Decentralized Stablecoins Take Off, Investing in Web3 with Tangent

🚨 In Case You Missed It

US CPI increased by 8.5% in July versus last year, lower than the expected rise of 8.7% as well as lower than previous month’s rise of 9.1%.
Curve Finance reported and fixed a name server exploit which resulted in the loss of $612k worth of assets.
Coinbase reported Q2 earnings with revenue at $808 million and net loss at $1.1 billion. Revenue declined 64% versus last year as cryptocurrency prices fell.
Hotbit Exchange suspended trading, deposits and withdrawals as senior managers were subpoenaed for allegedly violating criminal laws.

📊 Decentralized Stablecoins Are So Hot Right Now

Prices of governance tokens issued by decentralized stablecoin projects have spiked up with tokens like FLX, LQTY and SPELL rising between 21-40% since last week.
This market reaction was in response to Circle blocking over 75k USDC tokens by blacklisting the 44 Tornado Cash addresses that have been sanctioned by the US Treasury Department.
When an address is blacklisted by Circle, it can no longer receive USDC, while any USDC controlled by the address cannot be transferred on-chain. Holders of centralized stablecoins like USDC are prone to such censorship risk.
However, MKR and FXS did not reflect the change in market sentiment and stayed relatively flat. This may be because a large portion of the collateral backing DAI and FRAX stablecoins consists of USDC tokens.
On the other hand, the collateral backing RAI and LUSD stablecoins is entirely ETH, while that for MIM is yield-generating tokens like deposit receipts from Yearn or Convex.
For more on stablecoins, Delphi members can read our Delphi Pro report here.

⚡ Tangent: Investing in Web3 Founders as an Angel Collective w/ Jason Choi

Jason Choi is the Co-founder of Tangent, a collective of successful founders and experienced operators in crypto, investing in Web3 founders. We discuss the premise for an angel collective over other structures, sourcing and filtering deals, potentially scaling Tangent’s structure, and much more.
Show Notes
- (00:00:00) – Introduction
- (00:01:23) – Jason’s experience at Spartan Group
- (00:07:27) – What is Tangent?
- (00:13:20) – Landing the perfect deal
- (00:16:52) – Sourcing and filtering deals
- (00:22:38) – Scaling Tangent
- (00:24:24) – Adding value to founders / Profit-taking
- (00:29:41) – Thoughts on investment DAOs
- (00:42:05) – Investing in the application layer
- (00:46:30) – Why start Tangent vs. being an angel investor?
- (00:48:00) – Closing thoughts
Social links
- Jason’s Twitter
- Tangent Twitter
Resources
For more, you can see our latest Delphi Podcast releases here.

🐣 Notable Tweets

Reasons to be Bullish on Stablecoins

Thread: 10 Reasons Stablecoins Will Eventually Hit A $10T Market Cap

🧵

So… I am wildly bullish on stablecoins… and think they will grow massively in scope the next 5-10 years…

Here’s the economic/societal reasons + use cases behind my thesis:

1/x

— rektdiomedes (@rektdiomedes) Aug 9, 2022

Protocols with Real Revenue and Yield

There’s a hot new narrative brewing in DeFi.

It’s called “Real Yield”, where protocols pay out yield to users based on revenue generation.

🧵: My TOP 10 picks to capitalise on this growing sector, and how they could become the pillars of the next cycle. 👇

— Miles Deutscher (@milesdeutscher) Aug 9, 2022

SBF on Coinbase Q2 Earnings

1) Some thoughts on Coinbase’s 2022Q2 earnings!

https://s27.q4cdn.com/397450999/files/doc_financials/2022/q2/Q2-2022-Shareholder-Letter.pdf

previous:

— SBF (@SBF_FTX) Aug 10, 2022

Get access to four research reports each week with key market coverage.