GM Digest #97
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Chainchat by Zapper
• @chain_chat_app is a new social protocol built by @zapper_fi and deployed on Base chain
• With Chainchat you can create group chats called 'channels'. Anyone can create them, there is no verification process in terms of linking your X account, and anyone can join by purchasing a share. What is interesting is that when channel shares are traded the fees are distributed to all shareholders, instead of just the creator, which should incentivize all members to grow the channel and maintain high-quality
• Since this is a Zapper product, you can conveniently check members' on-chain activity and portfolio, which is a great feature to have on a social platform. Additionally, you can easily tag wallets, tokens, and NFTs directly in the chat
Thoughts: I like the fact that fees are shared among all group members. This could fit well for alpha groups, as providing value would be rewarded with revenue share. Additionally, the ability to access any member's on-chain holdings and activity with a single click will enhance trust and reputation within the group
STFX Staking Tiers
• STFX announces extra utility for $STFX stakers in the form of Staking Tiers. Each tier grants an increase in trade size
• Currently there are limitations in place on the vaults such as the cap on the trade size. Regular users are capped at $3K trade size. Depending on how much $STFX you stake you progress in the tier system and each higher tier grants you an increased trade size, up to $50K. There will also be a lot of other perks coming to $STFX stakers soon
• They also launched STFX subscriptions recently. This is neat because previously raising capital for vaults could take some time, and this was not perfect for time sensitive trades. With subscriptions, you can allocate capital to specific traders, and when they open a position, you automatically participate. You can even allocate the same capital to multiple traders, and whoever opens a position first will get to use it. This also helps the traders as they have liquidity ready to deploy immediately
• @STFX_IO is a Social Trading protocol that enables managers to create Single Trade Vaults that investors can participate in
Thoughts: So far, the social trading protocols have not been able to establish a strong product-market fit. Personally, I find the STV concept to be somewhat limiting. Instead, I prefer Valio's approach, because it offers managers greater flexibility
ArcadeDAO Launch and Airdrop
• The launch of ArcadeDAO was announced today and that means governance rights will be airdropped to early users in the from of the $ARCD token
• $ARCD will initially serve as a governance token. However, it will be up to the DAO members to submit proposals and vote on important decisions in the future, including fee controls
• A total of 6% of the supply of $ARCD is allocated to airdrops. However, since there will be future airdrops as well, it is unclear what percentage will be distributed in the first round
• @Arcade_xyz is an P2P NFT lending and borrowing protocol on Ethereum
Thoughts: Considering that $ARCD will only serve as a governance token, I find it difficult to see it outperforming in its current form. Do note that the current NFT lending landscape is heavily dominated by Blur’s Blend NFT Lending platform (75-80%+ market share) and ArcadeDAO only holds a few % of the share
Morpho Labs Introduces MetaMorpho
• @MorphoLabs introduces MetaMorpho — a permissionless lending vault built on Morpho Blue’s trustless markets
• MetaMorpho vaults aim to simplify the lending experience on Morpho Blue by automatically supplying and rebalancing liquidity across markets. This works by users depositing a single asset into different vaults which manages one loan asset and can deposit to multiple markets with different collateral assets and parameters. Liquidity from vaults is shared to the extent allocations overlap
• The vaults are a better way for passive users to earn interest as:
→ Each vault caters to a different risk profile
→ Dynamic rebalancing to improve yields and mitigate risk
→ Noncustodial with immutable logic and verifiable allocations
SushiXSwap V2
• @SushiSwap introduced SushiXSwap V2 7 networks — ********************************************Base, Ethereum, Arbitrum, Optimism, Polygon, Avalanche and BSC
• The new features in v2 include:
→ Circle-Backed USDC Integration: Cross-chain swaps on Sushi becomes more straightforward as they can leverage a single chain-agnostic USDC using Circle’s CCTP
→ Payload Executors: Swaps can now be charged on the source chain rather than destination chain. Users no longer need to secure a native gas token for the swap
Fantom Foundation Introduces Fantom Sonic
• @FantomFDN announced the launch of the Fantom Sonic testnet environment
• Fantom Sonic will bring about several upgrades:
→ The Fantom Virtual Machine offering faster smart contract execution compared to the old EVM
→ Carmen database storage, which uses a more efficient data structure to offer up to a 90% storage reduction, lowering costs for validators
→ Optimized Lachesis consensus mechanism, providing an improved transaction pool
• These improvements will allow Sonic to achieve over 2k tps with short finality. Sonic will also reduce the storage requirements from 11TB to less than 1TB (for archive nodes) making it more affordable for individuals to launch validators and participate in network consensus
• Fantom Sonic is anticipated to launch during Spring 2024
Penpie Lucky Wheel
• @Penpiexyz_io introcued Penpie's Lucky Convert Wheel
• Users converting $PENDLE tokens into mPENDLE can spin the wheel to earn $PNP rewards for each converted $PENDLE token
• The Lucky Convert Wheel uses the Smart PENDLE Converter, and users will receive more than one mPENDLE token for each $PENDLE converted if the mPENDLE peg is below 95% at the moment of conversion
• This novel addition aims to boost the conversion of PENDLE into mPENDLE, simultaneously providing users with an engaging experience as they try their fortune to gain additional PNP rewards
Thoughts: Penpie has already widened the gap between Penpie & Equilibria in term of vePENDLE held. It currently holds 31% of the vePENDLE supply vs 26% while maintaining over 95% peg between mPENDLE (Penpie’s) and PENDLE price while Equilibria’s ePENDLE peg is 67% only. This happens because of several rounds of successful PENDLE Rush along with Smart Converter that incentivizes users to continue converting PENDLE to mPENDLE
Freeth NFT Mint
• My good friend @tooooooonii1 is launching her first NFT Art Collection ft. the Balinese Artist Pandi on Oct 29
• The collection will feature 155 unique artworks — minters can choose to randomize mint or pick & choose your favorite one (you’ll also get the physical painting as well if you choose this option)
• Mint Price → Randomize = 0.11 E | Pick & Choose will be in different tiers starting from 0.55 E to 1.22 E depending on the size of the painting
• Whitelist mint will be on Oct 28 (FCFS) & Public will be on Oct 29 at the Superlative Gallery Bali (@sssgallery). If you’re in Bali on 29th, feel free to go check out their gallery!
• 50% of the proceeds will be donated to Balinese Charity. Let me know if anyone wants a WL
Back-Running
• Backrunning is one of the three main types of MEV, but it’s the least harmful as it only involves capturing arbitrage left over after a large trade
• The process takes advantage of the mechanisms of AMMs Whenever a large trade goes through, it imbalances the liquidity pools of the AMM, causing the price of the asset being sold to go down, and the price of the asset being bought to go up. This price imbalance leaves an arbitrage that MEV bots correct by placing a follow-up trade, earning a profit in the process
• @CoWSwap eliminates backrunning opportunities through its delegated trading mechanism, while MEV Blocker pays out rebates for any backrunning opportunities user trades create when trading anywhere on Ethereum
Vitalik Invests in Nocturne
• @nocturne_xyz announced a $6m seed round raise led by @BainCapCrypto & @polychain with participation from @VitalikButerin and other members of the Ethereum community
• Nocturne Labs is building a privacy protocol at the wallet layer utilising zk, account abstraction and stealth addresses to create Ethereum accounts with built-in asset privacy allowing anyone to transact privately
• The first user-facing product will be the private vault UI providing a window into managing hot assets stored within users’ private accounts. With this users will be able to receive/deposit funds anonymously, earn yield on idle funds, withdraw to fresh wallets for unlinked trading/transacting
• Nocturne Labs plans to launch the initial protocol on mainnet this November
Misc News
• @CelestiaOrg announces integration into @Arbitrum Orbit and the Nitro stack
• @dopex_io migrates liquidity to @CamelotDEX
• @routerprotocol Nitro Testnet launch on Oct 26
• @HyperliquidX open interest rewards are ending on Oct 31
• @binance experiences technical issues with crypto withdrawals
• @LayerZero_Labs is now live on @BuildOnBeam
• @LayerZero_Labs introduces omnichain token to move wstETH across Avalanche, BSC and Scroll
• @SatisDEX launched a mini-game on @zkSync
• @PrismaFi added a 3x bonus for all Stability Pool providers until launch
• @0xPolygonLabs’s new POL token upgrade is live on mainnet
• @VitalikButerin invests in @nocturne_xyz — bringing private accounts to Ethereum
• @FlowmaticXYZ ended with $35m trading volume (huge!). $FWM is now traded but at almost 50% lost since launch (told you LBP sucks for post-TGE PA)
• @TigrisTrades launched permissioned nodes, a new order execution architecture which will reestablish Tigris as the fastest on-chain trading platform and eliminate current limitations
• @idlefinance & @ClearpoolFin: Yield Tranches Expand To Optimism — marking the debut of enhanced unsecured institutional liquidity on the OP Mainnet
• @Vaultkaofficial announced special round of Liquidity Boost program, raising 180 E to increase Uniswap liquidity. The round will happen on Oct 26 at 12pm UTC
• @Fomo_House launching the FOMO Card NFTs on Kingdomly on Oct 30, 2023, at 4:20 pm UTC
FREE ALPHA
FOMO
• FOMO is positioning itself as Curve for NFTFi by creating an incentive layer on top of NFTX (a platform for making ERC20 tokens that are backed by NFT collectibles, similar to Sudoswap).
• This is achieved by directing $FOMO emissions to their pools, resulting in increased trading volume, liquidity, Swap and vault fees, as well as the NFT floor. (Vault fees that go to LPs are in WETH in NFTX v3)
• Whitelist mint price is 0.06 E — I’m sharing a few WLs with my Friend Tech key holders. If there are any leftovers, I’ll share it with Substack readers
• FOMO Card NFT can be used as an access pass to participate in $FOMO LBP in Fjord Foundry where $FOMO can be used to redeem for RISKTAKERZ NFT right afterward. This is done to bootstrap liquidity that’s used to back RISKTAKERZ NFT, creating liquidity-rich environment for collectors to trade in
• Several value propositions that I see here (i) Berachain NFT Project (ii) NFT Liquidity Infrastructure Layer (iii) Under the radar af
Arbitrum Season is About to Unfold
• We had a mini pre-STIP bullrun on Arbitrum coins early this month. Protocols have already been chosen for the 50m STIPs but some have only slightly pumped in price
• $LODE (Lode Star), $JONES (JonesDAO), and $GRAIL (Camelot) are amongst the best Grant/MCap coins on Arbitrum — especially for $LODE (750k ARB received) and $JONES (2m ARB received)
• $LODE is only at $1.6m and with the potential distribution of $ARB on Lodestar lending markets, the high APR will lead to more TVL and more revenue generated which makes it attractive for $LODE stakers
• $JONES continual buybacks utilizing its accrued fees during the past months. The buybacks will continue till Q1 2024. This in combination with a new tokenomics (which is hinted to be announced soon) are great catalysts for $JONES
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*