The Optimist #59
Discover DEFI on the Superchain => 🔵Base, 🟣Ink, 💿Soneium, 🔴OP Mainnet & more.
Thank you fellow readers to continue reading my research about Defi on the Optimism Superchain.
If you missed the previous newsletter, it’s just one click away from you HERE.
————— This Week Menu —————
🦸♂️ Weekly news on the Superchain
📈 Superchain Stats
🔵 FX Protocol - Leverage with no liquidation
+ a fully decentralized stablecoin. Available on Ethereum, soon on Base!
🧠 Smart Money tracking with Nansen
🏈 Post of the Week
🦸♂️ Weekly News on the Superchain
👀 World has raised 135m$ from a16z, directly market-bought on the liquid market
🟣 $USDG stablecoin issued by Paxos, and backed by Kraken & RObinhood is now live on Ink chain, and liquidity available on Velodrome
💰 Lisk has launched a 9-weeks incentive campaign, LISK SURGE, and partnered with Jumper Exchange for the user acquisition
🔵 New prediction market Dapp UPSIDE is soon to launch on Base
🌕 Moonwell is front running the Optimism superchain interop
📈 Avantis decided to postpone AVNT token TGE to year end to continue building & focusing on growth
🤖 Moonwell founder, Luke, has launched an AI Agent to optimize lending deposit accross different protocols, called Mamo_Agent
🗒 Credora, a risk rating protocol already used to rate under collateralized loan on Clearpool (check one of my former article about it), is now provided rating on Morpho pools
Superchain Stats - 30D TVL growth Leaderboard
World is really oing great, mainly driven by Morpho growth. Soneium saw a slight decrease of TVL after the end of the ACS incentives campaign. But TVL seems to stick for the time being.
Source: https://defillama.com/chains/Superchain?minTvl=1000000&maxTvl=
🔵 FX Protocol - Leverage with no liquidation
If you are a frequent reader of this newsletter, you know that I’m very bullish on stablecoins since months. And something new, I turned bullish since few days now. Why ?
The price action of $ETH has been strong
New $BTC ATH
I spotted what i though would be a local bottom in April
So, how can i merge these 2 convictions? Invest in strong fundamental project that supplies a yield bearing stablecoin.
And today, I’m going to present you FX Protocol developed by Aladdin DAO. Im’ pretty familiar with this project, since i was a core contributor to Aladdin DAO during the launch period:
1. What is Fx Protocol?
FX protocol allows you to deposit open a long leverage position on $ETH or $BTC from 2x to 7x without the risk of being liquidated.
One image is worth thousand words:
How does it work? Please watch this 2min video:
How FX protocol prevents you from being liquidated? By automatically rebalancing your position if it goes below the “Liquidation Brake”.
The main strength of FX Protocol is low fees compared to other platforms that allow leverage as Tetranode spotted:
2. Stats & OG Users
FX Protocol is used by defi OG like Tetranode:
TVL has been up only since the reversal trend on BTC & ETH:
3. fxUSD, a purely decentralized stablecoin
When users deposit ETH or wBTC, the asset is split in between a leverage position xBTC / xETH or a stablecoin. fxUSD can then be staked into the stability pool to earn yield coming from:
Trading fees
Liquid staking fees
AAVE deposit yield
FXN Emission
fxUSD is backed by ETH & wBTC, making it one of the most decentralized stablecoin. With the 5th biggest growth in Market Cap, fxUSD TVL is quite deep, with 50m$ fxUSD staked, with a yield from 12% to 23%.
But, there is more to come => FX Protocol just launched fxSAVE.
fxSAVE is a high yield Auto-compounding, Delta Neutral Stablecoin Vault. The underlying strategy is the fxUSD/USDC stability pool, compounding xPOSITION commissions and reserve's yield into more stablecoins. So no more claiming, paying fees, trading back to more fxUSD, with a yield of 12.6% at the moment, which is quite great.
fxSAVE is also available on Pendle, Morpho, Spectra and Fluid:
And a vote is ongoing wrt a new pool of yield bearing stablecoins on Curve Finance:
4. FXN: Dividend token
The more we move forward into the crypto landscape, the more fundamentals matter. Dividend or revenue sharing token means you get a share of protocol generated fees if you lock FXN on the protocol.
FXN Circulating Market cap is 3..4m$ (FDV of 60m$). 73% of the emitted tokens are locked for an average of 3.4years. 49% is set as liquidity incentives, planned to be distributed over 50 years… YES, you read it right!!
Currently only live on Ethereum, so wen L2? A public sale has been made on Base with the bFXN token, expect a release of the project soon on the blue chain.
But there are more to come as explained below:
Finally, as FXN can be locked for a max duration of 4 years, liquid locker protocol has emerged launching a FXN War. You can lock FXN on those protocols and receive derivative of FXN. Mind that conversion is one way only. You cannot redeem to the native asset, but liquidity is available on DEX to allow swapping.
Stake DAO: sdFXN
Convex Finance: cvxFXN
As redemption is unavailable, beware of depeg issue like sdFXN. However, if you are looking to get exposed to veFXN yield, this can be a great discount to get exposure to it.
5. Conclusion
FX Protocol has a great fundamentals, found Product Market Fit, and is managed by top tiers Team with huge connections to the Curve, Convex, Frax, StakeDAO, Pendle ecosystem.
On the price side, FXN against ETH has shown great growth with +130% from the bottom.
I strongly suggest to follow this project, as if the bull market tends to resume and BTC & ETH break ATH over ATH, expect a lof of people to leverage their position, increase stablecoin yield, deeper liquidity for fxUSD….
NFA of course!
🤓 Smart Money tracking with Nansen
Now, let’s have a deep look at $FXN. Who are the holders?
If you look at the token balance, you can see that 91% is held by the team, and 3% on Curve Finance DEX (wETH/FXN & cvxFXN/FXN).
Then, I just spotted 3 interesting wallets who accumulated a nice bag of FXN recently:
The 2nd in the list “TOP 100 LDO Leaderboard” has a PF of 1m$. He swapped LDO → FXN on May 22, buying 2k FXN, and already in profit by 66%. This guys is also a large holder of PENDLE & CRV, and is using FX Protocol with 70k$ deposit.
The 3rd in the list “TOP 100 MOG Leaderboard” has a PF of 3.5m$. He twapped FXN like crazy, for a total of 1k FXN.
This wallet is very interesting cause he is very active onchain and,couple of hours ago he just withdrew 1.4m $USDT from Binance.
So how to get informed on what this whale will be doing in the near future? Simple as one-click, I just set up an alarm on Nansen, and I’ll get notified for any tx involving FXN. Let’s see what this guy has in mind!
The day after the alarm was set, the whale bought 2 gov tokens of stablecoin issuers:
50k$ of FXS (Frax Finance gov token)
25k$ of SKY (Maker gov token)
And with Circle IPO coming in, there might be some re-rating of stablecoin issuer project. Thansk Taiki for spotting this:
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🏈 Post of the Week:
Disclaimer: Nothing in this content is financial advice. I may have some positions on the presented projects, however these articles are written in a non biais way so that you can make you own opinion out of it.
Do your own research before investing, and remember that Crypto is extremely volatile and risky. Be ready to loose everything you invest in.