Research Summary
The report covers a range of developments in the digital asset space, including governance proposals for FRAX and Cosmos, investments by Circle Ventures and Binance Labs, and the delay of SEC decisions on Bitcoin and Ether Futures ETFs. It also highlights trading volumes, trending assets, and total value locked (TVL) in various platforms.
Key Takeaways
FRAX Governance Proposals and Investments
- FRAX Governance Proposals: The report mentions proposals to make sFRAX bridgeable to multiple new chains, including Arbitrum, Optimism, Polygon zkEVM, BSC, and Avalanche. These proposals have garnered 91 thousand votes in favor but need to reach a 7 million vote quorum. Another proposal aims to adopt Axelar network’s representation of Frax Finance tokens on chains where a dedicated Frax Ferry is unavailable.
- Circle Ventures Investment: Circle Ventures has invested in the Layer 1 trading-focused chain, Sei, and announced the upcoming integration of native USDC. This move is expected to bolster liquidity and facilitate cross-border transactions on the chain. The TVL of Sei is $3.16 million, and the MC of the SEI token is $284 million.
SEC Delays and Cosmos Governance Vote
- SEC Delays: The SEC has postponed its decision on Hashdex’s application to convert its Bitcoin Futures ETF into a spot Bitcoin ETF and Grayscale’s application to launch an Ether Futures ETF. The new decision date is January 1, 2024.
- Cosmos Governance Vote: A proposal has been posted for voting on Cosmos governance to reduce the max_inflation parameter for ATOM from 20% to 10%. The current inflation of ATOM is 14%. If successful, this proposal would also bring the ATOM staking APR from 19% to 13.4%.
Investments and Fundraising
- Superstate Fundraising: Robert Leshner, the founder and ex-CEO of Compound Finance, has raised $14 million for his new venture, Superstate. The asset management firm aims to offer tokenized real-world asset investment products that benefit from blockchain tokenization.
- Binance Labs Investment: Binance Labs has invested in the Arkham platform’s native token, ARKM. The investment aims to support the at-scale on-chain insights Arkham offers as an AI-powered blockchain intelligence and data platform.
Trading Volumes and TVL
- Trading Volumes: PRIME, MEME, LINK, crvUSD, and RLB have the highest on-chain trading volumes over the past day.
- TVL: Reserve, Fastex, and Kleva Farm have seen significant growth in their TVL over the past day, with increases of 60.98%, 38.41%, and 26.92% respectively.
Actionable Insights
- Monitor FRAX Governance Proposals: The proposals to make sFRAX bridgeable to multiple new chains could significantly impact the token’s utility and value. Stakeholders should keep a close eye on the voting process and outcomes.
- Assess Impact of Circle Ventures Investment: The investment in Sei and the upcoming integration of native USDC could enhance the platform’s liquidity and cross-border transaction capabilities. Stakeholders should evaluate the potential impact on Sei’s performance and value.
- Stay Updated on SEC Decisions: The delayed SEC decisions on Bitcoin and Ether Futures ETFs could have significant implications for the digital asset market. Stakeholders should stay updated on these developments.
- Consider Implications of Cosmos Governance Vote: The proposal to reduce ATOM’s max_inflation parameter could affect the token’s value proposition. Stakeholders should consider the potential implications of this vote.
- Track Superstate and Arkham Developments: The fundraising by Superstate and the investment in Arkham could lead to new opportunities in the digital asset space. Stakeholders should track developments in these ventures.
