What You Need to Know About Lyra's Newport Upgrade
Brian Armstrong on Coinbase Listing Process | What to Expect From Sei Network
GM, this is your Daily Bolt briefing.
In today’s edition, we’re keeping you up to date on three key top topics in crypto, including:
Coinbase CEO Brian Armstrong discusses Coinbase’s token listing process and the difficulties the company has had communicating with SEC head Gary Gensler.
Lyra Protocol team members discuss Lyra’s Newport Release, how it optimizes options trading, and integrates Synthetix liquidity.
Sei Network team members discuss adoption catalysts for the broader crypto market and how Sei is building infrastructure around innovation.
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Stay alert, stay informed.⬇️
1/ Wall Street Journal - Crypto Regulations in the U.S. and Coinbase
Preview: In this episode of Wall Street Journal, Charles Forelle and Brian Armstrong discuss the regulation of cryptocurrencies, Coinbase’s legal crypto analysis, and the future of regulations. Click here to listen to the full episode (28 mins).
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Here are some key takeaways:
He points out that there is an ongoing debate over whether cryptocurrencies should be classified as securities or commodities. This lack of clear classification creates uncertainty for businesses operating in the cryptocurrency space.
Armstrong says that before listing any cryptocurrency on its platform, Coinbase conducts an extensive legal analysis of the asset. This analysis is designed to determine whether the asset should be classified as a commodity or a security.
Armstrong says that for every asset Coinbase has listed, they felt there was a strong argument that it was a commodity, not a security.
He says that Coinbase has rejected 90% of the assets it has reviewed. This suggests that the company has a rigorous selection process and only lists assets that it believes are commodities and thus can be legally traded on its platform.
Armstrong says that Coinbase has shared its internal framework for determining whether an asset is a commodity or a security with the SEC. This was done before Coinbase went public, and Armstrong states that the SEC has been aware of Coinbase's approach for many years.
Armstrong says that he has had difficulty in arranging a meeting with the SEC Chair, Gary Gensler. Despite making several attempts to meet with him, Armstrong has only been able to meet with him virtually.
Armstrong says that the majority of Coinbase's revenue from trading comes from BTC and ETH. These two cryptocurrencies are the most widely traded and have the largest market capitalizations, making them significant contributors to Coinbase's revenue.
Armstrong says that almost 50% of Coinbase's revenue comes from non-trading fees. This could include fees from other services that Coinbase offers, such as custody services, earning interest on crypto holdings, and other premium features.
Armstrong also talks about the revenue that Coinbase generates outside of the United States. He says that this highlights the global nature of the cryptocurrency market and Coinbase's international presence.
2/ Synthetix Twitter Spaces: Lyra Newport Release & On-Chain Options
Preview: In this Synthetix Spartan Twitter Spaces, Matt, Mr. Mojo, and Westie from Synthetix hosted Nick and Cody from Lyra to discuss the Lyra Newport Release, On-Chain Options, and more! Click here to listen to the full episode (45 mins).
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Here are some key takeaways:
Nick explains that Lyra’s Newport Release offers a comprehensive on-chain options trading package, and highlights its integration with Synthetix liquidity, which facilitates delta hedge options at lower fees.
Nick mentions that Lyra’s Newport Release provides two-way markets for various assets and helps to discover prices for options on assets that haven't previously traded options.
Nick highlights the adaptability of the new release and its support by Synthetix's flexible liquidity for a range of around 40 assets. He mentions that ETH, BTC, ARB, and OP options are live (on Optimism) and can be traded via the Lyra protocol.
Nick says that fees on the Lyra protocol dropped by about 60% compared to before, making the markets tighter for big cryptocurrencies like ETH and BTC. This decrease in price differences is positive because it encourages more frequent trading and generates higher fees. In contrast, wider markets with significant price gaps discourage trading.
Another big advantage he mentions is the option to provide liquidity and trade using USDC, a widely adopted cryptocurrency in the DeFi world. He believes that this offers a larger pool of potential liquidity providers and traders, thereby increasing market activity.
Mojo adds Kwenta, GMX, Brahma, and DeDeLend as other projects integrating with Lyra.
Mojo asks about Lyra's recently revamped trading rewards program, Cody explains that Lyra's rewards program operates on a tiered multiplier system based on staking Lyra tokens LYRA (for instance, staking 1000 $LYRA gives a 1.2x multiplier on the rewards, while staking 250K $LYRA earns a 2.5x multiplier).
3/ Sei India Twitter Space - Sei Insights & Alpha
Preview: In this Sei Twitter Spaces, Totoro from Sei India hosts Phillip from Sei Labs to discuss Sei Labs, Macro trends, and more. Click here to listen to the full episode (28 mins).
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Here are some key takeaways:
Phillip says that crypto has been in a bear market for some time but mentions that they are preparing for the next wave of adoption. He highlights the need for infrastructure to support these trends, indicating that Sei is less concerned about the macro conditions and more focused on achieving its own set goals.
Phillip believes it's a pivotal time for the industry and Web3 in general, as it's a time when developers can improve their products and prepare for the next huge wave of adoption, which he expects will come from NFTs and GameFi.
Phillip discusses Sei's focus on scalability, which was a driving factor in its creation. He believes that for mainstream adoption of crypto and Web3, infrastructure that can scale with the industry is crucial.
He says that Sei is working on providing the best possible trading experience, ensuring that applications can process transactions efficiently and quickly. Phillip predicts a trend towards more streamlined processes and user experiences in the Web3 space.
Phillip is excited about the GameFi ecosystem on Sei. He also points out various DeFi projects that are generating excitement, such as Levana and Sparrowswap.
Phillip mentions that some protocols are live on testnet, urging people to explore them before the mainnet launch.
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