$NIM & $EIGEN Live, HyperLiquidX Pulling Numbers, Fresh TA & More

The Castle Chronicle: Volume 67

AuthorAuthorAuthorAuthor

unex, CJ CJ, C-L.eth & 0x_Vlad
May 01, 2024 • Est. Reading Time: 11 minutes

 👀 What’s to Come in Volume 67

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

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

🔥 Hot Narratives: EigenLayer Debacle from unexployed

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

📉 HTF Price Action Scenarios: from Vlad

⚔️ A Call to Arms

Think you have what it takes to enter the Castle and contribute to funding and advising projects across the space?

🔑 Key News

Major Headlines

Project Updates

Good Reads

Interesting Projects

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

⛓ On-Chain Sleuthing

Hyperliquid Growth is Booming

The growth of HyperLiquid has been astonishing. The USDC bridged from Arbitrum to HyperLiquidX has grown by 500% in 2024. Yes, bridged, because HyperLiquidX is in fact its own L1.

The TVL is currently sitting at $364mln. You can follow the exact amounts via DeBank here: https://debank.com/profile/0x2df1c51e09aecf9cacb7bc98cb1742757f163df7

As of writing, all the validators of the HLX chain are controlled by the team. That makes this project fall into the CeDeFi bucket.

The million dollar question is whether this money is sticky or if it moves away the moment a token has launched.

We suspect that HyperLiquidX will continue its point program after the token drop to extend the incentives and persuade capital to stay.

Recently the team has launched a memecoin, PURR, and airdropped it to traders. It is the first actual spot token on their platform.

They intend to launch more spot trading pairs on their tech stack in the future.

You can look up the PURR token for yourself on their chain:

Hyperliquid

app.hyperliquid.xyz/explorer/token/0xc1fb593aeffbeb02f85e0308e9956a90

It seems the informations are quite limited for the moment. Not possible to know exact token distribtuions.

Is this the new trend? Will HLX enable anyone to launch a token on their platform in the future?

Research and analysis by Cl

🔥 Hot Narratives

EigenLayer Announced Tokenomics

The one project everyone was hyped about, EigenLayer, dropped their tokenomics and whitepaper two days ago. Many people looked up to EigenLayer to be the “biggest” airdrop to date and that it would be a very positive event for our industry.

Well, with all highly anticipated events, there is a great chance of dissapointment and so did EigenLayer (to an extent).

So first, tokenomics:

Total Supply: 1.67bln
Airdrop/Stakedrop: 15% (across multiple seasons, 5% first season)
Community Initiatives: 15%
Ecosystem: 15%
Investors: 29.5%
Early Contributors: 25.5%

As you can see, only a small percentage of the airdrop is handed out in the first season. Of course, this is as expected as they want to minimize the outflow of assets as much as possible.

The main critique falls on the low amount, but also the fact that the tokens are actually non-transferrable the first few months.

Then there was the fud about Pendle YT enjoyoors not being rewarded. The EL cleared this and said that it was very hard for them to track points due to complex DeFi constructions, but that they will be able to distribute the right amounts to the right users.

Onto some positive news. The EigenLayer whitepaper explained a very innovative concept that we have not seen before. The concept of intersubjective transactions.

This has to do with agreeing, making decisions, and slashing malicious actors. In the current landscape, malicious validators are slashed in terms of their stake.

EigenLayer tweaked this concept and made it possible to slash actors that are deemed intersubjectively malicious by forking the token itself.

EigenLayer allows you to put down a bond claiming that the actor was malicious, if it is agreed on, the actor is slashed, you are rewarded and the token is forked to a new version excluding the malicious actor. Else you lose your bond.

this concept will save protocols time, money, and risk by tapping into restaked ETH. It is also a novel concept that can be used to govern AI collectives of agents whose logic cannot be objectively verified. The forking introduces a saftey net to keep them accountable. (h/t to David Phelps for these insights!)

You can find a full breakdown of the whitepaper here: https://x.com/Prithvir12/status/1785006702774960523

Courtesy of unexployed

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📈 HTF Price Action Scenarios

Gm frens!

The waiting game continues as sells are still in control of this market at least on the lower timeframes. On the high timeframe, the market still looks very bullish to me and it’s just a matter of waiting for the money to show its hand.

ETHUSD 1D

  • Unconfirmed re-accumulation

  • Sells are in control

  • Nothing to do but wait

Once again, at no point would I look to short this market. I believe this correction phase might take a few weeks or even months. Our main goal here is not to lose money during these boring times and to step back in once there is a clear context. Until then -

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

Courtesy of Vlad - trend-based trader and MentFX student

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Virtually yours,

The Castle

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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.

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