GM, this is your Daily Bolt briefing.
Amidst a positive court ruling that XRP’s public token sale was not a sale of unregistered securities, there are renewed cries for bullishness. Whether you think this is the inception of a new bullrun, or that there is more sluggishness to come in the market, a win is a win. The time to pay attention to the industry’s innovation is now.
In this edition, we’re giving you notes from unshETH’s Twitter space with HMX, a perp trading protocol supporting cross-margin and multi-asset collateral. We’ve also included notes on flatcoins, a type of pseudo-stablecoin that is designed to mitigate deflation and inflation without being pegged to any specific asset.
Stay sharp in the markets ⬇️
1/ HMX AMA with unshETH Twitter Space
Preview: Hippolyta from unshETH hosts Rockman from HMX to discuss HMX, low fees DEX trading, and more! Click here to listen to the full episode (65 mins).
Read our Note (7 mins) and save 58 mins.
Here are some key takeaways:
Rockman, says that HMX is a decentralized perpetual protocol supporting cross-margin collateral and multi-asset collateral, with up to a 1000x leverage across four key asset classes: Forex, Cryptocurrency, Equity, and Commodities.
Rockman lists three pain points HMX aims to solve in the decentralized protocol space.
Firstly, most pool-based perps currently only support a single collateral asset or restrict collateral type. HMX will support multiple assets as collateral, enabling new trading strategies.
Secondly, most pool-based perps only support isolated margin positions, limiting capital efficiency and risk management. HMX will provide cross-margin collateral, allowing users to share margin balances across all their open positions.
Thirdly, many decentralized exchanges charge high fees to compensate LPs for risk and opportunity costs. HMX plans to charge lower fees, supported by their leverage market-making feature.
He also says that HMX is one of the most capital-efficient trading platforms in the decentralized trading space. They have an HLP Vault built on top of GMX's GLP. Users can deposit GLP into HLP, where it earns yields for the depositors.
The launch of HMX will be carried out in four phases.
The first phase is the public open beta, where users can earn rewards in esHMX tokens by becoming beta testers or participating in airdrop campaigns.
The second phase is the HMX token liquidity bootstrapping, where HMX will bootstrap the $HMX token by utilizing a voluntary liquidity bootstrapping pool through Fjord Foundry.
In the third phase, HMX aims to bootstrap the $HLP vault to support its leverage trading feature and reward early adopters with additional incentive rewards in esHMX.
The fourth and final phase is the full-scale launch, where all incentive programs and token emissions will begin.
He adds that to enhance capital efficiency, HMX is exploring the option of allowing yield-bearing tokens such as a token or USH token. This would enable users to earn yields on their deposited collateral while also using them for trading.
Rockman suggests that a potential collaboration between HMX and unshETH could be to list unshETH as collateral on HMX's platform. This would increase the utility of $unshETH and the capital efficiency of traders holding it.
1/ Reserve Protocol - What is a Flatcoin?
Preview: Sinatra, Ameen, Stefan, and Relwyn discuss flatcoins, mechanisms for maintaining its stability, and its future. Click here to listen to the full episode (75 mins).
Read our Note (7 mins) and save 68 mins.
Here are some key takeaways:
Ameen defines a flatcoin as a type of cryptocurrency that is not pegged to a specific asset, such as the US dollar or gold. Instead, a flatcoin is designed to maintain its purchasing power over time. This means that the value of a flatcoin should not be affected by inflation or deflation in the economy. This is in contrast to many traditional cryptocurrencies, whose values can fluctuate wildly from day to day.
Stefan also suggests that a flatcoin should be backed by a basket of assets, which could provide additional stability and reduce the risk of value fluctuations.
Relwyn says that a flatcoin should be a reliable store of value, meaning that people can hold onto it with the expectation that its value will not significantly decrease over time.
Relwyn also talks about the importance of a flatcoin being able to provide stability in the face of economic fluctuations.
He suggests that a flatcoin should be able to adjust its value based on market conditions, which would help it maintain its stability.
Ameen suggests a mechanism where the coin's value is adjusted based on a reference asset, such as the Consumer Price Index (CPI). The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Stefan talks about the idea of using a basket of assets to back the flatcoin. This could include a variety of different assets, such as stocks, bonds, commodities, or other cryptocurrencies. By diversifying the assets that back the flatcoin, the risk of value fluctuations could be reduced.
If you read these 2 Notes on Revelo Intel you would have saved: 2 hours and 6 minutes!