GM, this is your Daily Bolt briefing.
In today’s edition, we’re keeping you up to speed on two interesting DeFi developments:
GMX V2, the highly anticipated protocol upgrade which plans to improve the platform’s performance and bring new tradable assets to the table.
Extra Finance, an Optimism-based leveraged yield farming protocol with some interesting features and tokenomics designs planned.
Over and out.⬇️
1/ The OPtimistic Podcast – Introduction To Extra Finance
Preview: In this episode of the OPtimistic Podcast which took place on June 5th, Subli invites E8 to discuss Extra Finance, the advantages of Extra Finance, leveraged yield farming, and future plans. Click here to listen to the full episode (46 mins).
Read our Note (5 mins) and save 41 mins.
Here are some key takeaways:
Extra Finance is a leveraged yield farming and lending protocol built on Optimism.
It enables users to engage in leveraged yield farming. It's designed to be user-friendly and aims to provide high capital efficiency and utilization rates.
E8 says that in traditional finance, capital efficiency refers to how well a company uses its financial resources to generate profits. He says that in the context of DeFi and Extra Finance, it refers to how effectively the protocol uses the assets in its lending pool to generate returns for its users. He says that high utilization rates mean that a large portion of the assets in the lending pool are being used at any given time, which can lead to higher returns for users.
He says that Extra Finance plans to introduce its tokenomics and launch its tokens in the summer.
He adds that Extra Finance plans to integrate concentrated liquidity pools. He says that this is a feature that allows liquidity providers to specify a price range for their assets, which can lead to more efficient use of capital and potentially higher returns.
He says that Extra Finance aims to provide more one-click yield farming templates. These templates would make it easier for users to set up yield farming positions, potentially attracting more users to the platform. He also says that Extra Finance plans to give professional users more flexibility to customize their strategies. This could include features like setting up stop losses and profit positions, setting time-sensitive parameters, or setting price-triggered actions.
E8 says Extra Finance plans to introduce tools that allow users to simulate and calculate their potential returns. This would give users a better understanding of their potential earnings before they commit their funds.
He believes that one of the most exciting plans for Extra Finance is the introduction of social farming. This feature would allow users to post their yield farming strategies on the platform, and other users could follow these strategies. E8 believes that this could potentially create a more collaborative and interactive community within the Extra Finance ecosystem.
E8 says that Extra Finance is currently running a campaign for their beta version. As part of this campaign, they are sending airdrops to users based on their Total Value Locked (TVL) contributions. TVL is a measure of the total assets deposited in the protocol. By rewarding users based on their TVL contributions, Extra Finance is incentivizing users to deposit more assets into the protocol.
2/ Dopex - Latest News from GMX and GMX V2
Preview: In this Twitter Spaces hosted by Dopex, Fredeagar from GMX discusses the GMX protocol and its latest upgrade to GMX V2. Click here to listen to the full episode (58 mins).
Read our Note (5 mins) and save 53 mins.
Here are some key takeaways:
GMX is a decentralized perpetual exchange that allows the trading of BTC,ETH, AVAX, and more with up to 50x leverage.
GMX is currently rolling out GMX V2, which will have some interesting features and changes.
Fredeagar acknowledges that the current GMX system has encountered some challenges due to its rapid growth.
He mentions that there tends to be a skew in the open interest, with a significant skew in the long direction versus the short. This is something they intend to address in GMX V2.
Fredeagar explains that the imbalance in open interest makes it harder to automate the amount of trading capacity available.
He also mentions that the growth of GMX and the rise in demand have resulted in situations where a few large whales take up all available liquidity to be traded. They also intend to address GMX V2.
Fredeagar mentions that there have been discussions amongst contributors and the community about adding more tradable assets to GMX, which could tap into more volume and therefore more fees.
Fredeagar says that GMX V2 will have isolated markets, allowing users to trade on margin without affecting other markets. He explains that users could deposit any amount of any token and receive GMX tokens in return. This is unique from traditional liquidity provision in platforms like Uniswap or Sushiswap, where liquidity is provided on a paired basis (e.g., 50% ETH and 50% USDT).
He mentions the use of Chainlink oracles for price feeds in GMX V2, including the development of low-latency price feeds for more frequent on-chain updates.
He says that there are future plans for GMX, including the possibility of allowing community members to launch tradable markets as long as there's a Chainlink price feed. He says that this would potentially increase the variety of tradable assets on the platform.
He talks about the fee structure in GMX V2, where 60% of fees generated from trading volume go to stakers and the remaining 40% go to GMX stakers and to Chainlink for Oracle development.
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