How Can DeFi Prevail After SVB Collapse?
Perpy Finance Upcoming Launch | Avalanche Gaming | Jerome Powell’s Testimony | Silvergate’s Downfall | Valkyrie Investments
GM Intels, this is your Daily Bolt briefing.
In today's briefing, we have intelligence on the ongoing issues plaguing financial institutions worldwide, the potential threats they pose: and the resilience of the cryptocurrency market amidst these challenges.
Additionally, we have updates on Perpy finance's imminent launch, and Avalanche's strategic alliances in the gaming industry. Stay informed, stay alert, and stay ahead of the game. That is all.
Over and out.
Key Discussions Happening Today
1/ blocmates - Introduction of Perpy Finance and Upcoming Launch
Preview: blocmates invites the Perpy Finance team to discuss the product and upcoming launch. Click here to listen to the full episode.
Length: 50 mins | OUR NOTE: 3 mins
Perpy Finance is a decentralized social trading platform that allows traders to monetize their trading skills and investors to profit from trading without trading at all.
The team includes two co-founders who started developing the platform in June 2020 and released the beta web app in November 2020.
The idea for Perpy Finance originated from the founders' desire to get away from scammy copy trading and add a layer of transparency to social trading. They saw the success of Perp and realized there was a market for a similar product.
Traders open a trading vault and trade directly from PRP in the trading enzyme UI and USDC, with investors receiving 90% of the profit.
2/ Coin Bureau - Jerome Powell’s Testimony
Preview: Guy talks about Jerome Powell’s senate testimony, crypto banking, rate hikes, inflation, stablecoins and more. Click here to listen to the full episode.
Length: 25 mins | OUR NOTE: 6 mins
Here are some key takeaways:
The Supreme Court recently accepted a case arguing that the Consumer Financial Protection Bureau or CFPB is unconstitutional because it is funded by the Fed.
It’s possible that the CFPB is behind the ongoing Operation Choke Point 2.0 to de-bank the crypto industry.
Jerome talked about how inflation is well above the 2% target, how the economy is still strong according to unemployment statistics and that this means that the Fed needs to keep raising rates.
3/ Avalanche - In The Lab: Open Forum with Ava Labs
Preview: Nikhil, Nadim Chamoun and Dominic Carbonaro from Avalanche discusses the developments in Avalanche Gaming, NFTs and DeFi. Click here to listen to the full episode.
Length: 59 mins | OUR NOTE: 4 mins
Here are some key takeaways:
Nikhil, one of the team members, shared his excitement about traditional gaming companies showing interest in Web3 and the TSM (a large professional esports organization) partnership.
The partnership is not just a marketing stunt, but that TSM Blitz is actually building a subnet and moving part of its products on-chain.
Avalanche was present at GDC (Game Developers Conference) and Shrapnel's game demo. He mentioned that Shrapnel is a closed-door demo, and that many people outside of Avalanche are also excited to see it.
4/ Unchained Ep. #466 - Arthur Hayes on Crypto Ditching Banks
Preview: Haseeb, Tarun, Robert, and Arthur, talk about the fall and arrest of Sam Bankman-Fried the FTX CEO, and Silvergate’s downfall. Click here to listen to the full episode.
Length: 58 mins | OUR NOTE: 5 min
Here are some key takeaways:
Maelstrom, Arthur’s family office, is a big grandiose term that basically means a pot of money in Crypto.
Their goal is to find early-stage projects that are creating real products that people are going to use in the next two to three years.
Banks don't fail very often, but if one fails due to Crypto, it will look particularly bad.
5/ Real Vision - Valkyrie Investments on Silvergate Capital Liquidation
Preview: Valkyrie Investments CEO Leah Wald and head of research Josh Olszewicz discuss Silvergate Capital’s Liquidation. Click here to listen to the full episode.
Length: 44 mins | OUR NOTE: 4 min
Here are some key takeaways:
Silvergate has announced, "voluntary liquidation of the bank is the best path forward."
Return to "chilly times of 2013" with banks being cautious about opening accounts for crypto companies and innovators struggling to gain access.
Valkyrie Investments has an opportunistic hedge fund which is opportunistic and equities based.
On the Revelo Intel platform, we’ve summarized these 5 episodes and in total, would have saved you: 3 hours and 34 minutes!
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Note of the Day
Frictionless Capital - Resilience of DeFi and SVB Collapse
In this Twitter Spaces, Solana Legend and Logan Jastremski from Frictionless Capital hosts Orca. They discuss about centralization and transparency in finance, the resilience and risks of decentralized finance (DeFi), the collapse of Silicon Valley Bank and its impact, and the sentiment towards Silicon Valley.
Read our notes below to learn more.
Centralization
It is becoming increasingly difficult for crypto institutions in the US to find banks to work with, indicating a trend towards higher levels of centralization within the financial system.
This centralization is seen as a way to regulate the industry more effectively, as it is easier to regulate a few large banks than thousands of mid-size or small-size banks.
However, this can also limit consumer options and increase the risk of systemic failure.
The resilience and risks of DeFi
While DeFi can be more robust due to its peer-to-peer contract system and lack of human bias, it also has unique risks and shocks that are more specific to the platform.
Nevertheless, it is generally seen as a more flexible option for consumers once they have onboarded onto a non-custodial wallet.
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The collapse of Silicon Valley Bank
It got caught off sides due to a misreading of the Fed's guidance on inflation.
This has led to questions about the trustworthiness of banks and whether innovative tech startups and their financial safety can be better served by a system like DeFi.
The sentiment towards Silicon Valley's wealth generation and distribution is also discussed, with some feeling that they have not shared in the wealth created by the tech industry.
Many people blame tech for causing the crisis and that this sentiment has bled down to the average person.
There is a lack of understanding that many people have about what their bank is doing on the back end, and how this relates to the importance of transparency.
The participants discussed the level of trust that people have in banks and how it has been eroded since the 2008 financial crisis.
They noted that the U.S. has a relatively strong banking system compared to other countries, but that there is still mistrust and distrust in banks.
Web3 and its approach to eliminating middlemen
Businesses in the past have disrupted traditional industries by inserting themselves as middlemen and two-sided platforms.
They contrasted this with the approach of Web3, which aims to eliminate middlemen and enable pure peer-to-peer transactions.
Transparency differs web3 from the opaque banking system.
Stablecoins
Stablecoins are one of the best things that have happened to crypto because they are intuitive and enable digital dollars.
The recent incident where USDC was tied up in a failed institution not related to crypto.
Stablecoins offer stability in the volatile cryptocurrency market but also highlighted some of the concerns around their backing and use in risky investment practices.
They also discussed the potential for a digital dollar and the need for a comprehensive regulatory framework in the crypto industry.
Tensor and NFT marketplaces
The speakers discussed the recent success of the Tensor NFT marketplace and the potential for future innovation and competition in the NFT marketplace space.
The NFT marketplace space is maturing and becoming more specialized, with different marketplaces targeting specific subsets of buyers and sellers.
The role of DeFi in the NFT marketplace and the potential for mobile applications to drive future growth.
Future trends
Including the integration of the creator economy and live streaming into NFT marketplaces, the potential for community-specific marketplaces are among the future trends
Also, the use of mobile applications to drive growth.
The cryptocurrency and NFT space is constantly evolving and that new innovations and technologies are emerging all the time.
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