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Let’s start…
MACRO TALKS:
Let’s the party begin.
After one month of boring side-ways the market throw caution to the wind. No doubt we are in front a rally, where almost everything from cryptos to stocks is pumping.
Is it the beginning of a new trend?
Too early to say, the market has still to test the 200 days MA, not to mention that we are waiting for the FOMC, the GDP quarter release and also for the mid-term election. Too much, too sentence anything.
While the market was breaking resistance there are a couple of updates that deserve some notice: I’m talking about the release of Q3 FAANG earnings has shaken the market.
Disappointing investors was Meta which reported extremely negative results, the choice to focus on the metaverse continues to burn cash flow: a 25% drawdown highlighted the beginning of a loss of confidence by investors…
Was this the right choice? Will it pay off in the long run?
Next up Amazon reported negative quarterly results and the stock drops 10%, burning about $100b market cap.
It was also Apple's turn to report results according to expectations, demonstrating the brand's resilience and dragging the market upward.
Jumping into the macro verse we have seen the release of the monthly figure for core PCE, the inflation indicator that the fed watches closely, in September rose 0.5% in line with expectations.
Until we see a significant drop in this figure the fed's job is not done, personal spending also rose 0.6% vs. 0.4% expectations
On Nov. 2nd Fed Chairman Powell will speak soon after rate hike decision, 75 bps are already discounted by the market and there should be no surprises:
We will have to follow closely Powell’s speech in order to understand the next move.
INTO THE RABBIT HOLE:
DeFi TVL (7d change) according to Defi Llama:
Ethereum: $32.35b (+7.03%)
Bnb chain: $5.87b (+10.13%)
Tron: $5.41b (+2.01%)
Avalanche: $1.35b (+0.50%)
Polygon: $1.29b (+5.28%)
Top protocol revenues (last 7d) according to Token Terminal:
Opensea: $1.7m (-5.2%)
dYdX: $1.5m (+116.7%)
Pancake Swap: $1.3m (+22.3%)
GMX: 886.9k (+142.3%)
dYdX: 782.6k (+13.3%)
Venture capital rank by Mcap according to CryptoRank:
Alameda Research: $88.53B (+13.5%)
Multicoin Capital: $75.66B (+4.51%)
a16z: $63.07b (-9.40%)
Weekly winners: (data from CoinGecko)
$ DOGE +109%
$ KLAY +98%
$ TKX +84%
Weekly losers: (data from CoinGecko)
$ XCN -15%
$ APT -11%
$ QNT -9%
Top stable farm:
PUSD-3CRV on Convex Finance (Ethereum) → 23% APY
PROTOCOL OF THE WEEK:
Arbitrum is under the radar of many degen thanks to the presence of many good projects from options to perp exchanges.
The community is full of DeFi OGs spreading their knowledge and helping his growth.
GMX is one of the backbones of Arbitrum, their great product is attracting more and more users breaking record TVL every day…
New projects are emerging in this ecosystem and one of them is GMD Protocol defining itself as a yield aggregator/optimizer built on top of existing applications like GMX.
His mission is to create delta-neutral strategies by trying to minimize the risk of impermanent loss or exposure to volatile assets.
The protocol is still early-stage, so pay attention and be aware that it means a much higher risk than using established protocols.
The first product to be launched will be a “GLP pseudo delta neutral strategy” where it will be possible to deposit BTC, ETH or USDC and receive gmdBTC, gmdETH, etc, these assets will be allocated and adjusted to the same weight as GLP’s composition.
**GLP represents a basket of assets including 45% stable, 17% BTC, 33% ETH and other altcoins.
Deposited funds will be used to mint GLP and earn yields from it.
Estimated yields are:
BTC: 6-8% APY
ETH: 6-8% APY
USDC: 12-15% APY
On top of that, you can earn extra trading fees by providing liquidity to the Uniswap V3 pools: gmdBTC-BTC, gmdUSDC-USDC…
The challenging thing is to be hedged against the volatility of the GLP index, which isn’t easy to do as we have seen from Umami's USDC vault, suspended months ago. Its composition will be rebalanced weekly by the protocol following market movement to ensure hedge parameters.
The team is also aware of this difficulty and has decided to create a $GMD reserve ($GMD is the platform token) where:
-$GMD will absorb the risk of underperformance of single-position vaults,
-$GMD will also earn $GLP profits from trader’s losses.
Soon you will be able to stake $GMD and earn a real yield paid in $WETH from the protocol revenue.
ALPHA:
Enter the website and you will find a section called “early whitelist access”, click on it and tweet.
That’s it!
Click here to join their discord if you are interested in learning more about this project.
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