The Disrupt Weekend

“Take a dubious tweet about an unconfirmed U.S. investigation of financial institutions using crypto to launder money, a report that doesn’t appear to have come from Bloomberg, Dow Jones, Reuters or any other reputable news service.

Add a new CNBC tweet about a month-old Reuters report regarding a coming crypto ban in India. Next fold in several (now-deleted) tweets that incorrectly implied that the Coinbase CEO had sold the majority of his stock in last week’s direct listing (he only sold 1.5% of his holdings).

Serve to a host of relatively inexperienced investors who’d recently flooded into the market. After feeding that meal of purportedly bad news to that audience, it’d have been shocking if those new crypto investors hadn’t fled the table.

While newbies may have left the table, long-term holders are unlikely to quit, as there have been several 20% drops during the current bull run. Besides, pundits seldom take weekend moves seriously, as liquidity is low, especially in Asia.”

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Currently, there is simultaneously a stablecoin liquidity shortage in DeFi as well as high demand for stablecoins in DeFi protocols to be used for earning rewards or leveraging/borrowing, which creates high interest rates that potentially could have a negative impact on ecosystem growth as a whole.

The D3M is an exploration of an alternative path to bring more liquidity in secondary DAI venues by minting DAI backed by aDAI and depositing it directly in secondary markets to release liquidity shortage pressures.

The D3M module is a potential new tool for the MakerDAO to stabilize DAI peg, increase DAI attractiveness for borrowers and create new pathways of revenues for the MKR ecosystem.

Additionally, the Aave Community is deploying new liquidity pools across various L2/chains, which means more DAI can bridge into pools to transact affordably and in an inclusive manner, while still ensuring the security of the MakerDAO collateral in L1.

Essentially, Aave could become the distributor for DAI on every L2 and empower new growing communities as the need for stablecoin as a medium of exchange grows across all chains and L2s. Working together with the Aave community could position both the MakerDAO and Aave communities uniquely to ensure DAI liquidity across DeFi and decrease the liquidity fractionalization on L2s in mid-term.”

Rollups can only offer a linear increase in throughput — all data still must be propagated to all full nodes. But to bring true scalability, we need an exponential gain in throughput.

That’s why we believe this is such an important breakthrough. We have designed a system with 20,000+ TPS that offers more security than optimistic rollups. More importantly, it is coming to mainnet in 6 months with zkSync 2.0.

Compared to mainnet, optimistic rollups will only offer a ~25x increase in scalability and zkRollups a ~100x increase. Before we know it, we’ll be back to square one: unaffordable gas fees and an Ethereum unaffordable for most normal users.

Crypto is about to go mainstream. And in a world with 3.8 billion smartphones (compared to Metamask’s 3 million monthly active users), we need a 1000x increase to handle what’s coming. This scalability gap is what motivated us to build zkPorter.”

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One of the most popular ways of generating yield in the traditional financial system is through selling call options. By selling a covered call, users can exchange some potential upside in the future for guaranteed yield today. However, the complexity of structuring this strategy in a perpetual way (strike selection, expiry selection, rolling over positions) make it difficult for the average retail investor to participate. Furthermore, structuring a strategy for yourself on-chain will be an extremely gas-intensive endeavour, making it a non-starter for most.

Today we are launching Theta Vaults, a way to earn high yield on ETH through running an automated covered call strategy with one click.”

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“Today we celebrate the launch of MetaMask Institutional (MMI), a product that gives institutional investors access to the over US$43 billion collateral in the DeFi ecosystem. MMI will enable funds to swap tokens, borrow, lend, invest, and interact with DeFi protocols and applications using the familiar MetaMask interface.

These institutional features will enable cryptocurrency funds, family offices, and financial institutions to gain access and exposure to the diverse decentralized finance opportunities that compose Web3.

“MVI is a basket of 15 tokens, designed to capture the trend of entertainment, sports and business shifting to a virtual environment. To kick off the portfolio construction process, we screen for the following token categories on Coingecko: Non-Fungible Tokens, Entertainment, Virtual Reality, Augmented Reality and Music.

The MVI uses a combination of the square root of market cap and liquidity weighting to arrive at the final index weights.”

Coinbase insiders and investors sold about $5 billion in shares in total during the leading cryptocurrency exchange’s first day of trading on the Nasdaq earlier this week. CEO Brian Armstrong sold 749,999 shares in three batches at prices ranging from $381 to $410.40 per for total proceeds of $291.8 million, about 1.5% of his stake.

An important thing to keep in mind is that selling by insiders was sort of the whole point of Coinbase’s direct listing; it’s where the shares were supposed to come from.

Even though a company gains no proceeds from a direct listing, it does benefit in other ways. In addition to allowing insiders to profit, a direct listing is a tremendous PR event and ,more tangibly, vastly broadens the pool of holders while enabling the company to more easily raise capital in the future.”