To the $LUNA: The Delphi Debrief

This week marked the launch of Anchor, a savings protocol on the Terra blockchain. Anchor’s main objective is to offer depositors stable interest rates and, ultimately, to become the “reference interest rate across the universe of blockchains.” Adding to the excitement, of course, was the fact 50M Anchor tokens were airdropped to users that staked Luna on Terra Station.

In anticipation, we published a brand-new Daily on how Anchor could impact the value of Luna and the greater Terra ecosystem. (Spoiler: we believe it’s currently misunderstood by the market.) Delphi’s own Yan Liberman wrote a thread summarizing the post, which was seconded by Terra’s founder Do Kwon:

(Disclosure: Delphi Ventures is an investor in $LUNA and $ANC.)

If you need a Terra refresher, we previously made this client-only overview of the ecosystem and Luna’s value prop.

Beyond the Anchor launch, we published several exciting interviews this week. The legendary Mike Novogratz joined us for a well-received Clubhouse interview. And in a strange twist of fate, Guy Lawrence—one half of the electronic music duo Disclosure—appeared on the podcast after Delphi analysts won a $140,000 Disclosure NFT auction. Both episodes are up on your favorite podcast app.

Stay degen,

Nick
@npappag

Anchoring The Market To A New Reference Rate by Jonathan Erlich and Jose Maria Macedo

Key Takeaways:

At its core, Anchor employs a money markets architecture to connect savers and borrowers. However, in contrast to more traditional money markets currently live in the crypto space (i.e. Aave and Compound), Anchor’s architecture is tailored specifically to offer savers more stable interest rates.
Even though initially it will be bootstrapped through the current DeFi crypto audience, we expect it to start tapping into a more mainstream audience in the medium term.
Institutional subscribers can see the full report here.

Diem: Crypto Friend or Foe? by Kevin Kelly, CFA

Key Takeaways:

Facebook Libra rebranded to Diem. Facebook’s original Libra wallet, Calibra, has been rebranded to Novi. Novi Financial is a regulated financial company and a subsidiary of Facebook, Inc.; it is also a member of the Diem Association.
Crucially, Diem is no longer targeting a transition to a permissionless system as regulators expressed concern that its compliance provisions and due diligence requirements could be discontinued or bypassed the project.
Delphi Daily subscribers & clients can see the full brief here.

Rari Revs Up by John Jimin Noh

Key Takeaways:

Rari Capital has seen impressive growth during this DeFi bull market, with its token, RGT, up ~49x YTD. Speculators are banking on Rari’s ability to quickly develop and ship products.
There are also three new important products under development – Fuse, Tanks and Nova – which we discuss in detail.
Delphi Daily subscribers & clients can see the full brief here.

Why We Spent $140K on The Disclosure Face + The Power of NFTs in Music by Anil Lulla

Key Takeaways:

Our team has been an investor and supporter of the NFT market for some time now. Last September, we put together a similar post where we outlined Why We Spent $159K on Digital Battle Pets known as Axies. A few weeks ago we sent a note to clients highlighting the recent growth and cautioning our clients to remain prudent as the hype within the NFT market had (in our view) gotten a bit ahead of itself.
This auction represented a lot more than a drawing of a face and lifetime tickets to Disclosure shows for us. It was our first (of many) investments to help showcase our identity in the emerging Metaverse that we are passionate about. At their core, this novel means of expressing identity is what NFTs enable.
Most importantly, our money went towards a great cause. Not only did it help raise money for organizations like Justdiggit, which makes dry land green again by inspiring and funding farmers in Africa, it also helped change the life of the artist behind the original “Disclosure Face”.
Read the full explanation on why we spent $140,000 for the NFT here.

Disclosure Discuss Crypto, Music, and their $140K NFT Sale

Jack Spallone: The Colliding Worlds Of Music And Crypto

Mike Novogratz: Scaling Galaxy Into A Behemoth, Justice Reform, and NFT Hype

As mentioned, we will continue to iterate on the design of our Delphi Debrief based on your feedback—so please let us know which section you enjoy the most and what else you’d like to see!