The convergence of TradFi and DeFi is imminent.

TradFi envisions the "On-chain Fund Platform" in DeFi.

This is why large Asian banks are backing @SolvProtocol and pushing the fund protocols towards mass adoption.

A 🧵 on Solv's GMX V2 funds + yield opportunities + AIRDROP.

What is Solv Protocol?

Solv is your on-chain fund platform.

As an individual, you can access and earn yields on diverse assets, managed by experienced fund managers and professionals.

It currently focuses on LP-centric funds, which I will showcase GMX V2 as an example.

Imo, the investors and backers of this project differentiate apart from other vault protocols in DeFi.

It is backed by Nomura Securities, the Japanese banking giant, and others like @BinanceLabs and UOB bank,

It will help penetrate their TradFi partners to raise money via Solv.

In Solv Funds, you can explore yield opportunities generated from LP across leading DeFi protocols.

There are LP funds on perps like GMX and KTX, and RWA that is backed by U.S. Treasuries.

I'll use the most interesting fund on Solv: GMX V2 Delta Neutral Pool, managed by Blockin, as an example.

Liquidity in this pool will be used for:

• Provide LP on GMX V2
• Hedge on Binance, creating delta neutral position.

The V2 funds are now running with over $24M AUM (included the pool for  institutions), providing over 25% of the total liquidity for GMX V2.

The 30d APY ranges between 7.44% to 27.07%, which is impressive for stablecoins with no active management required.

https://twitter.com/SolvProtocol/status/1716719042638348623?s=20

I asked the team how can the pool APY sometimes be higher than its underlying protocol, GMX.

It happens from the funding rate as it contributes

Moreover, the APY on this pool tends to go up as GMX receives Arbitrum STIP.

And it's clear that they will do $SOLV airdrop for the open-end fund buyers/holders.

Yield = Trading fees + Funding rates + $ARB STIP + $SOLV airdrop.

In the end, I'd consider APY in range of 15-30%.

On the risk management side, Solv deploys a 24/7 monitoring system.

Multiple alert triggers are set at varying risk levels. In extreme case, automatic safeguards kick in to pause trading and liquidate positions, minimizing losses.

And they use "Multi-party Controlled Vault" to ensure there is no point of failure due to single entity e.g. fund manager, Solv, investors.

Multi-party Controlled Vault consists of:

• Gnosis SAFE (multi-sig authentication)
• Cobo Argus (hierarchical permissions)
• Solv Safeguard (Any transactions involving misappropriation of funds are excluded）

Solv will also continue collaborating with more professional asset management teams e.g. @Blockin_ai.

Blockin Capital is a leading crypto trading house that specializes in developing quantitative DeFi-based strategies, including LM, market making, arbitraging

Upcoming Pool: KTX Finance

Solv is about to release open-end funds built on KTX, the biggest Perp DEX on Mantle.

They are really committed to becoming a liquidity layer for Perp Dexs. So there will be an opportunity to access a good yield source on Mantle too.

https://twitter.com/SolvProtocol/status/1720269888839971131?s=20

I think if you want to use vault protocols and earn passive yield. Solv is one of the promising protocols to use and earn enhanced yields with airdrop potential.

This thread was made in collaboration with Solv. Please always DYOR before using any protocol.

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Everyone needs privacy.

PrivacyFi will eventually become a narrative in the bull run.

However, not many people truly understand how privacy protocols work.

🧵 on PrivacyFi protocol + what kind of project you should be looking out for.

➤ Current Problem:

DeFi requires privacy infrastructure to achieve mass adoption.

In TradFi, institutions don't need to disclose every transaction to everyone because some may contain sensitive information and require confidentiality.

The current state of privacy in DeFi is continuously growing to meet the demands of big players.

Since privacy should be a core component of enhancing the on-chain experience, let's first see how it works.

➤ Privacy System

There are several techs in the privacy area. Different projects use different tech to showcase their offerings.

I'll use RAILGUN @RAILGUN_Project as an example.

It utilizes the Zero-Knowledge (ZK) approach to create a privacy infrastructure protocol.

RAILGUN allows users and protocols to make transactions "shielded" (anonymous), which means:

• Users get to use current DeFi protocols privately
• Maintain the level of security on original chains (e.g. Ethereum)

➤ Use Case of Privacy Protocol

Privacy tech is intangible. Users can't really experience it.

This is why RAILGUN has a tool (SDK) for integration with other applications.

And Railway is the private DeFi wallet that utilizes ZK privacy on RAILGUN.

➤ Private DeFi Wallet

The main offering of Railway is anonymous transactions in your account.

You can swap, yield farm, and provide liquidity privately, directly in this wallet.

Beefy is already integrated to this wallet so you can yield farm privately.

In the future, users will be able to do more activities: private collateral based interactions e.g., trade derivatives, borrow, lend, mint stablecoins.

It will utilize RAILGUN v3 which helps reduces gas significantly

➤ How Private Wallet Works

You can think that it has two sub-accounts: Public and Private.

In Public mode, it acts as a regular ERC20 wallet which you can deposit tokens to this address (0x.....).

If you prefer to go private, you can simply click "Shield".

Your public tokens will be sent to Private Mode (or "shielded"), where nobody can see your transaction whether it is swap, yield farm, or provide liquidity.

➤ Privacy vs Compliance

It is the biggest concern if being private can get you in trouble.

Now several privacy protocols started to think of new solutions.

For RAILGUN, there is "Private Proofs of Innocence" (Private POI)

Private POI is a tool for RAILGUN users to maintain their privacy whilst proving that they have not interacted with malicious actors.

It helps users generate proofs that their funds are not part of a known list of malicious actors.

➤ Closing Thoughts

There are a lot of components in one privacy protocol.

I recommend you try it yourself, to understand and evaluate if there will be more users.

In my opinion, there will be constantly increasing demand in this area and it will be interesting to see.

This thread is used for educational purpose only and was made in collaboration with RAILGUN. NFA and DYOR.

I will keep everyone updated on developments in PrivacyFi.

Privacy and DeFi: Exploring PrivacyFi Protocols

The STIP voting results have determined the future of protocols on @arbitrum.

In case you haven't realized, some protocols may be hit hard and may not survive in the long term.

Check out my theses and see what you need to do with your bags 👇🏻

I am writing this thread in order for everyone to:

• See the near future
• Manage their bags properly
• Allocate assets to incentivized protocols effectively

Without further ado, let's get right into it.

I will stick to the main points here:

The 29 projects are going to receive $ARB incentives.

Regardless of the ongoing discussion regarding extending incentives to other protocols, these 29 projects will dominate TVL growth in the next three months.

My core concept is that:

🌊 All users and liquidity will flow towards protocols with higher APRs and rewards.

🔴 The rest, who don't get the incentives, will need to struggle hard to keep up with the boosted yields on these 29 projects.

Now let's see the endgames of each one.

📈 Perps sector:

@GMX_IO and @muxprotocol will be the winners.

GMX and MUX have plans to reduce trading fees and incentivize trading competition.

Moreover, liquidity providers (e.g. GLP, GM V2, MUXLP) will be heavily incentivized.

Imagine liquidity providers getting 30-40% APR on ETH/USD GM LP on GMX.

How will Gains and HMX (which don't get the incentives) compete to attract more liquidity in this scenario?

I don't think such a case exists.

If you're holding $GNS or $HMX, you better monitor how they will fare against others who have the higher cards.

Adding some $esXXX won't help in this case, as getting $ARB is so much better.

And if you have idle liquidity, it's time to consider getting back to farming yield.

🪙 DEXs Sector:

Current and new liquidity will flock into @TraderJoe_xyz, @CamelotDEX, and @Balancer.

While @Uniswap will lose its #1 DEX positioning on Arbitrum.

It's pretty clear that the winners in this sector will have the upper hand as they can provide higher APR to the LPers (market makers).

And with its novel functionality, it is possible to outperform yields on Uniswap.

E.g., Liquidity Book by @TraderJoe_xyz > Uniswap V3

💊 Yield Aggregator Sector:

@JonesDAO_io, @stellaxyz_, and @UmamiDao will be the winners.

Other protocols in this sector will have a hard time competing with the winners.

The only reason users use these protocols is the APR.

You should prepare to provide more liquidity to the winners in the near future:

➤ Jones will promote more use cases for jUSDC and jGLP.
➤ Stella will add incentives to all leverage LP and LST strategies.
➤ Umami will increase yield in the vault.

If you read until this part, I believe you understand the whole concept of this thread.

The next key action is trying to think of other sectors.

There are more that I haven't mentioned, like yield trading e.g. @pendle_fi that is already a clear winner and will get even better.

The Future of Protocols on Arbitrum

"Oracle-less protocols will disrupt the significance of Oracle price feeds."

This statement is WRONG.

Instead, they will coexist and increase utilities in DeFi.

Let's explore 5 new oracle-less protocols from @BinanceResearch and my thoughts on this primitive 🧵.

This thread will cover:

1️⃣ A Quick Refresher on Oracle
2️⃣ Why Oracle-less
3️⃣ Oracle-less Lending
4️⃣ Oracle-less Derivatives
5️⃣ Oracle-less NFT
6️⃣ Scoring + My thoughts on how to play this primitive

1️⃣ A Quick Refresher on Oracle

99% of dApps work like "when 🤖 occurs, 👻 is triggered."

🤖 could be any action, e.g. ETH price hits xxx, LTV goes below xxx.

Every action needs data as a reference.

And oracles connect on- and off-chain worlds and provide references.

2️⃣ Why Oracle-less?

However, a lot of hacks and exploits occurred due to oracle price manipulation.

More people started to realize that oracles can become vulnerable to attacks.

By implementing an oracle-less design, it will permanently eliminate this attack vector.

I will divide oracle-less protocols into 3 categories:

• Oracle-less Lending
• Oracle-less Derivatives
• Oracle-less NFT App

3️⃣ Oracle-less Lending

It falls into 2 categories:

3.1/ Peer-to-Pool Model
3.2/ Peer-to-Peer Model

3.1/ Peer-to-Pool Model

@ajnafi has been live for two months now.

It doesn't rely on external price feeds to function, which eliminates the attack vector on the protocol.

How liquidation works:

▶︎ Lenders: Set an active range for their liquidity.

▶︎ Borrowers: Informed by the input from borrowers.

▶︎ Liquidators: Trigger liquidation by posting a 'bond'; essentially, it's a bet on the debt. They could be in gain or loss.

3.2/ Peer-to-Peer Model

@pwndao is a peer-to-peer lending protocol designed to support multiple types of assets.

It's basically a marketplace to loan out assets based on an agreement.

Lenders and borrowers need to understand the terms and risks before starting the loan.

Example:

This guy tries to offer Lil Pudge to get the 2,000 RLB and will return the amount back in 60 days.

Upon maturity, borrowers can either repay the loan with interest or, in the case of a default, lenders can claim the pledged collateral.

4️⃣ Oracle-less Derivatives

I've been mentioning a lot of protocols in LPDFi territory.

I recommend everyone checking out this thread. It will help you onboard how derivative protocols will no longer need oracle in the future.

http://twitter.com/0xTindorr/status/1705265145415598278

5️⃣ Oracle-less NFT App.

Blend by @blur_io and @NFTfi are the leaders in this area.

They are a marketplace connecting borrowers and lenders, enabling loan activities and increasing NFTs' use cases.

User flow:

▶︎ Lenders pick the collection on which they prefer their ETH to be utilized.
▶︎ Set an amount of ETH and APY they prefer.
▶︎ Borrowers match the deal.
▶︎ Both of them have the right to close the credit terms (using the Dutch auction on the lending side).

6️⃣ Scoring + My thoughts on how to play this primitive

🥉 Oracle-less Lending: 4/10

They will likely struggle to gain traction due to its misalignment with user behavior, as users prefer the ability to put liquidity to work immediately.

🥇Oracle-less Derivatives: 8/10

I believe that the risk profile is well-suited for all stakeholders. Nevertheless, we should not overlook our industry's previous failure to drive widespread adoption of structured products.

Protocols must prioritize achieving Product-Market Fit

🥈Oracle-less NFT Lending: 6/10

It's evident how people went wild for Blend. Now, we must wait and witness the resurgence of the NFT narrative.

I firmly believe that if it rebounds, there will be a surge in the number of individuals using digital collectibles as collateral.

The main concept of this thread is inspired by @BinanceResearch. I highly recommend everyone to give it a read, as it will provide new perspectives on protocols.

https://twitter.com/BinanceResearch/status/1707318049148170443

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The Future of Oracle-less Protocols in DeFi

The growth of LSDfi is becoming exponential.

@LybraFinanceLSD V2 is bringing LST-backed stablecoins to new heights, increasing the potential of reaching $1 billion in TVL.

Here are the key features of V2 (ELI5 version) + my strategies for capitalizing on this upgrade.

🧵

In this thread, I'll cover:

0/ Core Concept of Lybra
1/ Past: Performance in V1
2/ Present: New Features in V2
3/ Future: My Thoughts + Strategies

I've simplified everything for you.

With V2 just around the corner (Aug 31st), now is the perfect time to get rewarded. 🔥

0/ Core Concept of Lybra

eUSD is an interest-bearing, over-collateralized stablecoin.

In V1, users can use [stETH] as collateral to mint [eUSD] and then [hold] to [receive passive yield].

I put words in [ ] so you'll see the difference between V1 vs V2.

1/ Past: Performance in V1

It has been performing very well. There is $370m worth of staked ETH used for minting eUSD and earning a passive yield of ~8% APY.

The use case is perfectly suited for a savings account, holding for real yield.

But there is a limitation of $eUSD being "rebasing" tokens.

Holders of rebasing tokens experience a change in balance as the token supply changes in accordance with staking rewards.

This is why we always see dApps use wstETH, the wrapped v. of stETH (a rebasing token).

Lybra has a clear goal: to increase the use case of $eUSD and expand the ecosystem surrounding it.

To achieve this, they aim to enhance compatibility with other DeFi protocols, making it easier to integrate and utilize $eUSD while ensuring it remains pegged at $1 USD.

2/ Present: New Features in V2

In this upgrade, Lybra introduces the following new feature:

Users now have the ability to use [stETH and other LSTs] as collateral to mint [eUSD/peUSD]. They can then [lend/borrow/swap/hold] across protocols on different chains.

2.1 peUSD: Introducing a New Omnichain Version of eUSD

Originally born and residing in ETH L1, eUSD is taking a step further with the introduction of peUSD (pegged eUSD) on V2.

This new omnichain version allows users to access peUSD across chains, starting with Arbitrum.

The TLDR on eUSD and peUSD are:

• In V1: eUSD, backed by rebasing LST (stETH), remains still interest bearing
• In V2: peUSD, backed by interest bearing LSTs (rETH and all others) unlocks omnichain functionality
• eUSD <> peUSD in 1:1 ratio and earn interest bearing

This is huge, given the new compatibility for all DeFi protocols and the increasing use cases of $peUSD.

Because everything will eventually become omni-chain, and it's very important to have native bridge across chains to do txn, e.g., swap, trade, lend, borrow.

2.2 Expanding Collateral Options

It's acknowledged that stETH has been dominant in LST area, creating a sense of centralization.

In V2, Lybra introduced additional LSTs as collateral options for minting peUSD, such as Rocket Pool’s $rETH, Binance’s $WBETH, Swell’s $swETH

2.3 Lybra Wars

The presence of more LST providers brings increased competition and incentives for esLBR voters.

The bribing system is an infrastructure that introduces a new range of possibilities for users.

As an example, Swell aims to enhance the utility of $swETH and encourage users to utilize its LST for minting peUSD.

To achieve this, the Swell team can offer incentives to esLBR holders, encouraging them to vote and direct esLBR emission towards the swETH pool.

2.4 Enhancing $LBR Tokenomics

New mechanisms will support the value of LBR tokens by decreasing sell pressure and increasing demand:

• 90-day vesting period for esLBR
• dLP (Dynamic Liquidity Provisioning) - Radiant model
• Penalty for those who exit vesting early.

2.5 Peg Stability Mechanism

To ensure that $peUSD is pegged at $1, there will be a new eUSD/3CRV pool, the introduction of a Premium Suppression Mechanism, and a dedicated Stability Fund.

dLP will also play an important role in enabling the peg mechanism.

3/ Future: My Thoughts + Strategies

I believe that in the first month of V2 launch, the team will provide large incentives to bootstrap liquidity and push growth for $peUSD.

The home base will be @arbitrum. I'll provide liquidity to enjoy rewards with low txn fees.

Being the first mover in launching multiple LST-backed stablecoins has a lot of advantages.

Because when users use LSTs to mint the stablecoin and enjoy yield,

that's stickiness and a barrier to entry for other competitors.

$LBR price:

Despite the unfavorable market conditions, LBR has been trading sideways and holding its ground.

Personally, I wouldn't fade LBR. I would set my stop loss slightly below the yellow box, I believe R:R is worth it.

Remember, NFA. Always DYOR.

If you've been following me, you should know that I always research CDP stablecoins.

And I believe the first to launch will have a nice head start. Thanks to the Lybra team for helping me put up this content.

The Exponential Growth of LSDfi: Lybra Finance V2 and Strategies for Success

App-chain is underrated and almost never gets into narrative.

Because it's designed for the long term to serve a specific niche.

But in the long run, it will outpace competitors due to its robust infrastructure.

A 🧵 on the advantages of app-chain + how to look for good ones👀

In this thread, I'll cover:

1/ Why app-chain?
2/ Thoughts from VCs
3/ Protocol Design/Features
4/ Stakeholders
5/ Roadmap
6/ Tindorr's Take (How to identify a good one)

1/ Why app-chain?

Many people have misconceptions about the purpose of a blockchain.

General-purpose blockchains like Ethereum are not designed to cater specifically to one niche, such as high-performance derivatives trading.

That's why more builders are turning to app chains

If you want a trading app that is fully decentralized and permissionless while maintaining a CEX experience, meaning:

• No single entity has the power to stop the protocol.
• Permissionless market
• Same trading experience as CEXs.

It requires its own network architecture.

Vega Protocol has this goal.

@vegaprotocol is an L1 app-chain specifically built and optimized for trading high-performance derivatives.

With gasless trading, a purpose-built infrastructure, and a commitment to decentralization, Vega is building towards permissionless DeFi.

Example of Competitive Advantages for Derivatives Trading App-Chain:

• No Gas Fee on chain
• Network Speed: Instant Finality (Low Latency)
• Fair Transaction Ordering: Using Proof of Stake
• Governance: Permissionless Market
• Capital Efficiency

And in case you're skeptical about the difference between DEX on other L2s. Again, they prioritize full decentralization so the concept of multisig bridge controlled by validators is also important.

I recommend reading this thread:
https://twitter.com/ChrisBlec/status/1694359391183482956

2/ Takes/Thoughts from VC

Vega's Total Funding Amount: $10M (2 rounds, led by @Arrington_Cap and @PanteraCapital)

They have been supporting this journey since 2019.

As I've conducted research, App-chain has been an investment thesis that VCs and thought leaders always monitor.

Vega's VCs like Pantera, Greenfield, Arrington realized the pain points happening in the market and shared thoughts on how Vega will tackle all of them.

They consider Vega as "Decentralized Derivatives Layer"

Check the blog for full details:

https://twitter.com/PanteraCapital/status/1684979861075726336

3/ App Design

From the user interface you can see that Vega's DEX is:

• Full On-Chain Order Book
• No gas fee when placing order
• Professional UI/UX, giving same feeling as TradFi instrument
• Also running on IPFS (decentralised storage network to prevent censorship)

The current type of first market is cash-settled futures, which were proposed and approved through Vega's permissionless market creation.

As Vega just started ramping up in Alpha Mainnet, there will be more complex derivatives products coming for traders, e.g. Perps, SLAs.

4/ Stakeholders

By taking part in Vega Protocol’s ecosystem in early stage, early stakeholders can contribute and front run the rewards from others.

There are 3 ways:

• Price Taking
• Price Making
• Liquidity Providing

I recommend everyone take a look and participate.

5/ Roadmap

They are on full speed, delivering more features to compete with competitors.

Soon, there will be on-chain gamified referral program and Metamask snap integration.

After that:

Sept-23 - Stop orders, iceberg orders, successor markets, Vega wallet - browser extension

Oct-23 - Perps + Ethereum Oracles + potential Chainlink integration

The team is fully transparent about their current activities.

You can also check their backlog and track progress on their GitHub page:

https://github.com/orgs/vegaprotocol/projects/114/views/4

6/ Tindorr's Take (How to find a good one)

It's evident that the concept of app-chain has already been embraced by VCs and certain communities, like Cosmos.

And you shouldn't overlook this. More developers on this path are taking the challenging route to ensure viability.

Checklist to validate a good app-chain:

• See if a project team has connection to its users
• Have clear image of final product
• Need to constantly make progress
• Have incentives for all stakeholders on this chain

For Vega, they just need to focus on execution to succeed.

The Vega team has been instrumental in helping me understand the vision of one app-chain and supporting this thread.

I encourage everyone to check and ask the team about progress, and development. You can learn more about the differences between operating app-chain vs reg dApps.

The Underrated Potential of App-Chain

My secret strategy on Mantle ecosystem goes beyond just trading.

There are several opportunities to maximize yields and benefit from upcoming projects.

And the best part is that we're still EARLY.

Here are key profitable actions on @0xMantle in 3 phases for everyone.

🧵

In this thread, I'll cover:

• Mantle's Unique Positioning Apart from Other L2s
• Phase 1: Gaining Momentum (Now)
• Phase 2: Protocol Synergy
• Phase 3: Snowball Effect

In each phase, I've inserted key actions you can monitor and follow easily.

Mantle's Unique Positioning Apart from Other L2s

Firstly, it has the largest DAO treasury with over $4 Billion funds.

Within their treasury, they have a large amount of $MNT, the native token of Mantle, to bootstrap liquidity and on-chain activities.

As a result, the path they are taking differs from other chains such as zkSync, Arbitrum, and Base, as they used an airdrop farming strategy.

Moreover, Mantle already has $MNT to entice new users with additional incentives.

The important part is how they build ecosystem.

The success of building an ecosystem heavily relies on Mantle team.

This team is comprised of crypto natives and smart degens.

For instance, in the DeFi core team, they have @Defi_Maestro, who is renowned for his ability to spot trendy narratives.

See his example post:

https://twitter.com/Defi_Maestro/status/1690964626761248768

Phase 1: Gaining Momentum (Now)

To understand the momentum behind what they're cooking, we have to connect all the moving pieces ourselves.

Here's what I've found:
• Mantle to become LSD chain
• Partnership with innovative protocols
• Shitcoin for traders + DEXs

1.1 Mantle to Become the LSD Chain

The proposal to stake 200k ETH (~$360M USD) on LSD protocols has just passed. This means that they will use ETH from the Mantle treasury to partner with Lido and others in order to create native staked ETH on Mantle.

1.2 Partnership with innovative protocols:

They're providing grants to invite top-tier protocols to the Mantle Ecosystem.

For example, Pendle will be joining the tribe. And I believe you can expect the incentivized PT-stETH pool that provides a relatively higher yield. 🔥

http://twitter.com/pendle_fi/status/1683824208126832640

To see all the protocols in Mantle's ecosystem, you can visit their page.

There are several potential ones that catch my attention, such as Timeswap, Symbiosis, and Stella.

1.3 Shitcoin for traders + DEXs

Mantle team needs a go-to DEXs for degens to trade. Now there are potential ones: @Agnidex @FusionX_Finance @izumi_Finance.

While some of these DEXs may not have their native tokens yet, it is anticipated that they'll be launching soon.

Shitcoins also play an important role in attracting degens to Mantle.

$MINU has been a prime example, skyrocketing 30x and allowing many people to profit.

I anticipate more opportunities like this in the future. However, it's crucial to be mindful of the risks

Key Actions in Phase 1:

→ Monitor new token launches to assess risks. I recommend following @Defi_Maestro, as he suggested resuming trading posts.

→ Consider using existing DEXs to participate in current incentive programs and evaluate the upside of joining their IDO.

Phase 2: Protocol Synergy and Innovations

During this phase, we'll have the opportunity to utilize innovative protocols that yield higher returns.

For instance, the leveraged strategy for earning multiplied yield on Pendle's PT-stETH pool, which is boosted by $MNT🔥.

In this phase, you'll have the opportunity to explore various combinations using protocols.

Furthermore, as time goes on, the true winner will eventually emerge and shine through the competition.

Participating in the IDO of these winners is definitely worth it.

Key Actions in Phase 2:

→ Find the boosted yield on trustworthy protocols. I believe the rate will be massive.

→ Monitor the TVL growth of the Mantle ecosystem and identify potential winners. Then, consider joining an IDO if you think it's worth a try.

Phase 3: Snowball Effect

This phase will happen if they achieve the two previous phases.

The ecosystem will eventually become the narrative rotator. You can apply what happened on Arbitrum during Q4 2022 to Q2 2023.

Narratives will come and go. Just ride the trends.

Key Actions in Phase 3

→ Follow the group of CT chads. Basically, do what you are doing right now: spot the new trends, get in early, and take profit.

These are my unfiltered thoughts on how I'd play on Mantle. NFA.

If you've been following me, you must know that I've been closely monitoring Mantle.

I've previously created threads on Mantle voluntarily. And this time, the team asked and supported me to write on them.

Maximizing Yields with Mantle: Profitable Actions in 3 Phases

The ve(3,3) model has undergone huge development during this bear market.

One example is Chronos, which recently released its V2.

Will @ChronosFi_ V2 make a comeback and establish itself as the leading DEX on Arbitrum?

Time to deep dive and decide 🧵:

I've been monitoring the progress of Chronos since the beginning.

Regardless of $CHR price, the team is the real builder, they keep improving the product and functionality.

I still think that there is a chance to make a comeback, considering the strong updates showcased in V2.

✅ Liquidity Providing

Chronos V2 will implement 'Concentrated Liquidity Manager (CLM) by @dyson_money.

It means this CLM will auto optimize the liquidity to be more productive and boost capital efficiency to generate more fees for all stakeholders.

Currently, the concentrated liquidity (CL) pools have attracted more than $1M TVL in 3 days 🔥

And the APRs on the CL pools are really appealing, e.g., 90.88% on WETH/USDT.

I think the APRs are one of the best among the other protocols on Arbitrum.

LPers can deposit the liquidity and Chronos will route it to Dyson vault, to automatically manage price ranges depending on the vault strategy parameters.

User experience won't change. It will act as a tool to help increase capital efficiency.

Here are some key advantages from Chronos V2 x Dyson CLM:

• Hands-off approach, automated by Dyson CL
• Minimize realized IL
• Generate higher trading fees
• Fully on-chain position management
• Low slippage rebalancing
• Lowest management fees in DeFi

And I think this combination has the greatest potential to make the positive flywheel running again: Swap Fees and Auto Bribes.

Swap fees can be given to auto-bribe on each epoch. This mechanism means that a portion of the swap fees is automatically used to incentivize users.

✅ Maturity Boost on LP

With Chronos, LPs who place liquidity for longer periods can receive higher APY.

This means LPers will enjoy even higher APY on LP positions after 6 weeks (previously maxed at week 6th in V1).

In total, its V2 features a maximum 3x boost over 12 weeks.

This feature aims to achieve 'sticky liquidity' and make sustainable TVL on Chronos.

The boosted LP positions can be traded on marketplace, called 'maNFT' (maturity-adjusted NFT).

Speaking of V2 maNFT, it will also be possible to split, merge, and increase positions across any maturity periods.

This helps new joiners to get boosted yield by buying LP positions directly from the market place and also can combine with new liquidity (weight-averaged).

✅ Traders

Chronos has launched new features for traders:

• Limit orders: Ensure traders get to buy/sell at one specific price
• TWAP orders: Set trade interval, trade sizes and max duration for your trade

Also, the new UI looks clean and easy to make transaction.

✅ veCHR Stakers

On Chronos, veCHR stakers vote to direct CHR emissions to preferred pools then get the bribes and fees on that the pools as an incentive.

In V2, Voter rewards (bribes + fees) will be immediately claimable upon epoch flip.

It is crucial to monitor key metrics to see the results of this upgrade: the emission of each epoch, token price, and upcoming project partners.

For full details, I recommend checking https://dune.com/0xkhmer/chronos.

This thread was made in collaboration with Chronos team and is for educational purpose only.

Remember there's always smart contract risk involved. Please do risk assessment and DYOR before taking action.

ChronosFi V2: A Comeback on Arbitrum?

Prisma claims to be "The End Game for LSTs".

At first, I thought it's overstated.

However, after conducting research on its functionality and competitors, I realized I was wrong.

Here's why I agree with them and everything you need to know about @PrismaFi
🧵

This thread will cover:

✅ Prisma's functionality
✅ Competitor and differentiation
✅ Opinion
✅ Actions you can do

This is NOT sponsored post. I came across it and found it promising.

✅ Prisma's functionality

Prisma allows users to mint $acUSD, a stablecoin fully collateralized by liquid staking tokens (LSTs).

Its code will be based on @LiquityProtocol hence it's immutable.

The key functionalities are:

• Multi-collateral stablecoins: Onboarding 5 different LSTs: $stETH $cbETH $rETH $frxETH $bETH

• Voting and bribing system: Stake $PRISMA to get vePRISMA and voting rights to direct emissions to the preferred LST collateral for minting

• LST wars: There must be a war where LST providers incentivize voters and Convex-like protocols will eventually occur.

This team is backed by legends e.g. Curve and Convex, hence, this war will be full of experts enhancing efficiency to the next level.

✅ Competitor and differentiation

Most of competitors has their own stablecoins:

@gravitaprotocol has $GRAI
@LybraFlnanceLSD has $eUSD
@raft_fi has $R

It's easy for one protocol to have its own stablecoin. The question is how to grind in order to become the top of mind.

The differentiation is the size of the flywheel.

The number of stakeholders in this game should be great enough for ecosystem.

And the incentive alignment is required to grow together and make one stablecoin to be the go-to decentralized stablecoin.

On Prisma, the stakeholders are LST providers, LST holders, and vePRISMA holders. All of them have skin in the game to make this successful.

2.1 LST providers: The privilege being collateral is not limited to stETH. The smaller LST providers get to become the collateral and increase liquidity size.

It's crucial to have deep liquidity as it's key component to integrate and expand usage of LSTs to a broader degree.

LSTs will have more functionality to increase the number of LST holders on that protocol.

2.2 LST holders

As Prisma enable more LSTs to become collateral, those LST holders can access Prisma's stablecoin, acUSD.

This neutralize the capital efficiency across LSTs, regardless of the market share that one LST has (e.g. stETH vs cbETH)

If you think about the market size, currently most of protocols are putting all focus on stETH, which is the right move but only in the short term.

Making smaller LSTs involve in this game is the way to play healthy competition, hence more stakeholders in this game.

2.3 vePRISMA holders

The other important differentiation is the governance system and stakeholders in this game.

They can control several aspects and parameters of the protocol:
• The stability pool
• Protocol fees
• Direct emissions to any LP tokens.

✅ Opinion

If you follow this LSD/LST narrative closely, you'll see the growth in terms of the functionality.

And I believe Prisma model will level up this game and encourage healthy competition among LST providers.

✅ Actions you can do

With enough attention, robust execution and experienced team, it could be the next decentralized stablecoin with actual adoption.

Keep an eye on the launch. I believe they'll reveal more details on its launch and its tokenomics.

We're still early.

The above is only TLDR and my opinion. You can read the full version here.

https://twitter.com/PrismaFi/status/1667170029090095104

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Prisma: The End Game for LSTs

The "DeFi Suite" protocol will be the first to get new liquidity from newbies in the next cycle.

They will feel most comfortable using them because of user-friendly interface.

Here is why I believe @Instadapp is on the right track and has the potential to become a leader.
🧵🥑

We've all heard of "Instadapp" by now (it's currently ranked 9th on Defillama with $2 billion TVL).

However, we sometimes forget about their product offerings. The main issue is that there are multiple services offered under the "DeFi Suite" umbrella, which can be confusing.

This is the reason I crafted this thread based on my UX on Instadapp ecosystem:

1. Definition of "DeFi Suite"
2. The end-game wallet: "Avocado"
3. One-click strategies protocol "Instadapp Lite"
4. Bluechip protocols aggregator "Instadapp Pro"
5. Tokenomics
6. Actions

1. Definition of "DeFi Suite"

Instadapp is the premier middleware platform for DeFi.

It's the go-to place to use its wallet, blue
chip DeFi protocols, and customized + structured strategies.

You can have them all within one ecosystem

Let's start in that order.

2. The end-game wallet: "Avocado 🥑"

Avocado wallet is one of the most user-friendly + non-custodial wallets in this space.

Key features:

• No chain switch required
• Pay gas in $USDC for all chains
• Account management

2.1 No chain switch required

This is called "Network Abstraction".

When you connect Avocado wallet with protocols like GMX (Arbitrum), Synthetix (Op), you can transact as you wish without switching between networks.

Avocado acts as an aggregator of all chains.

From the wallet UI, you can easily connect with multiple protocols via WalletConnect.

Trust me it's easier than you think.

After connected, you can interact on protocols without the need of moving across chains anymore.

2.1 Pay gas in $USDC for all chains

This is called "Gas Abstraction".

Imagine USDC is a native gas on Avocado. No need of $ETH, $MATIC, or $BNB required.

Top up USDC as gas, and transact anywhere.

2.3 Account management

It utilizes "Account Abstraction" to open up a wide range of use cases such as authority roles, recovery mechanisms, interoperability.

They will release more updates soon.

3. One-click strategies protocol "Instadapp Lite"

It's one of the best places to park your ETH on the mainnet.

It's leveraged ETH staking strategy for maximum APY (now at 5.47%)

Basically this vault utilizes the functionality of stETH and lending protocols e.g. AAVE, Morpho, to create a looping strategy

From ETH -> stETH -> Lend and borrow ETH -> and so on to enjoy yield generated from stETH.

5.44% APY on ETH in this market condition is decent enough.

4. Bluechip protocols aggregator "Instadapp Pro"

Instadapp enables users to generate a DeFi Smart Account (DSA).

This DSA aggregates all the bluechip protocols in that chains and provide frontend and features so you don't need to access multiple websites.

The bluechip protocols:

• MakerDAO
• Compound
• AAVE
• Uniswap
• Liquity
• Morpho

All access is still controlled by you. Moreover, Instadapp provides features such as debt refinancing across apps, debt protection automation, cross-chain transfers, manage authority, etc.

5. Tokenomics

$INST is a governance token of Instadapp.

With the launch of Avocado wallet, there'll be fees generated and transferred to DAO treasury

Here are insights I've found:

• INST holders recently voted to direct all revenue to the DAO treasury, and there have been talks of how to distribute and use this revenue.
• The market cap/TVL ratio is so low compared to others (it's $2 billion TVL mate...)

• According to the product progress, I think they've been focusing on building first. Then, adding more utility to the token is scale the awareness and product growth since the fundamental is already strong.

Before we go to the last part: Actions. This is an educational content, not financial advice.

This thread is made in collaboration with Instadapp. However, I've tried Avocado wallet and Instadapp Pro and found them interesting before they approached for collaboration.

6. Actions

• Try Avocado wallet, and you'll see the potential of becoming your main wallet.
• Keep an eye on the progress of its token utility in the forum. If they keep up their good work until the next run. It could mean something for $INST now
• Try leveraged ETH strategy

🧵 Thread