Liquidity Mining Opportunities in a MultiChain World| SnapFingers Weekly #11

This newsletter will take you approximately 10 minutes to read.

📂 Key Takeaways of the Week

• FTX Blog article “The Everything Bubble & TINA 2.0” analyzes the crypto bubbles in Bitcoin, Ethereum and NFT
• Bankless article “A Guide to Multi-Chain Yield Farming” regarding yield farming opportunities within a Multi-Chain world

📂 №1 Institutional reports

Crypto Bubbles?

The report “The Everything Bubble & TINA 2.0” is recorded in the FTX Blog, published on September 1st. This is a referable report as a large amount of real market data was included. The Chinese version of this report is from ChainCatcher. SnapFingers weekly sorted out important data and views about the crypto market in this report as follows:

Is BTC in a bubble?

• BTC is behind the USD, Euro, CNY, and Yen as the fifth most “valuable” currency in the world.
• The bull thesis for BTC has been “digital gold” and that’s what the corporates/pensions/insurance companies/macro funds are all buying into, so fiat might probably not be the right comparison.
• A safe range for gold is somewhere between $9.0-$13.0T which would correspond to a BTC range of $428K-$620K per BTC or up 775%-1163% from current levels.
• What makes something a good store of value? The famous hedge fund manager Paul Tudor Jones ranks assets across four characteristics: purchasing power, trustworthiness, liquidity, portability.
• At a ~10% probability of a BTC / gold flipping, and the fact that you have a perpetual call option without an expiry, or theta decay, makes BTC a really compelling macro asset.

Is ETH in a bubble?

• ETH maintains its dominant market share in DeFi, Web 3.0, NFT, and gaming, as the leading L1 protocol.
• Raoul Pal recently dubbed ETH potentially the “greatest trade” in the history of financial markets over the next six to nine months: the number of ETH addresses is growing faster than BTC’s, and more importantly that the transaction count is growing as well. In early August ~26% of all ETH was locked into DeFi smart contracts, leaving just ~13% of ETH left on exchanges to trade.Raoul Pal: Former Goldman Sachs hedge fund manager, Founder and CEO of The Global Macro Investor
• The prize for the winner of L1 protocols is likely $1.0T+, so at $375B is ETH in a bubble? If ETH 2.0 fails, sharding proves to be suboptimal, the decentralization actually gets in the way of product road map/progress, then unequivocally yes; $375B would be the 24th largest company in the world. What if they’re able to execute? There remains asymmetric upside, without having to take a binary bet due to liquidity.

Is NFT in a bubble?

• Any of those things in a vacuum would seem like a “top” indicator, which seemed to suggest that in February for NBA Top Shot, or when Cryptokitties saw several 6 figure sales in Dec ’17, also marking the top.
• High-end art, sports memorabilia, cars, and watches have created generally accepted “valuation” rankings based on cultural significance, scarcity, longevity, etc…NFT’s will coalesce around a similar hierarchy of value, but it’s just not there yet.
• We’re in the very early innings of crypto’s first real “consumer opportunity”. With the explosion of earnings of games such as Cryptopunks, Degenape, and Axie Infinity it’s hard to ignore the momentum of potential consumer experiences built on top of the crypto stack, and right now NFT’s are showing the way.
• Beware of any possible risk; as it’s much easier to create digital supply than it is in a physical world.

The everything bubble & TINA 2.0

📂 №2 Potential areas

Summary of Bankless’s article: A Guide to Multi-Chain Yield Farming

We live in a multichain world. What are yield farming opportunities available?

The NFT fever that lasted for 2 months has cooled down a bit, indicated by a decrease in trading volume and minting. At the same time, the total value locked and trading volume of the new public chains and Layer 2 protocols are continuing to grow significantly, becoming a new market focus. Last week, the Cardano smart contract function was officially launched. Furthermore, following the launch of ecosystem incentive plans by Avalanche and Fantom, last week:

• Algorand Foundation Launches $300 Million USD Fund to Support DeFi Innovation
• The Harmony Foundation will dedicate over $300 million worth of ONE token over the next four years to bring startups and projects to the blockchain
• Terra (LUNA) kickstart $150 million ‘Project Dawn’ to bolster the cross-chain ecosystem

The multi-chain world also brings lucrative yield farming opportunities, summarized as the following:

SnapFingers compiled the top recent headlines, 46 in total.

📂 №1 Market Data

#Bitcoin #Ethereum #Layer2

• According to glassnode statistics, BTC exchange balance hit the 2018 bottom on September 10th.

• The total value locked (TVL) on Ethereum L2 solutions has breached the $3 billion barriers, up 259% compared with last week, with Arbitrum contributing 73.75% of the total TVL (ranked first) and dYdX 10.89% (ranked second).

• According to data from DeFi Llama shows that ArbiNYAN secures $1.39bn in ETH (ranked first), its dominance sitting at a staggering 88%. Up to now, there are 9 projects on Arbitrum.

#Stablecoin

• Circle CEO Jeremy Allaire tweeted on September 11 that in just one week Solana jumped from $1b to $2b in USDC circulation. As the first partner of USDC multi-chain strategies, Solana has joined hands with FTX and Serum.
• On September 11, 100M DAIs were minted, which was the biggest DAI minting of MakerDAO.

#DeFi

• The 24h trading volume of Solana ecosystem project Raydium is $509 million, only next to Uniswap V3, according to coingecko.
• Saber TVL, the cross-chain stablecoin exchange protocol based on Solana, reached $3.92 billion (defilama, 9/13), ranking first on Solana ecosystems.
• The governance token of dYdX, $DYDX, was officially launched and circulated on September 8. The trading volume of dYdX in August reached $14.22 billion.

*$DYDX, $10.67, 9/13, circulation taking up 5.56% of the total volume.

*The position will be locked until the beginning of 2023.

• On September 8th, the trading volume of the everlasting option contract launched by Deri Protocol, a decentralized derivative protocol, exceeded $50 million.

Deri Protocol will adopt a DPMM algorithm to provide access to long-term options without affecting the position and therefore improve the utilization rate of funds and slippage.

The concept of the everlasting option originated from the thesis co-published by Dave White, the research partner of Paradigm and SBF, the co-founder of FTX.

• The TVL of Convex Finance exceeded $8 billion.Convex is a DeFi protocol based on Curve, aiming at providing higher returns for LPs (liquidity providers) and CRV pledgers.
• On September 12th, Yearn published its 2021 Q2 quarterly report. After the adjustment, the EBITDA reached $16.4 million, 235% up compared to Q1.

#NFT

• Daily trading volume on OpenSea has fallen dramatically to $5263 million Thursday on September 11, 80% down compared with its peak on August 29, according to Dune Analytics.
• The average daily volume of NFTs minted reached 96,000 in the past 3 days (9/13), falling by 46% compared with its peak of 180,000, according to NFTScan.
• On September 9, a bundle of 101 BAYC(Bored Ape Yacht Club) NFTs were on offer in Sotheby, realizing $24.39 million, while the other bundle of 101 BAKC (Bored Ape Kennel Club) was sold at $1.835 million.
• Pudgy Penguin#6873 was sold at 2.25M ETH, setting the highest trading record.

📂 №2 Project Development

#Ethereum #Layer2

• The Polygon/Hermez merger has officially entered the Token merger phase. Hermez officially launched the exchange function, the specific exchange ratio is 1 HEZ = 3.5 MATIC.
• Perpetual contract derivatives project MCDEX V3 version launched on Arbitrum on September 7 and announced that liquidity mining and trading functions will be launched next week.

• On September 11, Optimism tweeted that they will release a big news next week.
• Layer2 basic protocol Metis announced that it will launch a public testnet this month and the mainnet in October.
• The cross-chain payment network cBridge launched by the L2 scaling platform Celer announced support for Fantom.

Users can use cBridge to perform high-speed and low-cost cross-chain and cross-layer transfers between Fantom, Arbitrum, Optimism, Avalanche, OKExChain, xDAI, Ethereum, Binance Smart Chain (BSC), and Polygon.

#New Public Chain#Ecosystem Support

• Cardano successfully completed the Alonzo hard fork upgrade, ushering in the era of smart contracts.
• Algorand Foundation launched a $300 million fund to support DeFi innovation.

#NFT

• Polymarket officially launched the NFT floor price market, allowing users to trade long/short on the floor prices of NFT projects such as cryptopunks, Blitmaps, Bored Ape Yacht Club, and Loot without holding NFT.

* The product prototype idea came from Paradigm research partner Dave White and was released on August 31.

• Alpha Finance Lab launched an auction platform for NFT floor price bidding, Alpha Buy Wall, which currently supports Loot, bLoot, Penguin, On1Force, Cool Cats, BAYC, and other well-known NFT project transactions.
• Solana decentralized AMM and Raydium will launch the NFT issuance platform Dropzone. The first NFT project Cyber Samurai will be launched on September 16th — the Genesis series is a 5,000-pixel Japanese Samurai generated by a unique algorithm.

#Loot

• The official LootDAO proposal “$AGLD as Loot Governance token” has been approved.
• Will Papper, the founder of AGLD, stated that a token $ASLV for mLoot may be issued. Both AGLD and ASLV can be used as payment methods in the game. AGLD is used for more important scenes, and ASLV is used for less important scenes.

• Treasure will launch the NFT+DeFi project: $MAGIC farm, users can deposit Loot, $AGLD, n project tokens to mine to earn $MAGIC, $MAGIC will be used as the platform token of the game Legions.

​​Introducing $MAGIC: The Native Token of the Legions Game

#Other #Insurance #PoS Staking #DAO

• InsurAce will launch the Polygon mainnet and has received development funding from the Polygon Foundation.

Previously, the Ethereum mainnet was launched in April, and BSC was launched in June.

• Lido Finance, a staking liquidity solution, officially launched in Solana, and currently supports the minting of stSOL assets, which represents the SOL staking positions of nodes in the Solana network.
• Blockchain media Decrypt will establish a media DAO and plan to migrate the original reader tokens to governance tokens.

📂 №3 Voice and Opinions

• Rick Rieder, the managing director of BlackRock, Inc., said in an interview on CNBC’s “Squawk Box” that he could see the Bitcoin price (BTC) “go up significantly.” （U.today）
• Amy Wu, the partner of LightSpeed, stated that gaming and social network use cases are the best ones to bring the next 1B users to web3.
• NFT will Become the Revenue Model of Metaverse,Co-founder of Tether William Quigley says
• @Checkmatey Lead On-chain Analyst for @glassnode quoted glassnode data and stated that the volume of $Bitcoin young than 1 month has hit an all-time-low of less than 7% of circ. supply. The HODL is very real. Old coins are not being spent. Young coins are maturing. This is bullish.
• CryptoQuant CEO Ki Young Ju: Whales are sending $BTC to derivative exchanges from other exchanges to punt new positions or fill up margins.
• Willy Woo: BTC flash crashes are caused by deleveraging

📂 №4 Project Financing

#DeFi

• In the latest round of funding, Duet Protocol made an additional raise of US$2 million from strategic partners including GSR and DHVC to take the raise to a total of US$5 million
• Blockchain gamification platform DeFi Land has secured $4.1 million in investments to launch a new decentralized finance game on Solana
• Decentralized structured lending platform Pledge Finance raised $3 Million Funding Round Led by DHVC

#NFT

• Crypto Gaming United raised $5 million in seed funding round

#Others

• Now Ethereum-based protocol Eden Network has raised $17.4 million from Multicoin Capital, Alameda Research, Defiance Capital, Jump Capital, and others in order to tackle the scourge of MEV
• ZEBEDEE has raised an $11.5 million Series A, led by Lakestar
• deBridge has successfully completed its funding round that raised $5.5 million led by ParaFi Capital

#Crypto Funds

• 10T Holdings raises $750M for first Growth Equity Funds
• Pantera Capital Blockchain Fund raises $ 369 million from 107 investors

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