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The State of Decentralized Derivatives Trading: Research #13

Being part of the Cryptocurrency ecosystem is like being on a fun rollercoaster. The excitement is unreal. Think about it you’re witnessing evolution take place. Think of something like the internet, how unique and how it’s helped shape our world into what it is today.

Keeping track of all the latest news and price movements might be difficult sometimes, which is why Spin is always making sure we can make life easier for our community. Check what our research team has compiled for the latest news in Crypto.

Price Movements

The market dream for a rising bitcoin after 3 months of flat was ripped away. How many trading “experts” predicted active growth after breaking the $45k resistance? But as usual, their technical analysis was wrong, and the price of BTC followed the S&P 500’s U-turn down and came back to its previous price range.

Mainly all other crypto assets followed BTC, but their price drop is much higher.

Between DEXes Astroport (ASTRO; -17% 24h) showed the worst dynamic in recent days due to Terra’s entire ecosystem reduction. Probably this trend will continue as Anchor-saving APR decreases.

Mango (MNGO; -1,81% 24h) is still holding at $0.15 support; there are probably several buyers at this level.

Hegic (HEGIC; -55% 24h) is showing the worst dynamic between options protocol; the reason is unknown.

The decentralized options vault trend is probably gone because all the protocols are showing around -60% price change in the last 90 days. The crypto market is still very speculative, and when a new sector becomes very popular, which increases the probability of prices going up a lot, but when the market mood changes, prices go down.

Derivative News

Mango is changing its liquidity mining reward system. Now part of MNGO will be distributed according to an on-chain formula and part off-chain with more complex calculations. Unfortunately, they couldn’t resist unfair market-maker practices with previous simple on-chain solutions, which means the protocol would become more centralized.

According to Mango’s recent newsletter, only 2% of MNGO tokens were locked to “VE” tokens. It happens because their tokenomics involve only increased voting power for locked tokens; there aren’t any other benefits, which isn’t enough to convince investors to lock their tokens.

NEAR Perp was listed by 01.zyx and Drift on Solana and dYdX on StarkWare. It makes you wonder when it will be possible to trade SOL Perp on the NEAR protocol; who will be the first to do it? :)

Zeta was added on Laevitas and listed comprehensive options analysis platform.

dYdX introduced the same features as Mango had done a month ago — the possibility to look through other user accounts and check their PnL, positions and even NFTs!

The perpetual protocol discusses V2 tokenomics; they are thinking about implementing “VE” tokens.

Two decentralized option vaults (DOV) protocols announced the launch of vaults for power perpetual contracts: Katana will use a crab strategy based on 01.xyz power perps, and Friktion has started a strategy with Entropy.trade already. If you don’t know what it is, just read this ELI5 thread. So, putting money into DOVs strategy will allow users to collect funding by selling power perp. Also, this construction is hedged by buying underlying assets. This type of vault is riskier but more profitable — the current APY on Friktion is 58.7%.

NEAR News

The most important rumor wandering around is the launch of NEAR-native stablecoin USN. People compare USN with UST and predict the same increase in popularity and the 20% APY yield staking, which will drive NEAR’s prices to rise. If USN launches successfully, we might expect massive NEAR ecosystem growth. But be careful about NEAR’s price; remember the rule — buy rumors, sell facts. Check out this thread about stablecoin here.

Stay tuned; USN will be somewhere on the chart below!

Also, NEAR may be listed on Coinbase in the next few months.

Burrow cash has launched its mainnet, and money has started streaming into the platform. The total deposit is $317 mln. Now it’s in the pre-mined stage, and people get BRRR tokens for depositing and borrowing, so it’s mostly mercenary capital. BRRR can’t be transferred yet; trades will start later. Here you can read about the project’s tokenomics.

Also, Burrow made a small IDO on Boca Chica for only $32.5k.

So the Burrow Cash Project (BRRR) is still expanding and growing steadily, and let’s wait and see what the future holds for them. Will the $317 mln raised help this project go to the moon, or will it need a much bigger pish, especially with such a low IDO on Boca Chica?

NearPay — A Decentralized Payment Solution built on the NEAR Protocol — is working on distributing its own debit cards, which will bring payments to online retailers, software platforms, marketplaces, etc.

The NEAR Protocol doubled its price in just 4 weeks, which is considered a pretty significant accomplishment, with the market being moody and vulnerable these days. At the same time, BTC was up 15% and ETH 30%. The amount of attention the NEAR Blockchain is getting within the cryptocurrency and decentralized finance ecosystem has led to an influx in new products, several mainnet launches, and a successful funding round that has made the NEAR Protocol the best-funded L1 chain.

Other News

The Drama of Waves vs Alameda. After WAVES’ rapid price hike, something went wrong, the price reversed and USDN (Waves native algorithmic stablecoin) unpegged for some time. The protocol’s founder blamed Alameda’s shorting, and Alameda answered that they only made a basis-trading position.

Bloomberg Intelligence, Arthur Hayes and many others suppose that Bitcoin’s price will crash because of the Federal Reserve’s quantitative tightening. Indeed, the crypto market is strongly correlated with global uncertainty (especially the S&P 500). The FED’s tightening might cause the stock market to decline, which will take crypto right along with it.

What’s new to Spin?

Earlier this week, Spin released its pre-mainnet version of its order book DEX on the NEAR Protocol blockchain. The first completely on-chain order book solution on NEAR. You can experience it on the CEX-competitive trading on testnet.trade.spin.fi.

That’s not it! Spin’s been busy. Their utility collection of 2022 Freaky Elves’ floor price has significantly grown and the trading volumes can attest to that. The hype maybe just because of the pre-mainnet release. But we never know for sure, the market lives according to its own rules, not always following some logical factors, and that’s the beauty of decentralized financing.

The mainnet version of Spin is likely to come live in the next few weeks. So, stay tuned with our updates and ecosystem news.

Remember to follow us on Twitter, join Discord, and subscribe to our channel on Telegram.

LFG!

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Spin is a DeFi derivatives infrastructure built on NEAR Protocol, a reliable and scalable L1 solution. The on-chain order book solution offered by Spin provides a CEX-competitive experience to DeFi users.

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Spin is the first decentralized trading platform allowing for both futures and options trading built on Solana.

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