GM Digest #74
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
From Uptober to Octover?
• BTC & ETH have retraced after multiple days of greens — BTC is now trading at $27.6k and ETH at $1.66k retracing by 0.5% & 1.7% respectively from yesterday
• This could be because of the market taking profits from several days of pumps, especially in Arbitrum altcoins — $RAM $DPX $PLS $LODE $GRAIL are amongst the Native Arbitrum coins that retraced the highest at 20%, 15%, 13%, 13%, and 10% respectively
• 9 New ETH ETF products arrived on the market yesterday (Oct 2) but failed to garner any significant volume despite the hype that people had
Thoughts: Don’t think this is it for Uptober, at least not for Arbitrum. STIPs proposals are going to get approved within weeks and we’ll see 50m ARB getting distributed in the next 3 months. This is going to attract a large amount of TVL to Arbitrum, kick-starting the next proper Arbitrum bull-run. Low caps will pump hard due to the amount of grant relative to their MCap & TVL
UBS Pilot Tokenized Fund on Ethereum
• UBS Asset Management launched its first “live pilot” of a tokenized money market fund on Ethereum using its in-house tokenization service — UBS Tokenize
• The pilot will allow UBS to test out various fund activities on-chain, including subscriptions and redemptions
• The fund is part of Project Guardian, a collaborative industry initiative led by the Monetary Authority of Singapore (MAS) to explore tokenizing various real-world assets
Smilee Testnet Trading Competition & Mainnet
• @SmileeFinance announced testnet trading competition with over $26k Rewards Pool + Airdrop
• You can do it solo, create or join an existing team to maximize your reward potential. The competition will span 1 month (exact date TBA in Oct)
• Since the last trading competition, Smilee has enabled Directional Impermanent Gain (Freedom to Long, Short, DN), Smilee AMM (Yeet anytime), Simplified Concentrated Liquidity (No need to select range), improved UI/UX (mobile supported as well)
• This will be the last trading competition before the MAINNET Launch on Arbitrum in November
Thoughts: GammaSwap recently launched last month (after an eternity of being gone), offering Impermanent Gain products (Long, Short, Straddle) on SushiSwap pools and has recently reached $400k in TVL. Smilee has done a way better job marketing its products through memes, community building, and trading competitions. Product features aside, Smilee is likely garner more hype during its launch next month
Introducing IntentX
• @IntentX_ a next-generation, intent-based derivatives DEX. IntentX plans to launch its platform with 180+ trading pairs at launch with deep liquidity on Q4 23 - Q1 24
• Users won’t need to pay maker fees but pay only 0.03% fees on taker. Over 40x Leverage available, and no oracle
• IntentX utilizes RFQ approach instead of Orderbook, AMM, or Oracle-based Model. RFQ / intent-based architecture essentially bridge CEX liquidity on-chain through a “solver” (Market Maker)
• Traders input desired trade on IntentX → Solver provides an offer thru IntentX on conditions for the trade (happen automatically in real time) → Trader has all the pre-agreed conditions needed to open a trade streamed to them as an “offer” and then choose to execute the trade → Solver accepts, deposits equal collateral to the contract → Result in Bilateral Agreement between Solver and Trader, depending on the price movement of the position, one party is obliged to pay the other party as PnL
Thoughts: Super exciting as IntentX will be the first DEX to introduce RFQ / Intent-based architecture anywhere. If you’re new to Intent, suggest reading this article by Paradigm. Projects experimenting with Intent, article here
Good Entry TGE
• @goodentrylabs token launch is scheduled to be in Q4 2023 (More details on the tokenomics & launch TBA)
• Good Entry has seen a constant rise in users using the protected perps product as well as large protected perps size when users realized that they can save & make money from it
• In anticipation of the TGE, ezVaults (LP) are getting boosted rewards currently paying 80-95% APR
Thoughts: TVL on Good Entry is currently at ~$1m down from its high of $1.7m highs in September. This could be partially because of the bug that occurred in September that was swiftly handled and minimal $ was lost ($87k was lost) and 50% of that was recovered so far. The TVL won’t stay at this level for long as rewards are getting more attractive leading to TGE
Contango cPerp
• @Contango_xyz builds perps through looping on money markets. Deep liquidity is sourced on money markets, where interest rates produce less volatile funding rates
• Perps Traders will be able to enjoy deep liquidity of money markets as the underlying and a great UI/UX trading interface on top
• Degen farmers will be able to easily access looping rewards in the underlying money markets
Thoughts: Contango is the first protocol to offer expirables, a derivative contract to buy or sell an asset at a specific date and price in the future. Expirables can be used to speculate, hedge, and arbitrage. Since Expirables have a maturity date, traders can estimate costs with certainty. At expiry, they know for sure that they will have a pre-determined amount to purchase or sell, everything is upfront. Expirables are more suitable for longer-term trade while Perpetuals are suitable for shorter-term due to its funding rate
TFI Exchange Listing
• @truflation’s $TFI is preparing for an exchange listing and announced some changes to the token framework
• The Truflation team is refining the contract will be migrating its $TFI token. This migration will be done via an airdrop and snapshot determining token quantity has already been taken
• $TFI will be getting new utility after the exchange listing.
⇢ End users can pay for Truflation data using $TFI. If customers pay in stables, a portion will be used for $TFI buybacks
⇢ Users can lock $TFI to earn yields and will get veTFI tokens which grant holders voting rights in the DataDAO to govern decisions related to token distributions and rewards, data category selections, market strategies, and more
• Truflation offers a new inflation truth-set to provide reliable financial data for better decision-making by using 10 million data points on Truflation’s secure blockchain
Introducing Wandbot
• @wand_bot is a trading and research platform powered by TOTO and built on telegram which allows users to snipe and create limit orders based on custom parameters and creating custom watch lists
• Abracadabra is a terminal trading web app which allows users to access a terminal UI with charts and dashboards also powered by TOTO
• TOTO is @oz_dao’s data science stack for keeping up with crypto communities online, enabling users to discover new projects and gain real-time insights
• The $WAND token will give holders token gated access to WandBot and Abracadabra. The Presale has concluded on Sep 25 with 95 ETH raised for 1/3 of total supply at 285 E FDV (No announcement on TGE yet)
Thoughts: 50% of the supply was given to pre salers and Oz DAO NFT holders. There is still little info about public sale and whether the pre sale and airdropped tokens will be subject to vesting. This should be something you should keep in mind if you plan on participating in the public sale in the future
Zephyr IVO
• @zephyr_capital announced Initial Validator Offering (IVO) on Oct 5, a fundraising method that leverages the Proof-of-Stake (PoS) network's staking mechanism
• Zephyr is on @Radixdlt network, users stake $XRD in a specific validator receiving a Liquid Staking Unit (LSU) of the staked XRD. The staking rewards gets converted to Zephyr tokens and distributed to stakers
• Zephyr core product is Solis, flatcoin (a stablecoin that is inflation-adjusted), Bonding will be allowed to deepen the liquidity of Solis, and Fixed Maturity Lending and Borrowing Protocol will be enabled, offering infrastructure for DAOs looking for debt financing
• Radix DLT is a decentralized network that aims to revolutionize DeFi by providing a fast, secure, and scalable platform for building DeFi applications.
Thoughts: Radix (L1) recently announced The Radix Babylon Mainnet Upgrade at the end of September where after years of research, testing and focused development, Radix has built a highly optimized stack of custom technologies that tightly integrates wallet, programming language, execution environment, and consensus algorithm. Personally have just seen this for the first time, their TVL is not on Defillama and have no idea if there are users using the L1. Cool to see a concept like IVO for initial launch though
Pirex ETH on Testnet
• @redactedcartel’s Pirex ETH (pxETH) is live on testnet
• Users can deposit ETH and choose between holding pxETH or depositing the pxETH into an auto compounding vault for apxETH which compounds the staking rewards generated by the Dinero protocol. Over time, the amount of pxETH underlying apxETH increases
• While apxETH will be accruing rewards from the Dinero protocol, pxETH liquidity will be incentivised on DEXes with Redacted DAO’s Treasury holdings
• pxETH is an LST within the Redacted Cartel ecosystem. It is built on top of the Pirex platform and will be part of the Dinero protocol — an overcollateralised stablecoin protocol
Thoughts: The mechanism of pxETH and apxETH is similar to fxsETH and sfxsETH where apxETH is the token which accrues the rewards all of the rewards from the underlying ETH while pxETH does not. However, pxETH will be incentivized on DEXes with Redacted Cartel’s BTRFLY rewards, offering attractive APY compared to other LSTs.
Misc News
• GSR secures in-principle approval for Singapore payment institution license
• Grayscale has filed for approval from the SEC to convert the Grayscale Ethereum Trust (ETHE) to a spot Ethereum exchange-traded fund (ETF)
• Vami Recruiting unveils a strategic partnership with @CurveFinance and will now be accepting client payments in crvUSD
• Grayscale has filed for approval from the SEC to convert the Grayscale Ethereum Trust (ETHE) to a spot Ethereum exchange-traded fund (ETF)
• @coinbase obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS)
• @AstridFinance introduces Astrid Restaked Points where users can accumulate points while restaking on Astrid
• @Neutron_org partnership with @SideProtocol
• @webbprotocol introduces Tangle Network
Arbitrum Picks Ecosystem Leaders (Reminder)
Buy & Hold these to get exposure to the next Arbitrum Run (if you haven’t already)
• $MGP Magpie → Extremely net positive for an entire Arbitrum Ecosystem, MCap at $6.2m
• $RDNT Radiant → Radiant / LayerZero Season + Radpie Launch, MCap at $81m (-50% from ATH)
• $PENDLE → ATH TVL, Institutional & Retail adoption, Penpie & Equilibria continues to grow, MCap at $69M
• $GRAIL → #1 Liquidity Hub on Arbitrum, MCap at $14m (-80% down from ATH)
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*