GM Digest #59

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

BTC & ETH Holding Stronk

• BTC & ETH is holding the $26.5k and $1.6k level subsequently ahead of the FOMC Meeting on Sep 20

• FOMC will be the key macroeconomic event that’s set to decide benchmark interest rates, with markets overwhelmingly expecting them to remain unchanged

Alts Weekend Sell-Offs

• Similar to other weekends where liquidity dried off, Out-of-Narrative Alts retraced on an average of 2-10% while the majors are holding key prices

• GambleFi is one of the top category that retraced the most with $RLB & $DMT retracing 4% and 9% in the last 24 hours

• TG Bot and Friend Tech Narrative are one of the top-performing categories with $BANANA spiking for 30% & $FTF for 45%+

Hedgehog Introduces Gas Hedging

• @TheHedgehog_io lets users create CDP pools to issue “on-chain derivatives” to hedge and speculate with

• On-chain derivatives for Hedgehog will start with BaseFee Volatility → Allowing Users & DAOs to speculate/hedge gas fees, yield boost (through providing BaseFee/ETH pair LP), and arbitrage (redemptions arbitrage like in Liquity)

• The other protocol that’s stealth-building a product in gas derivatives sector is @alkimiya_io

Thoughts: If you’re thinking that an ecosystem won’t have a lot of activity → LP on BaseFees/ETH | Expect a decline in activity → Mint BaseFee & Sell and Buyback Lower | Expect growth in activity → Buy from secondary low and sell when activity goes up. So many interesting use cases lol

TProtocol Mainnet & IDO

• @TProtocol_ v2 is Officially Live on Mainnet with TLending allowing users to Lend USDC to earn real yield secured by sTBT (T-bill tokens) or Borrow USDC by using sTBT as collateral

• TProtocol partners with Matrixdock to provide a sustainable, risk-free yield sourced from US Treasury Bills, now accessible to all retail users

• The TVL is currently $3.5m and the $TPS IDO is slated to launch very soon. $TPS will be used as governance, rewards, AND utility / rewards multiplier tokens

Thoughts: An interesting protocol that offers T-Bill yields from its staked T-bill tokens (sTBT). v2 introduces lending & borrowing using its sTBT, further adding more value to the token. This also allows USDC to experience T-Bill yields without having to hold the underlying sTBT itself. This is done by lending out USDC for 3% - 5% yields, depending on the utilization rate of the pool. More protocols are introducing stablecoin or stable-asset that’s backed by T-Bill yields which is extremely attractive in the current high-interest climate

Temperature Check for Arbitrum’s Short-Term Incentive Program

• The temperature check for the Arbitrum Incentive Program has been passed and up to 50m $ARB through Jan 2024 will be allocated for this incentives program

• The purpose of this proposal is to incentivize the use of existing Arbitrum dApps and to increase activity, users and liquidity for the ecosystem

• Good to note that the 50m $ARB won’t be immediately deployed right away. This will serve as the initial budget that protocols on Arbitrum can create a proposal and ask for an allocation

Thoughts: This incentive program may spark more activity and TVL into the Arbitrum ecosystem, injecting the well-needed hype (that has been lost for a long time) into the ecosystem. The peak TVL was at $2.5bn back in May, the TVL has since then gone on a decline currently at $1.7bn. Heard from the grapevines that Arbitrum has been quite conservative on grants / rewards to $ARB due to Offchain Labs being on the US Soil. It’s treading lightly due to fear of SEC going after them with “You’re a Security!”

End of Friend Index

• @friendtechindex will be sunsetting (closing) their Friend Tech Index product and recommends that users sell their keys

• The reason for closure is because the founder @0ctoshi found it too time-consuming to manage this project and wanted to devote his time to other areas

• 100% of the airdrop will still be distributed among their holders

• Friendtech Index aggregates alpha from top FriendTech rooms and shares them with their keyholders

DeltaPrime on Arbitrum & Updated Incentives

• @DeltaPrimeDefi is set to launch its Delta Prime Account on Arbitrum on Sep 20

• Starting on Sep 19, $sPRIME Liquidity Mining Incentives will have an intuitive $ dollar amount emission in each pool, making them more attractive to liquidity provider

• Over $500k of ETH and USDC have been raised from partners and will be used to bootstrap the initial liquidity required for leverage strategies

• Delta Prime operates a Defi Prime Brokerage Account (Think Gearbox) that allows users to perform undercollateralized leverage on whitelisted strategies / protocols

• $PRIME is slated to come at the end of this year (or Q1 next year). Users lending their capital on Delta Prime will earn $sPRIME rewards which can then be unlocked over time to $PRIME over 6 months after TGE. sPRIME will be an LP token that’ll continue to generate fees regardless of the lock

Thoughts: DeltaPrime has partnered with several Arbitrum’s Defi Powerhouses like Camelot, Pendle, Wombex, Beefy, GMX. Still unsure what kind of strategies will be available on Arbitrum but super excited because of Camelot (v2 & v3 LP and xGRAIL integration / plugin) and Pendle (Leverage on PT / YT / and Pendle LPs!?) 💦

Introducing Circuit Protocol

• @circuitprotocol, @0xMantle's Native Yield Optimizer has just gone live with the first batch of vaults with Lendle — Single-sided staking for majors, stables, and Lendle’s LEND-MNT reward pool

• All vaults have 4.20% profit fee (Gud number) far lower than competing yield optimizers

• Circuit is the first yield aggregator / optimizer on Mantle.

Thoughts: Seeing how Mantle is positioning itself as a Defi Hub — Native yield aggregator that provides easy-to-farm experience, an aggregator that’s early and quick to establish partnerships with all the native protocols could perform extremely well when Mantle Ecosystem hype kicks in

New Interesting Projects that I’m looking at

• @fundedcoineth Low Cap / Shitcoins Web3 Prop Trading → Allows users to leverage your fund 10x to trade on Shitcoins

• @ShurikenTrade TG & WebApp Suite on Trading Products

• @TheHedgehog_io & @alkimiya_io Gas Derivatives

• @ThetanutsFi Options Structured Products (v3 Soon)

• @DeltaPrimeDefi Prime Brokerage / Undercollateralized Borrowing / Leverage on New Defi Powerhouses

• @GrixFinance Defi Options Aggregator (Alpha Waitlist Opens!)

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