SBF JAILED, Safe on Base Chain, Macro Update & More
The Castle Chronicle: Volume 30
👀 What’s to Come in Volume 30
🔑 Key News: SBF JAILED, Brazil Reveals CBDC, CocaCola NFTs on BASE, $NEWO Winding Down & more from CJ
📈 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
Binance Becomes the First Fully Licensed Crypto Exchange in El Salvador
Temasek, Sequoia Capital, Softbank, leading VCs face lawsuit for “abetting” FTX fraud
Ark 21 Shares Bitcoin ETF Application Decision Pushed by SEC
Bittrex settles with the SEC for $24 million
Visa allows Paying Blockchain Gas Fees with Card
Sam Bankman-Fried jailed after US judge revokes bail
Central Bank of Brazil Reveals Its CBDC
CocaCola unveils ‘Masterpiece’ NFT collection on Base
Exploits/Updates that Happened this Week
Useful Weekly Defi Updates
SaddleFinance shutting down and distributing ARB to holders
WINRprotocol building Layer 3 on Arbitrum
Rollbit $RLB tokenomics revamped to implement buyback and burn
y00tsNFT migrating to Ethereum
Staderlabs introduces Liquid Restaked Token
Fantom considering adding optimistic rollups to connect to Ethereum
Debank announces DeBank Chain
Aave aCRV OTC Deal proposal passes
Eigenlayer increasing LST staking caps on August 22nd
New Order DAO winding down to focus on Synonym Finance
Some Interesting Projects to Look Out For:
⛓ On-Chain Sleuthing
Arca Sold All $GNS
We have covered Arca in a few Chronicles now. After already selling a portion of their $GNS stack initially, they have now winded down their entire position.
The group still holds a $2.5 million in $dYdX and a $1 million $GMX position. Additionally, they have been buying lots of $ARB last week.
Arca’s DeBank Page [Only visible for free subs]
Amber Group Entering GambleFi
Amber Group is another well-established digital assets investment firm. On-chain activity by one of their addresses shows that the firm is now jumping on the on-chain degeneracy train as they have bought $75k worth of $RLB and $100k of $UNIBOT.
Amber Group’s DeBank Page [Only visible for free subs]
Smart Money Farms
Smart farmers have bridged into BASE recently, and are busy farming on there.
Alien Base on BASE has caught the attention of smart farmers.
Base Swap is still favored by the BASE smart farmers.
SwapBased has been favored on BASE too.
Sable Finance on BSC has become popular among smart farmers as well.
Extra Finance on Optimism is still favored by smart farmers too.
🔥 Hot Narratives
Base Chain Developments
After the huge debacle of $BALD, the Leetswap exploit, and all the other rugs on the Base chain, it seems that things are consolidating and becoming more peaceful.
Most notable is the deployment of Safe on Base which enables anyone to create multisigs and other AA smart contracts. For serious teams and developers, Safe is essential for securing treasury funds and other finances.
With the memecoin saga out of the way, we expect a lot of other big names to deploy on Base paving the way for a healthy new DeFi ecosystem. Along with Safe, Uniswap (announcement), and Compound (announcement) are also available on Coinbase’s L2.
These are important names, especially considering that they do not deploy on most other chains. For example, Uniswap has not deployed on zkSync yet, nor on zkEVM and was very reluctant to deploy on Avalanche during the bull market.
The fact that they were quick to onboard Base is a positive sign. Perhaps it was done with some stimulation of Coinbase. Anyhow, good to have your eyes on Base and search for protocols for building actual products. Money to be made here.
Courtesy of unexployed
DeFi Giants Drama
Most of you know MakerDAO and the Aave DAO as two OG DAOs that go way back. They’ve been collaborating multiple times (onboarding SAI/DAI, D3M-module, etc.) and the relationship has been good thus far. Since then both DAOs have evolved and attracted several service suppliers to help out with protocol development or governance. In this snippet, BGD Labs (Aave) and Phoenix Labs (MakerDAO) are in disagreement and Block Analitica (both) tries to de-escalate the situation.
Phoenix Labs approached Aave by creating a proposal that would fork the Aave codebase, from core contracts to frontends, so that MakerDAO can launch its own lending protocol Spark(Lend), in return for a 10% fee split on future revenue. This effort was received well by the Aave DAO and this partnership would be another milestone in the relationship between the DAOs.
However, the CTO of the Aave Genesis team (founder BGD Labs) replied in the thread that he thinks that MakerDAO acted deceptive regarding honoring the fee split agreement. His main argument is that the Reserve Factor parameter is set to 0%, which means that the profit will also be 0, so there wouldn’t be any fee accrual on the main asset on the new lending platform. Among other arguments, the post was concluded with quotes such as ‘At best, this is total marketing deception, at worse, this is just an orchestrated behavior from MakerDAO to trick the Aave DAO participants.’ or ‘The situation by itself is so ridiculous and “cheap” that shows the appreciation (lack of) that MakerDAO has for Aave’ and finally ‘However, they decided to do some commonly called “cloud-chasing” … It is simply disgusting and to be ashamed of.’.
Phoenix Labs, creators of the original proposal, replied that some technicalities have changed since the proposal was approved and the Spark product rolled out. They emphasize that the original agreement is still in place, but that it will be settled off-chain between MakerDAO and Spark. Aave will receive its 10% split from everything that Spark will get from MakerDAO.
Monet-supply (Block-Analitica) chipped in by voicing his thoughts on the matter and proposing several options to de-escalate the situation/discussion. No conclusion or closed ends for now, we’re awaiting a reply from Phoenix Labs, probably with a new proposal around the fee split with Aave for using their product.
Courtesy of storgi
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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/.
Wed : Building Permits Prel.
Thurs : FOMC Minutes
BTC, ETH, and Macro
Both the CPI and SEC’s deadline extension for Ark’s spot ETF barely moved BTC prices as volatility levels continue to fall to all-time lows.
The Chinese economy is looking shakey as two major corporations; Country Garden Holdings and Zhongzhi Enterprise Group(AUM 138b) are having trouble repaying their bonds. Exports have also fell -14.5 YoY showing very poor domestic and international demand.
Contrastingly, the US Retail Sales come in at the highest levels since January.
With the rate decision over a month away, the FOMC meeting this week is also unlikely to cause any surprises to the market.
BTC implied volatility (IVs) are currently at historical all-time lows.
BTC IVs are 35.2 which implies the options markets expect a 1.84% daily price move.
Skews are currently negative which means the markets are heavily in favor of buying calls. This is likely due to the anticipation of the spot ETF passing.
ETH IVs at 31.8 imply the options markets expect a 1.66% daily price move.
Skews are currently neutral implying the market is equally bidding on calls and puts.
📈 HTF Price Action Scenarios
Another week of extremely low volatility, it’s getting boring out there. The daily demand zone is still holding, but no money has shown up on the long side just yet.
Re-accumulation playing out
Daily swing low liquidated and absorbed
Looking to follow new momentum to the upside
This low volatility environment is not optimal for trend-following systems, therefore I am sitting on my hands and waiting for some more directional clues. Once momentum to the upside shows up I’ll be looking to join that ride. Until then I’m just spectating.
Trade responsibly and I’ll see y’all next week!
Courtesy of Vlad - trend-based trader and MentFX student
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