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Decentralized Capital Markets Research & Articles: www.shoal.gg Twitter: https://twitter.com/Shoalresearch TG link: https://t.me/shoalresearch Website: Shoalresearch.xyz
Three Sigmal: Decoding Points Programs -The New Economic Incentives in Crypto
The use of points has now expanded from L1 and L2 solutions to wallets, bridges, and more Degen DeFi projects.
> Points have been responsible for the new era of liquidity mining rewards
> This piece provides a deep dive into 70+ DeFi protocols and how they implement their incentive programs
Source: https://x.com/threesigmaxyz/status/1820800644665483283
How Much Should You Pay for Restaking Security?
This research suggest that incentivized restaking protocols can be secure with proper incentive management. The paper suggest:
> LRTs need to allocate intelligently for network-wide security.
> AVSs need to choose a minimum yield/rewards that avoid cascade risk.
https://arxiv.org/pdf/2408.00928
Source: https://x.com/tarunchitra/status/1820836484070687024?s=52&t=txFAbiSPTdLLDlAYj9X_AA
ASXN: The Yen Carry Trade & Its Consequences
The Yen carry trade is where investors borrow Japanese Yen at Japan's low-interest rates and convert it into other currencies to invest in higher-yielding assets abroad. The specifics are:
> 11/06/24 – BoJ buys $36.8bn of Yen on order to push USDJPY down from 161.75 → 157.30
> BoJ also raised its policy rate from 0% - 0.1% toward 0.25% and proposed quantitative tightening
> This piece discuss the Yen Carry Trade & Its consequences on crypto market
Source: https://x.com/asxn_r/status/1820877001445540151
Y2K Rebrands to Fractality: The New Gateway to Superior Yields
Fractality allows users to deposit assets into a lending vault and receive a liquid receipt token (the Ftoken), which will be composable within DeFi.
Source: https://x.com/fractality_fi/status/1820870885114572903
Bagel: RAG vs Finetuning
> Fine-tuning offers high performance and domain-specific optimization but requires significant resources and is limited to specific tasks.
> RAG allows quick deployment and versatility but involves complex integration and generally lower performance.
> Understanding their differences and use cases of RAG and fine-tuning is the key to success 👇
Source: https://x.com/bagel_network/status/1820827076515025330
Jito: Restaking on Solana - A New Chapter
Jito (Re)staking leverages existing network security to support new applications and services, and improving stakers' capital efficiency and returns.
> This piece covers the history of the restaking landscape & introduces Jito (Re)staking platform
Source: Tweet | www.jito.network/blog/restaking-on-solana-the-new-chapter/
August 5th~ Rollup
🐚 Research and Ideation 💡
- Eric Balchunas: Bitcoin ETFs Have Traded About $2.5b So Far
- Ryan Watkins: Dark Periods are the Best Time to Lock In for Fundamentally Driven Investor
- Conor Ryder: How USDe Handled the Last 24Hrs
- Hashed Emergent: Evolution of Perpetual DEXs: Niche Trading Venues to On-Chain Adoption Drivers
- Coin98 Analytics: Performance of Tokens Listed on Binance YTD
🐚 News 📕
- The S&P 500 Erases $2.1 TRILLION of Market Cap at the Open
🐚 Project Updates 🔔
- Binance Labs Unveil Second Batch of Projects For the Season 7 of the Incubation Program
- Aori is Now Live on Base
- Zircuit Launches Initial Mainnet Phase, Rolls Out ZRC Token Airdrop Claims
- Eigen Core Team Twitter Hacked
🐚 Raises 💰
- Zoth Extends Raise to $4M to Bring $100M $ZTLN Onchain
VC 101: Everything you wanted to know about VC
Source: https://docs.google.com/presentation/d/1OFnZnddfhfjjLSWco8u8dkuQ2AsHJbglSa4mApX7BxQ/mobilepresent?slide=id.p
Hashed Emergent: The Evolution of Perpetual DEXs: Niche Trading Venues to On-Chain Adoption Drivers
Perpetuals have found a PMF within the crypto ecosystem for speculation & hedging, with vol on DEXs rising from $1Bn in Jul'21 to $120Bn in Jul'24
> By providing platforms for building iOS-like integrated experiences, perpetual DEXs have the potential to usher in the next era of crypto adoption
Source: https://hashedem.substack.com/p/the-evolution-of-perpetual-dexs-niche
🚨Warning: Eigen Core Team Twitter Hacked
⚠️ DONT CLICK LINKS
Zircuit Launches Initial Mainnet Phase, Rolls Out ZRC Token Airdrop Claims
Source: https://www.theblock.co/post/309443/zircuit-mainnet-zrc-token-airdrop-claims
Eric Balchunas: Bitcoin ETFs Have Traded About $2.5b So Far
“Deep liquidity on bad days is part of what traders and institutions love about ETFs, so you also want to see volume too, good for the long term”
Source: https://x.com/EricBalchunas/status/1820472388372373563
The S&P 500 Erases $2.1 TRILLION of Market Cap at the Open
putting total market cap losses since July 16th at ~$5 TRILLION, i.e $357 billion PER TRADING DAY for the last 14 straight trading days
> The S&P 500 has erased 2 TIMES the value of Nvidia's, $NVDA, market cap in 14 days.
Source: https://x.com/kobeissiletter/status/1820456513908981934?s=52&t=txFAbiSPTdLLDlAYj9X_AA
Arthur Hayes: Seems a TradFi Giant Got Smoked and is Dumping all Crypto
“No idea if this is true, I won't name names”
Source: https://x.com/cryptohayes/status/1820288304384004542?s=52&t=txFAbiSPTdLLDlAYj9X_AA
What is the USD-YEN Carry Trade? Why an Unwind Matter? Why is MUFG Down 21% on Mkt-Open?
A carry trade is when you buy something with margin underpinned by the same asset class.
> Yen's relatively muted volatility & near-negative int rate makes it primary "borrow" candidate to buy USD
> BOJ have hiked interest rates finally (making Yen more expensive to borrow)
> The USD is committing to a rate cut in Sept (has created a bull steepener via 2Y-10Y)
> This compresses the carry trade from both directions and has the impact of unwinding these dollars from US equities
Source: https://x.com/lazyvillager1/status/1820259391163044282
Flashbots at EthCC 2024
Catch up on all the Flashbots stuff from ETHcc, including TEEs, and more
Source: https://collective.flashbots.net/t/flashbots-at-ethcc-2024/3647
Rollchains Introduces Upgrades As a Service
Upgrades as a Service by Rollchains is designed to remove a blocker from your roadmap, take the pain out of upgrading your Interchain stack, and speed up your dev velocity – all at a fraction of the time and cost it would take teams internally.
Source: https://x.com/rollchains/status/1820859530340643014
The Race to Dominate Stablecoins - by Christian Catalini and Jane Wu
Stablecoins have the potential to rewire the global financial system and expose banking and finance to new digital competition.
> Now, there is intensifying competition among stablecoin issuers, prominent digital wallet providers, and traditional banks, each racing to establish their platform as the dominant
Source: https://hbr.org/2024/08/the-race-to-dominate-stablecoins
How to Get Rid of MEV-Boost Relays: TEE-Boost
TEE-Boost is a change to MEV-Boost that lets proposers disintermediate the relay and fetch blocks directly from builders running in Trusted Execution Environments (TEEs).
> A plan to reduce, and eventually remove, the role of the relay in MEV-Boost.
https://collective.flashbots.net/t/tee-boost/3741
Source: https://x.com/SheaKetsdever/status/1820830305260880278
Coinbase Will Add Support for Gravity (G) on the Ethereum Network
Galxe(GAL) Has Migrated their Token to Gravity (G)
Source: https://x.com/coinbaseassets/status/1820859634179010989?s=52&t=txFAbiSPTdLLDlAYj9X_AA
Returns Off Yesterday's Bottom
Source: https://x.com/ceterispar1bus/status/1820837865875497188
Performance of Tokens Listed on Binance YTD
Since the beginning of 2024, 30 tokens has been listed on Binance
Source: https://x.com/Coin98Analytics/status/1820763411422032194
Zoth Extends Raise to $4M to Bring $100 Million RWA-Backed Tokenized Liquid Notes ($ZTLN) Onchain
Zoth aims to become a chain-agnostic crypto yield layer, providing institutional & accredited investors with access to secure financial products onchain.
Source: https://thedefiant.io/news/press-releases/zoth-extends-raise-to-4m-to-bring-100-million-rwa-backed-tokenized-liquid-notes-ztln-onchain
Conor Ryder: How USDe Handled the Last 24Hrs
“USDe and DeFi stay strong, tradfi crumbles”
> USDe handled almost $100m of redemptions while peg remained within ~30bps throughout
> stETH depegged ~2%
Source: https://x.com/conorryder/status/1820529438771359832?s=52&t=txFAbiSPTdLLDlAYj9X_AA
Ryan Watkins: Dark Periods are the Best Time to Lock In for Fundamentally Driven Investor
Megatrends still emerging underneath the surface, rewarding who can sift through the noise greatly
Source: https://x.com/RyanWatkins_/status/1820478546088800269
Aori is Now Live on Base
Bringing their latest Swap UI designed to make onchain swapping a more integrated & hassle-free experience
Source: https://x.com/aori_io/status/1820464056202940718?s=52&t=txFAbiSPTdLLDlAYj9X_AA
Binance Labs Unveil Second Batch of Projects For the Season 7 of the Incubation Program
The projects are:
> Aarc
> FluxLayer
> TonTon Games
> The Binance Labs Incubation program is tailored to founders starting early-stage Web3 projects.
Source: https://x.com/binancelabs/status/1820474883417280713?s=52&t=txFAbiSPTdLLDlAYj9X_AA
August 4th~ Rollup
🐚 Research and Ideation 💡
- Joe McCann] Unveiling Macro Mysteries: Why the Fed's Policy is a Gamble
- Lazyvillager: What is the USD-YEN Carry Trade? Why an Unwind Matter?
- Arthur Hayes: Seems a TradFi Giant Got Smoked and is Dumping all Crypto
🐚 News 📕
- Japanese Stocks Have Plunged As traders brace for global volatility
Japanese Stocks Have Plunged in a Sell-Off that Echoed Across Asian Markets on Monday
traders brace for global volatility from weak US economic data
Source: https://x.com/FT/status/1820288769095799092
[Joe McCann] Unveiling Macro Mysteries: Why the Fed's Policy is a Gamble
“If the Fed allows “tight monetary policy” to continue (their words), they run the risk of severe employment issues and the hollowing out of small businesses”
“Once that is broken, history says it is tough to reverse. They run the risk of a hard landing”
Source: https://x.com/joemccann/status/1820182372190707858?s=52&t=txFAbiSPTdLLDlAYj9X_AA