GM, this is your Daily Bolt briefing.
Missed our 1st What’s On Our Mind live show? If so, we’ve got you covered: in this edition, we’ve included notes from our 1st ever live show. We’ve also made sure to include some important insights into Sommelier Finance, and how they’re integrating Fraxlend strategies into their yield vaults.
Also; don’t miss our 1st episode of Metrics Matter LIVE on Tuesdays at 11AM EST, featuring Souvlaki and Nick Drakon. Previously, this was a private workshop available only for premium members… Tune in to learn about the DEX landscape and capital efficiency.
Over and out ⬇️
1/ Revelo Intel - What's On Our Minds Ep. 1
Preview: Nick and Souvlaki discuss the recent controversy around Arkham Intelligence, BTC ETFs, Blackrock, Pendle, and Fantom. Click here to listen to the full episode (88 mins).
Read our Note (14 mins) and save 74 mins.
Here are some key takeaways:
Nick says that drawing inspiration from Peter Thiel's early investment in Facebook, he suggests that Arkham Intelligence may have a similar potential for monetizing data.
He thinks that if Arkham can track on-chain activities and gather additional data points from human inputs, they could create a comprehensive profile linking wallets to email addresses, social media profiles, and other web activities. With this data, Arkham could potentially build an ad platform allowing businesses to target specific wallets and individuals based on their characteristics.
Nick compares Arkham Intelligence to Fiverr but for on-chain sleuthing, which they believe does not justify a $150 million valuation pre-product.
Nick says that Larry Fink's positive comments about BTC being an interesting asset class are not as bullish as people think, it should be viewed in the context of BlackRock's business interests. It is important to note that his statements do not necessarily indicate personal bullishness towards BTC but rather highlight potential business opportunities for BlackRock.
Souvlaki acknowledges the importance of the narrative shift regarding cryptocurrency being seen as a potential asset class. Previously, there was a negative perception that crypto was only used for illegal activities, but now it is gaining legitimacy.
Souvlaki thinks that approval of BTC ETF by regulatory authorities adds more legitimacy to the industry. The approval of one ETF may lead to more requests for other derivatives of Bitcoin or even other cryptocurrencies like ETH.
Souvlaki says that Pendle has had a successful month, with a partnership with BNB Chain and attracting $4.5 million of TVL on BNB Chain.
He adds that Pendle is gaining positive sentiment due to its unique product offering, allowing users to trade and leverage their yield. Pendle has already gained market share in the yield sector, competing with dominant players like Convex and Aura.
He adds that Pendle's popularity can be attributed to its underlying business model and usage, rather than just speculative token price movements.
Nick says that individuals who remained exposed to Fantom and Multichain should reflect on their decision and consider why they stayed in that scenario. It is not surprising that other shady activities are now occurring after this incident.
Nick says that it is not their responsibility to criticize or blame the Fantom Foundation for not taking better actions.
He adds that reflecting on risk management strategies is crucial when faced with such incidents. Many people have lost portfolio value due to these events, highlighting the importance of considering all potential risks.
1/ Flywheel DeFi - Flywheel Pod x Sommelier Finance and Calculator Guy
Preview: DeFi Dave and Kiet host Sunand, Stephen, and Zaki Manian to discuss Sommelier Vaults, Frax, and more! Click here to listen to the full episode (100 mins).
Read our Note (9 mins) and save 91 mins.
Here are some key takeaways:
Sommelier is a protocol built on the Cosmos SDK to maximize interoperability with other blockchains. The platform is a reimagined gateway into interchain DeFi.
Sunand explains that Sommelier Finance aims to make complex financial strategies available to users through a simple interface in the form of vaults. He describes Sommelier as a platform for building the most sophisticated vaults possible in DeFi.
Zaki says that the technologies of Ethereum and Cosmos will increasingly blend until they become almost indistinguishable from each other.
Kiet asks Sunand about how he considered certain mathematical factors such as a threshold for not putting more than 50% of the vault in a single pair. Sunand explains how they optimize yield and manage risk, taking into account liquidity constraints and maintaining a reserve of assets for withdrawals.
Stephen highlights the importance of the reserve and how it is calculated based on depositor size and how long they are bonding for. This allows them to ensure they can meet all possible withdrawal demands.
Zaki provides information about the SOMM token, the staking token of the L1 Sommelier app-chain. He explains that it provides a governance layer over the entire system, with a large portion of the token supply allocated to the community pool for various token incentives.
Frax Finance is a protocol that offers dollar-pegged and non-dollar-pegged stablecoins.
Stephen explains that FRAX is a decentralized stablecoin which he perceives to be crucial for DeFi. He explains how Frax has been reliable through various major events, with its value only affected when USDC's value was affected.
He highlights the potential of the Frax ecosystem from a strategist's perspective, due to elements such as Fraxlend and arbitrage opportunities.
Sunand talks about how the platform has successfully navigated multiple unpredictable events and also brings up the risk inherent to the particular strategy of allocating FRAX to various Fraxlending markets.
Sunand mentions the potential risk of a large FRAX debt repayment and recognizes that it's difficult to quantify such risks.
If you read these 2 Notes on Revelo Intel you would have saved: 2 hours and 45 minutes!