Stablecoin Supply, Airdrop Rumours & FX Stablecoin Pools

MAY 18, 2022 • 6 Min Read

Genevieve Yeoh + 1 other

Disclosure: Delphi Ventures has invested in zk-Sync. Members of our team are also participating in the aforementioned farms. These statements are intended to disclose any conflict of interest and should not be misconstrued as a recommendation to purchase any token or participate in any farms. This post includes explanatory guides but they are not a recommendation to participate. This content is for informational purposes only and you should not make decisions based solely on it. This is not investment advice. Please exercise extreme caution if you intend to participate in these opportunities.

Metus vulputate eu scelerisque felis. Nulla facilisi cras fermentum odio eu. Scelerisque fermentum dui

faucibus in ornare quam viverra orci sagittis. A iaculis at erat pellentesque adipiscing commodo elit. In

fermentum et sollicitudin ac orci. Ultrices sagittis orci a scelerisque purus. Faucibus ornare

suspendisse sed nisi lacus sed viverra tellus in. Mauris cursus mattis molestie a iaculis at erat

pellentesque adipiscing. Volutpat diam ut venenatis tellus in metus vulputate. Eu consequat ac felis

donec et odio pellentesque. Eu mi bibendum neque egestas congue quisque egestas diam. Quam

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Iaculis nunc sed augue lacus viverra vitae congue eu consequat. Gravida neque convallis a cras.

Nunc scelerisque viverra mauris in aliquam sem. Non odio euismod lacinia at quis risus sed vulputate

odio. Purus faucibus ornare suspendisse sed. Turpis egestas maecenas pharetra convallis posuere

morbi. Nec feugiat nisl pretium fusce id velit ut. Nunc congue nisi vitae suscipit tellus mauris a diam.

Posuere sollicitudin aliquam ultrices sagittis orci. Urna nec tincidunt praesent semper. Turpis nunc

eget lorem dolor sed viverra.

suspendisse sed nisi lacus sed viverra tellus in. Mauris cursus mattis molestie a iaculis at erat

pellentesque adipiscing. Volutpat diam ut venenatis tellus in metus vulputate. Eu consequat ac felis

donec et odio pellentesque. Eu mi bibendum neque egestas congue quisque egestas diam. Quam

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Iaculis nunc sed augue lacus viverra vitae congue eu consequat. Gravida neque convallis a cras.

Nunc scelerisque viverra mauris in aliquam sem. Non odio euismod lacinia at quis risus sed vulputate

odio. Purus faucibus ornare suspendisse sed. Turpis egestas maecenas pharetra convallis posuere

morbi. Nec feugiat nisl pretium fusce id velit ut. Nunc congue nisi vitae suscipit tellus mauris a diam.

Posuere sollicitudin aliquam ultrices sagittis orci. Urna nec tincidunt praesent semper. Turpis nunc

eget lorem dolor sed viverra.

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Chart of The Day: Circulating Supply of USDT and DAI Dips Amid Contagion Fears 

  • Among the four top stablecoins, USDT and DAI have experienced significant redemptions lately. Between 9th to 15th of May, the circulating supply of USDT dropped by 7.46bn, a -9% decline within the week of the Terra blowup.
  • DAI’s circulating supply declined -24% dropping from $8.46bn to $6.4bn between the 7th and 15th of May.
  • On the contrary, USDC has benefited from these outflows as investors deem it “safer” than its Tether counterpart. USDC is fully backed by relatively safe assets consisting of cash and short-dated U.S. government obligations whereas USDT is backed by riskier assets like commercial paper that have a higher chance of default.
  • Currently, USDT owns the lion’s share of the stablecoin market at ~48% (Source: Defillama), although this has been decreasing as more decentralized alternatives take center stage.

  • Tether’s sell-off resulted in a momentary depeg of USDT, but it has since re-pegged, and all four stablecoins are trading near par.
  • Fully collateralized stablecoins have generally held up well since the UST crash, but a few algorithmic stablecoins like Deus Finance’s DEI and Kava Network’s USDX have suffered depegs as well.

Airdrops, Foreign Stablecoin Pools, Impermanent Loss Protection and Virtual Land Harvesting

[Excerpt from a Delphi Insights Report]

Airdrops & Rumours

  • DegenScore has Episode 2 and is giving out 10 Lobster NFTs to the top 10 DegenScore users. Share your profile scorecard within the next week on Twitter to be eligible.
  • Users can now move assets from Ethereum to Starknet via. Metamask, ArgentHQ or Braavos. Once the 100 ETH cap has been lifted, users will be able to bridge over once again. If Optimism’s airdrop eligibility is any indicator, early bridgers could also be eligible.
  • Hop Protocol is airdropping 8% of its total supply to bridge users, liquidity providers, community members and authereum wallet users. You can check eligibility here.
  • zk-Sync has confirmed a token in their documents. Early users, bridgers and dapp users will likely be eligible for an airdrop.
  • Zerion has hinted at an airdrop for users who swap on their platform.
  • Mirror is being adopted by protocols and may airdrop early article publishers on their platform.
  • ZORA has picked up marketplace volume in recent months with some users speculating an airdrop for early supporters.
  • Dope Wars has airdropped 100k tokens and gear to users. The eligibility list can be found here.

DFX Stablecoin Farm

  • DFX Finance is an AMM that is creating an ecosystem for non-USD stablecoins to thrive and provide value all around the world. Products that are released are centered around integrations for stablecoins of every currency. Products include an AMM optimized for efficient swaps, Hybrid synthetic stablecoin stabilized by fiat-backed stablecoins, and more to follow. Learn more about it here.
  • Yield calculations can be found here. To access Ethereum, you’ll need to configure your MetaMask to run Ethereum’s Mainnet.
  • Bridge: You can use Synapse Protocol to bridge assets over to Ethereum. Ethereum uses ETH for gas.
  • Tokenomics:
    • Total Supply: 100M
    • 35% (35M DFX) of the total supply is reserved for Liquidity Providers with a vesting period of 96 months

  • Notable Unlocks: No DFX tokens are locked
    • 20% (20M DFX) is vested linearly over a 36 month period by the Treasury
    • 9.2% (9.2M DFX) is vested linearly over a 24 month period by Pre-Seed investors
    • 10.8% (10.8M DFX) is vested linearly over a 36 month period by Seed investors
    • 15% (15M DFX) is vested linearly over a 36 month period by Founders
    • 5% (5M DFX) is vested linearly over a 36 month period by the Dev Fund

  • Current LP Incentives:
    • CADC/USDC – 113,750 DFX/30D
    • EURS/USDC – 113,750 DFX/30D
    • XSGD/USDC – 91,000 DFX/30D
    • XIDR/USDC – 68,250 DFX/30D
    • NZDS/USDC – 102,375 DFX/30D
    • TRYB/USDC – 79,625 DFX/30D
  • You can read about each stablecoin’s issuer, and mint/redeem locations here.

Tutorial: Supply CADC/USDC (guide by DFX)
* Note: The UI has been updated since the guide has been published

1. Go to DFX’s Pools tab. Here you will find important details such as the Rewards APR, Total Pool Value, where to Manage Liquidity and Pool Information.

2. Select the CADC/USDC pool and “Add Liquidity”. When adding liquidity, the deposit must respect the current pool ratio. This means that when adding liquidity, you must supply it in this ratio. The ratio does not represent the price, slippage or impermanent loss. It is simply the amount of stablecoins currently in the respective pool. You can also add Single-Sided with CADC.

3. When adding single-sided liquidity, the contract takes a portion of your total and does a swap in the background using the DFX AMM to get the appropriate ratio to deposit into the pool. The LPT value when doing single-sided deposit is a minimum estimate and you may have some dust leftover from the conversion.

4. When providing liquidity, there will be a total of 3 transactions: one to approve the foreign stablecoin (CADC), one to approve USDC, and one to deposit the stablecoins. Once you have successfully added liquidity, you should see a balance under “Remove Liquidity”. You should then click on “Stake/Unstake LPTs” to deposit your LP Tokens into the staking contract.

5. Enter the amount of LPT tokens you want to stake and click “Stake”. This is a 2 transaction process. One to approve the LP Tokens to be sent and one to deposit the LPT. After successfully depositing the LP tokens, you should see a staked amount under “Unstake LPT”. You will now start earning DFX tokens.

Notable Tweets

Celestia and Cosmos

Defi’s Original Sin

Momentum Bitcoin and Reflexivity

Create a free account to continue reading

Go Pro at 40% off

Immediately access the entire catalog of research for Delphi, Office Hours & private Discord

Genevieve Yeoh + 1 other