GM Digest #71
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Su Zhu Arrested
• Su Zhu was arrested in Singapore at the Changi Airport while trying to leave the country
• Teneo, a financial advisory firm controlling the liquidation and management of affairs for Three Arrow Capital, said it got a “committal order” against Zhu after he failed to comply with court orders to cooperate with the liquidation investigation. The order sentenced Zhu to four months in prison
• The advisory firm added that a similar committal order was granted against the other 3AC co-founder, Kyle Davies, who is also being called for four month imprisonment. Davies’ whereabouts remain unknown
• @OPNX_Official $OX token price has fallen more than 50% after the news came out. OPNX is built to provide customers of collapsed crypto exchanges with a place to trade bankruptcy claims. The exchange is spearheaded by Su Zhu & Kyle Davies the two co-founders of Three Arrow Capital
Thoughts: According to news sources, the arrest was due to the founders not cooperating with the appointed liquidators. As a result, Teneo obtained an order for SuZhu and Kyle’s arrest so that they can provide cooperation with Teneo during their liquidation process. I don’t think that this arrest is as serious as how the general public perceive it. I can only see the situation getting worse if more negative information about the founders and 3AC surfaces during the liquidation process. Also just a reminder that $OX pumped on the day the MAS announced their trading ban which was contrary to how that should have been
Bitboy Listing his Car & Watch
• Ben has posted two listings on X (Twitter), one for his 2018 Dodge Demon Car with 10k miles, two for his Rolex that he bought in March
• The Rolex now appears to have been purchased by @IAmCryptoWolfy
Thoughts: Could this be the bottom?
First Leveraged LST on Pendle
• @stellaxyz_ launched its Hypernova starting with Leverage on stETH Pendle LP
• Users can leverage stETH Pendle LP while experiencing minimal IL, all while using single-sided ETH. Users can earn between 8.7% - 25.7% APR on the strategy, leveraging up to 10x
• If you’re more risk-averse, Hyper Lending Pool (that contributes to the Hyper Leverage Strategy) currently earns ~16% APY
• Stella is a top Leverage Farming Protocol on Arbitrum with a focus on Uniswap v3 Concentrated Liquidity Leverage
Thoughts: Daily reminder that LPing on Pendle LP = you’re betting on the price of PT and price of the underlying (SY) remains fairly stable. This equates to betting on the fact that the yield is relatively stable. If YT increases then the PT price is going to go down, add leverage into the mix and you can experience large IL. If you’re holding until maturity, IL won’t be there since PT will equate SY but often times this mean holding your position for months if not years so watch out for the risk before you starting leveraging
Alien Base October Roadmap
• @AlienBaseDEX shared a sneak peek of the October Roadmap — Alien Predictions (Binary Options), Lottery, Alien Perps (GMX fork), Tokenomics transition to esALB model
• Concentrated Liquidity is expected to go live on Nov and Project Quasar will allow users to trade and go long on impermanent loss, making money from the volatility of the market (TBA on release date)
• Alien Base is one of the top native DEX on Base with $6m TVL (Used to be $28m at its peak in Aug)
Thoughts: Once Aerodrome went live on Base, it was quite clear that they were going to be the leading DEX on Base. This was already anticipated by the community due to the success of Velodrome on Optimism. Alien Base introduce different features with its Area 51, betting, and Project Quarsar to capture more market share. So far it hasn’t contributed much, since Project Quarsar seems interesting (Smilee / GammaSwap style volatility trading), we’ll see if this could propel Alien Base to top DEX spot on Base again
Dopamine . Tools
• @dopamine_tools introduces a new model to the current gamification campaigns, bringing highly flexible NFT smart-contracts that can yield tokens and other NFTs (both tradable and SBTs) along with wrapping any farming or IDO position as an NFT
• Early stage protocols tend to spend a lot of time running the same gamified user acquisition campaigns on Zealy or Galxe which incur excessive costs only to potentially result in getting sybill’ed by airdrop hunters
• Dopamine’s mission is to reimagine popular financial and engagement tools for web3 protocols, offering a done-for-you service that provides engaging, gamified, NFTs that grows the partnered projects’ core community
• Dopamine’s first partnered project is @Eclipsefi, launching the Pioneer Genesis NFT whitelist free mint which begins next Monday (Oct 2)
Vaultka STIP
• @Vaultkaofficial has made a STIP proposal for 600k ARB grant
• 20% Promoting Perp DEX Ecosystem Growth (120,000 ARB) — Users who provide liquidity on any five of the top 10 Perp DEX platforms on Arbitrum will be rewarded
• 80% Connecting Lending Capital to Perp DEX LP (480,000 ARB) — Users who lock their liquidity on Vaultka Lending Vaults will be eligible to the rewards. The longer the lock up the higher the rewards
• The initiative is designed to amplify the influx of capital into Perp DEX LP Ecosystem (GLP, GM Pools, VLP, HLP, etc)
• Vaultka is one of the top leverage farming protocol of Perp DEX LP with more than $5m in TVL. Highest-demand products are VLP Leverage & GMX v2 Leverage Vaults
Dsquared is Back
• @Dsquaredfinance announced that @0xPaladinSec audit has been completed and ETH++ and ARB++ Options Vaults will go live next week starting with internal team’s capital
• Dsquared has recently made a STIP proposal to ask for 500k ARB grant stipulating that 80% will go to the vaults and 20% to GMX/DSQ V2 LP Pool distributed as Camelot Nitro Pool
• Dsquared delivers actively traded Options-based DeFi Vaults on Arbitrum with GMX, Camelot, AAVE, 1inch, Lyra, and TraderJoe as key partners
• As Dsquared was originally a Joint Venture, there was a conflict between two founding companines BWS Labs & HessianX. In the end, the conflict was settled, and BWS Labs now takes the helm in guiding the protocol towards decentralization and assuming full ownership of the codebase
• Dsquared has improved since the conflict, and it’s only a week before the vaults go live (Finally!)
Thoughts: High pumpability chance for $DSQ given Dsquared originally fell from $200 level and bottomed out at $14-$16 level for a while. 0xPaladin audit is done and product will be out next week, great catalyst to start accumulating ahead of the Arbitrum Season (Likely a dark horse in the making)
Fantech Points
• @joinfantech, Friend Tech fork on Mantle has introduced Fantech Points — a system designed to elevate your FanTech experience & reward active, positive-sum participation
• Users will accumulate points based on a variety of (social+fi) criterion, social interaction, and every share traded count to the point and 12 am UTC points are distributed based on your activity
• Rewards are still being worked out between Fantech and other key players in the Mantle Ecosystem. Team promises that we won’t be disappointed
Thoughts: “Every GM means something”. I would imagine that even the slightest activity would contribute to points. While it means that it is easier to earn points, it also means that the airdrop will get diluted. Have not seen any additional big KOLs jumping on Fan Tech with their SGE yet. If there’s no SGE interesting, it’s gonna be extremely challenging for Fantech to acquire users & TVL from Friend Tech given FT has the first mover advantage + has Paradigm support
Arbitrum Japan
• @arbitrum partners with Fracton Ventures to launch the Arbitrum Japan Initiative
• Arbitrum Japan will focus on business development, ecosystem building and educational content — designed to drive adoption of Arbitrum’s scaling technology particularly in the Japanese market
• Japan Blockchain Association wants the country's government to further revise its crypto tax system from tax exemption on the 35% unrealized gain tax to also the exemption of realized gain tax to further bolster the growth of Web3 industry in Japan
Thoughts: We need more anime & jap waifu in Crypto. Japan is so rich in anime and mangaka culture that makes it super unique for NFT and even for the art of GameFi / Defi projects. Take a look at Milady, Azuki, Sankocorp, and many more unique Jap artstyle = instant vibe. (Also more excuses for me to visit Japan more often and enjoy that Sashimi lol)
Misc News
• @_WOO_X partners with @opentrade_io to offer tokenized U.S. treasury bill products in Asia
• @FireblocksHQ expands tokenization capabilities by acquiring @0xBlockFold ($10m acquisition)
Apologies for the late episode today. Went to actively touch grass, playing at a playground with all the kids since the afternoon lol. Have a great Weekends guys!
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*