Opportunity
Get Ready for $BASE
Crypto might be getting a massive stimulus check.
What happened? This Monday, Base said they're exploring a native token.
CT went crazy. Base is among the top three chains. Everyone has used it. So everyone was expecting a big fat check for themselves.
But they're getting ahead of themselves. Polymarket is only seeing a 14% chance for $BASE in 2025.
Don't be disappointed tho. No $BASE in 2025 = you have a lot of time to farm it.
Wait... should you even farm $BASE? Both yes and no.
Base chain is heavily used. So, unless you are extremely onchain degen, you probably won't get a significant share of the airdrop. The allocation will be distributed among its massive user base.
Totally ignoring $BASE will be a mistake as well. It could be a massive windfall. So I'm slightly adjusting my onchain activities.
Shifting my natural onchain activity to Base. For example, I'm shifting my lending positions to Morpho on Base. You can hold and trade assets on Base as well.
Do a couple of things to differentiate my wallet. For example, Base already has ~250M unique wallets (https://dune.com/0xnouveau/base-airdrop-rankings-arbitrum-style). But only ~650k wallets have bridged through the mainnet bridge. Just by doing that single thing, you'll be in the top 2.6% of the wallets.
If you don't have many Base transactions, here are some Base apps to explore.
- Be active on Zora
- Trade some Virtual agents
- Provide liquidity on Aerodrome
- Play around Farcaster mini-apps like Bankr
- Lend some cbETH or cbBTC on Morpho
Using projects without tokens may qualify you for two airdrops simultaneously. Here are some Base apps without native tokens.
Just trying out these projects should give you a lot of transactions.
Now, I must add a caveat that this doesn't guarantee an airdrop. Nothing guarantees an airdrop. For all I know, Base might announce a points program next week, and degens will have to farm those points.
The $BASE speculations have already sparked a lot of debates on CT. How does this affect $COIN holders? Why does Base need a token? Is this bearish $ETH? Will Base transition to an L1 in the future? Or will a successful $BASE launch remove L1 premium? And so on.
But at the end of the day, the airdrop speculation is good for Base activity. They've also announced a bridge to SOL, which will make it easier for Base projects to bring in Solana liquidity.
We might be in for another Base season.
Sponsored by Rezerve
Rezerve Protocol: Onchain MicroStrategy for $ETH
Hottest narrative right now? Treasury companies.
They're a leveraged bet on the underlying asset.
Love BTC? You'll probably love $MSTR even more since it'll accumulate more BTC per share. You like ETH? Well, $BMNR and $SBET promise to acquire more ETH per share.
Here's their biggest problem: they're not available onchain.
Solution? Rezerve Protocol.
It's built to increase $ETH per $RZR using a mix of onchain strategies. So holding $RZR can be better than just $ETH:
- Sell onchain bonds to accumulate $ETH
- Leverage assets to raise capital from lending protocols
- There'll be a lot of DeFi integrations as well
The goal? Accumulate 1M ETH.
This is the onchain version of treasury companies. More importantly, there are no VCs or billionaire masters. It's fully owned by the $RZR community.
And if you stake $RZR onchain, you can get governance power and earn autocompounding yield from the protocol. Right now, their $RZR pools have 100%-300% in APY as well!
Catalysts
Solana DATs: The New Demand Sinks
Solana just got it's free money printer to pump $SOL.
What happened? DAT companies are finally working for $SOL.
Digital Asset Treasuries are public companies that accumulate crypto assets like $BTC, $ETH, & $SOL. Since they create billions in buying pressure, they're bullish for the assets.
Solana already had live treasury companies. But they didn't have enough scale to execute the "free money printer", aka mNAV Arbitrage strategy.
Whenever the market cap of the DAT is higher than the Net Asset Value (NAV), the company can execute this strategy. If the mNAV premium is 2, they can get $2 by selling a stock that's only backed by $1 worth of $SOL. And if they use the $2 to buy $SOL, they'll increase value for shareholders. The additional $1 dollar is basically "free money". (It's more nuanced than that.)
Solana finally got treasury companies capable of using the mNAV arbitrage strategy.
Pantera Capital announced a new Solana DAT: Helius Medical Technologies (Ticker: $HSDT). It has already raised ~$500M to buy $SOL. There's an additional ~$750M that investors can allocate as well. In total, $1.25B in $SOL buying pressure.
Forward Industries ($FORD) is the leading Solana DAT. It's led by major crypto players like Multicoin Capital, Jump Crypto, & Galaxy. Kyle Samani, a leading VC and Solana supporter since 2019. He'll be a hypeman figure like Saylor and Tom Lee, who were critical for their DATs.
$FORD has already bought 6.8M $SOL using the initial $1.65B investment.
From September 5th to 15th, $SOL pumped from ~$200 to $240. We can speculate that it was driven by $FORD buying pressure.
And this isn't stopping yet.
Kyle & $FORD is raising another $4B for $FORD via mNAV arbitrage strategy. Currently, only $FORD has the size and mNAV premium to execute it at scale. I'm expecting $HSDT to be able to do that in the near future.
This will have a significant impact
#1. $SOL price impact
When ETH had its treasury mania, it went from $2.5k in June to an ATH in August. We can expect a similar movement from $SOL.
But unlike $ETH, there's a caveat for $SOL buying pressure.
Solana still has a lot of locked tokens. It also has a lot of massive whales who cannot market dump their positions.
For example, Pantera's largest crypto position is Solana. About 23% ($1.1B) of its $4.7B assets is $SOL. If Pantera's Treasury company buys $SOL from Pantera, then there's no real immediate price impact.
Treasury companies have explicitly stated that they'll buy discounted tokens using their connections. It means that a significant % of the buying capital won't move the markets.
#2. Solana DeFi boom
Solana DATs will end up deploying their capital onchain. And it can catalyze a DeFi season.
Current Solana TVL is $12.5B. The Multicoin-led DAT now has ~$1.65B in its chain. That's ~13% of Solana's total TVL. Theoretically, they can deploy all of it onchain.
Kyle has said he'll profit by leveraging the low cost of capital in TradFi. For example, he can borrow against SOL at a 5% bank rate, converting proceeds to stablecoins, deploying in DeFi at a 10% yield, and earning a 5% spread profit.
Specific protocols on Solana also stand to gain. $FORD has already started using them. They had executed a $1M trade via the DFlow DEX aggregator, a Multicoin portfolio company.
Multicoin has a lot of investments in Solana. We can speculate that the DAT & those protocols will reach an agreement between them to boost those protocols. Below are my top two picks.
- $FORD will probably stake $SOL using Jito.
- I can see them depositing $SOL to Kamino Finance as well.
This is a great time for onchain innovation.
SEC's project crypto is explicitly aiming to bring compliant finance onchain. So there's potential for a lot of new protocols. Multicoin Capital has that experience with funding and incubating new protocols.
DATs are the final piece of the puzzle. They can provide the capital to kickstart the flywheels of the protocol.
Solana is on track for smooth sailing.
🚀 DeFi Catalysts
Polymarkets launched markets for betting on quarterly earnings. This is a new Polymarket category that people can use.
Rabby wallet launched Perp trading on its browser extension and mobile app. HyperLiquid will power the trading.
Wormhole is upgrading its tokenomics. It includes a 4% base reward (variable and not guaranteed) for W holders who stake for governance.
Giza launched Pulse in partnership with Pendle. It's an agent that autonomously optimizes your PT portfolio.
Project 0 went live. It's a DeFi-Native Prime Broker. With P0, users can borrow against their entire DeFi portfolio, regardless of the individual venues.
Ethena has announced a partnership with Based, the largest HyperLiquid builder code platform by revenue. They'll boost Ethena products on HL.
StableX Technologies, a multi-token investment company, has bought $FLUID tokens as its first investment.
Jupiter Lend has gone live inside Binance Wallet. The platform is now easily accessible to thousands of new users.
Kamino Finance introduced a new Multiply Backtesting feature. It'll allow users to backtest the performance of Multiply strategies.
🪂 Airdrop Alpha
Aster is a decentralized perp platform. It has launched $ASTER, and eligible users can now claim the airdrop.
Lombard Finance has launched $BARD, its native token. Eligible contributors can now claim it. Staking is also live.
Mateora has announced that the TGE of their token will be in October.
📰 Industry News
Tether introduced USAT, a Genius-compliant stablecoin specifically designed for U.S. markets.
BlackRock is exploring the tokenization of ETFs. Potentially, thematic funds like tech ETFs and other "real-world" assets can come onchain.
UpBit, South Korea's leading exchange, announced that it'll be launching an Ethereum L2 called Giwa.
😂 Meme
Until next time,
Edgy
Today's email was written by Edgy and Yayya.
DISCLAIMER: I'm NOT a financial advisor. This content is for education and information purposes only. Crypto and DeFi are risky and speculative. Please do your research before investing.
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