Last month we launched Revelo Ventures which is a syndicate for investing in early-stage private crypto deals. The syndicate has just under 100 members and we completed 3 deals in March for a total of $583,000 invested.
We plan on doing 2-3 deals a month moving forward. Members are not required to do every deal and can pick & choose those that appeal to them.
We just opened the doors of the syndicate to expand membership to 200 participants before closing it again.
Membership is be gated via a NFT which you can mint right now at:
https://ventures.revelointel.com/
If you want to participate in these early-stage private rounds and can invest a minimum of $3,000 to $5,000 per deal, then you should consider joining us in this lucrative asset class.
Now to today’s newsletter - Let’s dive into Pear Protocol which is perps trading venue on Arbitrum focussed on pairs trading.
The concept of pair trading is simple enough to understand - long one token, short another that serves as a competitor, with leverage. This allows users to capitalize more clearly on narratives and trends, which are all too common in crypto. Despite what may seem like a simple and useful concept, pair trading has not received much adoption on CEXs or DEXs alike. Instead, users have to open, maintain, and ultimately close multiple positions to take advantage of certain narratives in an optimal manner. This makes managing and keeping track of a portfolio more difficult and capital inefficient. In addition, these platforms don’t provide any utility for these trading positions.
In this edition, we’ll be briefing you on Pear Protocol, a project working to bring pair perps trading to Arbiturm.
Stay informed, stay alert ⬇
Background on Pear Protocol
Pear Protocol takes a stab at bringing Pair trading to crypto. Like options, pair trading sees quite a bit of use in traditional markets, but not yet in crypto. As more and more activity in the space funnels away from CEXs and onto DEXs, this may bode well for the adoption of pair trading, specifically on Pear Protocol. Pear Protocol stands as the only project trying to solve the problem of pair trading of native crypto assets.
Pear Protocol aims to solve all of the inherent issues with existing pair trading platforms by providing pair trading right on their DEX platform. To date, Pear Protocol has seen nearly $700k in trading volume across 566 trades by 206 unique users. These numbers are expected to ramp up dramatically as the project rolls out of its closed beta status. The private, whitelisted beta has been live on Arbitrum since late last year. Users can currently access isolated and cross-margin with 28 individual assets available to trade; some 756 pairs.
Pear Protocol UI
Pear v2 is planned to be released very soon, which will bring:
Up to 100x leverage
200+ markets offered
A proprietary trading engine utilizing intents-based architecture
Automated Markets for Quotes (AMFQ) using RFQ APIs for deeper liquidity
Also expected to happen soon is the PEAR TGE. The native PEAR token will be used for:
Governance
Vote on New Trading Pairs
Revenue Share for Stakers
Access to Exclusive Trading Content
Discounted Trading Fees & Rebates
The Problem Pear Protocol Solves
Pear Protocol is a DEX dedicated to pair trading, e.g. long $ETH/$SOL if a user thinks $ETH is about to outperform. A user would have to deposit collateral to a CEX or DEX, then use 50% to open a leveraged long $ETH trade, and the remaining 50% to open a mirrored short $SOL leverage trade. This is much more steps that is really required simply due to a lack of CEXs or DEXs providing native pair trading. This situation also creates the possibility of slippage, as the price of the other half of the pair trade may have changed by the time the user finishes opening the first half of the trade.
Another problem with current pair trading possibilities on existing CEXs and DEXs is the cumbersome task of monitoring all of these positions. If a user wants exposure to 3 narratives, this becomes 6 individual positions, with some assets that might be overlapping between separate trades. Users have to manually calculate PNL; the more pair trades a user opens the more this becomes a problem.
Capital inefficiency has been a pain point that DEXs have begun focusing on in crypto, but not when it comes to pair trading. On platforms where cross-margin is not enabled, a user will have to deposit much more collateral for each trade than normal. Pear Protocol not only has cross-margin available, but simplifies the process of opening a trade into 1 click. Another issue addressed by Pear Protocol includes self-custody, which is a benefit most perps-DEXs bring to the table.
Something very unique that Pear Protocol brings to the table is the fact that trading positions are tokenized as NFTs. This unlocks a host of DeFi applications on Arbitrum for pair-specific trading positions never before possible. The main use case that comes to mind is borrowing against the position.
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