“These products may revive interest in the famed “cash and carry” arbitrage strategy, which in turn would bring more buying pressure to the spot market.
Assuming Wall Street embraces these ETFs, the futures premium, or the spread between futures prices and spot prices, would rise significantly, boosting yields from cash and carry strategy, which involves buying the asset in the spot market and simultaneously selling futures contracts. Carry trades are direction-neutral and profit from an eventual convergence of the two prices.
If the futures ETF comes out, there will be more inflows into buying futures. That would drive the futures curve further into contango [a situation where the futures contracts trade at a premium to the spot price], offering a strong incentive to carry traders. They would start the trade by buying BTC in the spot market.
A ‘risk-free’ rate [cash and carry yield] of 10-20% could be the new norm.”
See Also: Bitcoin’s First ETF: Winners and Losers
“[Ethereum] client teams met face to face last week (analogous to the Eth2 Interop from 2019) for a workshop named Amphora 🏺.
Milestone 5 required client teams to start a devnet that would not only run through the entire transition with all client combinations, but that would persist beyond the Amphora event. On the last day of the workshop, M5 was hit: a network of 10,000 validators across 100 nodes and several client implementations launched under PoW, reached the TERMINAL_TOTAL_DIFFICULTY, transitioned to PoS, and successfully finalized the chain 🎉!
Amphora’s success provides great momentum for The Merge. Client teams now have a clear list of tasks they need to work toward. Yesterday, a more stable version of the M5 Amphora devnet, Pithos, was launched. Now that this network is live, expect public calls exploring how developer tools and other core Ethereum infrastructure can best prepare for the PoW to PoS transition.”
“In the past, it was necessary to switch to ZK languages in order to take advantage of the unmatched scaling, security, and UX benefits of zero knowledge proofs. But this is no longer the case: after many R&D breakthroughs, the innovations that make the zkEVM possible have elevated Solidity to a first class citizen in the ZK Rollup universe.
Developing on zkSync will feel natural and familiar, with Solidity, Web3 API, Ethers SDK, and native Ethereum signatures. And audited codebases battle tested on Ethereum will be as secure on zkSync as they are on mainnet.
We are tremendously excited today to present a fully functional dApp with Solidity smart contracts and a Web3 frontend! Try out UniSync, our port of the Uniswap V2 smart contracts and frontend.”
See Also: Argent + zkSync: A Peer-to-Peer Electronic Cash System Dream Comes to Life
See Also: PoolTogether Launches v4: More Prizes, Better Odds and Aggregated Liquidity
See Also: Futureswap V4 Mainnet Beta Launch
“While DeFi 2.0’s meaning is still congealing, a core component of DeFi’s next evolution includes alternatives to a mainstay of DeFi 1.0: liquidity mining. Projects like OlympusDAO, Fei Protocol, and Alchemix, are all experimenting with new ways of capturing users with the new challenge of getting them to stay.
The new crop of DeFi projects centers around the idea called protocol controlled liquidity (PCV). This entails projects acquiring funds to support their financial applications, rather than tapping users’ funds by enticing them with liquidity mining rewards.
The problem is that protocols are watering down their token’s supply in exchange for capital deposits, which are often temporary. So people come in, lend their assets to the protocol while milking its rewards, then leave with both the assets and rewards, leaving the protocol high and dry.
There’s a swath of projects eschewing liquidity mining and experimenting with alternatives. OlympusDAO sells its token at a discount in exchange for tokens like DAI, but also liquidity provider (LP) tokens which include OHM. This system has allowed Olympus to own its own liquidity. OlympusDAO’s stats page says the protocol owns over 99% of the OHM-DAI liquidity. And that liquidity isn’t going anywhere because Olympus itself owns it.
Protocol controlled value brings sustainability so you can maintain the growth you had without hollowing out the community. The move in DeFi 2.0 is for protocols to own their own liquidity. This contrasts to ‘DeFi 1.0’ where protocols earned TVL by providing the best user experience or rented liquidity via liquidity incentives.”
“Even though, for now, speculation appears to be the biggest use case for NFTs, they offer something far bigger: the foundation for a new digital economy.
People ask, “Why on Earth would someone pay millions of dollars for a JPEG that I can simply ‘right-click/save’ to my hard drive?” The problem with that statement is it confuses possession of a digital file with rights to the artwork or information contained within it. It’s the latter that NFTs offer, creating provably scarce digital markers of value and providing a vital building block for a better system of rights enforcement.
For the longest time, you couldn’t transfer those rights to anyone else. As social media took off, as everyone became a creator of “user-generated content,” Facebook, Twitter and other platforms used that principle to their advantage. Their terms and service essentially required users to sign away their copyright, allowing their content to be shared, retweeted and repurposed within the platform without restriction.
This generated a massive network effect for the most successful platforms because they became the primary source of information for the general public. Control over market data for creative content was now in the hands of Facebook, Google, Twitter and Amazon, not the creators.
By establishing provably unique, scarce digital markers for the first time, NFTs are a game-changer. They will ultimately allow the creator – and all owners of property that can be expressed in digital form – to reassert their property rights, recovering a power that was lost, or at least severely deprecated, in the Internet 2.0 era. It’s a means to restore a direct relationship with their audience.
It means individual creators and anyone who owns any digital asset – including a digital record of their genome – can now tap the value-creating power of software, exploit the global reach of the internet, and mine the data that it produces.
This is what the platforms have been doing for decades to create their monopolies. It will now come available to individuals. This is why NFTs are so revolutionary.”
“Some of crypto’s rarest and largest ocean dwellers are quickly becoming endangered this year. As of today, the number of Bitcoin addresses holding 1,000 Bitcoins or more is at a record low of 82. [However], the data highlights that mid-tier Bitcoin whales have been on the rise since early September.
The number of addresses holding 100 to 1,000 BTC has increased significantly in the past five weeks.
Perhaps the colossal Bitcoin humpbacks of old are a dying breed, but recent developments suggest that smaller whales are multiplying.”
“Bakkt Holdings, the digital assets management arm of Intercontinental Exchange (ICE), has announced it will soon become a publicly traded company on the New York Stock Exchange, starting Oct. 18. The public listing for Bakkt comes as a result of a merger with VPC Impact Acquisition Holdings, a Chicago-based special purpose acquisition company.
The combined company’s Class A common stock and warrants are expected to begin trading on the New York Stock Exchange (“NYSE”) under the ticker symbols “BKKT” and “BKKT WS” respectively.
Additionally, the business combination resulted in gross proceeds of approximately $448 million to Bakkt, which it plans to reinvest in growing the company’s capabilities and partnerships.”
“El Salvador’s mainstream Bitcoin (BTC) adoption is gaining momentum during the ongoing bull run as citizens are increasingly exchanging their U.S. dollar savings for BTC.
President Bukele further stated that Chivo has reported 24,076 remittance requests, ‘adding up to $3,069,761.05 in one day.'”