going-down direction) especially in alts
Banana Going Bananas
• @BananaGunBot $BANANA price took of and FDV hit about $70m+ during the first few minutes after launch
• A few hours after launch, despite being audited twice the team found a bug in the contract with taxes which allows people to sell their bags while having tax tokens remaining in their wallet
• The team sold off $BANANA in the Treasury Wallet, took a snapshot of everybody, and plans to set up $BANANA v2 and airdrop to everyone affected
Thoughts: This is a good chance for anyone who missed out on getting $BANANA exposure. The token will likely dump hard due to the sentiment of dev being monkeys. If you look at its products and its metrics, they’re impressive and the fundamental is still there. Good play could be to wait for the sell-offs and DCA in, $5m MCap could be more likely now
Lyve Finance Presale
• @LyveFinance will host its Private Presale on 14 - 16 Sep & Public on 16 - 18 Sep
⇢ Private: 30 E Hardcap with 20% bonus in esLYVE (100% unlocked at TGE)
⇢ Public: 60 E Hardcap with 5% bonus in esLYVE (100% unlocked at TGE)
• Both rounds have the same valuation at ~$2.8m FDV (90 E for 5% of Total Supply). Market Cap at TGE will likely be around $384k
• Lyve Finance is the first-ever cross-chain LSDfi protocol utilizing ve(3,3) model to bootstrap liquidity. Lyve will initially be on Ethereum, Arbitrum, and Linea
Thoughts: Regardless of its positioning as the first ve(3,3) cross-chain LSDFi protocol, the absence of vesting period for both rounds could spur unhealthy price action at the TGE as both Private & Public rounds price is 10% cheaper than the TGE price. Especially in a red market like this with FTX Liquidation approval & CPI Data coming on 14 Sep
RestakeFi: Future of Yield Rehypothecation
• @restakefi introduces ReFi as the next wave of LSDFi, offering yield rehypothecation with EigenLayer while staying liquid with Restake Liquid Restaked Token (LRT)
• Restake is currently in the process of a private fundraising round with VCs & DAOs in the space
Thoughts: So far I’ve seen @staderlabs & @AstridFinance as the other two protocols building liquid restaked tokens. Both RestakeFi & AstridFi are the ones to watch out for if you’re speculating on their native governance tokens. In term, of the LRT ETH, I personally have high hopes for Staders as they’ve proven to be one of the major LSD protocol that continues to innovate its products (ETHx as the most recent example)
In term of RestakeFi’s private round, I’ve been in touch with the team for some time. The round is slightly scary/dumpy as there’s no vesting period on the private round tokens and private rounds are trading at 10-20% discount
Parallax Expands to zkSync
• @parallaxfin announced the latest launch of Orbital Vaults on the zkSync Era, successfully integrating with @syncswap
• Users will be able to 1-click bridge & earn auto-compounding trading fees from USDC/ETH or USDT/ETH with additional future incentives (Users taking part in zkSync vault will essentially be farming the zkSync airdrop as well)
• Parallax provides liquidity infrastructure via its suite of products — Yield Optimizer (Auto Compounder), Vault Products, Leverage LST Yields, and Liquidity Marketplace
THENA Releases ALPHA
• @ThenaFi_ announce the public release of ALPHA, the game-changing onchain perpetuals exchange supercharged by the SYMMIO engine
• ALPHA introduces intent-based OTC → SYMMIO combines AMM + Orderbook, offering Automated Markets for Quotations (AMFQs)
• Users send intents for what they want to trade. A trade is executed after it is accepted by Hedgers. Example: User 11x $BNB Long → Hedger accepted by counter with an 11x BNB Short, all without the complexities of traditional order books
• During the promotional period (right now) ALPHA is offering ZERO funding rates, making it even more cost-effective for traders to participate
Sommelier Turbo GHO
• @sommfinance offers a multi-strategy vault that aims to give depositors the highest yield available for GHO and GHO/stable pairs
• A major focus for Turbo GHO will be LPing on Uniswap V3 with GHO paired with either USDC, DAI, USDT, or LUSD
• GHO is Aave’s newly launched decentralized stablecoin with $22m TVL (35th Stablecoin Rank on Defillama
• Sommelier Finance provides automated & adaptable vaults with best-in-class yields
Degen Section
• Holding my current investment for now and thinking of adding more to $MGP if it falls further. No other plays until we get a clear positive catalyst from CPI data this Wednesday
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*