$7B MetaMask on Non-EVM Chains

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Good Morning,

The markets are down, but not as bad as I thought it would be (jinx!), especially around conference seasons. FTX is outlining its reboot plan while the markets are preparing for its asset selloff, whereas Binance US just cut off 1/3rd of its staff, as its CEO resigns. We still have some tough times ahead, folks.

In Today's Email:

• What Matters: MetaMask on non-EVM 🦊

• Case Study: FTX sell pressure 📉

• Governance & Features: Synapse interchain network 🌌

NOTEWORTHY READS

• Mike Nueder’s read on two-tiered staking design.

• Packy McCormick’s read on capitalism onchained.

• Visa’s read on Solana.

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WHAT MATTERS

MetaMask Expands Beyond EVM with Snaps

State of play: MetaMask launches a new mechanism called "Snaps", which enables users to choose from a variety of customizations for their browser extension.

• A MetaMask snap is an isolated JavaScript program that customizes the wallet experience with limited capabilities based on user-granted permissions during installation.

• Snaps are software modules that can be incorporated into MetaMask, enabling the wallet's functionality across different blockchain networks.

• One interesting use case is to expand MetaMask’s reach beyond EVM networks.

• For instance, Solflare, a Solana wallet, is launching "Solana Snaps," which will enable MetaMask users to manage their Solana holdings directly from their MetaMask accounts.

• Initially, MetaMask intends to launch more than 34 Snaps, offering a variety of supplementary features.

Why it matters: MetaMask is crypto’s most widely utilized wallet software. Its effort to enable 3rd party architecture that might expand its reach to other non-EVM chains is an intriguing development.

• It’s both a good thing and a bad thing.

• More power will lie in MetaMask’s hands if this becomes a successful rollout, but it would be good overall if it means that everyday users can seamlessly use applications across different blockchains.

For builders and investors: Investors and wallet builders need to assess the impact of this expansion, and re-approach their product theses accordingly.

CASE STUDY

Banana Disastrous Launch

State of play: The much-anticipated launch of Banana Gun's native token BANANA turned disastrous. Banana Gun's official account attributed the issue to an unfixable contract bug, despite undergoing two audits.

• Banana Gun is a prominent and new addition to the Telegram bot trading scene.

• The price of BANANA plummeted from $8.70 to $0.02 within three hours of launch.

• One Twitter user named, @Mister_Ch0c, asserted that OpenAI's chatbot ChatGPT was able to identify the flaw within seconds.

The Banana Gun team presented the "way forward" for users affected by the situation. The initial step involves selling the treasury wallet to deplete the liquidity pool, which will be utilized for a new contract.

• The team stated that they would soon relaunch the token with an airdrop, aiming to compensate unfortunate BANANA investors while subjecting the new contract to an audit.

Our take: In a hype cycle, projects are quick to launch their products without proper operational discipline. This is a classic case of hasty launches combined with a great marketing push that has happened many times in DeFi before, just with different primitives (DEXs, LSDfi, etc.)

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 100 smart crypto investors' wallet addresses 👇

INSIGHTS

Assets with High Sell Pressure Ratios on Potential FTX Liquidation

Messari reported that SOL, APT, and TRX have the highest sell pressure ratios on the potential FTX liquidations.

• FTX holds $720M worth of SOL, 81% of the SOL 7-day volume ratio.

• FTX holds $66M worth of APT, 74% of the APT 7-day volume ratio.

• FTX holds $33M worth of TRX, 12% of the TRX 7-day volume ratio.

FTX possesses a significant percentage of the SOL supply. However, the majority of it remains locked and fully vested until 2028.

FEATURES & GOVERNANCE UPDATE

Synapse Interchain Network

The testnet of the first Optimistic Proof-of-Stake Interchain Network, Synapse Interchain Network, went live on 12 September 2023.

• The Synapse Interchain Network (SIN) enables trustless communication between chains.

• Apps built on SIN have all blockchain data and liquidity immediately accessible, creating a new paradigm for dApps.

• All SIN transactions are optimistically verified, and the full interchain state can be recreated from Ethereum.

Why it matters: Interchain infrastructure will become increasingly more important as dApps realize that they can (and should be) on any chains that provide them with the most users, capital, and incentives.

Other notable feature updates:

• Bumper goes live on the Ethereum mainnet.

• Arrakis LST Vaults goes live.

• SSV Jato V2 Testnet goes live.

• Avalanche Multiswap goes live.

• Raft V2 goes live.

• Liquis goes live.

• Paraswap goes live on Polygon zkEVM.

• Wombat launches Alpha Cross-chain Pools.

• DeFiSaver launches ETH Saver.

• Aave launches Debt Switch.

• Braavos launches multisig on Starknet.

• Gnosis Pay launches the Gnosis Card.

• Valorem launches closed beta.

• Cega launches Eth Stakers Vault.

• Swell integrates with LayerZero.

QUICK BITES & MEME

• FTX plans for a potential reboot.

• Binance US cuts staff, CEO resigns.

• Bitget Establishes a $100M ecosystem fund.

• FTX assets include $1.2B of SOL, Bahamas property.

• Electric Capital filed to raise $300M for a new fund.

• CoinEx exploited for $28M.

• PayPal rolls out a crypto-for-USD conversion service.

• Nasdaq files with SEC for Hashdex mixed ether ETF.

• One Coin Co-Founder sentenced to 20 years and a $300M fine.

• Franklin Templeton files with SEC for spot Bitcoin ETF.

• Coinbase to push for ‘global consensus’ on crypto rules through G20.

• Former Celsius CEO Alex Mashinsky moves to dismiss the FTC lawsuit.

• Gensler says SEC is reviewing Grayscale ruling, spot bitcoin ETF applications.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.