Infinity RUNZ & #FastCrypto [01.02 — 01.06]
6 Jan 2023 Market Commentary
Crypto markets ending the first week on a strong(ish) tone (+3% YTD), or possible capitulation from the -64% drawdown in 2022. While both realized and implied crypto volatility continue contracting, one of the key lessons we learnt from 2022 is that periods of low volatility end just as we start getting comfortable (or complacent? Jury is out - hit us up in the comments).
Stronger CEX & DEX trading volumes (perhaps) overshadows the concentration of volumes reaching (what could become yet) another all-time high, with Arcane Research publishing that Binance accounts for 92% of BTC spot market volume, compared with 45% at the start of 2022. While this figure is attributable to recently defunct exchanges, this level of concentration hasn’t been seen since Mt. Gox’s heydays.
From the rates side, we’ve seen limited ‘action’ in the Crypto space, with the same old wide spreads offered by the incumbent lend/borrow protocols. The action is, unfortunately for us, in the real world where central banks have (for now) escaped the zero interest rate environment, with traditional fixed income presenting one the best relative value trades. If only TradFi yields could be represented on-chain…
Looking ahead to 2023, we’d recommend taking advantage of Bloomberg’s 2023 Outlook, which summarizes the view Wall Street experts hold on topics including Monetary Policy and Yields.
Hong Kong brokers line up for SFC approval ahead of new virtual asset trading legislation
Brokers and fund managers in HK have asked for advice on licensing requirements ahead of new legislation. Victory Securities and Interactive Brokers were the first two brokers in Hong Kong with SFC to trade digital assets for their professional clients. Currently, HK-based brokers do not need a specific license to service clients trading HK-listed exchange-traded fund futures based on BTC.
SushiSwap Axes Lending Protocol and Token Launchpad
The Kashi lending platform and MISO token launchpad will be axed. Sushi made the decision to deprecate Kashi (Sushi Lending) and Miso (Sushi Launchpad), Kashi for a number of reasons, had a number of design flaws, ran at a loss, and had a lack of resources to dedicate to it.
Lido overtakes MakerDAO and now has the highest TVL in DeFi
Lido’s liquid staking protocol now commands $5.9 billion in TVL, compared to MakerDAO’s $5.89 billion and AAVE’s $3.7 billion. Lido’s model allows users access to liquid Ether staking without committing to the traditional 32 ETH minimum. Meanwhile, the governing body of the Maker protocol MakerDAO saw its revenue decline to just over $4 million in Q3, a 86% plunge from the previous quarter, citing few liquidations and weak loan demand.
Gemini Co-Founder Accuses DCG’s Silbert of 'Bad Faith' Stalling in $900M Locked Funds Dispute
Winklevoss blasted Silbert in an open letter alleging Genesis Global Capital and, DCG, owe Gemini’s clients $900MM. The letter alleges Gemini has awaited word on a repayment agreement for six weeks to no avail. Winklevoss also accused Silbert of using $1.675B in money DCG "owes" using it for purposes that helped other DCG ventures instead of repaying creditors.
Celsius Network owns customers $4.2 billion crypto, Judge rules paving the way for stablecoin sale
Crypto Bank Juno Tells Customers to Self-Custody or Sell Amid Custodian Wyre's Turmoil
Juno's announcement comes as it works to migrate client funds to a new custodian as Wyre, prepares to wind down its operations in the coming weeks. Juno's team has already begun working with a new custodian, which it has not yet identified.
Indonesia plans to launch its own crypto exchange
The national crypto exchange should be set up by the time the Financial Services Authority (FSA) takes regulatory power over crypto. Crypto is currently banned as a payment method in the country, but it is legal to trade them.
DeFiLlama’s new DEX aggregator passes Metamask and Coinbase volume over past 24 hours
The DEX aggregator is still in beta but has shown promising signs since its launch, bouncing between the number one and number two spots in total volume. The aggregator launched without incentives including a liquidity mining program, doesn’t charge users fees, and it has integrations with the majority of EVM-compatible chains. The aggregator also allows users to transact privately by routing transactions through its own server, which doesn’t store IP data.
Dedaub finds critical vulnerability in Uniswap smart contract
Dedaub received a Uniswap "bug bounty" worth $40,000 after discovering a critical vulnerability in Uniswap’s Universal Router contract, a new technology and scripting language that allows users to swap multiple tokens for NFTs in one transaction. The vulnerability could have allowed someone to implement third-party code during a transfer and steal funds.
Genesis Cuts Staff by 30% as Financial Woes From FTX Fallout Persist
Genesis has made the decision to reduce headcount globally, these efforts will include “reducing costs and driving efficiencies in all business lines.”
Silvergate Stock Down 40% Following Diem Write-Off, Job Cuts
Silvergate Capital will cut 40% of its workforce and abandon some projects—including a blockchain-based payment solution based on Meta’s abortive Diem project. Silvergate deposits had dropped to just $3.8 billion in the final three months of last year, compared to almost $12 billion in the prior quarter.
Animoca Slashes Target For Metaverse Fund to $1 Billion: ‘It Could Be Less’
Animoca Brands will aim to raise $1 billion for its metaverse investing fund in the early part of this year, softening previous ambitions to raise as much as $2 billion. Yat Siu also said it was a question of “when,” not “if” the company would go public, and that its preferred location for listing could change. “We’re certainly liking Hong Kong a lot more as of late.”
Crypto exchange Gemini is over three months late in filing its UK accounts
Gemini's UK subsidiaries have missed the deadline to file their 2021 accounts by over three months. While failing to file a company's accounts on time is fairly common, it's considered a criminal offence under the Companies Act 2006.
Vauld rejects Nexo's 'final' acquisition proposal, questions company's solvency
"Overall, Nexo have failed to adequately respond to repeated requests for a comprehensive due diligence exercise including a solvency assessment of Nexo, to elaborate on what measures may be able to be agreed upon to provide Vauld's creditors with a greater level of assurance in the event of insolvency of Nexo," Vauld co-founder and CEO Darshan Bathija said.
Aptos-based multisig wallet Msafe raises $5 million led by Jump Crypto
The round for the multi-signature wallet protocol, featured Superscrypt, Circle Ventures, Coinbase Ventures and Shima Capital. Through MSafe, account holders can not only manage multi-signature accounts but also lending, yield farming and NFT transactions.
Evmos adds auto-conversion for swaps between Ethereum and Cosmos tokens
Automated conversions were added in the latest ver 10.0. When someone sends a token native to the Cosmos ecosystem to Evmos, it will be automatically converted to an Ethereum-compatible token so it can be used immediately on Evmos and sent to Ethereum-compatible blockchains. The aim is to make the experience of using the blockchain and moving between Cosmos and Ethereum more streamlined.
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