Weekly Newsletter - Degen Farmer

3rd week in June 2022

In this weekly newsletter, I will cover:

1. Market Overview

2. Layer 1 / 2 Performances

3. DEX Metrics

4. Defi News / Protocol updates

5. Analysis / Insights

6. Yield Farming Opportunities

Market Overview

Another bloody week. After the 8.6% historically high CPI figure released, the Federal Reserve raised its target interest rate by 75 basis points on Wednesday, which would be the biggest since 1994.

Some of the mining machines have already reached to the “Shut Down” Price. It is worried that miners may have to shut down their operations and started to sell off their machines and BTC.

Bitdeer @BitdeerOfficial

💡For your information, we publish the latest list of the Shutdown Price below which crypto mining machines in this chart will have to be shut down for lack of profitability.

Miner capitulation was confirmed on the Hash Ribbon indicator., where the 30-day MA moves below the 60-Day MA, it indicates that miners are leaving in large numbers.

Another hot topic discussed around crypto community was the Three Arrows Capital (3AC) drama. 3AC was rumored to be insolvent where 3AC were selling their steth positions consistently and reduced all AAVE positions. Moreover, Danny Yuan, the chief executive of market maker 8 Blocks Capital, tweeted that 3AC took about 1m out of their accounts. You may refer to @thedefiedge’s thread for more details.

Danny @Danny8BC

We trade in one of 3AC's trading accounts. This morning they took about ~1m out of our accounts. I hope you pay us back asap.

Zhu Su 🔺 @zhusu

We are in the process of communicating with relevant parties and fully committed to working this out

The DeFi Edge 🗡️ @thedefiedge

One of the LARGEST Crypto Venture Capital firms: Three Arrows Capital. They're becoming insolvent. With potentially $18b under management, this could be catastrophic for Crypto. Here's a timeline of what's going on and the possible consequences: ↓↓↓

Under the current brutal market, lots of protocols / companies seems having trouble. MIM and USDD is depegging and centralized institutions face liquidity problem as well (such as Definance Capital, Babel Finance & Hoo exchange) It is expected more is coming and the market will remain volatile.

Layer 1 / 2 Performances

(Source: https://cryptofees.info/)

Top 10 chains 7 Day Avg. Fees: -28.6% (down from 10.5M to 7.5M)

DEX Metrics

(Source: https://dune.com/hagaetc/dex-metrics)

DEX 7 days Volume: +78% to $30B

Defi News / Protocol updates

1. 500 million USDC more to defend the USDD peg

TRON DAO Reserve @trondaoreserve

For the current market extreme condition, @trondaoreserve has received another 500 million USDC to defend #USDD peg. Now USDD collateralization rate is 310%. tronscan.io/#/transaction/…

2. 3AC in trouble?

Zhu Su 🔺 @zhusu

We are in the process of communicating with relevant parties and fully committed to working this out

3. 3AC drama

Danny @Danny8BC

1) What happened between 3AC and us and what we know so far: @zhusu @KyleLDavies

4. Celsius start paying back the debt on chain

Hsaka @HsakaTrades

DAI arriving. Celsius finally going to start paying back the debt after buying enough time by reupping collateral to lower liq?

5. MIM insolvent?

Autism Capital 🧩 @AutismCapital

We have a scoop from one of our associate autists: MIM (Magic Internet Money) may be nearly insolvent. MIM is one of the larger stablecoins, with a market cap of ~$300M. We can't believe that a project called Magic Internet Money has been acting irresponsibly either. Details:

6. MakerDao adding reth as a new collateral type

Maker @MakerDAO

The Maker Governance has voted to add rETH (@Rocket_Pool staked ETH) as a new collateral type in the Maker Protocol. Voting results: • 40,858 MKR voted YES (winning option) • 22,163 MKR voted NO. • 0.22 MKR voted ABSTAIN. 🗳 vote.makerdao.com/polling/QmfMsw…

7. Aura live!

Aura @AuraFinance

We're live! 💜 auraBAL deposits, Aura Locking, and Airdrop claims are now available! app.aura.finance

app.aura.financeAura FinanceBoosting DeFi yield potential and governance power

8. Maker has voted to temporarily disable the D3M

Maker @MakerDAO

The Maker Governance has voted to temporarily disable the @AaveAave DAI Direct Deposit Module (D3M). This change is available for execution on June 17 2022 21:03 UTC. 🗳 vote.makerdao.com/executive/temp…

9. Bancor paused all impermanent loss protection due to market conditions

Bancor @Bancor

Due to hostile market conditions, Bancor’s Impermanent Loss Protection is temporarily paused. IL protection will be reactivated on the protocol as the market stabilizes. More info: blog.bancor.network/market-conditi… We're hosting a community AMA in 15 minutes: https://t.co/xgh8UmfNoL

10. Babel suspends withdrawal

The Block @TheBlock__

BREAKING: Babel Finance suspends withdrawals, citing ‘unusual liquidity pressures’ theblock.co/post/152677/ba…

11. Hoo exchange suspends withdrawal too

Hoo.com @Hoo_exchange

📢 May I Have Your Attention📢

Rexy_hoo.com @rx_hoo

As for some problems encountered by Hoo Exchange, we have issued an official announcement to elaborate on the specific details. We need some time to deal with the problems we are facing now. Please be patient, trust our team and do not spread rumors or create panic.

Analysis / Insights

1. Improving tokenomics of Link

ChainLinkGod.eth @ChainLinkGod

1/ Two major things stood out to me from Sergey's Consensus presentation - Public good fast lanes - Blockchain gas grants These initiatives, along with other improvements, will eliminate the majority of costs for #Chainlink oracle networks A 🧵 on improving tokenomics of $LINK

2. Will CRV & CVX go to zero?

Barry Fried (‘½⏱’) @BarryFried1

People really think some sort of “death spiral” will happen to @CurveFinance. Your favorite influencer says $CRV and $CVX are going to 0…. Here’s why you shouldn’t be worried🧵👇 1/18

3. Is USDD safe now?

korpi @korpi87

Everyone has heard about $UST / $LUNA collapse. There is a similar "stablecoin experiment" called $USDD backed by $TRX and @justinsuntron's ego. It broke the peg yesterday and fell to $0.98. Is it the beginning of the end or things will get better soon? Let's find out! 🧵👇

4. How does ETH price affect the daily buy/sell pressure

korpi @korpi87

How did this sell-off affect structural supply / demand after the Merge? Not much. Posting bullish takes on $ETH after it has plunged by 35% in a week feels a bit awkward but I'm just showing you the data. Think whatever you want but fundamentals haven't changed... 🧵👇

5. Celsius blowup explanation

Jack Niewold 🫡 @JackNiewold

THE CELSIUS BLOWUP, EXPLAINED. Huge sectors of crypto are imploding, and crypto unicorns might be coming down with it. Luna was first, but now $10b giant Celsius is facing insolvency and even bankruptcy. Let's dive in:

6. Synthetix ecosystem overview

Messari @MessariCrypto

1/ @synthetix_io mints and exchanges synthetic assets to provide a liquidity solution for almost any asset. Let’s explore @synthetix_io in this report from @john_tv_locke. 🧵 messari.io/article/synthe…

7. Valuing FEI

Michiel Van Tilborg @michielvtb

How can crypto have any value? It’s the most common question I get asked at business school (NGMI 😪). Fundamentals are ever-important in today’s bear market. The most successful investors are those that understand cryptoasset valuation. Here’s my take on valuing @feiprotocol

8. 9 great threads for preparing the next bull market

Route 2 FI @Route2FI

The last month in crypto has been brutal. If you're still around, you're one of the few. Here are 9 great threads with crypto lessons that will help you prepare for the next bull market (whenever that is) /THREAD

Yield Farming Opportunities (DYOR)

ETH:

USDN-3pool @Convex Finance 41.08%

PUSD-3pool @Convex Finance 18.73%

DAI-USDC-USDT-sUSD @Convex Finance 29.07%

USDC @cbridge 20.9%

NEAR:

USN-USDT @Ref Finance 14.34%

USDT / USDC @Burrow ~8%

AVAX:

YUSD @Vector Finance 10.5%

That’s all I want to share with you guys! If you enjoyed reading it or found something useful, please subscribe and share:)