Hi guys,
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.
MACRO TALKS
What a week.
I want to start that we are very sorry for everyone involved with the FTX & ALAMEDA saga, no one deserves to see their fund get blocked that’s why we use crypto. And seeing people losing their life savings is terrible.
Unfortunately, we could have seen a rally but this black swan event has blown away every possibility… back to macro:
We are beginning to see inflation slowing down.
Cpi YoY came out at 7.7% vs 8% expected and Core Cpi 6.3% vs 6.5% consensus, based on this data the market went into the bullish mode with the S&P 500 closing the week at +6%.
If the following 2-3 inflation readings are as positive as this month's, we could start talking about a Fed pivot.
Last Powell speech hinted to us at a possible slowing down in rate hikes as you can see in the chart below:
Although this doesn’t mean we are done, there is still a long way to go so DON’T let your guard down.
INTO THE RABBIT HOLE:
Check our latest video about the FTX collapse, to know more about what happened and the implications.
DeFi TVL (7d change) according to Defi Llama:
Ethereum: $38b (-24%)
Bnb chain: $6b (-16%)
Tron: $4,23b (-4%)
Polygon: $1,28b (-17%)
Avalanche: $1,08b (-29%)
Top protocol revenues (last 7d) according to Token Terminal:
Uniswap: $25m (+143%)
Opensea: $7m (-34%)
Lido Finance: $8,3m (-3%)
Metamask: 18,6m (+2000%)
Pancake Swap: 7,2m (+31%)
Venture capital rank by Mcap according to CryptoRank:
Alameda Research: REKT
1. Multicoin Capital: $58 (-32%)
a16z: $44b (-34%)
Pantera Capital: $33b (-33%)
Weekly winners: (data from CoinGecko)
$ TWT +88%
$ dYdX +30%
$ XAUT+4%
Weekly losers: (data from CoinGecko)
$ SOL -60%
$ CRO -50%
$ APT -44%
Top stable farm:
USDC on dAMM Finance (Ethereum) → 29% APY
NEWS OF THE WEEK:
We assume that you all already know pretty much everything that has happened in the last week even though it is still hard to digest, anyone wasn’t expecting this…
Contagion is very likely but what happened yesterday was even more strange and sketchy.
A wallet, now labeled as “FTX account drainer”, linked to FTX started to withdraw funds from FTX exchange up to 450M in various assets.
At first, someone thought it was a liquidator doing some normal stuff… but then he started to swap $USDT for $DAI (FYI $DAI can’t be frozen, more censorship-resistant):
1.
2.
For a total of 40M, then swapped 44M worth of $stETH for $ETH with an insane amount of slippage.
At this point Twitter was full of FUD, people saying that this wallet was controlled by some FTX insiders then @Zackxbt, a well-known character in the crypto Twitter scene said that it was probably a blackhat (malicious hacker) trying to steel these funds, fortunately, there was also some whitehat (“good” hackers) trying to rescue funds…
~450M is estimated to be held by the blackhat and 200M by the whitehats.
Right now the drainer address has 310M of which 63% is in $ETH and the remaining in $DAI,$BNB, and $PAXG, you can see with your eyes here:
https://debank.com/profile/0x59abf3837fa962d6853b4cc0a19513aa031fd32b
Hope you have enjoyed this little on-chain dive, see you next week!
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