Narrative
Robotics: The Next Breakaway Narrative?
AI Agent narrative is a perfect example. AI was being developed elsewhere rapidly. The AI Agent narrative in crypto allowed people to speculate on it.
So, is there another narrative like that? Yes, Robotics.
Robotics is about building machines that can think and act like humans. This ranges from industrial robots performing repetitive factory tasks to humanoids capable of working in restaurants.
The field has been developing rapidly. Crypto will allow users to speculate on them.
There are a couple of areas where crypto can add genuine value as well.
- Identity systems.
- Trustworthy data infrastructure.
- Financial rails to earn and spend value.
This is a narrative with real potential. A major breakthrough or catalyst could easily draw attention and liquidity into it.
One possible catalyst? Tesla's Optimus humanoid robots. Elon Musk has said that Gen 3 will be released in 2025. Even if it's offchain news, it can drive attention and liquidity to Robotics tokens.
So let's look at the market leaders in this narrative
#1. Peaq ($PEAQ)
An L1 designed to power the Machine Economy and DePINs.
It enables machines to share resources and earn income without human bottlenecks. Essentially, it's the blockchain for Robots.
#2. Auki ($AUKI)
They're behind Posemesh, a decentralized machine perception network.
It'll give robots a shared "super GPS" combined with a live map of the physical world. Robots will need it for navigating physical spaces.
#3. Geodnet ($GEOD)
Building the world's most precise navigation network through its use of reference stations.
It'll allow autonomous vehicles, drones, and AI-powered robots to navigate and position themselves with centimeter-level accuracy.
Its network is live with over 20,000 stations, making it the world's largest Web3 blockchain-based precise positioning network.
The above are the market leaders. They're the top 3 tokens in the narrative. And usually, if you want to long on a narrative, it's safer to bet on market leaders.
CoinGecko Robotics category is great for finding a comprehensive list of projects in the category. Below are the projects of lower market cap.
#1. Codec Flow ($CODEC)
This "Operator" system is powered by "Vision-Language-Action models". In English, it means that it'll allow AI Robotics to:
- See environments (like screens or physical spaces via cameras)
- Understand them (through language processing)
- Take actions (like controlling a robot or navigating a browser)
#2. Rice AI ($RICE)
They're building a token-powered DePIN to democratize robotics data.
Users can interact with companion robots, which will generate behavior data that is then tokenized and sold to companies training smarter robots.
#3. Silencio ($SLC)
Silencio is a DePIN project on Peaq that incentivizes users to measure and map noise pollution using their smartphones.
They have an $SLC burn mechanism. And have burned >5.5% of the active supply within 8 months of token launch.
The narrative has potential. But it doesn't mean this list of projects will be the ultimate winners of the narrative. The winners might be in the next generation of projects.
Similar patterns have played out in other narratives. For example, projects like DYDX and GMX were winners of the Perp Dex narrative. People benefited from them. But they pale in comparison to the next generation perp dex like HyperLiquid.
AI narrative is also another example. There were many AI tokens. Even $WLD was one of them. But the next generation of the narrative, AI Agents, was the true winner.
It'll be the same for Robotics.
At this stage, this narrative is in its infancy. There's huge ambition, but limited actual capacity. There's no significant adoption of crypto robotic projects either.
I'm looking for some catalyst or innovation that can attract hype and liquidity to the narrative.
Sponsored by Rezerve
Rezerve Money: The $ETH Treasury for You
In geopolitics, oil-rich nations hold strategic power.
Ether is digital oil. Those with massive $ETH reserves will shape the future. That's why giants like Bitmine and Sharplink are already hoarding billions in ETH.
But they are offchain companies controlled by a few billionaires.
What we need is a people's protocol—built on DeFi and onchain mechanics—to accumulate ETH for the many, not the few.
Enter Rezerve Money. It aims to accumulate 1M ETH through onchain mechanics.
- Sell onchain $USDC liquid bonds
- Leverage assets to raise capital from lending protocols
$RZR captures all value: revenue, governance, and upside.
Their protocol provides many opportunities for you to participate and earn yield.
- Liquid staking $RZR with $lstRZR will give you ~140% APY.
- Bond USDC & earn 30% APY. (The duration is 4 years, but it's a tradable position)
- Or you can stake USDC for 1 month up to four years, and earn a yield of ~6% to upto ~40%.
Rezerve stands out as a game-changing innovation that you'll want to explore now.
New meta
NFTStrategy: Treasury Strategy for NFTs?
No, this isn't a memecoin chart.
Looking at its growth from zero to ~$150M in a month, you might think it is. But it's the leading token of a new, exciting meta: NFTStrategy.
What is it? It's a tokenomics innovation by Token Works that combines DeFi & NFTs.
It's the chart of $PUNKSTR, the alpha play for this meta. In the last 14 days, it's up >742%. As of writing, it has eight beta plays like $PUDGYSTR and APESTR. And they're posting insane numbers as well. Up 550% & 347% on the weekly chart, respectively.
The secret behind these pumps is the new "perpetual buying machine" introduced by the project.
How does it work?
Each NFTStrategy project will have a marketplace to trade NFTs of that particular collection.
Then, it's a financial magic with three assets: $ETH, the NFT Collection & a fungible token. For example, Punks NFT collection and $PNKSTR.
- The project will earn $ETH via trading fees on the $PNKSTR. All STR tokens will havea 10% fee. The project will accumulate 80% of the fee. (Rest 20% goes elsewhere.)
- Whenever the treasury crosses the floor price on the market, the project will buy and relist it at 1.2x the price.
- When a user buys the Punk NFT from the project, the $ETH will be used to buy back and burn $PNKSTR
Everything is automated. This mechanism will run forever without interruption.
This mechanism has several impacts.
- The $PNKSTR token is deflationary. With each complete cycle, $ETH will be used to burn $PNKSTR. It'll never enter supply again.
- The NFT trades of the project will never have realized losses. It'll only sell the acquired NFTs for 1.2x the cost price.
- If the NFTs bought and relisted by the project aren't bought by anyone at a higher price, it's virtually locked forever. It's good for the NFT collection. But it can be bad for $PNKSTR.
There are more nuances and edge cases to these mechanisms. Like, a higher additional tax immediately after the NFT sale by the protocol. But we don't have to dive into that here.
Essentially, there are three sources of fundamental value for these NFTStrategy tokens.
- Speculative premium. These tokens can become a more liquid way to speculate on underlying collections.
- Upcoming token burns via the mechanism. The flywheel is attention > trading fees > price pumps > attention > repeat.
- Value of NFTs held by the project. But in the case of $PNKSTR, it's only a minimal %. While its MC is ¬$150M, the value of its NFTs is only ¬$4M.
With $PNKSTR, there's an additional source of value accrual. 1% of the trading fees from all other NFTStrategy tokens, like $APESTR, will be used to buy and burn $PNKSTR.
So if you aren't deep into this meta, $PNKSTR is the best option. It'll always have more volume and demand.
If nobody buys NFTs listed by the project, there's a downward spiral risk as well. So low interest in the underlying collection is the only significant danger to this system. But you don't have to worry about that with $PNKSTR. It'll always have demand.
This mechanism reminds me of the 2021 DeFi experiments. So I'm keeping this on my radar.
🚀 DeFi Catalysts
Lighter launched its public mainnet. It's a highly anticipated project that is worth farming for its airdrop.
StarkNet released Bitcoin staking. It allows Bitcoiners to secure the network and earn rewards alongside STRK stakers.
Phantom, the leading Solana wallet, introduced $CASH. It's a fully backed, open-loop stablecoin issued by Bridge.
EigenCloud (previously EigenLayer) launched EigenAI and EigenCompute on mainnet alpha. It combines the benefits of both AI & crypto.
CoW Swap has expanded to BNB Chain. It'll bring gasless trading, better prices, and MEV protection to BNB.
Circle launched USYC on Solana. It's Circle's tokenized money market fund (TMMF). USDY will increase in price to reflect yield.
Double Zero launched its token $2Z. It's designed to replace unpredictable routing with a synchronized fiber network.
Pump.fun introduced an easy onramp to its platform. Users can onramp in seconds with Apple Pay, Phantom, Robinhood & many more providers
Moonbirds, an NFT project, announced the launch of its token, $BIRB, on Solana. The contract address isn't live yet.
Talus, an infrastructure platform for AI Agents, launched Talus Testnet Incentives and Rewards.
Spark has released the roadmap for the next six months. They've shared many initiatives like Spark Mobile and Stablecoin-Liquidity-as-Service.
Dupe went live on Solana. It's a marketplace on Solana to trade CS2 skins.
📰 Industry News
Stripe introduced Open Issuance. It's a new platform to launch stablecoins.
Coinbase launched the ability to earn yield on USDC by lending it. It's powered by Morpho and Steakhouse Financial on Base.
Flying Tulip, Andre Cronje's latest DeFi super app, raised $200M at $1B FDV. It innovated a put option for the tokens, where investors can return the token and get their investment back.
🐦⬛ X Hits
- YieldBasis deep dive.
- How to be good at crypto?
- Economics of zero-fee perp dexes.
- Game theory of being an L1 vs an L2.
- AMMs vs CLOBs: the race to bring NASDAQ onchain.
😂 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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