The DeGen Bible to Financial Freedom - Vol.37

Week 1 July -  8 July 2023

The old world is silently crawling back into the new world. See you at ETHCC Paris - Mars Captain

🧠 Observations

• $CNY is witnessing a declining pattern since post-COVID reopening. Why? Well, look at how fast $JPY is being debased and $USD strength up only in the last 8-10 months. This is very interesting, as if you see a Curve LP pool that one token gets dumped hard, while the other one dominance in the pool keeps rising... Captain always says DeFi is a miniature and lightyear faster version of real world finance. Think DeFi will make you understand more the currency war among big economies. Imagine a 3pool of JPY-CNY-USD as if it is a USDT-USDC-DAI one. Now we are seeing USD proportion lowered to 10% while everyone is dumping $CNY and $JPY to the pool. (Maybe $JPY a bit less severe than $CNY.) Not the best analogy, but describes well the tense situation. There is a lot of implications in this, few people know...
• The Multichain drama is nothing new in bridge security issues. Notice that all the layer zero and relayer narrative has replaced the "old-school" cross-chain mechanisms in the past year. The problem here is that the blockchain economy is "built" with different layer ones as if they were countries. Using this analogy, we will always need ships and planes to travel to another one, and traffic accidents are bound to happen. Choose our transport wisely. ($SEAN has Celer Network, the most battle tested bridge in the industry!)
• Looking forward to meeting buidlers in Paname. Liberté, égalité, fraternité.  

💵 Stablecoin & Market Landscape

• Stablecoin market share remains high in reference to the total crypto market capitalization. 10.57% of stablecoin (127B) on 1.21T crypto market.

Reminder: Mid-NOV 2021, this percentage was around 4ish% with a 3T total MC. Now we are at 12ish% with a 1ishT total MC.

• Now at 1.2T.  Still hanging around on the 1T level. Going steady.

Reminder, June and Nov 2022 witnessed a bottom of 800ish B MC vis-a-vis the market’s top in NOV 2021 at 3T.

Infographics

• We don't need to comment on this, we know what's happening...

• It's recovering, and we will need this to reach higher before the altcoin season begins, if the rotation thesis still works.

• TA gurus explain this...
• Captain always thinks a tweet from Elon is worth 1000 hours of TA analysis. I guess in the $COIN scenario, it is still very relevant.

🔢 Index

• The moment this newsletter is published, this index is close to 65. Captain thinks that people shouldn't forget there is high profile potential DCG liquidation on the horizons.

• Captain is bullish, though still in the belief that it needs to go lower before it gets higher to finish 2023.

📰 Current affairs

Starfish Finance:

Chapter 2— Flip Your Zero to Become A Hero

A flip a day keeps the bill away.

MediumStarfish Finance

Prediction Market — The First Game of Starfish’s Entertainment-Fi

Play to earn?

MediumStarfish Finance

Starfish Finance is Live on Arbitrum for its new chapter in Entertainment-Fi

Starfish Finance is listed officially on the Arbitrum portal. https://portal.arbitrum.io/?search=starfish to check out Starfish Finance

MediumStarfish Finance

Starfish Finance II - Attack of the (Dapp) Clones

Far beyond Earth and millions of miles past the moon, there’s a planet where Decentralized Finance (DeFi) and NFT-Fi meet on an interoperable network. First observed in 2022, the world known as “Starfish Planet” is home to degens, hodlers, frens and a starfish named Sean.

CoinDeskCoinDesk Staff

Starfish Finance: A cross-chain DeFi, NFT-finance platform on Astar Network, a Polkadot parachain

Starfish Finance is a pioneer project in the Astar incubation project and the first decentralized finance (DeFi) and nonfungible token (NFT) finance platform on Astar Network.

CointelegraphCointelegraph

BTC

| Greenfield

In this research post, Greenfield highlights the latest Bitcoin and Lightning Network developments: enablers, catalysts, players and outstanding challenges.

GreenfieldMarkus Hujara

New Bitcoin Standard BRC-69 Removes Data Limit for Ordinals - Decrypt

The innovation is “recursive inscriptions,” which extract information from already existing Bitcoin inscriptions to create newer ones.

DecryptPedro Solimano

Now You Can Create Tunes via Bitcoin With an On-Chain Music Engine - Decrypt

By entering a few keywords, anyone—not just the owner of each inscription—can instantly generate a music track.

DecryptDonovan Choy

Lightning Labs Unveils Bitcoin Tools for AI

“We are in the realm of enabling use cases that weren’t previously possible,” Lightning Labs CEO Elizabeth Stark told CoinDesk.

CoinDeskFrederick Munawa

ETH

Does Ethereum Still Have a Cartel? Glassnode Unpacks Skyrocketing Staking - Decrypt

Although Lido suffered a momentary drop in its size following the Shanghai upgrade, it quickly bounced back and hit a new all-time high.

DecryptPedro Solimano

Layer 1s/ Major DeFi

Base, Coinbase’s Ethereum L2, Preps for Launch

Base, an Ethereum L2 blockchain incubated by Coinbase, is preparing for its mainnet launch with a robust security-first approach. Learn more here.

CryptoGlobeSiamak Masnavi

Celsius debtors can swap altcoins for bitcoin and ether starting July 1

A New York court said Celsius debtors can begin cashing out altcoins for bitcoin and ether starting on July 1.

The BlockMK Manoylov

Avalanche On-chain Activity Doubles in 2023

Trader Joe, Stargate and WooFi Drive Growth

The DefiantSamuel Haig

Uniswap v4 expected to go live after Ethereum’s Cancun upgrade and security audit

The Uniswap Foundation indicated a launch projection, contingent on Ethereum’s Cancun upgrade and an audit process.

The BlockVishal Chawla

Multichain issues urgent warning amid $126 million asset outflow

Multichain warned users to refrain from using its services following a $126 million asset outflow involving significant multi-chain assets.

The BlockVishal Chawla

Breaking the DeFi spell: Abracadabra DAO mulls centralized legal entity

Abracadabra DAO has unveiled a proposal for a legal framework to transition from a decentralized to a more centralized structure.

The BlockJames Hunt

Circle Considers Issuing Stablecoin in Japan Under New Rules

Circle CEO Jeremy Allaire expressed interest in partnerships in the country, given that new rules governing stablecoins have come into effect.

CoinDeskLavender Au

Twitter

NFTs

Magic Eden Dives Deeper Into Bitcoin With BRC-20 Tokens - Decrypt

Multi-chain NFT marketplace Magic Eden will support Bitcoin BRC-20 tokens, including new token drops through its launchpad.

DecryptAndré Beganski

DIOR to launch digital twin NFT sneakers - Ledger Insights - blockchain for enterprise

Dior is launching B33 sneakers with blockchain digital twins as NFTs. The main functionality is authenticity and traceability

Ledger Insights - blockchain for enterpriseLedger Insights

Macro econ/ Regulations

Hong Kong urged to issue stablecoin to compete with Tether and USDC

A new policy proposal urges the Hong Kong government to issue a stablecoin pegged to the Hong Kong dollar to compete with USDT and USDC.

The BlockJames Hunt

Research reports/videos (DYOR)

How smart people invest in dumb memecoins: 3-point plan for success

Serious crypto investors think memecoins are stupid. But smart people are making serious money from dumb memecoins. Here’s how.

Cointelegraph MagazineJillian Godsil

Finding Inspiration

Recently, I’ve felt disillusioned with crypto.

‘This Protocol Is Brought to You By’: An Onchain Model for Web3 Advertising

Crypto has always been reluctant to use advertising as a business model. But web3 ads don’t have to mirror their web2 counterparts.

Variant<img width=“600” height=“600″ src=“https://variant.fund/wp-content/uploads/2022/06/Team-Glyph_21.png” alt=”″ /> Mason Nystrom

Subscribe to read | Financial Times

News, analysis and comment from the Financial Times, the worldʼs leading global business publication

Financial Times

The Quantitative Components of Token Value

Building upon Qualitative Components As discussed in Part 1 and Part 2 of our Token Value Series, there are multiple components that make up the perceived value of capital assets. The previous article looked at the qualitative components, which cover the ‘intangible’ aspects of token value. This inc…

Outlier VenturesRobert Mullins