GM Digest #63

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

Deep Red Market

• BTC, ETH, and the entire Crypto market in deep red today with BTC & ETH retracing 1.8% and 2.1% respectively over the past 24 hours

• Further drawdown is not unique to Crypto Market, S&P 500, Dow Jones, and NASDAQ further retraced 1.6%, 1.1%, and 1.8% respectively

• Markets are further pricing in the expected elongated state of high interest rate environment as signaled by the Fed during the latest FOMC Meeting

• Altcoins further bleed with Bot Narrative bleeding the most — $METAL 40-60% down from normal trading level, $UNIBOT 40% down and $BANANA 30% down

Grayscale New ETH ETF

• On Sep 19, Grayscale proposed listing and trading shares of the Grayscale Ethereum Futures Trust ETF

• In Aug, Bloomberg reported that the SEC was set to not block the approval of ETH ETFs. This propelled ETH 11% upward after the announcement was made (in August)

Vaultka, Leverage GMX v2

• @Vaultkaofficial has announced the first Leverage Vault on GMX v2 GM Pools

• Users can earn up to 36% APR on ETH-USDC & 79% APR on ARB-USDC GM Pools, Leveraging Up to 5x

• Users providing lending capital for the GMX v2 strategy currently earns 23% APR

• Liquidity on @GMX_IO v2 is provided through individual “GM Pools” that consist of Index Price Feed, Long & Short Tokens that’ll back Long & Short positions. Example: ETH-USDC → ETH backs long, USDC backs short

Thoughts: Vaultka is one of the top leverage farming protocols on Arbitrum that aims to be the hub of Perp Leverage. Its USDC is earning 10-20% APR from actual high utilization rate of the leverage strategies, VLP (Vela) being one of the highest demand strat. The attractive yields on GM Pools of GMX v2 is making Vaultka an even more attractive platform to farm for yields, a well-needed spotlight ahead of its TGE in Mid-October

Linear LUSD Exploited

• The @LinearFinance reported that their stablecoin — $LUSD was under an exploit attack. The team urged everyone to not buy or trade $LUSD at the moment

• The current TVL of Linear Finance is over $8m and the Peg of $LUSD is currently $0.00002 from $0.9

• The attacker was able to mint an unlimited supply of LAAVE and subsequently traded the liquid asset to LUSD on the Linear Exchange. They then sold the tokens on PancakeSwap and Ascendex decentralized exchanges

• Linear Finance is a cross-chain compatible, decentralized delta-one asset protocol to quickly and cost-effectively, create, trade, and manage synthetic assets

Thoughts: Still unsure of what has happened with the exploit. Luckily the impact is not material due to the limited TVL of Linear Finance ($8m)

Magpie Arbitrum Grant

• @magpiexyz_io has made a proposal for @arbitrum Short Term Incentives Program (STIP)

• The Magpie team has requested for 2m $ARB tokens for the total grant size to be distributed across different SubDAOs in Magpie ecosystem with the goal to bolster user participation and community engagement on Arbitrum through Magpie, Penpie, Radpie, and Campie

• @WombatExchange Cross-Chain Pool recently debut on Magpie allowing USDC & USDT LP to boost their APR Up to 20% and earn WOM & MGP rewards

• Penpie controls ~28% of the vePENDLE supply and the peg of mPENDLE is at ~0.91 vs Equilibria controlling ~26% with ePENDLE peg at ~0.64

• @Radpiexyz_io has successfully been audited by @peckshield and is anticipated to launch very soon

Thoughts: I’ve been shilling Magpie too hard so I’ll refrain from putting more thoughts here. But if this proposal were to pass, Magpie will be on everybody’s radar

IPOR v2 Soon

• @ipor_io v1 strongly focused on fundamentals: the utility of a benchmark rate, the base functionality of an interest rate swap

• IPOR v2 also introduces the “Stake Rate Swap” — an adapted instrument that allows users to exchange fixed for floating ETH staking rates

• v2 will also enable Leverage LP & Leverage yield-bearing positions to capture the top yields from either DeFi or RWA

• IPOR stands for “Inter Protocol Over-block Rates****”**** which derives the name from “LIBOR”. IPOR aims to become the foundational layer of the DeFi credit markets by offering interest rate derivatives and IPOR indices as central benchmark rate in DeFi that can be referenced by anyone

Thoughts: IPOR team is working on a very interesting primitive. I have not been observing this closely but recall that they were aggressively attracting liquidity with high APY on USDT, USDC, DAI with their $IPOR tokens. That did not end well for its token, tanking 93% from ATH. The TVL now hovers around $13m and v2 is poised to be launch very soon

Aerv Finance, LSD for Fuel

• @AervFinance has introduced a Ethereum liquid staking solution for @Fuel_network [Currently not live]

• Users can now stake-based Ethereum and receive avETH tokens in return which is a rebasing token similar to stETH. There is also a wrapped version, wavETH which is DeFi compatible

• Fuel Network is a modular execution layer using Sway — a rust-based SC language. The main goal of Fuel, one of the fastest modular execution layers for blockchain-based technology, is to deliver unparalleled security and maximum throughput and enhance the overall developer experience on Ethereum

Stella Hypernova

• @stellaxyz_ will be introducing a new phase of DeFi yields with their ‘Hyper-Strategy’ and ‘Hyper-Lending Pool’

• Hyper-Strategy allows users to access potential high yield strategies like the Leveraged Pendle LP Strategy on Liquid Staking Tokens (LSTs), where Leveragoors will be able to get up to 30% on the leveraged LST Pendle strategy using single-sided ETH

• On the flipside, lenders are able to lend assets to the Hyper-Lending Pool to generate higher APRs with additional rewards from the underlying protocols

• Hypernova is not live yet at the moment but will tentatively kick off in the following weeks

Thoughts: Stella has proven to be one of the top destinations for Leverage Univ3 Strategies as ~66% of Leverage Positions have generated positive yield at +637.77% APR on average. Top performing positions remain to be ARB/USDC, RDNT/ETH, and PENDLE/ETH with 3.3x Leverage and 6-8 days duration on average. Hypernova strategy will allow users to leverage on Pendle LP, doubling down on the bet that fixed yield & variable yield remain fairly stable.

Umoja, FX Hedging

• @UmojaLabs’s Umoja Protocol is a decentralized options protocol, harnessing peer-to-peer lending to offer comprehensive currency risk protection across currency pairs

• Umoja introduces Currency Risk Pools (CRPs) that provide credit to Currency Hedgers to establish general currency risk protection for a specific currency pair, margin range, hedge amount, and maturity

• In exchange, Currency Hedgers pay collateral installments to access such coverage with an APY that could be upwards of 20-100% for investors (liquidity providers that invest in currency risk positions of Currency Hedgers)

Other Defi News

• Maverick Ecosystem Leaderboard — @mavprotocol

• Standard Protocol Roadmap — @standardweb3

• f(x) Protocol TGE on Sep 28 — @protocol_fx

• Kwenta Staking v2 Live — @Kwenta_io

• BSC added to THORCHAIN — @THORChain

• Reserve Protocol V1 (3.0.0) — @reserveprotocol

• Lybra Welcomes rETH (Rocket Pool) — @LybraFinance

Post Tech Creator Shares

• Post Tech shares of everyone have gone through a sharp dump last night but has since then rebounded back its dump. Rewards of Epoch 1 ($100k) has ended and there’s a 12-24 hours of Break Time before the next Epoch 2 which will likely signal another rebound in shares price

• A few good shares to buy & hold

⇢ LucasPostTech: Lead Dev of Post Tech, holding a lead dev share could pay off well seeing how Racer (Friend Tech Lead) shares got propelled to 6 E+. There’s good volatility in Lucas’ shares and you can earn a pretty decent trading rewards on top

⇢ SizeChad: The KOL Carrying Post Tech, his shares dropped from 1 E+ to 0.66 E from last night. SizeChad is shilling the shit out of Post Tech and trying to make this work. Super effective so far

⇢ Defi0xJeff: A small creator trolling & messing about in Post Tech, his shares are still trading at 0.056 E. Jeff shares his insights on undervalued PT shares and vibe with the community in his PT chat

⇢ milesdeutscher: Top Crypto Analyst, shares trading at 0.13 E

⇢ CryptoKaduna: Shitcoin King, shares trading at 0.11 E (down from 0.19 E yesterday)

⇢ sandraaleow: Top Nansen Alfa Sharer, shares super cheap at 0.03 E

Why am I so passionate about Post Tech but not so much on Friend Tech?

• Post Tech feels so much better — better UI/UX, Community vibing, no clunky experience, can be used on Desktop

• Bonus point that it’s on Arbitrum

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