Pudgy Extinction?!, New Alfa Section, Elixir Farming & More

The Castle Chronicle: Volume 74

AuthorAuthorAuthorAuthor

unex, CJ CJ, C-L.eth & 0x_Vlad
June 19, 2024 • Est. Reading Time: 14 minutes

 👀 What’s to Come in Volume 74

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

📖 Recommended Reads: A curated list of insightful articles, blog posts, and other material by Insomniac 

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

🔥 Hot Narratives from unexployed

📉 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

  • May CPI:

    MoM: 0% [Est. 0.1%, Prev. 0.3%] YoY: 3.3% [Est. 3.4%, Prev. 3.4%]

    Core MoM: 0.2% [Est. 0.3%, Prev. 0.3%] Core YoY: 3.4% [Est. 3.5%, Prev. 3.6%]

  • Brazil's largest bank launches Bitcoin & crypto trading for customers

  • Terraform to Pay $4.47 Billion to Settle SEC Fraud Case and shutting down

  • Microstrategy announces offering of $500M convertible senior notes to buy more BTC

  • $FDUSD bank partner FlowBank entered bankruptcy

  • Bukele proposes Bitcoin bank for El Salvador

Project Updates

Interesting Projects

  • Symbiotic: EigenLayer competitor, backed by Paradigm

  • Mellow Protocol: Modular infrastructure for permissionless LRT creation and curation

  • Milady Cult: Remilia’s new token

  • DojoGpu: GPU training and data monetization

  • Nuffle Labs: Spun off from Near Modular

  • o.bot: Confidential AI Agents Network Powered by Ionet

  • Alloy: Tether’s new product

  • Time.Fun: Tokenizing time for creators

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

This week we are introducing our newest segment! Recommended Reads from one of our core researchooors that spends all his time learning 🤓!

Historical analysis of airdrop performance

Airdrops: An Analysis of Over 2,000,000 Events - 6MV

Airdrops have been a common but understudied part of token generation events (TGE). The mechanism is simple – distribute freshly minted tokens to the right wallets to help establish an initial float, enable on-chain governance, power transactions, reward early contributors, and potentially attract new users.  We believe that such a ubiquitous element of token design Keep Reading ›

6thman.ventures/writing/airdrops-an-analysis-of-over-2000000-events

An interesting look into the performance of past airdrops and how they have possibly been impacted by their distribution models. In particular, I found the analysis of price & volatility effects over time to be fascinating as it framed a view of the performance of distribution models and eligibility type on token value post-airdrop.

Tokens as a financialized belief system by DoveyWan

Tokens is a Financialized Belief System

Posted it in last few cycles resurfaced this again if you are new to this cycle or a first time token founder

medium.com/primitive-ventures/tokens-is-a-financialized-belief-system-3faaff2b65a6

Exploring the mentality of holders on different holder spectrums and what they mean. Dovey essentially spells out in detail what most builders have considered but never properly detailed out. It is the essence of crypto communities; the lifeblood that keeps them and the projects they value going.

Sentiment reversal on VC involvement in crypto

With market sentiment down and retail turning on VCs, Hasseeb gets into a couple of interesting discussions on whether VCs are value-extractive but my personal favourite was his short discourse with @Arthur_0x as well as Arthur’s tweet linked in Hasseeb’s post that helped form an image of how VC’s structure their thoughts around exiting a position.

Quick dive of the Eigenlayer Actively Validated Services (AVS) ecosystem

Ever wondered how AVS services fit into the Eigenlayer ecosystem? I know I have! The thread goes through the information in a detailed yet easy-to-understand way and is suitable for those who have a hard time deciphering more technical docs and the more experienced readers.

Courtesy of Insomniac - check out his telegram channel on all things interoperability

⛓ On-Chain Sleuthing

Liquidation cascade coming for Pudgy Penguin

CBB0FE is known as one, if not THE, top BLUR farmer. They are two brothers and together they dominated last BLUR season, but eventually decided to stop providing liquidity on the main NFT collections on the 17th. This is where things turned sour….

From that day onwards, the some big floors started to drop dramatically. We think that this is due to a collective shift by the farmers, we simply took CBB0FE as a good example. The problem is that BLUR enabled lots of leverage on most big collections offering points for bidding.

You can see this play out for the Pudgy Penguin collection below:

On top of that, there were also a lot of loans starting to be called back on Blend, the NFT lending platform. This resulted in even more dumping by a smart contract on any Bid present, increasing the move down.

Looking on-chain, we found this contract (which is responsible for liquidating the NFTs that are margin called on BLEND) :

https://blur.io/0x29469395eAf6f95920E59F858042f0e28D98a20B?contractAddress=0xbd3531da5cf5857e7cfaa92426877b022e612cf8

As the 18th of June 2024, this contract still holds 22 Pudgy ready to be liquidated & the liquidation map looks very ugly.

Be wary of this if you are still interested in PudgyPenguins.

Research and analysis by Cl

🔥 Hot Narratives

Elixir Airdrop Farm

I will be honest. I was tipped off on this one by the legend 0×5ar (DoomedCapital), go follow him on Twitter!

He showed that with a bit over 0.1 ETH you are in the top 33% of depositors.

Note that this is for elxETH on Ethereum Mainnet, but with current gas at sub 10 gwei it will only cost you about $2 in fees. Pretty nice price for a simple deposit.

Do note that your deposit will be locked until August. That being said, the team has openly stated that a token will be launched in that month too! So we only have about two months left for this farm.

From my research Elixir is quite an interesting project. They power a ton, a ton of good projects: BlueFin on SUI, Vertex on Arbitrum, RabbitX on StarkNet, Orderly… the list goes on.

Essentially, they are a critical liquidity layer for orderbook DEXs.

You can provide liquidity also in these pools here: https://agg.elixir.xyz/.

But I recommend minting elxETH as to me it seems the more productive way to support Elixir and gain points.

Use the following reflink to support DoomedCapital: elixir.xyz/refer/stehr5436

If you have some ETH to spare, you may try and gamble splitting it and deposit 0.1ETH on multiple wallets. This has worked for EtherFi in the past.

Courtesy of unexployed

Use our referral system to spread the word about the Chronicle!

🔎 Multi-Chain View is Live on Console!

As you may have followed these past few weeks, Brahma Console offers smooth, secure on-chain transactions with an integrated Safe account; trusted by degens, funds, and protocols like Swell, Fantasy.top, and Socket.

With Console’s latest release, Multi-Chain View, managing your on-chain workflows just got a whole lot easier.

Do more on-chain with:

  • A Single Safe Address: One address for multiple EVM chains.

  • Unified Asset Overview: See all your assets in one place.

  • One-Click Txn Bundling: Bundle transactions across dApps with a single click.

  • Segregated Sub-Accounts: Keep your assets organized.

  • Cross-Chain Txn History: View your transaction history across all live EVM chains.

Console is Now Live on Sei Network and is arriving on Base Next!🔴🔵

In other news, Epoch 3 of ARB Incentives is now live! ⚡️

📈 HTF Price Action Scenarios

Gm frens!

Last week price started re-accumulating within a HTF re-accumulation. All is good and bullish still. Now we wait for some clear signs of continuation before following the trend.

  • HTF re-accumulation

  • Big impulse validating the re-accumulation

  • Price re-accumulating the most recent push

I’m looking for price to break above some local highs impulsively, clearly signaling to me that big money is back. Once that happens I will be happy to go to a lower timeframe and start following that move. But until that happens I’ll remain on the sidelines. Nothing to do but wait.

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

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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