Decentralized Forex, Vesta Farms, Friktion Volts

Chart of The Day: Forex Coming Into Play?

• DFX Finance is an AMM designed for forex swaps between multiple fiat-backed stablecoins. They have recently launched dfxStablecoins, a fractional-algorithmic stablecoin similar to how FRAX works. These dfxStablecoins are made up of three non-USD stablecoins, XSGD, CADC, and EURS, creating a forex 3pool.
• DFX has seen its growth ramp up in 2022, especially in April and May, as yields on stablecoins became dry and capital-efficient money found its way to DFX. DFX has seen above-average yields for stablecoins, ranging from 14%-79% APR, paid out in DFX. However, do note that you take up forex risks of other currencies when LP-ing in these pools.
• Cumulative volume on DFX recently crossed $350M, dominated mostly by XSGD and EURS. XSGD seems to be the most popular as retail users can easily swap XSGD back to SGD.
• Decentralized forex is definitely an untapped sector in crypto as USD stablecoins dominate most exchanges. The forex market is the largest financial market in the world. It will be interesting to see how the crypto forex industry matures.

Layer 2 Airdrops, Liquid Staking & Stablecoin Pools

[Excerpt from a Delphi Insights Report]

• Optimism OP Drop #1 eligible users can now claim their airdrop. However, due to RPC issues, there may be a slight delay.
• Aura Finance has confirmed an airdrop in early June. Exact dates to be announced via. social media channels.
  • Airdrop community recipients include Balancer, Convex and Lobster DAO.
• StarkNet has increased its deposit cap limit. There is a 50 DAI deposit limit. Early bridgers and users may be eligible for a retroactive airdrop.
• Mars Protocol has taken a snapshot on May 7th and 28th, pre-depeg and post-depeg, respectively. Mars is looking to launch on its own Cosmos chain.
• Velodrome Finance has allocated 18% of its total supply to Optimism network users. Qualified addresses include repeat Optimism users.
• DeFiSaver has launched on Optimism and Arbitrum. With plans to release a token in the future, it may retroactively drop tokens to users.
• Blocklords have leaked in a recent podcast that whitelisted users will be eligible for ‘Farmer NFTs’.
• Dequest has released their Soulbound NFTs which you can mint here.

Vesta Finance

• Vesta Finance is a Layer 2-first lending protocol that allows users to obtain maximum liquidity against their collateral without paying interest. Vesta’s V1 is based on Liquity, a collateralized debt platform. Users can lock up collateral and issue Vesta’s stablecoin VST to their own Ethereum address, and subsequently transfer those tokens to any other Ethereum address. Learn more about it here.
• Yield Calculations are provided here. To access Vesta, you’ll need to configure your MetaMask to run Arbitrum One using this guide.
• Bridge: You can deposit and withdraw assets onto Arbitrum One using the Synapse Bridge.
• Emissions:
  • Total Supply: 100M VSTA
  • The Community Treasury (47% out of the 51% total supply) will be used to bolster growth, notably through yield farming programs

• Notable Unlocks:
  • 25% (25M VSTA) of the total supply is vested linearly over two years with a six-month cliff by Core Contributors
  • 14% (15M VSTA) of the total supply is vested linearly over two years with a six-month cliff by Partners and Angels
    • You can read more about this round here.
• Stability Pool: Vesta primarily uses the VST tokens in its Stability Pool to absorb under-collateralized debt, i.e. to repay the liquidated borrower’s liability. Any user may deposit VST tokens to the Stability Pool. This allows them to earn the collateral from the liquidated vault. When a liquidation occurs, the liquidated debt is canceled with the same amount of VST in the Pool (which is burned as a result), and the liquidated Ether is proportionally distributed to depositors.
• Stability Pool depositors can expect to earn net gains from liquidations, as in most cases, the value of the liquidated Ether will be greater than the value of the canceled debt (since a liquidated vault will likely have an Individual Collateral Ratio slightly below 110%).
• Stability Pool Rewards: Stability pool providers earn VSTA tokens continuously over time, in proportion to the size of their deposit. The issuance rate is determined by the core team on a bi-weekly basis to ensure that there is enough liquidity in the stability pool.
• Liquidity Mining: To allow the VST stablecoin to reach critical mass quickly, the core contributors are allocating a fair amount of VSTA rewards to the initial farming program across five pools: VSTA-ETH, a VST-FRAX Curve Factory pool, and stability pools for the three launch collateral types. Learn more about Vesta’s tokenomics here.
• For more, Delphi members can see the full Yield Insights here.

Friktion: Building DeFi portfolios to Perform Across Market Cycles

[Excerpt from a Delphi Podcast]

• In this episode, we sit down with Friktion Labs’ Co-founders, Uddhav Marwaha (CEO) and Alex Wlezien (CTO). Friktion is a full-stack portfolio and risk management platform for individuals, DAOs, and institutions built on Solana. We talk about portfolio construction strategies with Friktion’s Volts, DAO treasury management through Circuits, outlook on crypto derivatives, and much more. 
• Social links: 
  • Uddhav’s Twitter
  • Alex’s Twitter
  • Friktion Twitter
• Resources: 
  • Friktion Website
  • Friktion Docs 
  • Friktion’s Circuits
  • Friktion Forum
• More
  • 📺 Watch Video Interviews
  • 💬 Follow Delphi Podcast on Twitter
  • ✅ Follow Delphi Digital on Twitter
  • 🧠 Access Delphi’s Research
• For more, you can see our latest Delphi Media releases here.

Notable Tweets

Prepare for the Illuvium Land Sale

IlluviDEX is now live!

Formulate your strategy. Not long to go now 🚀

https://illuvidex.illuvium.io/land-sale

— Kieran.eth (@KieranWarwick) June 1, 2022

Embersword NFTs Migrating to IMX

🚀L2 migration season is coming 🚀

All
@PlayEmberSword
land/badge owners will be able to migrate to
@Immutable
X on June 8.

🏆20,000 $IMX Reward🏆

Get rewarded when you complete the migration successfully. First-come first-serve basis.

Learn more👇

— Immutable | $IMX ⓧ (@Immutable) May 31, 2022

What Happened to OPtimism?

Wow, what a day.

OP Drop #1 had a turbulent launch which we finally stabilized after more than five hours of non-stop work.

We’ll be publishing a full, detailed retrospective on the lessons learned next week. Let’s quickly talk about what happened.

— Optimism (✨🔴_🔴✨) (@optimismPBC) June 1, 2022