Podcast Summary
This podcast episode features Wormhole from the Llama risk team and Adamus, who provides updates on Arbitrum. The discussion revolves around the collapse of Tangible’s USDR stablecoin, the risks associated with stablecoins, and the role of Llama risk in ensuring the safety of Curve’s liquidity providers. The episode also delves into the proposal to pause the USDR AM3 curve gauge on Polygon and the future plans of the Tangible team. Adamus provides insights into the Arbitrum voting and the allocation of ARB tokens, the success of protocols focused on Arbitrum, and the challenges faced by Curve in obtaining the Grant.
Key Takeaways
Understanding the Collapse of Tangible’s USDR Stablecoin
- USDR’s Rapid Depegging: The podcast discusses the collapse of Tangible’s USDR stablecoin, which was backed by real estate and experienced a rapid depegging. The price of USDR crashed when the die reserves and insurance fund were depleted, leaving only the illiquid real estate and potentially worthless governance token.
- Role of Llama Risk: Llama risk, a community-led grassroots organization, had previously conducted an extensive report on USDR, highlighting concerns about its ability to maintain its peg and the complexity introduced by its governance token and multi-chain integration.
Arbitrum Voting and Allocation of ARB Tokens
- Allocation of ARB Tokens: Many projects have received a significant number of votes, resulting in an oversubscription of votes. The cutoff for projects to receive funding is currently at 111 million votes, with some larger projects not expected to make the cut.
- Top Protocols on Arbitrum: The top protocols on the list are those that have been focused on Arbitrum since the beginning. These protocols have been rewarded for attracting users and helping Arbitrum grow.
Curve’s Proposal for Migration to Arbitrum
- Mixed Support for Curve’s Proposal: Curve’s proposal for migration to Arbitrum received mixed support, with a third in favor, a third against, and a third abstaining. Curve plans to deploy Curve USD pools on Arbitrum and incentivize migration to demonstrate their commitment to the ecosystem.
- Delay in Using ARB Incentives: The delay in using the ARB incentives was due to waiting for the deployment of the new stable swap implementation, which is expected to be ready in the next week.
Investing Treasury Collateral into Off-Chain Assets
- Investing in Short-Term Treasuries: The discussion revolves around the topic of investing treasury collateral into off-chain assets, specifically short-term treasuries like T-bills. Maker has delegated this task to various RWA investment firms, while Frax has set up a public benefit company called Finr to handle this.
- Yields Generated by Finr: The yields generated by Finr are passed back to the Dow, which has decision-making authority on how to distribute them.
Launch of USDM Mountain Protocol on Curve Finance
- First Regulated and Permissionless Yield-Bearing Stable Coin: The hosts discuss the launch of USDM Mountain Protocol on Curve Finance, which is the first regulated and permissionless yield-bearing stable coin on Curve.
- Interest in USDM: The hosts mention their interest in USDM and plan to release a report on it in a few weeks.
Sentiment Analysis
- Bullish: The podcast expresses a bullish sentiment towards protocols that have been focused on Arbitrum since the beginning. These protocols have been rewarded for attracting users and helping Arbitrum grow. The hosts also express a bullish sentiment towards the launch of USDM Mountain Protocol on Curve Finance, which is the first regulated and permissionless yield-bearing stable coin on Curve.
- Bearish: The podcast expresses a bearish sentiment towards the collapse of Tangible’s USDR stablecoin and the risks associated with stablecoins. The hosts also express a bearish sentiment towards the challenges faced by Curve in obtaining the Grant due to Curve being a decentralized DAO.
- Neutral: The podcast expresses a neutral sentiment towards the proposal to pause the USDR AM3 curve gauge on Polygon and the future plans of the Tangible team. The hosts also express a neutral sentiment towards the idea of investing treasury collateral into off-chain assets, specifically short-term treasuries like T-bills.
