Sei v2, Restaking Yield Whales, Scroll Sessions, LTF TA Update & More

The Castle Chronicle: Volume 71

AuthorAuthorAuthorAuthor

CJ CJ, unex, 0x_Vlad & C-L.eth
May 29, 2024 • Est. Reading Time: 13 minutes

 👀 What’s to Come in Volume 71

🔑 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 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

  • Spot ETH ETFs approved, likely trading in July/August

  • Coinbase launching Gold & Oil futures

  • US House passes sweeping crypto FIT21 bill

  • Grayscale launches Trust for $STX & $NEAR

  • HK in talks to allow staking for ETH ETFs

  • Kabosu (face of DOGE meme) passes away rip

  • Mt.Gox BTC on the move

  • Healthcare company Semler Scientific starts to buy Bitcoin

Project Updates

Interesting Projects

  • Iron: On-chain bank

  • Emet: Data monetization in AI models

  • RaysLabs: Compliace focused blockchain

  • Ethly: Leverage farming on restaked assets

  • Anzen Finance: RWA-backed Stablecoin on Base

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

⛓ On-Chain Sleuthing

Liquid vault of ETHFI doing good

I recently found that a lot of whales are farming the liquid vault of Etherfi. The added yield is excellent, the product is safe (granted nothing is safe in crypto) & we can expect some more airdrops for their Season 2.

Arthur Hayes seems to be liking the product as he is staking over 1000 ETH in the vault (0.57% of total TVL).

Arthur Hayes Wallet [only visible for free subs]

Looking at the other top depositoorrs, we found another interesting known addy in the DeFi world.

Unknown DeFi Whale [only visible for free subs]

This wallet used to be the #1 depositor in the $GLP pool on GMX v1, but is now holding almost 8 figures in the eETH Liquid Valult. The 10th biggest depositor in the vault.

The address also holds a huge position in Pendle

& in Swell.

It shows that restaking is extremely lucrative for ETH whales. They are able to extract more yield from their ETH than they would get from simply staking on Lido. The unkown whale has opted to take on even more complex DeFi positions, such as Pendle, to even further stretch the yield on his ETH.

Interesting to note that this unkown whale used to be huge in Arbitrum DeFi back in 2022 and 2023, but now completely pivoted to farm points and restaking yield.

Research and analysis by Cl

🔥 Hot Narratives Airdrops

Blackwing Reflection

Another month. Another airdrop season.

I am big into airdrop farming. Months ago I gave you Blackwing. The TVL of that project barely grew and early farmers are picking the fruits. In my opinion it is still a overlooked farm and gives you exposure to both Blackwing and Initia: blackwing.fi/zcbvbd.

A little plug again, I think the opportunity is still decent, but the capital required has grown and to have decent returns you have to deposit a couple grand.

The Initia testnet also went live and I have to say that the team really constructed their campaign around that really well. A nice looking dashboard, a good XP system, and the farmers/bots there will really test their tech.

This, in turn, is good for Blackwing. As long as Initia succeeds, so will Blackwing. It is the first project to go live on Initia and naturally people want to have exposure to new shiny tech.

Scroll Session 0 & 1

Currently, I am feeling the same tingly vibes for Scroll as I had for Arbitrum. The chain is new and novel. It is not your typical Optimism stack chain, Orbit chain, or simple fork of existing networks.

The Scroll team is building something new and they have been shipping quite hard the last few weeks. They have cut the bridge fees from Ethereum to Scroll again and again.

Right now bridging (at 22 gwei) is $3.93. Compare it to a Uniswap swap which is $23 then you realize that this is a significant discount.

The fact that the team has focused on this shows their dedication to building a good, durable product. It also shows the competition they are facing and that they have to align all the incentives to bring people aboard.

So, as expected, Scroll too came with a points program called Scroll Sessions. I have mentioned this program before, but here are the important facts:

  • “Marks” aka points are rewarded for bridging in ETH, wstETH, and STONE.

  • Retroactive points were handed out for early bridgoors and based on gas fees spent.

The team soft-confirmed that Session 1 will be about TVL and likely early people will be rewarded retroactively again too.

I recommend getting funds on these two platforms: Cog Finance and Ambient Finance. Both have incredibly genuine builders in their teams.

Be wary around Cog. It is a lending platform and historically these platfroms carry the biggest smart contract risk due to manipulation and exploits. The platform is written in Vyper (remember Curve?).

Ambient is extremely novel tech and the entire DEX is written in one smart contract. Audits are in place, but you never know in crypto.

Be aware of smart contract risks, but these are the products I am personally depositing in. Both because of good teams, but also both do not have a token yet.

It is a nice 2-in-1 package deal.

Celestia Rollup?

Celestia. Hated or loved?

The price action has certainly not been favorable to those who staked. On Twitter, Celestia is often dunked on as ‘the trap for airdrop hunters’.

And to a degree that statement has been right. The only airdrop that was worth it was $DYM. There are still a ton of projects launching on Celestia and we only need one to turn the tides. But whether that will happen and if the staking criteria will be good has to be seen.

In the meantime, if you have some spare $TIA and want to put it to work. You can mint an NFT on a Rollup that is using TIA for gas. The bridge uses Hyperlane, which is also a nice interaction.

If you plan to mint the NFT I recommend bridging in about 0.51 TIA that will cover the mint price and gas fee costs.

Bridging out seems to be a bit more costly and complex than bridging in, so I only recommend doing this to get the NFT.

S/o CC2 for putting this on my radar:

Courtesy of unexployed

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

📈 HTF Price Action Scenarios

Gm frens!

Last week we saw a strong impulse within a HTF re-accumulation territory, which is worth following for me. However, the push was a bit too aggressive so I wanted to see the market go sideways for a bit or pull back before looking for new entries.

Well, the market is going sideways now and is riding the 10 EMA, so I could see it going higher from here. I am already taking LTF long trades, but I’m fully aware that this could pull back even deeper and re-accumulate before making a run on new highs.

  • HTF re-accumulation

  • Trendline broken

  • Big initial push

  • All MA’s reset and sloping upwards

  • Overextended

The ideal scenario would be some sideways chop and wait for the 50 & 200 EMA to catch up before further expansion. It’s all about finding the right balance between being too early and being too late. That being said, this is a very bullish market right now and it makes sense to look for longs!

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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