🌕Do Kwon Returns - TWJ #208
His first interview since the UST collapse.
Hi folks,
My other publication, Pensive Pragmatism, is doubling down. We are launching a new weekly series called “pls fix: [topic]” where we will provide strategic recommendations for a specific protocol or sector in crypto. Crypto is innovating at a lightning pace; and while I don’t claim to have all the answers, I believe that documenting these ideas in public is a good first step to instigating further discussions. I hope you’ll share it if you find it enjoyable.
Here are the quick takeaways:
Most (if not all) AMMs are not generating real profit.
Protocols should think about how they can accrue value back to token holders ASAP, especially those with less capital on their treasury reserves.
Protocols can ignore value accrual mechanics so long as their treasury is large enough but to the detriment of token holders.
Protocols can provide their own liquidity and generate real profits with a much smaller capital thanks to concentrated liquidity.
Vertically integrating with other DeFi products (wallets, play-to-earn, etc.) proved to be extremely beneficial for an AMM’s profitability.
In today’s issue:
The crypto market is flat with its total market cap above ~$1.1 trillion. Leo Token (LEO) has been the best performer in the top 100 in the past 24-h. China surprised the markets by cutting rates in response to the country’s economic slowdown.
In other news, Do Kwon's first interview since UST collapse, pension funds remain interested in crypto, and ETH options open interest hits an all-time high.
We’re continually improving our content, please reach out if you have ideas or want us to recap another market segment.
- Curated by Marco Manoppo (@manoppomarco)
📰Market News
⎆Do Kwon’s First Interview Since UST Collapse
In his first interview post the UST collapse, Do Kwon stated that the South Korean investigators haven’t reached out to him about the incident.
⎆Pension Funds Remain Interested in Crypto
Despite the ongoing bear market, WSJ reported that pension funds across North America remain interested in crypto as an asset class.
A Quebec pension fund made a $150 million equity investment in Celsius Network LLC last fall. In July, the cryptocurrency lender filed for bankruptcy protection.
A $5 billion retirement fund serving Houston firefighters said last October it had put $25 million into bitcoin and ether. Since that announcement, both cryptocurrencies have fallen by more than 50%.
⎆ETH Options Open Interest Hits an All-Time High
As the Ethereum merge approaches (Sept 15), the open interest in ETH options has reached an all-time high. Traders are using options as an effective tool to speculate on ETH’s volatility without holding direct spot exposure of the underlying asset
👨🏻💻Decentralized Finance (DeFi)
Open Interest in ETH Options Hits All-time High
Acala Exploit
Velodrome Team Wallet Exploit Update
Binance Recovered $450k of the Curve Stolen Funds
Skynet Labs Shut Down
Ethereum Tops $2,000 as Network Approaches Merge Event
Tornado DAO Grapples With Arrests as Discord, Governance Forum Go Dark
Nexus Mutual to Invest $29M of Treasury into Maple Finance
Xenon Protocol is Live
Dfyn v2
Mycelium Perpetual Swaps is Live
🏛Governance - Active Proposals
PoolTogether - PTIP 80 - Treasury Assets Management #2
Yam Finance - Contributors comps for July, claiming sushi for reserves
🦮NFT & Metaverse
Axie Infinity Cuts Rewards from Classic Game
OpenSea Changes Stolen NFT Policy Following User Outcry
Top Sales (Last 24-h); Source: https://dappradar.com/nft
📈Deal Flow & Capital Raise
ReadOn - $2M Seed Round
Datawisp - $3.6M Seed Round
Ankr - Undisclosed $ of Strategic Investment by Binance Labs
DAM - Undisclosed $ of Strategic Investment by Arrington Capital
Archax - Undisclosed $ of Stake Purchase by Abrdn
Celo - Undisclosed $ of Africa Fund
⚖️Regulatory Update
CFTC Accuses Ohio Man of Running $12M Bitcoin Ponzi Scheme
Suspected Tornado Cash Developer Arrested in Amsterdam
📚Noteworthy Reads
Alan Szepieniec’s Read on The Problem of Scalable Privacy
Zee Prime Capital’s Read on Social Web 3
SBF’s Thread on The Financial Circle-Jerk
Feel free to reach out to manoppomarco@gmail.com — feedbacks and constructive criticisms are much appreciated.