ETH staking and DeFi markets are about to be turned on with the upcoming Shanghai Upgrade.
And the best part? We will see huge potential for staking derivatives and DeFi protocols.
Will it be the ultimate game changer for ETH staking and DeFi? Find out!🧵👇
1/ Laying out some thoughts here:
1️⃣ What is the Shanghai Upgrade?
2️⃣ Effects of $ETH withdrawals
3️⃣ Effects on Staking Derivatives
4️⃣ Effects on DeFi
5️⃣ Conclusion
2/ 1️⃣ What is the Shanghai Upgrade?
It is a forthcoming @ethereum upgrade that will allow validators to withdraw their staked $ETH on the Beacon Chain.
This will significantly impact withdrawal mechanics, staking derivatives, and broader DeFi markets.
3/ Beacon chain is a proof-of-stake blockchain that is responsible for managing the validation of transactions and the creation of new blocks.
Validators who want to withdraw their staked ETH must go through two queues: the exit queue and the withdrawal queue.
If all 500k validators attempt to withdraw, it could take up to 5 days for the withdrawal queue to clear.
7/ However, validators who only want to withdraw their rewards can skip the exit queue.
Based on the distribution of validator $ETH positions, an estimated 60K ETH can be withdrawn per day, with an additional 10K ETH if larger validators withdraw on the same day.
🔹 Macro: PCE numbers came in higher than expected.
🔹Narratives: Chinese coins were pumped. On chain index on the rise.
🔹DeFi: Alpha projects: degen and real yields
🔹Crypto drama: LVL hack, SEC eyeing on stablecoin firm, Machi dumping NFTs
If you have not read the previous week’s highlight here it is:
1. Macro @BobEUnlimited on reversal of disinflation @QCPCapital notes on sharp reversal in almost all benchmark macro markets @DeFi_Cheetah on forthcoming recession @_FabianHD on Dollar and yields repricing and hot PCE data @delphiintern shares new narratives and lessons learnt
The PCE came in hot as hell: 4.7% instead of the expected 4.3% YoY.
First little indicator for a second inflation wave. 🧵👇
1/
Going forward will inflation continue to be aligned with what @CryptoHayes mentioned last year Dec?
"Inflation has peaked for this first mini cycle and we will see declining inflation next year."
2/
💰Profit Time💰
$BTC holds strong at the 25k level. If you have taken profits, congrats. If not, don't fret. It's still at the crucial level and hasn't broken down yet.
Bunni auto compounds LP position and integrates that with @Timeless_Fi creating a flywheel ecosystem on their own.
And this is turbocharged with options tokenomics. A Mega Valentine's Day Thread ❤️🧵
Breaking down the thread into:
1️⃣ What is @Timeless_Fi ?
2️⃣ What would @Timeless_Fi mean for users?
3️⃣ What is bunni.pro?
4️⃣ $LIT $oLIT $veLIT tokenomics
5️⃣ Thoughts and conclusion (just for you bros ❤️)
Strip Bonds are often preferred when users wants certainty to a future expense. => Hedged Risk + Predictable
Yield Tokenisation is a concept used by @Timeless_Fi, while bringing a new perspective of certainty on-chain.
How would Strip Bonds & Yield Tokenisation work?👇🧵
The concept of Yield Tokenisation is derived from Stripped Bonds, largely similar.
In this thread, I will cover:
1️⃣ What are Strip Bonds?
2️⃣ What is Yield Tokenisation?
3️⃣ How they are similar/different?
4️⃣ What is @timeless_fi's and its 3 key products
1️⃣ What are Strip Bonds?
Strip Bonds are also known as Zero Coupon Bonds.
A strip bond has its coupons and principal stripped off and sold separately to investors as new securities.
Coupons are stripped from the bond. Principal is the stripped bond.
- Macro market resemble 2019
- Delphi’s report insights, strategies on how to trade narratives
- Concentrator flywheel could be one to watch
- List of alpha hunters and tools
- SBF in jail, Genesis selling, FUD around Binance
1. Macro @QCPCapital shares crypto alongside macro outlook @karl_0x thinks its a bull trap, while @KSBISTSR believes it isn’t. @financialjuice shares that ECB will hike rates by 50BPS @Cryptovoxam prefers to hold $ETH over $BTC @rektdiomedes updates portfolio and shares outlook
Interest Rate Swaps (IRS) is derivative that has a $450T market size in TradFi.
@ipor_io saw this market opportunity and brings IRS on-chain through its 3 innovative products.
How can you participate in this on-chain IRS market? Breaking it down based on use cases 👇🧵
@ipor_io Its good to have some understanding of what IRS is and how @ipor_io's brings innovation through its 3 products.
- IPOR Index
- IPOR AMM
- Asset Management
Which I have talked about in my previous thread here:
IPOR rates, analogous to LIBOR, are freely available on IPOR.io reflecting the benchmark interest rates in DeFi. Being open source allow others to integrate into their smart contracts..
Thus, a DeFi user can use IPOR to:
1️⃣ Hedge
2️⃣ Arbitrage
3️⃣ Speculate