NFTs Bleed, USDD Tries for a Gauge, Sovereign Communities With a Hacktivist

Chart of The Day: NFT Collections Bleed

The largest NFT collections by market capitalization are bleeding alongside the rest of the crypto market, with well-established collections tumbling over 20% in ETH terms and even more in USD terms.
In particular, the Azuki collection experienced significant trading activity today after its founder revealed that he was involved in 3 unsuccessful projects in the past year. Trading volume on the collection is up over 1700% today, with over 11.4k ETH traded.
Azuki’s founder, who goes by the pseudonym “ZAGABOND” on Twitter, admitted that he was previously involved with 3 projects: Cryptophunks, Tendies, and Cryptozunks, which their founding teams have since abandoned.
Members of the community interpreted the news negatively, with some notable members classifying those ventures as a rug. Holders panic-sold their Azukis, sending the price floor to 15E, a 65% decrease of the Azuki floor price from a high of 43E last month.

Difficult Choices for Tribe DAO and USDD Tries for a Gauge

[Excerpt from a Delphi Insights Report]

Curve is voting on three proposals that will change the landscape of stablecoins.
- 1Bps: Curve is voting to reduce the fee of their 3pool to 1bps. The 3pool consists of DAI/USDC/USDT and is a critical player in maintaining liquidity between these keystone stables.
- The 4Pool: This proposal asks that Curve DAO add a gauge for the 4pool. The 4pool contains USDC/USDT/UST/FRAX and is the culmination of an alliance between Frax Finance and Terra. There is speculation that as Terra and Frax control large allocations of CVX this pool may become the dominant pool on Curve. Additionally, given the price action this morning, this pool is of increased importance for UST and FRAX.
- The New Guy: Related to the 4pool, this vote proposes to add a gauge to the USDD/3CRV pool. USDD is an algo-stable launched by Tron, which functions much like Luna and UST. As pointed out by 0xGecko, Terra and Frax control a large portion of CVX and may be blocking this vote to some degree. As such, this vote has a large bloc voting no and may struggle to pass.
PieDAO is voting on a proposal to absorb BasketDAO. This was initially proposed by the PieDAO team in December 2021 following a BasketDAO exploit in October. PieDAO is offering to convert BDI tokens to DOUGH through Uma protocol KPI options. The payout will max out at $91k. For its part, PieDAO will get the keys to the $1.7m of BasketDAOs TVL. Although not a significant acquisition, we find this compelling because DAO-to-DAO mergers are uncharted territory in the space. And given bearish price action, we expect things like this to become more common as distressed DAOs and teams search for solutions.
[REDACTED] has adopted a new token supply schedule and has decided to end their rebasing mechanic. The new supply schedule caps BTRFLY to 5m tokens, up from a predicted ~1.125m at the launch of v2. [REDACTED] is back-weighting investor tokens that vest from v1, meaning their new vesting cliff starts 6-months after the launch of v2.
Tokemak just finished their C.o.R.E. 3 vote to determine the next batch of protocols to receive liquidity reactors. When liquidity competitions occur, the vote is always tight, with different protocols dropping in and out of the lead, and this vote was no different. TOKE holders chose LUNA, DODO, BIT, BTRFLY, and SILO from 52 applicants to receive a reactor. Due to the influence of projects like the Hidden Hand and Alchemix’s unknown ally, the results of this vote swung wildly. We can expect the next vote to be even more complex.
Tribe DAO has voted to use their treasury veBAL to support Aura Finance on a Balancer snapshot. Aura Finance applied for the Balancer Whitelist, which would allow them to vote lock veBAL. To ensure the success of their proposal, Aura also asked Tribe DAO to use their veBAL to support their vote. This vote isn’t the first time that Tribe DAO has engaged in Metagovernance, notably doing it through Index Coop in the past. As the Curve Wars wind down, with UST and Frax potentially dominating, we could see the growth of a new front on Balancer. As Tribe DAO has already conducted metagovernance in the past, they could become a force to reckon with there.
For more, Delphi members can see the full Delphi Insights Report here.

DISRUPTORS: Modular Blockchains for Sovereign Communities With Hacktivist Mustafa Al-Bassam

[Excerpt from The Delphi Podcast]

Most blockchains, as we know them, are monolithic in nature. Nodes take care of three core functions: consensus, data availability, and settlement and execution. In contrast, modular blockchains are fundamentally different – each layer of the stack specializes in one or many functions. Soon, anyone will be able to deploy their own blockchain.
Having co-founded Celestia, the world’s first modular blockchain network, our third DISRUPTORS guest, hacktivist Mustafa Al-Bassam shares his vision of sovereign communities and how he invented a clever hack to widely redistribute power.
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For more, you can see our latest Delphi Podcast releases here.

Notable Tweets

Navigating the UST Crash

Quick recap of the on-chain events & $UST price action over the past 2 days.

—mhonkasalo (@mhonkasalo) May 10, 2022

Resources on UST Peg Deviation

1/ Liquidity brawl behind the scenes amid material $UST peg deviation on third-party venues. Fighting back. More updates are incoming #LUNAtics. Hang on, fam. Here are some resources to combat misinformation:

—Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 10, 2022

ETH Miner Revenue at a 16-month low

📉 #Ethereum $ETH Miner Revenue just reached a 16-month low of $441,381.32
Previous 16-month low of $754,924.55 was observed on 13 January 2021

View metric:https://studio.glassnode.com/metrics?a=ETH&m=mining.RevenueSum&c=USD

—glassnode alerts(@glassnodealerts) May 10, 2022