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This is the weekly newsletter powered by DeFi Talks, with the help of the Defi Talks Intern Team.
Hope you will enjoy it, feel free to share and ask questions in the comment section.
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Let’s start…
MACRO TALKS:
Do you know that there is a metric that affects the whole market?
Let’s discover it together.
The market is driven by liquidity and knowing how it moves can give us an advantage in understanding future movements.
Typically a market with thin liquidity is easier to move, which is why we have been seeing sudden price movements up or down lately.
We have already discussed the concept of net liquidity here, as we can see from the graph below, deposits in the repo market (RRP) are in decline. I know RRP sounds like a really bad and technical word, but let me help you with it.
Repo stands for repurchase agreements.
It means that one party purchases securities and agrees to sell them back for a positive return at a later date, often as soon as the next day.
The Federal Reserve uses repos and reverse repos to conduct monetary policy. When the Fed buys securities from a seller who agrees to repurchase them, it is injecting reserves into the financial system.
Here you can find a good and simple insight.
An increase in the balances of RRP reduces the dollars available in the private market and vice versa. As more dollars are parked at the Fed, there is less liquidity available elsewhere.
Thanks to the recent rally, the front-end bond market is now yielding more than the repo market, which has fostered increased liquidity in the market.
We can expect the risk-on sentiment of recent weeks to continue until this figure reverses, on 12 December there will be the next FED meeting where repo market deposit rates will also be raised and we will have to see how bonds react to this news.
INTO THE RABBIT HOLE:
DeFi TVL (7d change) according to Defi Llama:
Ethereum: $23.5b (-2.66%)
Bnb chain: $5.4b (+13.4%)
Tron: $4,3b (+1.04%)
Polygon: $1,04b (-0.02%)
Arbitrum : $900m (-0.85%)
Top protocol revenues (last 7d) according to Token Terminal:
Uniswap: $7.6m (-13%)
Lido Finance: $6.7m (-32%)
Opensea : $5.3m (-5%)
Pancake Swap: 3.3m (-19%)
Gmx: 3m (+28%)
Venture capital rank by Mcap according to CryptoRank:
Multicoin Capital: $60.58b (14.2%)
a16z: $44.4b (7.5%)
Pantera Capital: $33.5b (+5.5%)
Weekly winners: (data from CoinGecko)
$ HT +46%
$ APE +27%
$ CRV +26%
Weekly losers: (data from CoinGecko)
$ CHZ -18%
$ XCN -17.5%
$ XRD -17%
Top stable farm:
USDC on dAMM Finance (Ethereum) → 27% APY
PROTOCOL OF THE WEEK:
Bear markets exist and although it might seem counterintuitive they lie plenty of new opportunities.
Trying to catch them is more accessible than in a messy bull market…
Today we want to share with you guys this new project, you won’t be disappointed ;)
Shell protocol, built on Arbitrum, aims to become a new ecosystem of financial primitives like AMMs, Lending pools etc. which offer up to 4x cheaper gas costs and low slippage.
Some weeks ago a DAO proposal was submitted asking if Shell points should be a factor in the $SHELL airdrop and it passed with +90% of consensus.
Shell points are earned by providing liquidity inside the dAPP, instead of farming a token but, there is a twist if you don’t have QUOTA you can’t farm them.
QUOTA can be acquired by purchasing “expanders” on Stratos here, an NFT marketplace, they represent the maximum amount of tokens of each type that a user can use to earn Shell Points.
Ex: 100 QUOTA = 100$
Activating the expander will permanently give you the respective amount of QUOTA.
Each expander has a different price, Smashed is cheaper and so on, but remember that you can stack up your QUOTA by buying as many expanders as you want so choose wisely.
Once you have QUOTAs you need to select where to deposit, currently, the USDC-USDT pool offers a 5x multiplier.
This means that if you have 100 QUOTA you can deposit 100 $USDT or $USDC and earn 500 shell points per day.
You can also buy a booster from Stratos, which allows you to farm shell points faster.
Boosters, unlike expanders, will expire after a certain period of time depending on which type you bought and if you stack them up you have to wait until one expires to receive the boost from the second one…
To equip items bought on Stratos, go to the 'Booty' section, where the things you bought will appear, select them and click on 'activate artifacts'.
This is what you can do for now in SHELL V2 but more to come.
We will keep you updated meanwhile join their discord if you have any doubts or questions.
Do you want to support our job? Don’t miss these opportunities:
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CRYPTO.COM: 45$ BONUS only if you use this link
https://crypto.com/app/defitalks/
- 10$ If you trade 500$ volume in the first 30 days
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Support us:
Donate using any EVM compatible crypto: 0x1db2bC5951A75C61E12C1A5e8C0475FBb9df95eD
And don’t forget to follow us on:
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Telegram: https://t.me/defitalks_updates