GM Digest #91
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Market is Green
• BTC & ETH have both climbed by 2.5% & 2.0% respectively to $29,200 & $1,590 off the back of Powell hinting the end of rate hikes
• Federal Reserve Chair Jerome Powell said Thursday that soaring bond yields could help the Fed slow the economy, further cooling inflation and the possibly signaling the end of rate hikes
Thoughts: Even though there’s likely not gonna be a rate hike in November, the Fed is still closely observing the inflation. We likely won’t be seeing any interest rate increase any time soon
Unstable Protocol out of Stealth
• @Unstable_money offers a CDP that accepts any LSD as collateral. This allows users to mint the over-collateralized, yield-earning stablecoin called $nUSD
• To be able to onboard new collateral, they adopt an 'oracle-free' approach powered by zkSNARK validator balance proofs
• $nUSD will be omnichain from day one, enabling LSDs on L1 to unlock liquidity on L2s
Thoughts: This project is still in the early stages, and their Discord server is not public yet. If you're interested, consider enabling notifications
Sendpicks Fantasy Sports
• @Sendpicks_io is an on-chain fantasy sports betting protocol
• Users have the opportunity to place bets on individual players from major sports such as NBA, MLB, NFL, and football. They can predict whether these players will achieve specific statistics during the game or fall short
• The native token $SEND offers its holders a share of the revenue, with 75% of platform fees and a 1% buy/sell tax allocated to them. Additionally, the token provides other utilities such as bonus payouts and various perks, and it can be used to place bets
Thoughts: The GambleFi and sports betting narrative remains strong, with numerous protocols emerging to claim a share of the market. I like this one because it combines Fantasy Sports with betting, which taps into a massive market, look at Draft Kings. However, I think the best bets when it comes to GambleFi are bets on the GambleFi infrastructure like WINR, Azuro, SX Network where they offer not just decentralized gambling or sports betting but infrastructure for other projects to build on top of them
TProtocol Unveils $TPS Tokenomics
• @TProtocol_ is a RWA lending protocol that allows users to deposit USDC and earn real yield sourced from US Treasury Bills
• $TPS will be the governance token used to reward users and LPs. It will adopt an escrow model, and will have max supply of 3.03 billion tokens out of which 40% will be allocated for liquidity incentives
• To earn protocol rewards and participate in governance, you must lock $TPS tokens. Once locked, you will begin earning emissions in the form of $esTPS (escrowed), Multiplier Points, and $USTP rewards (the protocol's native stablecoin backed by Treasury Yield). You can then stake both $esTPS and multiplier points to earn the same rewards as the $TPS token. Basically the GMX token model if you are familiar with it
• The $USTP rewards will be sourced from protocol trading fees, interest earned from USTP, and the Interest Rate Spread
Thoughts: The protocol currently holds $8.8M in TVL. If the FED keeps rates higher for longer, it will sustain the RWA narrative, leading to continued growth in TVL that will soon be boosted with incentives. As a result, the $TPS token could have a nice run in the coming months. Having GMX-like tokenomics is also likely to help
Introducing Cove Finance
• @cove_fi an automated yield optimizier built on @yearnfi V3 optimized by @gauntlet_xyz, and the Convex of Yearn
• At start you will be able to deposit either $USDC or $ETH, select what strategies you want for your vault, and let it ride. It's a set-and-forget vaults as Cove automatically moves your assets where they earn the highest possible yield
• However, Cove is also a governance blackhole for Yearn. It will have the $veYFI liquidity system and aims to perma-lock all $YFI tokens, playing a significant role in Yearn's gauge voting. Trading $YFI for $coveYFI will get you boosted rewards and a head start in their upcoming points system
• If you join their Discord now you will get the OG role
Thoughts: Yearn beta play. If the launch of veYFI proves to be a positive catalyst for $YFI price action, I see this project doing well alongside it. The protocol is not out yet but the UI/UX that they show look pretty simplified & easy to use. Would not be surprised if they build on top of other yield protocols as well (Hope they do this give how hard it is to hunt for good yields w/ good risk lol)
YFI Tokenomics Revamp
• @yearnfi introduced new tokenomics for veYFI. Users can now lock their $YFI from 1 week to 10 years and recveive veYFI (note that anything above 4 years doesn’t give more veYFI). Users who exit the lock early will have to pay a penalty which is redistributed to other veYFI holders
• Users who stake in vaults earn rewards in the form of discounted YFI — dYFI. dYFI is an ERC20 token and users can either sell dYFI for ETH or convert to $YFI. ETH received from dYFI redemption is redirected to automated YFI buybacks handled by an immutable smart contract.
• Users use veYFI to boost their APRs to maximise rewards. Similar to Curve, users can still earn yield without a ve lock but will only earn the base APR. The amount of dYFI rewards earned by stakers are determined by the boost. With the minimum boost, users get to keep 10% of the dYFI farmed while the other 90% goes to veYFI lockers
Unibot New Snipers
• @TeamUnibot is now live with 2 new snipers
• Token Sniper:
→ Auto-sell: Allows users to set their parameters for unlaunched tokens
→ Bundling: Bundles txns together so that snipes are with other users
→ Customizable Gas: Users determine the gas that they want to use to determine the speed of their txn
→ Anti-rug: Allow users to frontrun the liquidity getting pulled from LPs
→ First or fail option: Include your snipe in the Unibot bundle, but triggers only if we're first
• Auto Sniper: It is a feature where tokens are automatically sniped when the amount of users sniping the token hits a threshold number. Auto sniper also uses the first or fail settings
Thoughts: $UNIBOT pumped 28% due to the recent market pump & $BANANA at 14%. Both haven’t been performing so well due to the overall market environment. New token sniper features could assist Unibot users in competing for the first block better when previously Banana users were able to bundle & successfully compete for it
Circle Launches New Beta Tools
• @circle has launched 2 new beta tools for devs namely Gas Station and Smart Contract Platform
• Gas Station removes gas fees when integrated with Circle’s programmable wallets. Developers can now sponsor gas fees for their users so that users can avoid the hassle of needing native tokens just to pay for gas
• Smart Contract Platform allows smart contracts to be easily managed and deployed in consumer apps
Thoughts: These tools are part of Circle’s initiative to remove friction and complexities for users who want to use Web3 products. For example, @GrabSG is leveraging Programmable Wallets and Gas Station for a pilot program in Singapore that allows customers to use non-fungible token (NFT) vouchers from Grab’s Web3 Wallet users to earn rewards and collectibles, all without worrying about gas fees.
Chainlink Staking v0.2 Coming Soon
• @chainlink announced that staking v0.2 is underway with a staking platform with a total pool size of 45m LINK
• v0.2 introduces additional features:
→ An unbonding mechanism providing greater flexibility for stakers
→ Improved security guarantees for oracle services via stake slashing
→ Seamless future upgradability via a modular architecture
→ Dynamic rewards mechanism to support new reward sources in the future
• Staking v0.2 involves a 3 step launch sequence. Firstly, stakers from v0.1 will have 1 week to migrate their v0.1 stake and accrued $LINK onto v0.2. Following this, there will be a 2 day period for other eligible LINK holders who meet the requirements are able to stake up to 15000 $LINK. Finally staking will be open to public where anyone can stake up to 15000 $LINK provided the 45m $LINK cap has not been filled
Thoughts: The current LINK staking pool is capped at 22.5m and v0.2 is double the pool size. Given how quickly the pool was filled in v0.1, I expect the v0.2 pools to be quickly filled as well. The price of $LINK when staking for v0.1 started was around $5.8-$7 and the price of $LINK currently is at $7.44.
Given these price levels, I don’t think stakers from the v0.1 pool will sell their $LINK and think that they will continue staking in the v0.2 pool. Additionally, Staking v0.2 includes an unbonding mechanism for users to unstake and withdraw their $LINK subject to a cooldown period. In v0.1, stakers were forced to lock their staked $LINK in the smart contract until a later version of staking was released. The flexibility in v0.2 would make it more attractive for $LINK holders to stake.
LP on Uniswap vs Smilee
• DEX LPs are compensated with trading fees, directly monetizing DEX trading volumes and not implied volatility
• What if LPs actually sold volatility? This is what @SmileeFinance enables. The data collected by the team includes the collection of historical daily ETH prices, one-week ETH implied volatility and historical daily data related to the ETH-USDC 0.05% Uniswap V3 pool. The dataset covers a time period of 358 days from June 8, 2022, to May 31, 2023
• The findings → Smilee's cumulative APR is 29%, selling volatility on Smilee guarantees a return that is slightly more than half the return of providing liquidity on Uniswap, while the associated impermanent loss is exactly half
• Moreover, at high levels of utilization rate, selling volatility shows much higher returns with the same or lower level of risk, while at low utilization rate, Smilee provides lower returns than Uniswap, but with significantly less impermanent loss
Misc News
• @ProtocolLiquid V3 released
• @MLProtocol goes live
• @MakerDAO revenues at ATH
• @HyperliquidX lists $TIA-USD perps
• @PrismaFi has integrated with the @LayerZero_Labs Omnichain Fungible Token (OFT) standard. Native mkUSD can now be transferred between @Arbitrum, @OptimismFND, @BuildOnBase, and @BNBChain
• @Aptos_Network resolves network issues following five-hour outage
• @zkLend mainnet is live on Starknet
• @lightning announces their mainnet release of Taproot Assets and assets can now be issued on-chain
Jeff’s Betting Shenanigan
• First-ever bet on @SX_Bet did not go well because BTC just kept on pumping. The second bet is instead placed on League of Legends: World Championship instead
• Jeff is betting on Weibo Gaming in the G2 Esports vs Weibo Gaming. Weibo Gaming have come into Worlds 2023 with a bang as they destroyed NRG, LCS 2023 Summer Split champions
• Jeff is expecting Weiwei (the Jungler) to bring his aggression again in the game with G2 Esports and set up the early game for Weibo
• The bet is $300 at 1.57 Odds and $467 expected return. Can Jeff make some of his money back the previous loss?
Low Cap Degen Picks
• $PINT @pintswap0x — OTC P2P Orderbook Exchange with working product. Botched launch and MCap is currently sitting at 632k and FDV at $3.9m. Value proposition hasn’t changed, marketing needs to pick back up to attract the dip-buyers. I have personally yet to sold my $PINT
• $MLP @MLProtocol — Money Laundering Protocol, Aggregator of all Mixer. Currently at $500k MCap. 90% of the Revenue generated from (0.2%-0.5%) fees on aggregation and 1% from AI Clusters(This will help in finding the best price and the untraceable private route) will be distributed straight to $MLP Holders
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*