Crypto Bank Silvergate Announces 'Voluntary Liquidation' (4 minute read)
Silvergate Bank, a crypto-friendly bank, announced it will "voluntarily liquidate" its assets and wind down operations after announcing it would have to delay filing its annual 10-K report due to issues with its independent auditors. Under the wind down, all deposits will be repaid in full, and the bank is exploring ways to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets. The California Department of Financial Protection and Innovation and the White House are monitoring the situation, with the Senate Banking Committee Chairman urging Congress to take action on crypto issues. Silvergate had taken out approximately $4.3 billion in federal loans and will suspend its Silvergate Exchange Network (SEN). It appears to be the first major bank collapse since October 2020, and possibly the largest bank to fail since 2009. |
Crypto Exchange Gemini Denies JPMorgan Chase Ended Banking Relationship (4 minute read)
Crypto exchange Gemini has denied reports that J.P. Morgan Chase has ended their banking relationship, with Gemini saying their relationship remains intact. This comes as on the same day Silvergate Capital announced it was voluntarily liquidating its assets and regulators have told banks to be careful in their dealings with crypto clients. Gemini has cut ties with Silvergate Capital and is rolling out a range of products, including Spark Lend and sEtherDAI. |
Coinbase Announces Wallet-as-a-Service. Now Any Company Can Seamlessly Onboard Their Users to web3 (8 minute read)
Coinbase Wallet-as-a-Service (WaaS) has launched and aims to solve the complex nature of web3 wallets by enabling companies to provide their users with safe, secure, and easy access to web3 wallets. WaaS uses multi-party computation (MPC) cryptographic technology for added security, allowing for self-custody keys to be safe even if a user's device is compromised. Companies such as Moonray, Floor, tokenproof, and thirdweb are partnering with Coinbase to use WaaS in creating web3 experiences accessible to everyone. |
Cat in a Box - From Zero to Hero (3 minute read)
Cat in a Box is a novel Ethereum-based borrowing/lending protocol developed by the founders of Alchemix, where users can deposit stETH and borrow boxETH (a synthetic ETH) with no liquidation penalties, no interest rates, and enjoy a portion of their LIDO staking yields. Borrowers give up the yield on their stETH that is locked by debt, while the yield is redistributed proportionally among the unlocked stETH. Resolvers can repay a portion of the debt of any vault and retrieve an equal amount of their collateral, however they need to pay a fee proportional to the LTV. BoxFEE holders can stake their boxFEE to earn fees on all stETH yields, and users can burn their boxFEE against a portion of boxETH backing. |
Can You Run a Profitable Delta-Neutral Strategy Fully On-Chain Using Perpetuals? (8 minute read)
Perpetual exchanges have been gaining a lot of popularity lately, and understanding how funding rates work is key to taking advantage of delta-neutral strategies to generate risk-adjusted returns. Strategies such as cash and carry, where you buy the spot asset and sell the perpetual future in the same size, and funding rate arbitrage, where you take a long and short perpetual position across different exchanges, can be employed. This article walks through the details of these types of trading strategies and other considerations when dealing with perpetuals. The article also emphasizes that to maximize profits and reduce risks, traders must select the right assets and exchanges, manage leg risks, and consider liquidation and associated trading costs. |
The Ultimate Guide to KAVA (3 minute read)
This thread explains Kava Rise, the first L1 to combine the speed and scalability of Cosmos and the developer support of Ethereum. It also details the network's $165m developer incentive program, which was originally announced as a $750m fund in March 2022 but has sinced collapsed to $165m in the bear market. Kava is comprised of two Co-Chains, with the Kava EVM Co-Chain allowing users access through MetaMask and the Kava Cosmos Co-Chain using Keplr wallet. The KAVA ecosystem includes DEXes, yield aggregators and lending protocols, with $KAVA being the native governance and staking token. |
The Sweet Spot for What Has the Potential to be the Golden Age of Crypto Investing (4 minute read)
Brevan Howard Digital's Peter Johnson argues that even in the face of significant regulatory and market-related headwinds, web3 has become a fundamental technological innovation with growing adoption across many industries, making now an especially attractive time to invest in crypto. Web3 technology is being deployed and achieving significant adoption for non-investment-related use cases such as digital goods (NFTs) for brands, tech platforms, game studios, and stablecoin payments. A lot of this innovation and adoption has occurred over the last 3 years, but valuations have become more attractive over the last 6-12 months. Johnson asserts that we could be entering the sweet spot for investing in crypto as we're coming into a unique cross-section of innovation, adoption, and valuations that we've not yet seen in the space. |
Bitcoin Whales Have Been Swimming in Different Directions (2 minute read)
Whale behavior has been diverging in recent months with smaller whales (those holding 1,000+ BTC) decreasing holdings by 13% since March 2022 and larger whales (those holding over 10,000 BTC) increasing holdings 34%. Smaller whales have shown a remarkable ability to reduce holdings when market conditions are unfavorable, while larger whales' size constrains their ability to react quickly to changing market conditions. Whales tend to buy when prices are low, spurring price and overall valuation upturns; however, these smaller whales have been sending BTC to exchanges recently - a bearish sign. |
MakerDAO Eyes More US Treasury and Bond Investments (2 minute read)
MakerDAO is proposing a plan to increase its investments in US Treasury and bonds by $750 million to $1.25 billion in a proposal by Monetalis CEO Allan Pedersen, taking advantage of the current yield environment and increased revenue. If approved, the asset strategy will be implemented by Sygnum Bank. |
Is Coinbase the Index Fund of Crypto? (6 minute read)
This thread argues that Coinbase is the index fund of crypto, providing users with safety and a way to speculate on the growth of digital currencies as a whole. While shares have been underperforming, the Company has a variety of monetization channels, including stablecoins, staking, trading, and L2s, use cases that span the crypto ecosystem. |
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