💣 The RWA Showdown

A weekly recap of the largest crypto events and narratives, with an extra dose of insight.

Here’s what we have for you:

• Avalanche wins and losses

• Isolated lending

• Ipor V2

• Raft airdrop

• sFRAX

GM frens. First of all, before we get started, if any of you have been affected by the ongoing conflict in the middle east, my condolences. I hope everyone is safe and sound and that peace is restored as soon as possible.

The spotlight is still on Avalanche. As the saying goes, you win some, you lose some. Stars Arena has recovered 90% of the stolen funds after offering a $257K bounty, but on the other hand, Platypus Finance, also on Avalanche suffered a $2M flashloan exploit.

mkUSD, Prisma Finance’s stablecoin, is going cross-chain. Prisma has teamed up with LayerZero to make mkUSD an omni-chain fungible token (OFT). That means that you can now bridge your mkUSD to any LayerZero supported chain, and hopefully, we see more DeFi protocols on other chains accept it as collateral so you can do fun loop trades.

By the time you read this newsletter, the Arbitrum STIP voting will have concluded. So far, it seems like only 29 protocols out of the 100+ will receive their requested amount. There are the usual Arbitrum heavyweights such as GMX, Dopex, and Camelot. But there are also some smaller protocols not native to Arbitrum such as Trader Joe, Premia, and Pendle. Unfortunately, it seems like there are many protocols that will not be receiving a grant and walking away empty handed. If you want a live view of which protocols will receive grants within the 50M ARB, here you go.

-RektRadar

Isolated lending, so hot

Lending protocols are all the rage now. In addition to Morpho Blue which was recently announced, Instadapp has also introduced a new lending protocol called Fluid.

Fluid combines Aave, Compound, Uniswap, Maker and Curve. Much like Instadapp’s other products which act as aggregators or a layer of abstraction, Fluid is much the same. Fluid’s liquidity layer is meant to help consolidate liquidity and ensure stable lending rates. Specifically, the protocol will feature Uniswap V3 style slot based liquidity for liquidations, MakerDAO’s vaults for asset security, Curve inspired smart collateral, and more.

On the other hand, you have Morpho Blue. Morpho Blue is a new lending protocol from Morpho which aims to enable the trustless and efficient lending and borrowing of assets. It works by enabling the creation of isolated lending markets, where lenders and borrowers can specify any loan asset, any collateral asset, a liquidation LTV, an oracle, and an interest rate model. This gives both parties completely flexibility and customisability over their lending and borrowing.

The lending space looks to be heating up, and I would pay close attention to which one of these lending protocols comes to define the category over the coming years. For example, a lending protocol that provides hyper-efficient stETH loop trades could easily stand to gain market share. 

IPOR v2 is live

• IPOR v2 has launched on Ethereum. In addition to user experience upgrades, the protocol has ventured into LSDs with a pwIPOR incentivised stETH pool.

• The protocol has an ongoing liquidity mining program, and has various swap durations for those that want to swap their variable yield for fixed yield. In addition, the protocol has built an improved risk engine.

Wave 1 of $RAFT

• We like airdrops, especially when it’s 1.5% of the RAFT supply. In total, that is 37.5M RAFT tokens, which will be split up in varying amounts between v1 users, v2 users, and LPs and RR holders on mainnet and base.

• Once you receive RAFT, you can stake it for veRAFT, and 10% of the total RAFT supply will be distributed to RAFT stakers over the next three years.

Timeswap pre-mine

• Timeswap is a oracleless lending/borrowing protocol on four different chains, including Arbitrum, Mantle, and Polygon. All the loans on Timeswap are non-liquidatable and fixed-term. Idk about you but non-liquidatable seems very appealing to me as someone who always gets liquidated.
  

• The token is not yet live, but it seems like it will be soon. A cryptic tweet announced that the pre-mine is here, with details likely being released in the next few days.

1. Blur Season 2 will go live on November 20. If you’re a NFT degen, be ready.

2. Alacrity, the liquidity layer for LSDs, will launch soon. The token is also live.

3. Scroll mainnet is live with $500K. Maybe there’s an airdrop down the road.

4. Diva, a new staking protocol, is giving out token incentives.

5. ParaFi Capital is twapping $RLB onchain. Do they know something we don’t?

sFRAX vs sDAI

sFRAX, which represents staked FRAX has recently launched. The token aims to match the interest on reserve balances of the US Federal Reserve. Currently, the estimated APY stands at 7.5%. The question is, how much market share can it take from sDAI, and what does it mean for the $FXS token.

For starters, one can see that the token has seen impressive growth, quickly garnering over $35M in TVL in 24 hours. We can see a few large spikes, although it has plateaued in the last 3 hours. I wouldn’t worry too much about it. It’s likely just most of the US being asleep or winding down their day by now.

Similarly, you can see that the number of sFRAX holders is going up over time, quickly reaching more than 150 holders in less than 24 hours.

What about MakerDAO?

If you squint your eyes and stare at the right side of the chart super closely, you can see that it’s beginning to go down. If it continues to go down even more while sFRAX TVL continues to rise, then you have your answer.

Long FXS, short MKR, could be a very interesting pair trade as the RWA narrative continues.

What is EEFI and AMPL, and why you should be bullish

$SUPER, multichain trading and tools. Sounds very useful.

Liquid Protocol V2 is live. It is a pioneering platform for liquidity providers.

Block Browser, the future of web browsers could be an interesting token to watch. We haven’t had any innovation in web browsers since google chrome 20 years ago anyway.

DeFiLlama’s custom google search to prevent scam ads from appearing seems pretty sweet and handy

Thorswap is back online. The token $THOR is up 17% already.

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