New protocol
Liquid: Aggregator for Perpetual Platforms
Betting on category leaders early is a reliable strategy.
Imagine finding Pendle in early 2023. Or Virtuals before 2024 Q4.
Now there's a new category leader forming: Liquid, a perp dex aggregator.
There are dozens of perp DEXs: HyperLiquid, Lighter, Ostium, etc. Liquid unifies them under one interface, giving traders:
- Better UX. No need to navigate many apps.
- More assets. You can trade crypto, stocks, and commodities.
- Deeper liquidity. With access to multiple venues, Liquid should have deeper liquidity.
It also has innovative features like "news trading". But what attracted me is the "perp aggregator" niche.
When it comes to onchain spot trading, I almost always use aggregators. That is cuz of the above benefits like liquidity. Similar principles should also apply to perp aggregators. Eventually, most people will trade from perp aggregators.
Why It matters? There's no competition for Liquid in this niche. (If you know any other perp aggregators, reply and let me know.)
Their dominance is reflected in metrics. After it opened to the public in August, the trading volume on the platform has been on a meteoric rise.
In October, it did >$338M in trading volume. And it has already done >$171M this month.
How can you benefit? While I'm not a huge perp trader myself, it's still one of crypto's most important sectors, and this is a clear early mover.
So if you're trading perps, you should trade from Liquid. It doesn't have a point system, but they've hinted at one. Early users usually benefit the most.
You'll also stack points across integrated platforms (e.g., stock trading on Liquid = Ostium points).
Caveat: Liquid is mobile-only right now. You'll need to trade from your phone.
It's not a significant drawback tho. Frank, the founder of Liquid, has great credentials with experience at Two Sigma, De Shaw, & Citadel.
It's also backed by Paradigm and Vlad, the lighter founder.
We can expect them to deliver on great catalysts.
- Great points program
- The Liquid webapp launch
- More platform integrations. Lighter integration is coming.
This is still a very early app. Only play around with funds you can afford to lose.
Sponsored by Solstice
Solstice: Solana's Institutional Grade Stablecoin
Solstice is winning the "Solana stablecoin" niche.
- USX is their 100% collateralized USD stablecoin.
- eUSX is the yield-bearing version of USX. You get it by depositing USX into YieldVault.
Now, you have a great yield opportunity with eUSX.
PT-eUSX is a fixed-rate PT of eUSX on Exponent. With Kamino, you can loop PT-eUSX.
- Swap stables → eUSX → PT-eUSX on Exponent (fixed rate).
- Deposit PT-eUSX on Kamino, borrow USX.
- Rebuy PT-eUSX, redeposit. Stop at a sane LTV.
Supplying USX alone will get you a lending yield, 50k USX in monthly rewards, plus 5× Flares, their points program. (Use my code: SDoYPPvDU8.)
Here are the risks to monitor when employing the strategy
- If borrowed APY jumps above your fixed PT APY.
- If you can't hold PT to maturity (price can move).
- Platform risk across USX/eUSX, Exponent & Kamino.
If you're not looping, just supplying USX on Kamino (~13% APY right now) is also a good opportunity.
Remember, these have deposit caps. So you have to hurry to get in. (Use my referral code: SDoYPPvDU8.)
Hot protocol
$ORE: Next $BTC or Another Memecoin?
The above chart tracks the $ORE price.
It's up ~240% on the weekly, ~392% on biweekly, and ~4100% on the monthly chart. It has also crashed 25% from yesterday.
Is the crash the beginning of the end? Or does the project have potential? I'll explore in the article.
What is ORE? It's a gambling product + memecoin on Solana.
Originally launched in 2024 with no insider allocation and a 5M max supply, $ORE was relaunched in October with gamified mining mechanics. That sent it parabolic.
It now has a game-like mechanism to "mine ORE". There'll be a 5×5 grid of 25 tiles. You basically have to bet on those tiles to win some reward in $SOL & $ORE.
Here are some additional resources to dig into the game.
Now, let's get to our main question.
Why is it pumping? Degens are gambling and speculating with the platform and token.
Whenever a user gambles on the platform, the value is collected by $ORE.
- 10% of all SOL mining rewards are automatically collected by the protocol.
- This $SOL revenue is used to buy back $ORE from the market.
- 90% of the bought $ORE is burned. 10% is distributed to $ORE stakers.
Yesterday, the protocol collected >$1M SOL in revenue. In the last 7 days, it collected ~$7M in revenue.
All of it had gone to buy back the $ORE. The token has been deflationary for the past several days. If we factor in degens trying to speculate and front-run the buyback, we'll understand why it was pumping.
Will it keep pumping? The rally is powered by protocol revenue earned by users' gambling.
If users continue to gamble, it can keep going up some more. Right now, the market cap is ~$150M. With more sustained revenue & buybacks, I can see it going up another 2-5x maximum.
But if degens find the casino not interesting anymore, they'll leave > buy backs disappear > $ORE crashes.
$ORE is primarily a narrative play. While the current market cap is $150M, it has only generated $5.7M till now. So, it's not really backed by "strong fundamentals". Also, the "SoV of Solana" narrative isn't true. $SOL is the SoV of Solana, not $ORE.
When $ORE moves down, it'll be volatile cuz everyone will be rushing to the door. Stakers will exit. Gamblers won't mind the existing 10% cut to disincentivize dumping.
TLDR: there can be some crazy charts in the short term, but in the long term, not very sustainable.
🚀 DeFi Catalysts
Monad announced the public sale of $MON tokens on the Coinbase launchpad. It'll start on November 17th and will be accessible in over 80 countries.
Uniswap Foundation announced they're enabling the fee switch for $UNI token holders & aligning incentives with the Labs team.
Mateora introduced Invent. It'll allow devs to spin up advanced token launches with no deep tech stack needed.
StarkNet released S-two on mainnet. It claims to be the fastest live prover. They also proposed an L2 for ZCash.
Lista DAO, a DeFi protocol on BNB Chain, introduced lending 2.0 and smart lending, which allows collaterals to power liquidity on its DEX.
Linea has activated its burn mechanism that'll burn both ETH & LINEA. This should be value accretive for both tokens.
Ether.Fi approved a $50 million treasury allocation for an ETHFI buyback program while the token trades below $3.
Mantle will soon have tokenized equities powered by xStocks. Stocks and RWA have been gaining in relative importance.
🚀 New Launches
Lute went live on Solana. It has framed itself as a social trading application.
1st is a new application on Base that claims to be a DEX built for instant trading of locked assets.
Cleopatra is a liquidity terminal for Solana DEXes. It's powered by Meteora and Jupiter and lets users deploy preset LP strategies.
📰 Industry News
Coinbase announced its token sales platform. The first sale would be $MON token starting from November 17th.
Stable, the new L1 chain focused on stablecoins, released its public testnet. Bitfinex & Tether back the chain.
🐦⬛ X Hits
- Crypto x curator economy
- DeFi development trajectory.
- Next-generation options protocols.
- LlamaAI: ChatGPT for onchain analysis
- Venture Codex: research rounds and competition.
😂 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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