Bybit Supports $2.3B USDe

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Good Morning.

The market is crabby as expected as there are many uncertainties given the weak spot ETF volumes, the Fed pushing back interest rates, and disappointment surrounding the latest airdrops. Hang on there!

In Today's Email:

• What Matters: USDe x Bybit 🤝 

• Case Study: Ethereum DEX development 🧬 

• Governance & Features: Blast Jackpot 🤑 

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WHAT MATTERS

Bybit Integrates USDe as a Collateral Asset

State of play: Ethena announced its partnership with Bybit, which will integrate USDe as a collateral asset for perpetual futures trading.

• The partnership will also bring BTC and ETH spot trading pairs with USDe.

• USDe will also launch on Bybit's Earn platform, enabling users to utilize Ethena’s synthetic dollars for Bybit launchpool farming.

• Last month, Ethena added Bitcoin as a backing asset for USDe following the airdrop of its governance token, ENA.

Why it matters: The integration of Ethena with Bybit is seen as a significant step toward advancing USDe's utility.

• Guy Young, CEO and founder of Ethena Labs said this move would challenge the prevailing stablecoin hegemony.

For builders and investors: Stablecoin is the crypto’s best PMF. Ethena shows that there’ll always be an appetite for an innovative stablecoin models, especially if you can provide yield.

CASE STUDY

The Usage & Evolution of DEX in Ethereum

Credits to Coin Metrics, Tanay Ved & Matias Andrade for the original piece.

State of play: The article from Coin Metrics' "State of the Network" discusses the latest trends in DEXs on the Ethereum blockchain.

Here are the key takeaways:

• Trading Volumes: There's an increase in trading volumes on major DEXs like Uniswap and Curve Finance, with Uniswap's volumes reaching $84B in early 2024.

• Innovations in Uniswap: Uniswap leads the DEX market by continually evolving with the introduction of v2 and v3. It has facilitated over $2T in cumulative transaction volume.

• Curve's Focus on Stablecoins: Curve Finance specializes in stablecoin trades and aims to provide low slippage and high liquidity, though it's still recovering from past financial setbacks.

• There is only ~$220M of liquidity in stETH/ETH pool on Curve, significantly lower than its $6B peak in early 2022.

Regulatory Scrutiny: DEXs face increasing regulatory scrutiny, similar to CEXs, emphasizing their autonomous and non-custodial trading nature.

• The SEC's scrutiny of Uniswap highlights the regulatory hurdles facing DEXs.

Fees Influence: Trading and transaction fees significantly impact trading behaviors and returns. Developments like Ethereum's L2 solutions help reduce costs.

• The 0.3% fee tier for the WBTC/WETH pair on Uniswap v3 tends to have larger average trade sizes compared to lower fee tiers like the 0.01% tier for the USDC/USDT pair.

Technological Advancements: The evolution of DEXs includes expanding across blockchains and introducing new features in upcoming versions like Uniswap v4, which promises lower costs and more customization options.

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INSIGHTS

Increasing Regulatory Actions

CFTC Chairman Rostin Behnam stated that the expanding crypto industry, coupled with a lack of US regulations, will inevitably lead to an increase in enforcement actions.

• Behnam added that agencies will increasingly rely on lawsuits without Congressional action and better regulatory transparency.

• Benham noted that despite legislative challenges, lawmakers have momentum and desire to address regulatory gaps in crypto, especially concerning stablecoin legislation.

• Meanwhile, SEC Chair Gary Gensler stated that investors lack crucial crypto disclosures following the agency's notices to various crypto entities about impending enforcement actions.

• Robinhood received a Wells notice from the SEC, indicating upcoming enforcement action regarding crypto traded on the platform.

• Last week, Consensys revealed it was also served a Wells notice from the SEC, in addition to several subpoenas related to Ethereum.

FEATURES & GOVERNANCE UPDATE

Blast Jackpot — 1M Gold Jackpot

Blast has launched Blast Jackpot, a new opportunity for holders of Blast tokens and NFTs to earn and win the 1,000,000 Gold jackpot.

• 907,018 users have deposited $2.64B to Blast and deployed $1.52B into over 100 Blast Dapps.

• Before the launch of Blast Jackpot, ETH and USDB holders earned Points, while Dapp users earned Gold.

• The introduction of Blast Jackpot enables token and NFT holders to earn Gold as well.

The Blast Jackpot randomly rewards holders on Blast with Gold.

• Holders can place up to 8 Blast tokens or NFTs in their "Deck" to qualify for the Jackpot.

• Each block offers a slight chance to hit the Jackpot, selecting a random winning Blast asset.

• Holders with the winning asset in their deck will earn Gold.

Other notable feature updates:

• BOB launched its mainnet.

• Heroglyphs launched its website.

• Kamino introduced KMNO staking.

• Nim Network launched its mainnet.

• Jupiter introduced Jito Bundles Tipping.

• Dymension introduced Escrow IBC (eIBC).

• Sturdy Subnet goes live on the Bittensor mainnet.

• Eigen Foundation updated on the EIGEN Stakedrop.

• Uniswap Wallet integrates with Robinhood Connect.

• Bedrock launched liquid-staked Bitcoin with Babylon.

• Etherscan launched Cards to check unclaimed airdrops.

• Vest Exchange launched its phase one private alpha mainnet.

QUICK BITES

• Moonpay partners with BitPay.

• FTX plans to pay billions more to creditors.

• LocalMonero to shut down P2P exchange.

• Grayscale withdrew its Ethereum ETF application.

• Swing states consider crypto a key issue in US elections.

• FTX plans to pay billions more to creditors for compensation.

• Wintermute announces liquidity support for HK crypto ETFs.

• QCP receives in-principal approval from the Abu Dhabi regulator.

• Vitalik Buterin proposes EIP-7702 to refine account abstraction.

• South Korea’s winning party moves toward bitcoin ETF promise.

NOTEWORTHY READS & MEME

• Variant Fund’s read on AI models with taste.

• 0xSmac’s read on where we are in the cycle.

• Bridget Harris’ read on aggregation, settlement, and execution.

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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.