TradFi ETH Adoption, Delta-Neutral Airdrop Strat, $SHFL, $COW & More

The Castle Chronicle: Volume 57

AuthorAuthorAuthorAuthor

CJ CJ, unex, 0x_Vlad & C-L.eth
February 21, 2024

 šŸ‘€ Whatā€™s to Come in Volume 57

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

ā›“ On-Chain Sleuthing: feature along with Smart Money Moves from Cl

šŸ”„ Hot Narratives from unexployed

šŸ“ˆ Macro Outlook: Simplified Round-up and Implications from Hansolar

šŸ“‰ HTF Price Action Scenarios: from Vlad

āš”ļø A Call to Arms

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

šŸ”‘ Key News

Major Headlines

  • U.S. CPI: +3.1% YEAR-OVER-YEAR (EST. +2.9%)

    U.S. CORE CPI: +3.9% YEAR-OVER-YEAR (EST. +3.7%)

  • Franklin Templeton files for spot ETH ETF

  • Taurus Enlists Lido to Bring Liquid Ethereum Staking to Swiss Banks

  • Citi Explores Private Fund Tokenization

  • Genesis Cleared by Court to Sell GBTC Shares Worth $1.3 Billion

  • Coinbase Upgraded to Neutral Ahead of Earnings at JPMorgan while their earnings exceeded estimates

  • OpenAI introduces Sora (text-to-video model)

  • South Korea considering allowing spot BTC ETF

Project Updates

Interesting Projects

  • Humanity Protocol: Human-Centric Blockchain backed by Animoca and Polygon

  • Ao: Hyper parallel computer

  • Portikus: Paraswapā€™s intent-based product

  • Sentient: Decentralized AGI

  • Witness Chain: Raised $3.5M focusing on Web3 Ownership and Verifiability

  • DePHY: Infrastructure for building DePIN apps

  • cliquid: Customizable restaking protocol

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

ā›“ On-Chain Sleuthing

Crypto Condom Taking Profit on $AIOZ

We called out Condom in previous edition with regards to his acquisition of $AIOZ.

Well, we are here to inform you the women has taken profit on the token and cut his entire position around the 16th of February.

Condomā€™s Wallet [only visible for free subs]

GCR boolish on $COW

GCR (or Vivek, whatever you want to believe) opened a position on $COW around the start of the year.

The position is now up over 7x and worth a little over $80k. With the release of Uniswap V4, we could expect even more upside for this project.

GCR Wallet [only visible for free subs]

Research and analysis by Cl

šŸ”„ Hot Narratives

Airdrop Corner

Altlayer Claim for TIA Live

  • You can claim your ALT now if you had TIA staked: https://airdrop.altlayer.io/

  • Best to claim during the weekends when gas chills the f#$k outā€¦

Optimism Airdrop #4

  • Huge $OP airdrop to anyone who deployed NFTs on Optimism, Zora, Base, or Ethereum Mainnet.

  • Check eligibility here.

Linea Park Campaign

  • Linea continues to milk its users with a new campaign spanning 6 weeks.

  • Tasks involved can be tedious, but small ones offer easy LXP.

  • Great opportunity for those who do not have LXP exposure yet.

  • You can sign up here (reflink) or without here.

  • The easy tasks are:

  • Did you know Linea is a zkEVM rollup and currently is among the cheapest L2s on the market? Best not to fade this one.

Easy 3-in-1 Airdrop: Orderly x LogX x (HyperLiquidX/IntentX)

This strategy can be done with as little as $100 and will cost around $30-$40 depending on how hard you want to go.

  • Currently, Orderly and LogX are having a campaign on Galxe: https://galxe.com/orderlynetwork

  • Rewarding NFTs for turning volume (last NFT is for $50k volume)

  • We recommend going delta-neutral on two platforms:

    • Minimizes cost

    • Easy to reach the volume requirements

    • Earn the NFT from Orderly

    • Generate points for LogX and IntentX or HyperLiquidX

    • You will burn through fees though.

Preparation:
The main Orderly quest is on Optimism or Arbitrum. If you have stables there already you can proceed with depositing. If you have not, bridge some over using Orbiter or Polyhedra (both tokenless).

Deposit USDC on LogX in your Orderly account. Then deposit stables on either HyperLiquidX or IntentX (HyperLiquidX is quite diluted and only yields small amount of points).

Execution:
Onto generating volume. In this example we trade ETH/USD, but you can trade any asset as long as it is supported on both platforms.

Most of the times, the prices of the asset differentiate between both platforms. In essence, you want to long the lowest, and short the highest at the same time! Simply, quickly open a long and short on both platforms, and you are generating volume!

It is a rather simple strategy. Of course, you can also normally trade these, but this is for our fellow farmers with no trading edge.

Close the trades immediately or after a while to make it more sybil proof.

Happy farming!

Narratives

  • We expect AI to continue to outperform as tech improves (and so will price)

  • Be sure to scoop up some exposure at the inevitable bull market dip. Eventually, a good dip always presents itself.

  • Another upcoming narrative are the new breed of alt-L1s: parallelized L1s:

    • SEI, Monad, Aptos, Neutron, Neon, and Arweave.

  • These are all building high-performent L1s a la Solana back in the previous cycle.

  • We recommend scoping out potential leading memecoins on these chains as good exposure (only small amounts ofc).

  • Memecoins have proven to become very strong bets on emerging chains, but donā€™t ride them too long.

Courtesy of unexployed

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

šŸ“ˆ HTF Price Action Scenarios

Gm frens!

Last week price finally synced up across timeframes and started moving in our expected direction. The move has been quite strong and LTF seemed a bit overextended, which is why I wanted to see a new re-accumulation before jumping into new long positions. Price has broken into new highs and re-accumulated shortly after.

  • Expansion out of consolidation

  • Deep pullback into demand zone

  • Clear bullish continuation with multiple re-accumulations

While the market is very bullish right now, I would be cautious about taking new long trades here. There were multiple opportunities to get involved earlier. This is where we manage our early entries and take profits on the way up.

To jump onto new longs I would like to see a bigger re-accumulation first, as the R:R simply isnā€™t there for me right now.

There is such a thing as ā€œoverconfirmationā€ where everyone and their granny can clearly see that the market is bullish. Does that mean itā€™s going to continue in the same fashion? Rarely. Iā€™d much rather wait to see the setup Iā€™m used to where I know I have an edge. And so should you (NFA).

Trade responsibly and Iā€™ll see yā€™all next time!

Courtesy of Vlad - trend-based trader and MentFX student

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Thanks for reading, please give us a follow on Twitter at @Castle__Cap and visit our website to learn more about our services.

Virtually yours,

The Castle

šŸ”” p.s. You can join the Alpha Assembly Telegram channel to receive notifications of our posts and those of our partners!

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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