GM Digest #58
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Velodrome Slipstream
• Since @VelodromeFi has established itself as the #1 DEX on Optimism utilizing UniV2 style pairs with an optimized emissions-based incentive model
• Now Imagine incentivized CLAMM Pools on high volume pairs such as OP, WETH, wstETH, and more that could be well served with Univ3 liquidity & farms
• Rewards are distributed only to active ticks, tick spacings will be larger to accommodate retail and reduce the frequency of which ALMs will need to rebalance liquidity
• To adequately compensate LPs for the risk they are taking in CL pools during the volatile market conditions, unstaked liquidity will be able to earn trading fees rather than emissions. To encourage restaking of LP back to the flywheel, rake / tax is applied and will go to veVELO voters of that pool
Thoughts: v3 CLAMM will solidify the positioning of Velodrome as the #1 Top DEX on Optimism and potentially #1 Top DEX on other L2 Superchain utilizing OP Techstack as well. We’re starting to see this trend happening with Aerodrome on Base where Velodrome is able to leverage its partnership & expertise to immediately capture $100m+ in TVL & millions of volume within a day after launch. The main beneficiary of this will be veVELO lockers — better capital efficiency, more volume & fees, more value and incentives to lock VELO
Introducing Deri Chain
• @DeriProtocol has unveiled Deri Chain (d-Chain), a L3 Rollup (Orbit Chain) built on Arbitrum
• With L3 infrastructure & Nitro tech stack, the protocol significantly improves transaction processing times, faster execution & trade settlements & reduced gas costs for traders and users
• Deri Protocol offers Options, Futures, Powers, and Gamma products. Deri v4 was announced earlier this year with improved performances, consolidated liquidity, cross-chain, and more features
Thoughts: More protocols pivoting to become its own chain under an L2 stack. As Optimism onboards more projects and secures partnerships to build on the OP Stack, Arbitrum will now face more pressures to secure their own projects under the Arbitrum Orbit
New GAMMA Tokenomics
• @GammaStrategies announced that they will be releasing a new staking contract which will include locked staking and voting in addition to a bonus reward pool eligible solely to stakers
• Users can now lock GAMMA for vlGAMMA to earn ETH rewards. Multipliers on their ETH rewards depend on how long users lock their GAMMA (From 1x for 1 Month to Up to 5x for 4 years)
• vlGAMMA earn 5% revenue and successful voters of the most productive LP will receive additional 5% revenue as bonus rewards. Multiplier is applied to both source of revenue and Stakers also receive bribes from the protocols
• Gamma Strategies is One of the Top Concentrated Liquidity Manager across multi-chains with over $80m TVL
Thoughts: The shift from the original tokenomics of freely staking to earn 10% of the protocol revenue without any lockup to vote-locked & multiplier tokenomics will provide more value to $GAMMA stakers, further aligning the incentives between Gamma Strategies and Long-term stakeholders of Gamma. The price of $GAMMA has been steadily declining since its April High of $0.4 ($24m MCap). Now it’s currently trading at $0.1 ($6.4m MCap) while its TVL continue to sustain at $80m level (down from $100m in April). Could be an opportunity to grab some $GAMMA
XAI Network & Airdrop
• @XAI_GAMES is a permissionless first layer 3 built on Arbitrum stack backed by Offchain Labs & Ex Populus
• XAI is currently on incentivized testnet, there are NFT quests where you can Mint Odyssey Vanguard NFT daily, join Zealy Quests, and play their Web3 Warrior Game (Diablo-style Survival Game)
Thoughts: Interacting with XAI, one of the first L3 Gaming Chain could yield good $$$ airdrops. While I’m not an Airdrop guy, the Warrior Game looks pretty fun and it’s something that I’d play when it launches
MakerDAO Increases Debt Ceiling
• On Sunday, September 17, at 14:15 UTC, Spark Protocol will increase its debt ceiling from 200m to 400m DAI. 200m DAI will be directly injected from the Maker Protocol
• The debt ceiling limits to the amount of Dai that can be generated against different collateral assets (e.g., ETH, BAT, USDC, etc.) so that it manages the risk within the protocol. By balancing the proportion of total Dai that can be generated against the different collateral assets, the risk associated with each asset is limited
• @spark_protocol_ is the DAI-centric money market protocol. Combining the best liquidity directly from MakerDAO and vertically integrating with the best DeFi protocol
• Users can deposit DAI as lending capital, and earn 5% DAI Savings Rate while farming the $SPK Airdrops
Thoughts: The last time the debt ceiling was raised was in August where the Spark Protocol D3M (DIRECT-SPARK-DAI) Maximum Debt Ceiling (line) was increased by 180 million DAI from 20 million DAI to 200 million DAI. With this new proposal, the Maximum Debt Ceiling will be doubled and increased from 200m DAI to 400m DAI. This increase in the debt ceiling means that more DAI can be borrowed against other assets which will increase the supply of DAI in circulation
Unclaimed OP to be Distributed
• @optimismFND will be distributing the remainder of the funds from its first airdrop directly to the eligible addresses
• So far since the airdrop commenced on 1 June 2022, about 166m of nearly 215m $OP tokens have been distributed and about a quarter of eligible addresses did not claim the airdrop (19% Supply for Airdrop but 14% have yet to claim). These addresses will receive the $OP tokens directly
Thoughts: More $OP will be in circulation, people who forgot that they have unclaimed $OP airdrop will now have access to them. Most of them would probably dump in this kind of market environment
Degen Section
Milk Friend Tech
• Just aped @milkfriendtech $MILKER Private Round — 15 E Total Raise at $27k FDV, raising from a bunch of DAOs & KOLs
• 40% will be unlocked at TGE while 10% will be unlocked every week for 6 weeks
• The product is essentially an AI Chatbot that you can deploy into FT Chats, farming the points for you by actively engaging / vibing with people in the chat
• TGE is likely gonna happen on Monday, FDV is low enough and the vesting period for Private Round makes it attractive to get into it at TGE
• Bonus point for a project building on FT — Friend Tech Narrative
DIGITS Friend Tech
• Covered the news of @DigitsDao and its focus of Friend Tech Keys & Point Farming
• After the news came out, $DIGITS pumped only 20% and is currently trading at $4.20m MCap (Extremely attractive valuation)
• DigitsDAO currently holds more than 130 E worth of keys, 11550 FT points, and $2.5k+ in DAI recently collected from the past 2 days. Revenue goes to buy more keys, farming more points, and airdrop will eventually be distributed to $DIGITS holders
• Many protocols are trying to do this but not many have 100+ E in Treasury and more importantly, not many have proven to be able to generate profits & manage their Treasury as well as Digits
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*