101st Edition
Jul 8, 2023
Hi there 👋🏻
Your newsletter is now onto its 101st Edition. With change being the only constant in this space, we wanted to make the newsletter much more interactive and fun to read.
Here is the revamped version of the Flippening. Let us know if you liked it 😎
This edition covers:
- Buying assets at a discounted price
- Exploring LENS Protocol
- AAVE's quest for a stablecoin
- Solana's rise
- and Blackrock becoming the catalyst of stability
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📖 Crypto simplified
LSD: Riding the $20.7 Billion Wave of DeFi Disruption! 💸
In the fast-paced world of DeFi, innovation knows no bounds. Enthusiasts are always on the lookout to maximize their returns and capitalize on emerging opportunities. Liquid Staking Derivatives, or LSD, is the latest game-changing narrative in this space.
The Total Value Locked across LSD is a mammoth $20.7 Billion!
As part of our completion of a century, we are covering 100 Web3 protocols that are making a impact. In addition, what do you think will be part of these?
10-100x Alpha generating protocols
Know about potential airdrop
Participate and win FREE NFTs
All of these
Capitalizing on Discounts with Interest Rate Derivatives 🚀
Would you like to buy ETH at a 7%-14% discount from its current price? For example, during publishing time, ETH is trading at around $1852. What if you get it for $1722?
Surprised? Sounds like a scam?
Well, it is definitely not a scam. This is what is possible through Pendle Finance. The protocol simply uses one of the oldest techniques in the book of traditional finance. It uses interest rate derivatives.
Interest rate derivatives are financial tools that protect against changes in interest rates without directly engaging in investments.
Integration of Traditional Finance and DeFi 🤝
Pendle Finance allows you to buy the derivative contract for different assets. The value of these contracts depends on the underlying asset.
With Pendle Finance, you can:
- Buy the ETH derivative contract at $1722 today, and redeem it on the maturity date. You get 1 ETH irrespective of the price on that date.
- Meanwhile, if the price of ETH increases, the value of the contract also increases. You can trade it anytime.
Who said that traditional finance and decentralized finance could not exist? Narratives such as Pendle Finance are classic examples of this co-existence!
✅ This week's actionable
- Your gateway to decentralized social media
- Massive airdrop opportunity
- Explore LENS Protocol.
👇🏻Checkout the video for detailed steps👇🏻
🔭Top Highlights of the Week
1. In search of stability🔍
Decentralized crypto lending platform Aave seems to have a trump card up its sleeve in the form of GHO, a fully backed multi-collateralized upcoming native stablecoin.
👉 AAVE clocked a price pump of 43% in the last two weeks
👉 This led to speculations that the GHO launch might not be too far off
Our takeaway: Aave is one of the largest players in the crypto lending space, and adding a native stablecoin to the network is sure to boost functionality for users- for one, staked AAVE holders will get a discount on borrowing. While a concrete release date hasn't been finalized, this is something to keep an eye on in the coming weeks.
2. Piggybacking for profits
TVL on Solana's liquid staking protocols has gone up by 91% year-to-date, standing at $270M currently.
👉 Protocols like Marinade Finance, Lido, Jito, JPool, and Socean cumulatively accounted for $187M, up from $98M at the start of the year
👉Staking yields on Solana came out to 6.89% APY compared to Ethereum's 5.09%
Our takeaway: Despite Solana offering a higher yield, Ethereum still holds $26B of the total $44B in DeFi TVL. However, liquid staking protocols have seen increased interest following Ethereum staking withdrawal going live with the Shanghai Upgrade.
3. A wave of order in a sea of chaos
Optimism following the wave of spot Bitcoin ETF filings by major players in the game, including BlackRock, saw trading volumes on centralized exchanges rise for the first time in three months.
👉 Combined spot and derivative trading volumes went up 14% to $2.71T
👉 This was the first monthly increase since March 2023
Our takeaway: Despite this obvious improvement, trading volumes on centralized exchanges remain at historical lows. The SEC's actions have only cemented what we've always known- concrete regulations are a necessity, not a luxury.
Disclaimer: All price movements are recorded up to 03:30 PM UTC, 07th July 2023
The crypto market see-sawed over the week but ended up with marginal losses as we go into the weekend.
Disclaimer: All price movements are recorded up to 03:30 PM UTC, 07th July 2023
Volatility didn't spare the sectors either, although there's the occasional green among the red, unlike the top coins.
Crypto Jargon of the Week 🤔
Explain Like I'm 5
“Falling Knife”
Buying an asset whose price is rapidly declining
We were always a losing game
Example- Traders catch falling knives in the misguided hope of making a large profit
