Daily Notes: 05-06-2022
Developments
S.E.C. Accuses Binance of Mishandling Funds and Lying to Regulators
https://www.nytimes.com/2023/06/05/business/sec-binance-charges.html
SEC alleges & mentions these assets are potential securities: SOL, ADA, MATIC, FIL, ATOM, SAND, ALGO, AXS, BNB & BUSD
Alleges of co-mingling of customer funds and Binance US funds
Damning statements from Binance employees
So far there’s been a 24 hr net outflow of > $750 mil from Binance international
BTC slid > 4% on the news, briefly wicking below May 2023 lows
Ethereum co-founder deposited 22,000 ETH ($40,354,380) to Kraken.
Jeffrey, one of seven of the Ethereum cofounders moved a large number of ETH to his Kraken account today (pre-Binance news), likely to sell. He still holds over 150,000 ETH and has been known for selling in bear markets, as shown below:
Optimism Bedrock Upgrade
Optimism chain will go down for 2-4 hours tomorrow as the Bedrock upgrade is put into place. A quick refresher on the upgrade:
Reduces L1 to L2 deposit times by over 4x
Slashes the cost of data submission to L1 by ~20%
Cuts difference with Geth down to a slim ~500 lines of code
Supports any number of alternative proof systems (including ZK)
Large veFXS unlock
The second largest holder of veFXS (7% of voting power) is set to unlock 6.6 million FXS ($44mil) in 3 days time. Unlock time: 2023/06/08 01:00.
fraximaxi.eth holds a substantial position in FXS and the @fraxfinance ecosystem, most of which coming from their vote escrowed FXS (veFXS) position, worth around $44 mil at current FXS prices.
The user last started locking their FXS in December of 2022 as seen on the chart above.
However, fraximaxi.eth has been a long term supporter of Frax and has continually relocked their FXS position, even after Frax moved to increase collateral ratio to 100%, by retaining protocol revenue and pausing FXS buybacks in [FIP - 188] - thus lowering veFXS yield.
Raft, a decentralized borrowing protocol with its stETH-backed stablecoin went live today, and has already amassed more than $5m TVL.
Gas Prices
Ethereum gas prices have drifted to 2 month lows as on-chain activity has decreased. The move is highly correlated with declining volumes in meme coin trading with the large spike in May being related to $Pepe.
Trending Assets
Above $100M MC by performance
Seeing some outperformance in Metaverse related coins - SAND, MANA, JASMY, ENJ. This move is likely related to Apple’s Worldwide Developers Conference (WWDC) today, where they released their new product related to VR/AR called Vision Pro.
dYdX one of the only alts up today likely due to the Binance v. SEC news creating a narrative for the decentralised perpetual platform, similar to post FTX where this sector rallied. We observed a couple large wicks as people positioned for this potential narrative.
Above $1B MC by performance
With the market drawing down off the Binance news, very few assets are positive on the day, as can be seen from the fact that 4 of the top 5 performers with marketcaps > $1bil are stablecoins.
Coingecko Trending Assets
Pepe
Sui
Bitcoin
Ripple
Ovr
Arbitrum
BNB
Trending Contracts
Bybit gas usage is up 8356%.
Bovado, a betting platform, is the top gas user.
Stablecoin Netflows
Stablecoin flows remain muted with a slight negative outflow of USD for the day. Latest data shows a -$29 million net outflow.
Governance Proposals
CIP-26: Solver Bond Funds Switch
Treasury Core team transfers USDC 500.000 from mainnet treasury safe to CoW DAO solver bond address. Equivalent 500,000 CUSD is swapped in CoW Swap by the CoW DAO solver bond with mainnet treasury safe as recipient address.
MIP15 - List rETH As Collateral Only On The AaveV3-ETH Optimizer
List rETH from Rocket Pool as a collateral only asset on the AaveV3-ETH Optimizer.
Articles
Cetus partners with KuCoin Labs to Support the Sui Ecosystem Expansion
KuCoin Labs and Cetus partner to explore high-potential developer teams and support the long-term growth of the Sui Ecosystem.
Optimism Bedrock Upgrade & Protocol Downtime
From June 6th at 10:00 UTC onwards, positions will be restricted to “close only” for 24 hours till June 7 at 10:00 UTC.
Throughout the upgrade duration, from 16:00 UTC to approximately 20:00 UTC on June 6th, trading and vault activity won’t be available.
New Protocols
Membrane Finance
Description: We build technologies that facilitate hybrid financial markets, by closing the gap between traditional financial markets and crypto ecosystems.
Twitter: https://twitter.com/membranefinance
Website: https://www.membrane.fi/
Credit Protocol
Description: Fixed Rate, Isolated & Oracle-Free Asset-Markets without Volatility-Induced Liquidations. Disrupt Paradigms in Borrowing and Beyond with Credit
Twitter: https://twitter.com/creditprotocol
Website: n/a
Asymetrix
Description: Asymetrix is the decentralized, non-custodial protocol for asymmetric yields distribution generated from staking.
Twitter: https://twitter.com/asymetrix_eth
Website: https://asymetrix.io/
Ethena Labs
Description: Enabling the Global Internet Bond. ETH staking derivative infrastructure with the initial product being a stablecoin, eUSD that is long stETH, short ETH perps and the stable earns the sum of funding rates + staking yield.
Twitter: https://twitter.com/ethena_labs
Website: https://www.ethena.fi/
Real-World Asset Exchange (RWAX)
Description: A different Decentralized Perpetual Exchange. Trade RWA indices, including Pokemon Cards, Wine, Luxury Watches, and many more with up to 50x leverage.
Twitter: https://twitter.com/The_RWAX
Website: https://therwax.com/
Vistara Labs
Description: n/a. Seems to be a rollups-as-a-service provider.
Twitter: https://twitter.com/vistaralabs
Website: n/a
