What You Need to Know About Dopex x Liquity
Liquity $LUSD Partnership | Colony & Avalanche Ecosystem Performance
GM, this is your Daily Bolt briefing.
In this edition, we’ll be giving you the latest around Dopex, including their upcoming V2, treasury adoption of Liquity’s LUSD, and more. We’ve also included notes on Colony, an Avalanche ecosystem accelerator that allows users to invest in seed and private deals. It pays to stay up to date on the different ecosystems in crypto and DeFi…
Also, yesterday we hosted our 1st live episode of What’s On Our Mind, ft. Nick Drakon and Souvlaki of Revelo Intel. Topics discussed include what business Arkham Intel is actually in, the implications of a BlackRock Bitcoin ETF, and Pendle’s strong performance and expansion to BNB Chain with Thena. If you couldn’t tune in, watch the recording here.
Stay alert, stay informed ⬇️
1/ Liquity - The Partnership Between Dopex and Liquity
Preview: Saitama and Sam talk about Liquity and Dopex, and Saitama shares the latest developments from Dopex. Click here to listen to the full episode (37 mins).
Read our Note (5 mins) and save 32 mins.
Here are some key takeaways:
Liquity is a stablecoin protocol that allows you loans against ETH to borrow LUSD
Saitama says that the treasury diversification decision by Dopex was made because it seemed unfair for users to deposit 100% of their tokens into the far out-of-the-money call option to receive the same rewards as others.
He says that the decision to diversify the treasury was influenced by the trust in the Liquity platform and the need for diversification, especially considering the uncertainties in the crypto market.
He says that LUSD has been one of the most stable stablecoins, and the fact that it’s less in the news is a positive sign.
He says that there are issues with other stablecoins like USDT and USDC, including FUD about being fully backed and the ability to blacklist portfolios. These issues have led to a preference for $LUSD, which is seen as a more reliable and stable option for a stablecoin.
Dopex is a decentralized options protocol that allows users to trade any type of options
He says that one of the challenges in options trading is the problem of fragmentation.
He says Dopex's Single-Sided Option Vaults (SSOV) model aims to address this issue by concentrating liquidity in four strikes, thereby creating a more efficient and user-friendly platform for trading options.
Saitama says that in the new incentive distribution model in Dopex, the closer a user is to being “in the money” with their options, the more tokens they are offered.
He says that when users’ positions are “out of the money", the more they are compensated with call options. This model incentivizes users to strategize on how they want to position themselves for the next epoch.
He says that this model is spreading throughout DeFi, with other protocols like Premia, and TapiocaDAO implementing similar models.
He says that there are several potential use cases for the new incentive model, including using call options for bribes or curve model and using call options for airdrops to prevent immediate dumping of tokens.
Saitama says that Dopex v2 has not been officially announced yet, but there have been a few leaks.
He expresses his excitement for the new version, stating that it will change the options game completely.
Saitama says that Dopex has moved to Polygon and is still expanding there.
He says that Dopex is actively looking to grow and reach more users by expanding to other blockchains or layer-2 solutions.
2/ DeFi Insider - Colony and The State of Avalanche Ecosystem
Preview: Elie from the Colony team discusses Colony, its role in the Avalanche ecosystem, future plans, new features, and Avalanche. Click here to listen to the full episode (69 mins).
Read our Note (6 mins) and save 63 mins.
Here are some key takeaways:
Colony is a community-driven accelerator on Avalanche that finances many projects in the ecosystem and is the creator of the CAI index token.
Elie says that Colony has been investing in private sales for about two years. This has been a significant part of their operations. He describes Colony’s role as a VC/Hedge fund type of business.
He says that Colony claims on the vesting contract of the project that they have invested when these projects go live.
He says that they have been doing Dollar-Cost Averaging on AVAX with their large treasury.
Elie says that Colony has built a new feature, which allows people to invest in seed and private sales with their own capital. He says that this is a significant shift from the traditional model where investments are made on behalf of the community. He says that Colony is the first protocol to have built something like this in crypto.
He says that Colony is making the primary market liquid and transparent. This is a key goal of the new feature, aiming to improve market efficiency and transparency.
Elie says that we are already in a multi-chain future with many chains and layer-2 solutions available.
He highlights Avalanche's unique value proposition in this multichain world, which is the ability for its subnets to communicate with each other.
He says that Avalanche can do more to support DeFi protocols, such as providing liquidity to help bootstrap new protocols.
He says that he's been impressed with the innovation in the area of concentrated liquidity of Trader Joe.
He says the recent launch of Delta Prime is an impressive development in the DeFi space on Avalanche.
He says that Colony provided $1 million in TVL to Delta Prime, which helped bootstrap the protocol and led to significant growth.
If you read these 2 Notes on Revelo Intel you would have saved: 1 hour and 35 minutes!