As things get heated up between the SEC and one of crypto's biggest incumbents, trading volume has taken a hit as LPs anxiously await what the following weeks will bring. The dominance of stable pair trading volume says that the market is in a cautious mood, which could create favorable entry points right now.
SAFE/WETH was the only newcomer that surprised us in LP fees.
PoolFish has a summary of all the best LP positions.
Here's a good discussion about why Uniswap frontend and Etherscan sometimes don't display the same tokens in a transfer including fee costs.
This week on the Docket
LPing on Bitcoin
LVR paper by Atis E.
CLAMM on DEGEN L3
DefiPrime Incentives for Arbitrum
The new Bitcoin application layer hype is a bitcoin maximalist's dream come true.
Runes(Thorchain) has been consistently making the most noise and capturing the largest market share of transactions on bitcoin. Runes is a protocol developed by Bitcoin developer Casey Rodarmor, and Runes has captured most of the BTCfi mindshare for now.
For LP positions and keeping up with Runes on ThorChain, check out this page.
Cube.exchange is the Dexcreener/Dextools of the Runes/BRC20 world
Join the Cube Loyalty Program and enjoy exclusive benefits. Earn points and redeem them for rewards.
Some good memecoins on Runes are SATOSHI NAKAMOTO & WANKOMANKO
Ordiswap is supporting Runes, and now with a CL protocol on the way, this could be a great opportunity for LPs to explore the BTC ecosystem.
The DEGEN L3 is still a nascent project but within a small group of enthusiasts, the Degen chain has become the most used L3 EVM chain.
ProxySwap is a new decentralized exchange (DEX) that is built on top of the Uniswap v3 smart contracts. It utilizes the core Uniswap v3 protocol and functionality, which features concentrated liquidity.
Currently there aren't many tokens on the DEX, however their own token $PROXY has been doing well and a managed position could yield good results in the following weeks. There is a vibrant community on DEGEN and ProxySwap is very well received.
This new paper examines the mechanics of CEX/DEX arbitrage trading, particularly focusing on AMMs. It aims to demonstrate the relationships between block times, block base fees, and the different actors involved - liquidity providers (LPs), searchers, and block builders/proposers.
Essentially the EIP1559 is the best defense against LVR and the author tries to dispels the notion that shorter block times would be a worse case scenario for LPs. The impact on LPs depends on factors like liquidity, volatility, and the base fee level.
The paper dives into a lot of examples and give a good idea of of the LVR mechanics that stem DEX designs and is definitely worth a read.
The LTIPP protocol, which stands for the Long-Term Incentive Proposal Program, is a strategic initiative/proposal within the Arbitrum ecosystem aimed at providing long-term incentives to protocols to enhance liquidity depth.
Deltaprime has just been given 750,000 $ARB that they are going to offer to LPs who provide liquidity on Arbitrum.
Out of the 750.000 ARB, only 100.000 ARB will go to those who LP to DeltaPrime. The other 650.000 will go to those who LP to our partners.
On top of this, only borrowed funds will receive incentives.
DeltaPrime allows you to take upto 5x leverage for your positions.
DeltaPrime has a Volume $1B+ till date, Protocol owned Insurance fund reached $1.8M+ and 6000+ total Prime Accounts
For being eligible you would need a Prime account that allows leverage.
You can make one here
If your pool is part of the Prime Account, it is part of this program, and you can route your LP position directly through DeltaPrime.
"You can borrow against this position and play with your price risk: If you only borrow stables, you go leveraged long If you only borrow volatile, you go leveraged short If you borrow exactly your underlying, you reduce price risk. How you borrow matters, but as long as you LP you provide extra value to the chain."
In the exotic pairs category for the ones feeling adventurous.
-- BASE --
WETH/ROCK -- Somehow the TradFi giant is also a giant meme into DeFi world
Base has taken a dip but it's nothing it hasn't ever recovered from and likewise the memecoins would follow.
-- ETHEREUM --
DAI/MKR This has been one of the best performing pools for DAI
--Arbitrum--
Fear and Greed is now lower than last week and the sentiments seem bearish in the short term. It might be good to make your CL position a bit wider to cater to any price swings since the legal carnage between the SEC and crypto could get out of hand.
See you next week LPs!
The Poolfish
Over 6.3k subscribers
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/poolfish newsletter for this week out for LPs! What we covered! - LPing on Bitcoin - LVR paper by @atiselsts - @proxyswap on DEGEN L3 - DefiPrime Incentives for Arbitrum https://paragraph.xyz/@poolfish/lp-fees-in-decline,-lping-with-runes-and-ordiswap,-lvr-paper
98 $degen