The DeGen Bible to Financial Freedom - Vol. 20

The DeGen Bible to Financial Freedom - Vol. 20

Week 10 Feb - 20 Feb 2023

All eyes on Hong Kong?

Do Kwon was right from the very beginning. Decentralised stablecoin is as important as Bitcoin. - Mars Captain

๐Ÿง  Observations

  • Spring time, positive sign on new $ flowing into the market as per stablecoin dominance, not just existing stables swapping risk on assets in the market. ๐Ÿƒ

๐Ÿ’ต Stablecoin & Market Landscape

Stablecoin market share remains EXTREME high in reference to the total crypto market capitalization. 11.57% of stablecoin (137.3B) on 1.18T crypto market. Flattening trend continues

Reminder: Mid-NOV 2021, this percentage was around 4ish% with a 3T total MC. Now we are at 15ish% with a 1ishT total MC.

Total Crypto Market Cap Chart
  • Now at 1.17T. Still hanging around on the 1T level. Stably rising. ๐Ÿ“ˆ
Reminder: June & Nov 2022 witnessed a bottom of 800ish B MC vis-a-vis the marketโ€™s top in NOV 2021 at 3T.

BTC Correlation Matrix
  • The greens here show BTC as an asset class already, regardless of being risk on or risk off. Itโ€™s irreversible. ๐Ÿ†š

๐Ÿ”ข Index

  • Pretty high sentiment in the last three weeks. Market stablises is good, but such a level with so-so price performance. Still not convinced. ๐Ÿค”

  • SEC cracking down, BUSD going south, and we are at 18. Anyways, BTC should show more value in times like this, so I agree. ๐Ÿ‘

๐Ÿ“ฐ Current affairs

Starfish Finance:

Starfish Finance II - Attack of the (Dapp) Clones
Far beyond Earth and millions of miles past the moon, thereโ€™s a planet where Decentralized Finance (DeFi) and NFT-Fi meet on an interoperable network. First observed in 2022, the world known as โ€œStarfish Planetโ€ is home to degens, hodlers, frens and a starfish named Sean.
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.


Ordinal Theory and the Rise of Bitcoin Inscriptions
Recent weeks have seen an very unexpected trend emerge on the Bitcoin network, being the permanent and immutable inscription of data, directly into the Bitcoin blockchain. Data files that have been inscribed range from images, to audio clips, and even a version of the video game Doom. This event haโ€ฆ


Nothing much.

Layer 1s & DeFi:

DeFi Staking Players Soar After Kraken Slapped by SEC - The Defiant
Liquid staking protocols soared Thursday after crypto exchange Kraken settled a lawsuit with the United Statesโ€™ top financial regulator.
Binance Says BUSD โ€˜Funds Are Safuโ€™ but a Regulatory Cloud Is Forming Over the US
February has been a great month for the narrative that cryptoโ€™s natural home is in Asia.
Uniswap Coming to BNB Chain? Governance Says Yes
Despite resistance from venture capitalist firms, Uniswap v3 will be deployed on Binanceโ€™s BNB Chain, using Wormhole as its cross-chain bridge.
Consumer Notice Regarding Paxos-Issued Binance USD
Consumer Alert Notice Regarding Paxos-Issued BUSD Paxos Trust Company (โ€œPaxosโ€) is a limited purpose trust company under the supervision of the New York State Department of Financial Services (โ€œDFSโ€).
Polkadot mulls research into โ€˜token morphismโ€™ amid regulatory crackdown
Polkadot is considering efforts to create guidelines that other projects can use to replicate its reported success in dealing with the SEC.
Flux Finance Enables Borrowing Against Tokenized Treasury Bonds - The Defiant
DeFi Lending Protocol Attracts Over $10M In Stablecoins In Five Days Since Launch
Hayes Shares Why He Loves GMX and Is Bullish on DeFi - The Defiant
Arthur Hayes, the co-founder and onetime CEO of the centralized derivatives exchange BitMEX, believes that both CeFi and DeFi are here to stay, and heโ€™s putting his money where his mouth is.
Tetherโ€™s USDT Gains $1B as Paxos Burns Over $1.8B of Binance USD Stablecoins
The increase comes as BUSD issuer Paxos faces increasing regulatory scrutiny.
Balancer Shakes Off Rivalsโ€™ Shadow With Novel Strategy - The Defiant
In an industry teeming with drama, Balancer has kept its cool.
SEC Sues Terraform Labs, Do Kwon for Misleading Investors on TerraUSD Stablecoin
The collapse of TerraUSD last year led to a wave of bankruptcies in the crypto industry.
Centrifuge Wants To Back Aaveโ€™s GHO Stablecoin With Real-world Assets
Centrifuge is looking to become the real-world asset facilitator for Aaveโ€™s new stablecoin, GHO.
USP Stablecoin Loses Dollar Peg as DeFi Protocol Platypus Suffers $8.5M Attack
The flash loan attack caused Platypus Financeโ€™s native stablecoin to fall to 48 cents from $1. The potential loss is $8.5 million, according to blockchain security firm CertiK.

NFTs & Metaverse:

Punks in the Pompidou: Yuga Labs donates second CryptoPunk in three months
CryptoPunk #110 is the second Punks Legacy Project donation from Yuga Labs.
LACMA Art Museum Acquires NFT Collection With CryptoPunk, Art Blocks - Decrypt
The famed Los Angeles art museum accepted a donated collection of NFTs thatโ€™s potentially worth millions of dollars.

Macro Economy & Regulations:

SEC Hits Kraken With $30 Million Fine, Orders Crypto Exchange to Halt Staking in US - Decrypt
Kraken has agreed to pay the SEC $30 million and halt its staking service for U.S. clients, the SEC announced today.
Bankrupt Genesis Unveils Plan to Pay Back Creditors - Decrypt
Digital Currency Group plans to sell both Genesis Global Holdco and Genesis Global Trading to pay back creditors.
El Salvadorโ€™s bitcoin risks โ€˜have not materialized,โ€™ IMF says
โ€œGiven the legal risks, fiscal fragility and largely speculative nature of crypto markets, the authorities should reconsider their plans,โ€ the IMF said.
No, Hong Kong Wonโ€™t Be Allowing Retail Traders Access to Crypto on June 1
A tweet suggesting the city will make crypto fully legal for all citizens is a misreading of the legislation.

Interesting Tweets:

Research reports/videos (DYOR) :

Terra May Be at Risk Againโ€”But This Time Is Different - Decrypt
Terra Classic, the network born of Terraโ€™s collapse, may be at risk of takeover by a staking service wielding disproportionate power.
2023, the year of tokenized public securities
On Ondo and Backed launch and strategies
On-chain Insights: Stablecoin Trading Volume Dominance in DeFi
Dissecting blockchain data is undeniably the cornerstone of our research to help the community stay in the know in real time and see the future with us. However, one of the current hurdles of on-chain analytics is the required expertise of many blockchains and dedicated time to make sense of the undโ€ฆ
Hong Kong confirms first $100m tokenized green bond - Ledger Insights - blockchain for enterprise
Hong Kong is the first government to issue a tokenized green bond using Goldman Sachs digital assets platform
Japan Embraces Web3 As Global Regulators Grow Wary of Crypto
With tight regulations already in place that helped insulate FTX Japan and its investors from heavy losses, Japan is working on policy and guidelines for stablecoins, NFTs and DAOs as it welcomes a crypto future.
From Degen to Regen: How Web3 Started Playing Positive-Sum Games
Gitcoin founder Kevin Owocki writes about why 2023 is the year of โ€œregenerative cryptoeconomics.โ€