August 20, 2023

Weekly DeFi Rabbit Hole by zj.valz

🐰 Contents:

1. Stablecoin flows
2. Smart Money Movement
3. Top L1/L2 Financials
4. Top DAPP Financials
5. Movement Analysis
6. TLDR

1. Stablecoin flows:

Top 10 Chain (In terms of Stables Mcap)

Top inflows:

1. Conflux
2. ThunderCore
3. Karura
4. Waves
5. Wanchain

Top outflows:

1. Bittorrent
2. SmartBCH
3. KCC
4. Hedera
5. Terra Classic

2. Smart Money Movement:

Top Smart money inflows (including stablecoins):

1. Dai
2. Wrapped BTC
3. stETH
4. USDC (Arbitrum)
5. wstETH

Top Smart money outflows (including stablecoins):

1. USDC
2. USDT
3. USDC (Arbitrum)
4. Wrapped ETH
5. Frax

Top Smart money inflows (excluding stablecoins):

1. Wrapped BTC
2. stETH
3. wstETH
4. HarryPotterObamaSonic10Inu
5. frxETH

Top Smart money outflows (excluding stablecoins):

1. Wrapped ETH
2. Pepe
3. ACX
4. Rollbit
5. LBR

3. Top L1/L2 Financials:

Fees-Generated

1. ETH
2. BNB
3. Arbitrum
4. Optimism
5. Solana

Revenue

1. ETH
2. Tron
3. Base
4. Optimism
5. Arbitrum

DAUs

1. Tron
2. BSC
3. Bitcoin
4. Polygon
5. Ethereum

Active Developers

1. ETH
2. Polkadot
3. Cosmos
4. Solana
5. BTC

Code Commits

1. ETH
2. Polkadot
3. Solana
4. BTC
5. Cosmos

4. Top DAPP Financials:

Fees-Generated

1. Lido
2. Uniswap
3. PancakeSwap
4. MakerDAO
5. GMX

Revenue

1. MakerDAO
2. Synthetix
3. Lido
4. Maestro
5. Metamask

P/F Ratio

1. Equilibre
2. Level Finance
3. Mummy Finance
4. Solarbeam
5. Kwenta

P/S ratio

1. Equilibre
2. Level Finance
3. X2Y2
4. Stargate
5. Buffer Finance

Holders Revenue - Cumulative revenue attributable to holders 24 Hours

1. Convex Finance
2. Radiant
3. PancakeSwap
4. Synthetix
5. Balancer

DAUs - Daily

1. Pancakeswap
2. Uniswap
3. Stargate
4. Osmosis
5. 0x

Trending Applications

1. Gnosis (Polygon)
2. Helio (BSC)
3. Gnosis (Avalance)
4. Apecoin
5. Tokenbridgev2 (BSC)

Raises - Recent funding rounds

1. Elipsis Labs
2. Jada AI
3. Lore
4. Linera
5. BitGo

5. Movement Analysis:

Stablecoin flows:

• Total stablecoin market cap continues to decrease by 0.8% as global liquidity continues to grind down
• Conflux, ThunderCore and Karurasaw the most significant stablecoin inflows.
• Bittorrent, smartBCH, and KCC saw the most significant stablecoin outflows.
• Will avoid Conflux and Karura for now as it seems like the dominant stablecoin is USX and aSeed respectively.

Smart Money Movement:

• Smart money remains relatively risk-on with an aggregated portfolio allocation of 51% ETH/ETH Variant, 27% Alts, and 21% Stablecoin. Alt positions have decreased slightly compared to last week with the current blood in the market.
• Wrapped BTC captured the majority of Smart Money inflow this week as BTC ETF seems more likely than ever which could suck more liquidity from ETH and Alts.
• HarryPotterObamaSonic10Inu is the only shitcoin Smart Money is trading this week.
• Smart Money unwinded their positions in Pepe, ACX, Rollbit and LBR this week.

L1/L2 movement:

• Base L2 continues to dominate revenue position this week with the hype around friend.tech where one can speculate on the shares of your favourite KOLs.
• Arbitrum is slowly catching up to Ethereum in terms of DAUs.
• Manta Network an L1 privacy and L2 ZK chain, backed by Binance and Polychain, saw a massive 7,895% change in code commits last month. Big things might be coming for this protocol, do keep a lookout for this new chain which might have incentivised airdrops.

DAPP movements:

• GMX manage to reclaim its top 5 position in terms of fees generated with the increased market volatility this week as longs got liquidated enmass. However, trading volume remains relatively flat despite the V2 beta launch.
• Friend.tech captured the majority of Crypto X’s attention this week as users speculate on share prices of their favourite KOLs, with the likes of Cobie being worth 3 ETH in a span of 1 week

• @0xdq.eth made a good thread on how profitable this new ponzi is and has some trading strategies on how to play the game.

• @Ansem also provided a generic framework on what kind of accounts one should max bid on Friend.tech.

• Alpha drop by @apes_prologue

• New raises that caught my eye include:
• Lore, a powerful on-chain search engine with Balaji investing in the Venture round.
• Zetablockchain, an EVM-compatible L1 blockchain that connects across all Chains including Bitcoin, with a recent $27 million funding round right behind the likes of Sei and Zerion.
• DinariGlobal, an RWA protocol with major backers like Balaji and 500 Global.

6. TLDR:

• Blood is on the streets this week as the stock and crypto market goes through a correction following a 3-4 months rally.
• Base remains highly attractive, with interesting protocols like Friend.tech being able to onboard massive amounts of users within this short time period.
• While interesting, do understand that Friend.tech is a Ponzi and historical precedent showed that it is not sustainable. Ape responsibly and exit accordingly when the time is right.

• Personally focusing on other Base ecosystem plays, especially in the gaming sector like LandTorn, a protocol the Primapes cartel is bullish on as the next Magic on Base.

Conclusion

Sources: