Biden announced a $10k student loan forgiveness program for anyone earning under $125k a year. Some people are bullish about this in relation to Crypto (they'll be putting the cash saved into Crypto!!!)
I'm not as excited. The economic stimulus in 2020 was new capital injected into people's pockets. So yea, some people put their $600 payments towards Crypto. A $10k forgiveness on debt isn't the same thing.
Today We'll be Covering:
• The Chain Wars: The winners and losers of this month.
• SudoSwap: New innovations makes it a worthy challenger to OpenSea
• Other News: Bitboy drops his lawsuit, BendDAO liquidity crisis, and more
Let's dive in!
- Total Crypto Market Cap: $1.09T (-1.1%)
- BTC Price: $21,699.55 (-7.1%)
- ETH Price: $1,708.25 (-6.9%)
- TVL in DeFi: $62.53b
- Fear & Greed: 25 EXTREME FEAR (Last week was Fear)
"You make most of your money in a bear market, you just don’t realize it at the time." — Shelby Cullom Davis
⛓️ The DeFi Chain Wars
If you asked anyone earlier this year which chain would be #2, no one would've guessed it'd be Tron. The biggest catalyst was their USDD stable coin play came right before the collapse of Terra Luna.
Let's look at the top 10 month over month.
Ethereum scaling chains such as Polygon, Optimism, and Arbitrum are dominating. Optimism had a ridiculous +129% month over month due to ecosystem incentives. While some of it is because of ETH Merge hype, I'm seeing the latest DeFi innovatives on Arbitrum and Optimism.
BNB is resilient as always.
Alt L1's. AVAX took the largest blow by TVL. I'm surprised Solana has held up so well this month considering all the bad news lately. Cronos is down by 18%.
The Alt L1 play was a huge meta game in 2021. It's slowing down due to the rise of ETH L2s. We could see one final Alt L1 rotation play with Aptos / Sui. (The better technology, massive VC funding angle).
The EVM Compatible chains, such as AVAX and FTM, are the most vulnerable to losing more market share to L2's.
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SudoSwap: Can It Take the Throne From Opensea?
OpenSea is the King of NFT marketplaces. Other challengers have come such as LooksRare and MagicEden (Solana), but they’ve barely made a dent.
There’s a new kid on the block that could overthrow the king. That project?
SudoSwap. It’s not just “another” NFT marketplace. They’ve brought in some interesting innovations, and many believe it’s the spark that NFTs need for their next run-up.
I’m going to cover what it is and what makes it so promising.
What is SudoSwap?
SudoSwap is a decentralized and on-chain NFT marketplace that uses an automated market maker (AMM).
Previous NFT Market Places Kinda Suck
Trades on all previous NFT marketplaces go through a centralized off-chain orderbook. This works well for gas efficiency but comes with two key issues:
- A central point of failure - centralization + downtime.
- Poor liquidity - It’s hard to sell your Monkey Pics if you’re in a rush.
It was common for NFTs to sit for weeks before finally being sold (With Punks / Apes / Azuki’s being the exception).
The SudoSwap Solution
SudoSwap takes a different approach. Instead of an off-chain orderbook, SudoSwap uses an AMM and liquidity pools.
Think Uniswap V3 but for NFTs.
By using an AMM model and offering customizable liquidity pools for each NFT collection, SudoSwap gains several advantages over its orderbook-reliant competitors:
- Instant liquidity - Sell those Monkey Pics anytime you want. You don't have to wait for a buyer.
- Decentralized and on-chain - A true crypto-native NFT marketplace.
- Lower fees (0.5% vs 2.5% on OpenSea) - More money saved, more gains made.
- Easy Listing - Simultaneously list as many NFTs as you want.
- Yield farming potential - Why just hold an NFT when you can make money from it?
- DCA - Let's say you wanted to gradually buy NFTs.
Although SudoSwap has energized Crypto Twitter and has already done over $20 million in trading volume since its launch in July, there are reasons for potential apes to proceed with caution.
- NFTs are in a deep bear market. You don’t want to be holding an NFT just for it to plummet the next day.
- Sudo only has ~11,000 total users and ~1,200 daily users. This points to Sudo currently being a PvP battlefield rather than a PvE game where everyone eats.
Why Should You Care?
It’s not every day that a truly unique project hits the market. SudoSwap happens to be just that.
NFTs are already a huge market, having done almost $70b in total secondary sales volume. The true beauty of NFTs, however, is their future potential.
No crypto vertical has the widespread appeal that NFTs have. Would anybody be shocked to see NFTs do many multiples over the coming years? I know I wouldn’t be.
Whoever turns out to be the dominant marketplace stands to massively profit. SudoSwap’s AMM design solves these problems while also introducing the first NFT yield farming strategy.
Will SudoSwap dethrone OpenSea? It’s impossible to know.mBut its innovative design makes it a worthy challenger.
Here's a Dune Dashboard of SudoSwap
📰 The Fast Five
BitBoy Drops Lawsuit. Bitboy sued popular YouTuber, atozy, for defamation. (Basically, he made a video calling Bitboy a scammer). Atozy raised a defense funds from the community including $100,000 from Crypto OG Cobie. Bitboy drops the lawsuit.
A classic example of the Streisand effect. It's where trying to censor something ends up backfiring, because it brings even more publicity.
FTX’s revenue grew 1,000% in a year. Leaked documents showed that FTX hit $1 billion in revenue in 2021, up from $90m in 2020. The leaked documents also stated that FTX grew its net income to $388m, and claims that it has $2.5 billion in cash at the end of 2021.
CME Group plans to launch ETH options. The US-based derivatives market giant plans to launch Ethereum options on September 12. This is a few days before the scheduled Ethereum merge date. CME options enable institutional investors to speculate on the price of ETH with more tools and strategies.
Tether Swaps Accounting Firms. Tether issues USDT, the largest stablecoin in the world. The newly appointed accounting firm, BDO Italia, is the fifth largest accounting firm in the world. BDO Italia will verify USDT reserves and produce monthly attestation reports instead of quarterly.
Former WeWork CEO Plans a Digital Wallet. Adam Neumann, the former WeWork CEO, plans to launch a digital wallet. The wallet will be able to store crypto and be used for external purchases. The move came shortly after Neumann received $350m for his new real estate company, Flow; and his blockchain-based carbon marketplace, Flowcarbon.
💻 DeFi Bits
Tribe Dao Proposes $157M Redemptions. Tribe DAO is proposing to shut down operations of its protocol. It plans to distribute the remaining DAO-controlled assets to TRIBE holders and victims of the Fuse Rari $80m hack. The proposal cited a mixture of regulatory risks and the $80m exploit as the motivation behind this decision.
Hidden Hand Live on Optimism. Redacted Cartel, the governance-focused DAO, announced that Hidden Hand is live on Optimism. Hidden Hand is a marketplace for governance incentives. Protocols can utilize Hidden Hand to discover more efficient governance processes and to engage their voters, while users can earn extra yield on their governance tokens through bribes.
Gnosis Safe Aidropped SAFE Token. Gnosis Safe, a multi-sig wallet product that recently rebranded to Safe, has confirmed its airdrop for early users. There will be 50 million SAFE tokens airdropped. At least 400 SAFE will be distributed to 21,935 out of the 45,000 eligible addresses.
BendDAO Liquidity Crisis. NFT lending protocol BendDAO has passed emergency changes amid liquidations. The liquidation ratio will be changed from 90% to 85%, with a subsequent reduction by 5% every week until it hits 70% on September 20. This change allows people to bid for the liquidated NFTs at a much lower than 90% of the floor price.
Compound III to Launch. The DeFi OG and Ethereum-based lending protocol will soon launch its version III called Comet. Compound is going multi-chain. More governance vote need to pass, but Compound will soon start expanding to other EVM chains.