Page One

Share this post

Round Tripping

pageone.gg
Crypto Recaps

Round Tripping

a weekly recap of the crypto ecosystem

tolks
Jul 9, 2022
5
Share this post

Round Tripping

pageone.gg

as always, thanks for reading and follow me here

Image

tl;dr: sellers finally exhausted, Maker RWAs (real world assets), sudoswap & NFT liquidity, AAVE stablecoin GHO, Sepolia testnet merge success, and news galore


BTC dominance 42% | ETH dominance 15% | DeFi TVL $104B |

Total Crypto Market Cap $997B | Stablecoin Supply $153.5B |


funding:

  • Konvoy Ventures launches $150M web3 gaming focused fund

  • Hidden Road, crypto credit and prime brokerage platform, raises $50M

  • Mask Network, crypto payments and messaging platform, raises $42M

  • Planetarium Labs, web3 gaming technology firm , raises $32M series A

  • Oasys, blockchain purpose built for web3 gaming/developers, raises $20M

  • Ondo Finance, DeFi structured products, raises $10M in public token sale

  • Thalex, options and futures exchange, raises $7.6M seed

  • Cauldron, storytelling focused crypto gaming firm, raises $6.6M seed

  • Bitmark raises $5.6M and releases Autonomy NFT wallet

  • Tenderize, staking derivatives DeFi protocol, raises $3M seed

news:

  • Reddit launches NFT avatar marketplace and new “blockchain-based avatars”

  • Ledger partners with FTX to enable 120+ assets swaps through Ledger Live

  • Jito Labs announces the launch of first MEV dashboard for Solana

  • Jason Choi launches Tangent Ventures, angel syndicate for crypto founders

  • Binance announces zero fee BTC trading

  • Voyager files for Chapter 11 bankruptcy amid $650M outstanding claim to 3AC

  • Uprise lost 99% of customer funds ($20M) shorting LUNA as it crashed

  • BlockFi & FTX US reach $680M deal

  • Virtu Financial, legacy market maker, hiring a weekend crypto trader

  • Vincenzo Sospiri to use NFTs to certify and authenticate factory parts

  • Nexo signs indicative term sheet to acquire troubled crypto lender Vauld

  • 0xb1, confirmed to be Jason Stone, managed billions for Celsius, calls them a ponzi and files lawsuit alleging mismanagement of user funds and fraud

  • His Excellency Justin Sun says ready to deploy $5B on acquisitions

  • Blockchain.com prepared to lose $270M on loans to 3AC

  • Robinhood enables send/receive for all listed crypto assets

  • Axie Infinity $540M hack done through social engineering and a fake job post

thoughts & notes:

Selling Pressure Abated

Has the chaos of LUNA and 3AC been absorbed and digested? I’d say largely yes. June, and Q2 in general, was one of the worst recorded for crypto markets but it’s becoming increasingly clear the forced selling, liquidations, and capitulation as a result of LUNA and subsequently 3AC’s collapse is over. While legacy indexes rallying this week certainly pushed crypto up, market participants and narratives are slowly shifting as data, both anecdotal and empirical, reveal the selling pressure recently.

The market bottomed around 18.8k and 900 for BTC/ETH respectively as Celsius, 3AC, Voyager, BlockFI, BTC miners and others became forced sellers and offloaded billions of assets into the market. We’ve since learned that Celsius fully paid down their entire Maker debt and performed ~$1B in on-chain sales, BlockFi has sold ~$900M in BTC below $30k, Core Scientific sold 7,202 BTC in June generating $167M, CleanSpark sold nearly all 339 BTC mined in June, Argo sold 637 BTC in June, along with the obvious combination of LFG and 3AC, and their affected affiliates, selling billions worth of crypto assets.

Twitter avatar for @lightcrypto
light @lightcrypto
expect people will shift from a comatose state of fear to the realization that tens of billions of $ in forced spot selling (LFG, 3AC, lenders, miners) were a capitulation/risk transfer rivaled only by the Covid crash
Twitter avatar for @lightcrypto
light @lightcrypto
The market now lacks a viable schelling point narrative. Yet its desire for one is palpable. It wants to make back what it lost. We will suspend disbelief in an effort to do so once a vehicle emerges to carry this latent desire. In the wreckage are nascent roots.
2:30 PM ∙ Jul 7, 2022
651Likes59Retweets

While it’s obviously impossible to know (and likely macro driven) if the previous levels of ~19k and ~900 hold for cyclical lows, it’s abundantly clear that the market has absorbed capitulation and responded accordingly with beautiful, green numbers this week. I mean, how much worse could it really get?

MakerDAO & RWAs (real world assets)

One of the most interesting developments in crypto over the past few weeks has been surrounding MakerDAO’s (MKR) diversification and collateral addition strategies. MIP65 was a Maker Improvement Proposal voting on how to allocate 500 million DAI for diversifying the protocol’s balance sheet. The winning vote, ending on June 27th, will result in Maker using $500M to purchase U.S. short term treasuries (80%) and investment grade (IG) corporate bonds (20%).

While MIP65 is extremely interesting, Maker Governance also voted to add RWA-009 as a new vault which could be looked back on as a ground breaking achievement and milestone for DeFi and crypto. RWA-009 will create a DAI vault for Huntingdon Valley Bank consisting of RWAs with an initial $100M debt ceiling which will be eventually raised to $1B. The establishment of this vault will allow Huntingdon to borrow DAI after depositing off-chain loans that are on its balance sheet as collateral.

Sudoswap & NFT liquidity

Sudoswap is live! Covered ad nauseam in previous editions of Round Tripping, improvements to NFT liquidity and the financialization of NFTs as assets are rapidly being developed just as the mainstream declares the asset class dead. Sudoswap is an AMM for NFTs that is rolling out with three core functionalities improving NFT liquidity. Users can “create pools that gradually buy or sell NFTs along price curves, provide liquidity to pools that and sell NFTs to earn fees, and directly list their NFTs at fixed prices.”

As I’ve previously outlined, observing the mechanisms that improve NFT liquidity and financialization will be necessary to profit, interact with, and observe the asset class as NFTs continue expanding their impact. This can be easily evidenced through the market’s response to sudoswap’s announcement within the DexGuru XMON token profile shown below. XMON was launched by the team behind sudoswap and ties together their expanding vision of an NFT ecosystem.

part of DexGuru’s XMON token profile
DexGuru chart of xmon’s token price increase after sudoswap’s announcement

tokens:

  • AAVE proposes over collateralized stablecoin GHO

  • Aztec Connect, ZKR enabled private DeFi transactions, now live on mainnet

  • ATOM ecosystem getting first price oracle for IBC through Umee

  • STEPN expanding to ETH ecosystem through NFT mint Ape Realm

  • TFM, DEX and NFT aggregator on Cosmos’ JUNO, is now live

  • ZigZag (ZZ), L2 ZKR DEX, announces InvisibL3 — an L3 ZKR powered by StarkWare that enables private transactions

  • ETH testnet Sepolia undergoes successful merge simulation, Goerli next

  • Polygon (MATIC) to bring NFTs to new Android-based Nothing smartphone

  • Optimism (OP) proposal using Celestia for data availability, ETH for settlement

  • Rage Trade, a liquid, composable, omnichain perp protocol, is announced

  • AURA Finance draft proposal to form a partnership with OHM is now live

  • 0x (ZRX) API will power GameStop’s mobile wallet DEX swaps

  • Looks Rare (LOOKS) launches discord integrated notifications

  • Cosmostation Wallet supporting 40+ ATOM networks & EVM compatible L1/L2s

around the ecosystem:

  • Volt Capital’s deep dive on modular blockchains and their architecture

  • ChainLinkGod with a good thread around RWA (real world assets) on chain

  • Qaio Wang from AllianceDAO lists 100+ Web3 Startup Ideas

  • OnChainWizard outlines The Crypto Gaming Opportunity

tweets:

Twitter avatar for @NaniXBT
nani @NaniXBT
CT Nov 2021: "Why 50mil is Not Enough to Retire" CT July 2022: "A Survival Guide: How to Live for 2 Years Off of 10k"
6:28 PM ∙ Jul 4, 2022
3,314Likes299Retweets
Twitter avatar for @haydenzadams
hayden.eth 🦄 @haydenzadams
TLDR of crypto this past month: ✅ Transparent and automated real defi protocols functioned flawlessly and were highly effective at protecting users ❌ Opaque, human operated centralized platforms gambled with user funds and lost it all, hurting their users
2:02 PM ∙ Jul 6, 2022
307Likes73Retweets
Share this post

Round Tripping

pageone.gg
Previous
Next
Comments
TopNewCommunity

No posts

Ready for more?

© 2023 Page One
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing