A+ title

Yeah I still really like IPOR. planning to cover it again when timing is right. The swaps are cool but I think fusion and some of these structured products will succeed first

Yeah absolutely. Defi resurgence murmurs are on the TL, people are bidding AAVE… last time we had a defi bull market, we had KOLs tweeting out asking if anyone knew of defi tokens under 30M mkt cap. Trump has a defi project… def agree tokens are down bad for a reason, but market is pretty complacent rn too. If bunni trashes LIT and starts over I bet it would be 60M+ easy

Update: Spools Announcement is linked here: https://x.com/YieldLayer/status/1836406107398455344

Not anything super groundbreaking right away, but looks like a good direction for them to head in. They are essentially rebranding as YieldLayer and making a composable fungible marketplace type this for yield with smart vaults and strategies. Looks similar to IPOR Fusion at first glance, but they haven't released much info. Minimal token price change so far.

not really sure about the value accrual stuff yet tbh. I have been really interested in Sui from a research perspective lately. I think they are doing all the right things and emphasizing cool areas others are behind on or ignoring.

On the token econ/unlocks/value accrual front, im still wrapping my head around it. This is the only reason i haven't built much of a position yet. Robbie's fat wallet thesis is pretty compelling and seems to agree with your thoughts here.

One thing i do feel fairly confident about is in the medium term the L1 is still going to benefit from real world traction of apps on its chain, and apps themselves will benefit, even without value accrual. Some of the most garbage stocks out there go up and never make any money or issue dividends (ABNB, stuff like that)

I basically think the meta is going to stay mostly the same for now, and ETH's downfall/sentiment change is an outlier and made up of several other factors. I think Sui should be able to cruise on vibes lol

really good post! zkEmail has a lot of elite mindshare and is flying under the radar. zklogin too. i think they are soon getting smooth and available enough to get traction and spark a narrative. (bullish sui)

based and milady pilled

Starknet blew the airdrop 100%. I think best course of action is to do a second one, issue an apology, admit the 1st airdrop logic was redacted, and move on.

Outside of the airdrop though, I don’t think the situation is all that bad. I also find the airdrop to be FAR less impactful than say, rumors of Eigenlayers shenanigans. (Dishonesty wrt points accrued is far worse than incompetence on what everyone accepts is a game anyway) bottom line imo is people forget. Most people have been upset about other airdrops and they move on.

As far as onboarding friction I agree, but it’s nothing different than solana and aptos/Sui. You have to download new wallets for those chains, people are just getting tired of it now. Once you’re onboarded, the UX is quite sleek and Argent is probably the best wallet I’ve used (I also like Backpack a lot).

Starknet is def an existential risk for Ekubo but we’re seeing a ton of that attitude baked into its val. There have been vaporware Bitcoin AMMs that trade at 150M

For interest rates, Infinity pools has 2 components: an impermanent loss factor that is priced similarly to black sholes for options, and a utilization factor. The utilization factor depends on where the user places the LP range (narrow range close to price = better for volume).
Infinity pools is/was highly confident in ability to get LP returns in the region of realized volatility, and depending on their LP placement and platform adoption, up to implied volatility.

It has been a while since this report and i think Infinity pools is finally gearing up to launch. ill check out what they have changed and post an update soon!

Liquity v2 groundbreaking earth shattering tech confirmed

just referring to the rigidness of providing liquidity on Univ3. the fee tiers, implementation of oracles, etc. Uniswap themselves referred to v3 as opinionated when discussing the benefits of hooks on v4

We covered Pendle in this IRD report https://members.delphidigital.io/reports/voltz-ipor-and-the-next-wave-of-interest-rate-derivatives#introduction 

and in the defi year ahead 2024 https://members.delphidigital.io/reports/the-year-ahead-for-defi-2024#theme-5--new-use-cases-spark-traction-for-interest-rate-derivatives-c226

These were a bit before the points farming and pendle activity really blew up, so maybe we will get something out on Pendle once more info about their v3 is available!

fixed, ty!

Hey Alex! Sorry didn’t see this at first. By idiosyncratic risk with Banana I’m merely pointing out that the yield is attached to the token and the risks associated with the token, unlike the other yield sources mentioned where you can capture the yield with little to no exposure to crypto assets

haha you think so? its certainly a possibility, but i think might still be viable in the short term. None of gitcoin passport stamps, except for maybe coinbase give insight on jurisdiction. And i don't see why zkSync or others would bend over backwards to alienate part of their user base

cheers!

Yeah, I've been playing with dither. its pretty cool, and even better now that its integrated with tg bots to let people buy seamlessly. They had the impressive backtest here https://x.com/Dither_Solana/status/1766909239329542416?s=20 but idk, a lot of the tokens it suggests are brand new, its quickly becoming crowded, i think theres potential there for sure but seems like it's still very early

the excessive demand for lending is/was likely due to the availability of the looping strategy. Theres ways to empiracally prove this, dune queries and some resources like defillama can show lending and borrowing non looped tvl. many expect ETH borrow rate to approach eth staking APY equilibrium. Until it is, theres potential for leverage looping w aave emode to pick up extra yield.

Not sure which borrow rate youre referencing, but there is generally just a lot of different yield opportunities for ETH rn that users may see as more lucrative

Thank you! hadn't heard of goodcryptox until your comment, but it looks interesting and i joined the waitlist. I have tried Dialect, mentioned above in the report, and it is cool, much better than using mobile browser but obviously not as smooth as the tg bot experience.
Def think there's an opening for non custodial solutions, it would make me much more of a power user of them for sure. I do wonder how much the broader market cares, as the non custodial and censorship resistance of DEXs has been a hard sell to most users over CEXs so far. So i think thats the key for these: they cant give back the UX improvements made by the custodied versions.

Yeah i do. I think their fee is extremely prohibitive on larger trades. in my own experience, ive used metamask swaps occasionally when swapping small amounts to a gas token or as part of a bigger task. But no rational user with a medium- large position is going to use MM swaps over a few extra clicks to get to cowswap.

at least w tg bots, you can open a position on desktop and close it on mobile, so theres more of a justification there. could be helpful in some situations