Ian's Intel – Telegram
Ian's Intel
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Stay ahead with crypto news & alpha.

Disclosures: https://x.com/iansintel/bio
📩 https://news.1rj.ru/str/+AB-NidhT4GFiOGE1

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1inch Investment Fund buys $10m ETH at $1655

https://x.com/lookonchain/status/1699005558110761334
Frax Proposes Staked FRAX (sFRAX)

- similar to MKR's DSR product
- users deposit FRAX into a smart contract and earn interest in FRAX
- source of yield include revenue from AMOs & RWAs and will target the Fed's IORB rate as its base rate (~5%), up to a ceiling of 10%

Source
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Aether Protocol, money market on Sei, shuts down.

the post cited the following reasons:
- lack of support from L1 (Sei)
- lack of DeFi expertise on Cosmos
- failed Sei mainnet had negative effects on ecosystem branding

Source

Ian’s thoughts:
- disagree with point 2. Some of the smartest builders out there are building great defi protocols on Cosmos.
- a blanket statement like that is unfair when they’ve failed to launch a simple money market.

- one statement from the post rightly highlights Cosmos’ biggest problem but ends with the wrong conclusion (imho):

A big part of our customer acquistion strategy was outreach to EVM users, and by far the biggest single piece of feedback was: “Why?” Why would an EVM user download a new wallet and bridge to the Cosmos to use DeFi, when they’ve got Uniswap, Pendle, Aave, Maker, and Frax? There is a reason why the Cosmos has been unable to secure more than 2% of DeFi market share — DeFi here just isn’t good enough.”
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Base L2 suffered outage for ~40mins

Source
IanGPT Summary of "Synthetix, A New Hope"
by kain.eth

• The post begins by discussing the challenges that protocols face when deploying multichain and achieving shared liquidity across deployments.

• Due to market and infrastructure limitations, this is not ideal to implement, resulting in fragmented liquidity, leading to a proposal of 3 options:

1. Deploy a fork of Synthetix on every chain.
2. Implement a unified cross-chain protocol where state changes must be pushed to all chains.
3. Deploy an independent instance on each new chain and minimize cross-chain messaging and liquidity fragmentation by leveraging non-SNX collateral.

Focusing on the 3rd Option:
• kain.eth suggests an experiment where Synthetix could deploy perps to Base and enable ETH as the sole collateral. This would reduce the risk of diverting SNX liquidity from Optimism.

• This stems from the challenge that SNX liquidity might not be sufficient to meet demand across all networks. Using ETH as collateral on a new chain like Base could be a way to test whether there's enough demand without fragmenting the limited SNX liquidity.

• If the experiment on Base with ETH collateral works, fees generated on the new network could be used to buy back and burn SNX, thus benefiting SNX liquidity providers (LPs).

• This opens the door for Synthetix to expand to other chains like Arbitrum and Polygon. It also raises the possibility of allowing ETH collateral on Optimism if it turns out that SNX liquidity is constraining trading.

• On the other extreme — if demand for liquidity backed by ETH is much higher than demand for SNX-backed liquidity, a move to its own appchain in the Optimism Superchain might be on the cards to avoid redundancy of the SNX token. This allows for SNX to retain utility such as leveraged sUSD loan on SNX and to form the backend of all protocol governance.

Read the full post here.

$SNX climbed ~15% after the post was published.
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Banana Gun Presale Round 1
• Friday, 8 September, 17:00 UTC

Source

*not an endorsement. i have zero exposure and i do not intend to participate
[IanGPT] Blockchain Privacy and Regulatory Compliance
thread by Ameen Soleimani

• The thread explores a paper by Vitalik Buterin, Jacob Illum, Mathias Nadler, Fabian Schar, and Ameen Soleimani, that discusses the use of Privacy Pools (PP) as a solution to a critical challenge of Tornado Cash: users are unable to prove that they aren't associated with illicit funds without revealing their entire transaction history.

• PP allows users to publish zk proofs that prove that their withdrawal originated from a curated "association set" that excludes known illicit deposits. Association sets specified by the user could range from the full subset of previously made deposits, a set consisting only of the user's own deposit, or anything in between.

• Here's an illustration by Messari that describes the above.

• A consortium of banks could create an association set that only includes customer deposits. thus, any withdrawal creating a proof against this set can be trusted to have gone through KYC and AML procedures at one of the participating banks without revealing which txn belongs to which user.

• Users can still comply with requests to provide proof against an association set that only includes the user's deposit, which can be exchanged with a trusted intermediary, allowing the user to comply with regulations without publicly doxing their information or revealing their complete txn history if unnecessary to do so.

• In short, users can prove regulatory compliance whilst maintaining privacy. PP can thus serve as a neutral privacy infrastructure for bringing public blockchains under regulatory compliance, whilst maintaining censorship resistance.

• This development & research provides a great foundation for policy discussions with regulators.

Links:
- Full Academic Paper
- Video Demo
Hyperliquid launches pre-launch perps for Layer Zero (ZRO)

- up to 3x leverage isolated margin
- currently trading at ~$4.6b FDV

https://x.com/hyperliquidx/status/1699607703281394036

Ref Link
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[IanGPT] The Solana DeFi Comeback
by FA2

Q3 Key Highlights:
• TVL Growth: TVL in Solana's DeFi increased by 21%, from $2.68B to $3.27B.
• Daily Active Wallets: Consistent engagement with 230K-350K daily active wallets.
• Trading Volumes: Ranged between $15M and $162M, excluding major players like Zeta Markets and Phoenix.

Notable Events:
• MakerDAO NewChain Announcement: To use Solana's Virtual Machine (SVM).
• Media Coverage: CNBC favored Solana over Bitcoin Cash and Litecoin.
• Maple Finance: Returned to the Solana ecosystem.
• EuroeMoney: Made a splashy entrance into Solana.

Protocol Developments:
• Zeta Markets: New V2 upgrade and USDC margined perpetual trading.
• Drift: 50% increase in TVL and MetaMask integration planned.
• Cypher: Focusing on security after a vulnerability, planning an IDO.

LSDs:
• Sanctum: Built a reserve of over 200,000 SOL, NFT partnerships in talks.
• Marinade: TVL reached $146.01M, new incentives planned for Q4.
• JitoSol: 100% increase in TVL, exploring new token launch.
• SolBlaze: 10x increase in TVL, launched new native token $BLZE.

Lending & Borrowing:
• MarginFi: 10x growth in TVL to $23.82M; plans for a stableswap platform and stablecoin in Q4.
• Solend: 50% increase in TVL to $54.23M; introducing support for LSTs and RWA-based pools in Q4.
• Kamino Finance: Over $1 billion in trading volume & $1.25 million in fees for depositors; Kamino 2.0 with additional features slated for Q4.

Q4 Outlook:
• Bullish, with various incentives and improved user experience expected to drive growth.

Source

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BREAKING: Grab SG adds Web3 tab & integrated crypto wallet
via 0xjaypeg
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[IanGPT] Information on Grab SG's Web3 Feature

• No official announcements yet from what I can see. Did some digging and Grab (SG) recently added ToS for their Web3 Wallet (7th Sep 2023) which provides more detail as below.

• The Web3 Wallet allows users to "store, send, receive, transfer, track, and manage digital assets and tokens...created on a blockchain".

• Each wallet is a multisig secured by four private key shares distributed to Company (1), Third Party Partner (1), and the User (1 wallet pin & 1 set of secret recovery phrases in the form of Q&As)

• 3/4 Keys are required in order to send, transfer, or receive supported tokens — this means that neither the company nor the third party will be able to collude to control the user's wallet or assets, but they can limit the user & its services as below...

• Grab reserves the rights to limit, restrict, or impose other conditions to users' access to and use of the wallet, such as to:
— impose and change deposit, withdrawal, storage, or transfer limits of the Web3 Wallet
— change, suspend, or discontinue any aspect of the Web3 service without notice or liability
— delay, suspend, or reject any txn if suspected of fraud or misconduct
— block certain blockchain addresses in its sole discretion if determined to be associated with illegal activity
— report and take action against any user linked to blocked addresses

• Users may be required to go through KYC and AML processes.

• Users shall be subject to all prevailing tax regulations, and their Web3 Wallet and transactions may be forwarded to both local (SG) and overseas tax authorities upon request.

• No indication as to which blockchains or assets will be supported.

Source

[@iansintel]
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