👀 What’s to Come in Volume 43

🔑 Key News: Headlines, Exploits, Continued Adoption, DeFi Updates, New Projects & more from CJ

⛓ On-Chain Sleuthing: feature along with Smart Money Moves from Cl

🔥 Hot Narratives: LayerZero Stablecoin & Arbitrum Farms from unexployed

📈 Macro Outlook: Simplified Round-up and Implications from Hansolar

📉 HTF Price Action Scenarios from Vlad

⚔️ A Call to Arms

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🔑 Key News

Major Headlines

• BlackRock filed to register a new iShares Ethereum Trust entity in Delaware

• Kraken plans to launch their own L2

• Binance Launches Binance Web3 Wallet

• Drama between Wintermute and Near/Aurora with allegations between the two

• HSBC to Offer Tokenized Securities Custody Service for Institutions

• Ark Invest launching a new suite of digital asset ETFs with 21Shares

• FTT rallies over 80% after Gary Gensler's nod to possible FTX reboot

• FTX sues Bybit to recover assets worth $953M

Exploits that Happened this Week

• The Standard exploited for $290k

• rBalancer (Aura) rETH-WETH pool exploited

• CoinSpot wallets appear to have lost around $2 million of crypto in possible hack

• Poloniex hacked for more than $100M and Justin Sun will reimburse victims

• Raft Fi exploited, causing $6.7M R stablecoin to be unbacked

• Aave lending markets resume normal operations after security scare

Project Updates

• Evmos plans to deprecate Cosmos transactions, signals Ethereum alignment

• Arbitrum Proposal to Backfund Successful STIP Proposals

• Optimism introduces Canyon Hardfork

• Nil Foundation introduces Ethereum ZK-Rollup with sharding support

• Graph Protocol shares new roadmap

• Illuviumio live on EpicGames store

• NEAR Foundation and Polygon Labs join forces to build Zero-Knowledge Solution for WASM Chains while NEAR introduces their DA layer and partners with Eigen Layer to create Fast Finality Layer

• Synthetix discussing turning off SNX inflation

• Dydx chain staking and bridging live

• Circle releases v2.2 for USDC and EURC stablecoins

• Filecoin introduces InterPlanetary Consensus

• Pika Protocol retiring the PIKA token

• OKX most likely launching their L2 using Polygon CDK

Interesting Projects

• Network State Co: Protocol focusing on sovereignty, governance and maximizing personal freedoms

• Nil Foundation: zkRollup that scales Ethereum to 60,000+ TPS through zkSharding

• Ritual: Community-owned AI network

• Witness Chain: Security for optimistic rollups

• isGranted: Go-to grants aggregator

• Gasilon: Infrastructure layer that abstracts gas fees on Solana

Courtesy of CJ - check out his telegram channel for daily news, projects updates and new releases

⛓ On-Chain Sleuthing

Arca Buying $RLB

Arca investment fund has been building a $RLB position in the last few weeks.

They now hold over $1 mln in $RLB. Note that Arca buying marked the local top in the past for $GNS and $GMX. Will this time be different?

Searching For Alfa

We are busy collecting alfa in Istanbul. If you happen to be there today or tomorrow, shoot us a DM on Twitter & let’s meet: unexployed or CLBlockchain.

Research and analysis by Cl

🔥 Hot Narratives

LayerZero Suspense Suspensening

Right now, LayerZero is the most anticipated project to launch a token. With their unique tech and infrastructure, they fulfill an important role in the crypto ecosystem. And now, they are strengthening this narrative with their announcement yesterday:

Their first tweet is not really revealing, but let me explain:

The ColorTrace is a new algorithm that lies at the foundation of LayerZero’s very own stablecoin called USDV backed 1:1 with tokenized short-term treasuries and repos. This will be the first stablecoin that rewards verified minters based on their contribution to the active circulation of tokens meaning minters will actually profit off USDVs stablecoin expansion.

Find full information here: USDV docs.

This will definitely count towards the airdrop. And this omnichain, treasury-backed stablecoin is a big step forward for this space.

Farm Opportunities

With volatility increasing and prices going upwards, farms are becoming interesting as well. At Castle, we like to catch two birds at once and farm two protocols at the same time.

Metis: Gravita

Up first is a niche protocol on Metis called Gravita Protocol that allows you to mint stablecoins against Ether and related LSDs. This one is a fairly risky one as it involves using a very small and niche stable, $GRAI, that is minted against your collateral.

You can pair GRAI and LUSD, and pool them on Velodrome for 35% APR whilst at the same time qualifying for the Gravita airdrop.

For more information, refer to the guide by Aidrop Adventure:

Arbitrum STIP: Dolomite

With the Arbitrum STIP being distributed, the yields on a lot of our favorite protocols are increasing significantly.

Take for example Dolomite which distributes oARB on the blue-chip pools ($USDC, $ETH, $WBTC, $ARB, or $LINK). Now the yields on those assets are quite juicy with 30% on USDC of course.

The caveat is that the rewards are in $oARB and not in $ARB directly. Read on for a refresher on $oARB 👇👇

Dolomite distributes $oARB weekly to its depositors based on their liquidity on the platform. The tokens can be claimed through the rewards page. Then users can vest their $oARB to purchase $ARB at a discount from the market price pocketing the difference. The discount increases according to your lock time (the maximum discount is 20% for 4 weeks).

Despite the yield not being directly in $ARB and the involvement of vesting, still makes Dolomite a worthwhile venue to farm as you also increase your chances of qualifying for a potential $DOLO airdrop.

Arbitrum STIP: WINR

Second is WINR, a gambleFi protocol on Arbitrum. They received over 450k in ARB and will be distributing them over the coming 12 weeks to users and liquidity providers as follows:

We will mainly focus on the rewards to WLP providers.

Currently, the APR on the pool is 2.74% and does not include the additional $ARB. Note that WINR has opted to distribute the ARB directly and not in the form of $oARB.

Using rough calculations, the APR on the pool with ARB rewards is bumped up to around 29% based on the following assumptions.

Weekly Yield in USD:
$16,940 = 15,400 * $1.10

Annualized Yield:
$879,689 = $16,940 × 52

Total Yield:
Total Known Yield Percentage = ((Additional Annualized Yield + Known Yield) / Pool Value) * 100
Total Known Yield Percentage = ((879,680 + 2.74% $3,355,176) / $3,355,176) 100
Total Known Yield Percentage = (971,552.78 / $3,355,176) * 100
Total Known Yield Percentage ≈ 0.2901 * 100 ≈ 29.01%

These yields are NOT reflected on the front end. Mind the mint fee that is charged on WLP that varies between 0.25-0.75%.

Arbitrum STIP: Camelot

Last, but not least, yesterday, Camelot started their incentive system on a lot of their pools:

Take care of the different pools (V2 vs V3 vs Gamma Vaults), they are all incentivized differently. Yields look as follows, but up to change:

Courtesy of unexployed

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💹 Macro Outlook

Please note that if certain technical jargon or concepts mentioned in this text are unclear, you can refer to investopedia.com for detailed explanations and definitions. Additionally, for a comprehensive overview of macroeconomic events, you can explore the event calendar on investing.com/economic-calendar/.

Upcoming Events

• Tues Nov 14th : CPI

• Wed Nov 15th: PPI, Retail Sales

• Thurs Nov 16th: Initial Jobless Claims

• Fri Nov 17th: Spot ETF window end

BTC, ETH, and Macro

Markets have gotten very trigger-happy as BTC continues its no-pullback climb up. Last Friday we popped up on the ETF duo’s statement on how we were entering a period(Nov 9th to the 17th) where all ETFs could be approved together. This followed by Blackrock filing an ETH spot ETF further heated things up as the lagging 2nd largest crypto asset Ethereum finally made a newsworthy move.

Interestingly, IVs have leveled off for BTC around the 58 mark indicating that dealers in the option markets are no longer under pressure of a squeeze. ETH however which saw even more extreme levels of volatility suppression continues to see an increase in IVs after having flipped BTC’s vols. If spot flows continue aggressively, we may see additional buying flows from squeezed players from the options market.

A short-term play for both BTC and ETH could be buying the dip this Friday if there is no news on the spot ETF. Currently, insiders are putting a 20% chance of an early approval for the ETF, which is likely largely divergent from the expectations of the average trader.

Courtesy of Hansolar - check out his telegram chat for all things options, crypto and DeFi

📈 HTF Price Action Scenarios

Gm frens!

Last week offered quite a few nice long opportunities. The plan remains the same - look to this trend for as long as it lasts. Therefore looking to get involved after re-accumulation is the play.

• Accumulation inside the daily demand zone

• Expansion out of consolidation

• Bullish momentum

• Lows liquidated

• New highs breached

At some point, this push will lose steam and we will enter a correction phase. Once that happens it’s going to once again be a game of waiting for big money to re-enter the market and show its cards.

Overall this is now a bullish market and longs are favorable!

Trade responsibly and I’ll see y’all next week!

Courtesy of Vlad - trend-based trader and MentFX student

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In our newsletter, we may discuss projects or tokens in which we hold positions. While we aim to provide informative content, our views are not financial advice. Please conduct your research and consult professionals before making investment decisions. Crypto markets are volatile, and past performance doesn't guarantee future results. Invest responsibly, and be aware of the risks. Your capital is at risk, and we do not accept liability for any losses.