Digest 07 April 2022 — 14 April 2022

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18.04.2022 17:16
Digest 07 April 2022 — 14 April 2022

     

    Project Events

     

    DeFi

    Giant DeFi Yearn is working on the adoption of the ERC-4626 token standard

     

    Ethereum

    The new standard for yield-bearing tokens could unlock innovation in the burgeoning Ethereum economy.

     

    Perpetual

    Perpetual protocol introduces ve-tokenomics into its token design. 

     

    DeBridge

    DeBridge introduced the deSwap API: Decentralized cross-chain swaps for protocols and applications.

     

    Trail

    Security research firm Trail of bits has completed an independent audit of LooksRare smart contracts.

     

    Frax

    Frax is launching FPI, a next-generation, inflation-free stablecoin.

     

    Anchor

    Anchor is on its way to Polkadot. This is the first of many deep collaborations between Terra and DOT.

     

    Ethereum

    Ethereum merge to POS won't be in June, but likely in a few months after. No firm date yet, but we are definitely in the final chapter of PoW on Ethereum.

     

    $GMX

    $GMX has proposed two new protocols

    X4

    A new type of smart/programmable AMM.

    Pool creators are able to set up pool parameters (e.g. commissions, curves), allowing protocols to better control the exchange of their assets.

     

    PvP AMM

    A leveraged trading AMM in which traders play against each other.

     

     

    • Traders provide collateral to open long/short positions
    • They pay a funding fee based on the ratio between longs and shorts.
    • If the trader's PnL is positive, the protocol is to cover the difference. This is where GD comes in.

     

    Near Protocol

    Near Protocol is about to launch a stablecoin called USN.

    Highlights of the week

    Events for the coming week

     

     

    Funding

     

    • Crypto startup Context announced a $19.5 million seed round led by early-stage investors Variant Fund and OpenAI CEO Sam Altman on Wednesday.
    • Nomad raises $22M seed round for secure protocol interoperability.
    • BlackRock, Fidelity back stablecoin firm Circle in $400M funding round.
    • Wall Street prepares for wider adoption of digital currencies.
    • BlackRock will explore the use of USDC in the capital market.
    • Huobi, Kucoin, others lead $250 million TONCoin ecosystem fund.
    • DeFi firm BloXroute raises $70 million in a round led by SoftBank  to finance expansion.
    • The investment will enable the company to add to its team and extend its reach.
    • Uniswap is launching a venture capital fund.
    • Fabric Ventures plans to close two web3 development funds worth $245 million.
    • White Star Capital raises $120 million crypto fund for metaverse investments.
    • The company will distribute $1 million to $7 million in token and equity investments into 20 to 25 companies.
    • Volt protocol raises $2 million for "inflation-resistant stablecoin".
    • By tying to an inflation index rather than fiat currency, Volt aims to help DeFi users maintain their purchasing power.
    • Epic Games raises $2 billion from LEGO and Sony to create its own metaverse.

     

    Metrics

     

    10 effective coins of the week

    Assessment combines altcoin price performance relative to bitcoin and social performance.

     

     

    Grayscale fund portfolio dynamics

     

     

    Bitcoin metrics

     

    • Stock to flow

     

    This model views Bitcoin as a commodity comparable to those like gold, silver, or platinum. These commodities are known as "stored value commodities" because they retain their value over time due to their relative scarcity.

    For commodities of value, such as gold, platinum, or silver, a high ratio indicates that they are not primarily consumed for industrial purposes. Instead, much of it is held as a cash hedge, resulting in a higher stock-to-flow ratio.

    A higher ratio indicates that the commodity is becoming increasingly scarce and therefore more valuable as a store of value.

     

     

    How to look at the chart?

     

    In the above chart, the price is overlaid on top of the stock-to-flow ratio line. We can see that the price continues to follow bitcoin's stock-to-flow ratio over time. Thus, the theory suggests that we are able to predict where the price might go by observing the projected stock-to-flow ratio line, which can be calculated because we know the approximate timeline for bitcoin production in the future.

    The colored dots on the price line of this chart show the number of days until the next bitcoin halving event. It's an event during which the reward for mining new blocks is halved, meaning miners get 50% less bitcoins for checking transactions. 

     

    • BTC OnChain

     

    The number of unique addresses owning at least 10,000 #BTC has formed a higher low.

    Higher lows indicate bullish momentum is coming.

    Whales are accumulating here.



     

     

    Funding Rates

     

    Positive funding rates imply that speculators are bullish, and long-traders pay funds to short-traders. 

    Negative funding rates mean that speculators are bearish, and short-traders pay funds to long-traders.

     

     

    P.S. Funding rates (0.01%) - black, this is a neutral situation. Funding rates (below 0.01%) - green, this is a bullish situation. Funding rates (above 0.01%) - red, it is a bearish situation. The stronger the bearish or bullish sentiment, the darker the color.


    Off chain data

     

     

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