GM, this is your Daily Bolt briefing.
While prices may not yet reflect it, it’s an exciting time for numerous projects across the crypto ecosystem. In today’s edition, we’re keeping you up to date on a couple of key initiatives in crypto, including:
Swell Network Founder Daniel discusses his protocol’s unique approach to LSD liquidity bootstrapping. Learn how early supporters are being rewarded.
Trader Joe is integrating with Savvy DeFi to bring capital efficient borrowing to Arbitrum.
Stay sharp in the markets.⬇️
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1/ Blocmates - Swell Network, Earn Ethereum ETH LSD Yield
Preview: In this episode of blocmates, Jedi from blocmates hosted Daniel from Swell Network to discuss Swell's strategies, auditing process, token launch strategy, and more! Click here to listen to the full episode (49 mins).
Read our Note (9 mins) and save 40 mins.
Here are some key takeaways:
Swell Network is a permissionless, non-custodial, and liquid ETH staking protocol that is built for stakers, node operators, and the Ethereum ecosystem.
Jedi says he likes how Swell focuses on communities and acknowledges that Swell is doing well in Asia. He wants to know more about their strategy and how they became successful in Asia.
Daniel explains that Swell operates as a DAO and bases its function on a global, inclusive community, interested in Ethereum liquid staking. The vision is to create a protocol owned, directed, and governed by the community serving the wider Ethereum ecosystem. He sees DeFi as a community that is passionate about open finance, self-sovereignty, and privacy.
Jedi asks Daniel about Swell's strategies to compete with Lido and the possibility of reinvention. Daniel says that a large portion of ETH (80%) remains unstaked, suggesting a vast untapped market. Their approach involves enhancing user experience and offering distinctive features. Their goals include enabling users to compound their yield within a single dApp, innovating LSD tokenomics, and exploring new distribution methods.
Jedi asks Daniel about Swell’s functionality to onboard directly through the website with Apple Pay and Google Pay and how they accomplished this. Daniel sees this as a move towards inclusivity and making liquid staking accessible to as many people as possible. Their ethos is about implementing an easy-to-use fiat-crypto on-Ramp within the same dApp, and they've been very intentional about these design decisions.
Jedi asks Daniel about the launch of their token, their initiative "Voyage", and its implications. Daniel plans to reward early participants of their protocol with the governance token upon its launch. The initiative, Voyage, offers a fun and story-driven approach for people to engage. By participating in Swell's activities, users can earn pearls, which will be converted to Swell at launch. Over 6,000 stakers have already joined the successful initiative.
Jedi asks why Swell offers better returns versus the competition like Lido. Daniel sees liquid staking as a commoditized field, as numerous entities offer access to Ethereum PoS staking yield. Their priority is enabling flexible utilization of SWETH across strategies, rewarding initial stakers with convertible pearls, and joining a promising protocol.
2/ Trader Joe - Intro to Savvy DeFi and Integration with Trader Joe
Preview: In Trader Joe's Discord call, Blue from Trader Joe, Roman, and Alex from Savvy DeFi discuss Savvy’s integration to Trader Joe, strategies that can be implemented through Savvy, and more.
Read our Note (6 mins) and save 38 mins.
Here are some key takeaways:
Savvy DeFi is DeFi protocol that enables self-repaying and non-liquidating loans.
Alex says that Savvy DeFi is a decentralized finance protocol that allows users to deposit assets, borrow against them without the risk of liquidation, and use the borrowed assets to provide liquidity or engage in other DeFi strategies.
He adds that Savvy is also designed to be capital efficient. This means that it allows users to take full advantage of their assets. Allowing users to borrow against their assets enables them to use the same assets in multiple ways at the same time, thereby increasing their potential returns.
Alex says that Savvy's integration with Trader Joe means that users can use the assets they've borrowed from Savvy to provide liquidity on Trader Joe and earn rewards.
The available pools are svBTC-WBTC, svUSD-USDC, and svETH-WETH.
Alex adds that by providing liquidity, users earn rewards. These rewards come in the form of trading fees from the trades that happen in the SVY pool. The fees are distributed proportionally to the liquidity providers based on their share of the pool.
Alex adds that the integration also involves the use of synthetically tied tokens. These are tokens that are designed to track the value of another asset. In this context, users can pair a stablecoin like USDC with a synthetically tied token to provide liquidity. This can help to reduce the risk of impermanent loss, which is a risk associated with providing liquidity.
Blue says that Auto Pools are a type of liquidity pool that aims to optimize the use of deposited assets. In a traditional liquidity pool, assets are deposited and then used for trading, with the liquidity providers earning a share of the trading fees.
However, he adds that these assets are often not used to their full potential. Auto Pools aim to change this by using smart contracts to automatically employ strategies that can maximize the returns from these assets.
Savvy team shares a marketing program called “Market Making Boost”. Roman says that eligible users can mint the NFT and enjoy boosted rewards for participating in Savvy’s market-making campaign with Trader Joe. He says that only Savvy Discord OG’s, Savvys’ fair launch participants, and mentioned token holders can participate.
Bear market is when you learn... Bull market is when you prosper
Want to know the ins and outs of crypto from a true insider?
Launchy is a builder-investor focused newsletter where they cover the latest web3 products, strategies and trends.
They also provide their personal takes as a builder/investor on current news, regulations, deals - all in just a 5 minute read.
Join 7000+ leading builders and investors reading Launchy
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