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Voyager Digital customers might get partially bailed out and an industry leader proposes introducing blacklists to DeFi protocols.

Today, we take a look into Hadeswap, a Solana-based NFT marketplace, and our Research team provides some insights on the company that sold “sneakers for the metaverse.”

This is the Delphi Daily. Let’s dive in.

🚨 In Case You Missed It

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Norwegian Court rules that Craig Wright lied and cheated in his attempt to prove that he is Satoshi Nakamoto.
Sam Bankman-Fried draws fire after proposing regulations that introduce blacklists to DeFi protocols.
Fidelity‘s crypto platform will allow institutional clients to trade ETH.

📊 Is Hadeswap the Sudoswap of Solana?

Hadeswap is an AMM-based NFT marketplace that launched on Sept. 26 on Solana. Since then, the platform has experienced outsized growth to become the second-largest NFT marketplace on Solana.
Over the last seven days, Magic Eden has done a total volume of 657K SOL. Hadeswap ranks a distant second with total volume of 56K SOL.
Hadeswap has built features comparable to Ethereum-based Sudoswap. The protocol allows users to create liquidity pools by depositing NFTs and SOL. This allows holders to access instant liquidity by selling their NFTs to the pool.
Liquidity providers can earn fees by depositing NFTs and SOL. However, they also risk ending up with low-value NFTs and zero SOL in the pool.
Users can mitigate some of the risks by only providing liquidity to more proven NFT collections. Despite this, users must exercise caution since this remains a fairly new innovation in the NFT marketplace segment.

⚡ Why the Future of Fashion Is in the Metaverse

Nike’s foray into NFTs is entirely through RTFKT, which runs independently but leverages Nike’s brand labeling. It is an intelligent strategy.
The separation allows the parent company to focus on its core business while capturing this new trend’s upside. RTFKT is akin to Nike’s lab for experiments in NFTs & the metaverse.
RTFKT was founded in Jan. 2020 by Benoit Pagotto, Chris Le, and Steven Valisev. The startup creates limited-edition sneakers and digital artifacts using game engines and augmented reality.
Arguably, RTFKT is the most successful company in fashion NFTs. The company rose in cultural prominence quickly, widely gaining prominence as the company that sold “sneakers for the metaverse.”
Before its acquisition in December, RTFKT raised $8M in seed funding, led by a16z in May 2021. The same month as the acquisition, RTFKT’s flagship Clone X NFT collection was released to the public — a 3D digital PFP-avatar.
While the news of Nike’s acquisition was not publicly known before the mint, it was likely already committed to by then. After the mint, Clone X holders received several free airdrops, including Space Pods and MNLTH.

Although Nike — RTFKT did not generate any primary sales revenue through these airdrops, they were able to rake in a massive amount of royalties from secondary sales, particularly with MNLTH.
MNLTH began as a mysterious box with a Nike logo on its front. Over several months, the Clone X community worked together to solve quests, eventually leading to its reveal: a set of customizable digital sneakers (CRYPTOKICKS).
The deliberately-planned gradual reveal generated a lot of hype about its contents and plenty of secondary sales. At a 10% creator fee, Nike — RTFKT fetched over $30M in royalties from MNLTH alone!
Royalties can be significant during times of high interest and speculation, as we have seen earlier this year, but fall steeply when attention wanes.
We are in a period of low attention (bear market), and brands should not rely on royalties as their main source of revenue.
For more on the future of finance, Delphi members can read our Delphi Pro report here.

🐣 Notable Tweets

Azuki’s Physical Backed Token

Introducing the Physical Backed Token (PBT): an open source token standard tying a physical item to a digital token on the Ethereum blockchain.

– Azuki (@AzukiOfficial) Oct 17, 2022

NFT Finance Landscape

What’s going on with NFT Finance?

🔸 100s of millions of loans have been taken out this year
🔸 New utility being brought to NFTs
🔸 Leading protocol has just over $100M TVL

Why this sector has 50 – 100X growth potential 👇

– Teng ⛩ (@0xPrismatic) Oct 19, 2022