Podcast Summary
In this episode, host Jmo and guests Blake and Andreas discuss recent events in the crypto world, focusing on the actions of Curved Finance’s founder and the implications for Ave and other lending platforms. They also delve into the issue of the USDT peg and the recent “debegging” incident. The conversation further explores the concept of “deep pegging”, the launch of a new project called Prisma, and the use of buzzwords in the DeFi space. The hosts also discuss the charges against two Russian individuals for laundering BTC from the Mt. Gox hack, BlackRock’s application for a Bitcoin ETF, and the merits of accredited investor laws.
Key Takeaways
Curved Finance’s Actions and Implications
- Curved Finance’s founder’s actions: The founder deposited a significant amount of curve onto Ave, borrowed millions of dollars worth of USDT, and swapped it into other stablecoins. This raised concerns due to the large percentage of curve deposited on Ave, making it difficult to sell in case of liquidation.
- Impact on Ave: As a result of the founder’s actions, Ave removed the curve market to limit exposure to curve.
USDT Peg and “Debegging” Incident
- USDT peg issue: The discussion touched on the issue of the USDT peg and the recent “debegging” incident, where the price of USDT briefly dropped. The lack of liquidity in the curve market was attributed to the low incentives for providing liquidity and the unbalanced allocation of assets.
- Shorting USDT: The guests questioned the motives behind shorting USDT and the potential for manipulating the price of curve. The overall consensus was that the short positions and attempts to manipulate the price of curve did not make much sense.
Concept of “Deep Pegging”
- Definition and confusion: The discussion shifted to the concept of “deep pegging” and the confusion surrounding its definition. The speaker questioned what constitutes a deep peg and suggested that even a small fluctuation in price may not necessarily indicate a loss of confidence in the coin.
Launch of Prisma
- New project: The launch of a new project called Prisma was discussed, which is described as a liquid staking derivative similar to Alchemix. The potential for Prisma to create a mini economy was mentioned, although it was acknowledged that it may not work in the current market.
Charges for Laundering BTC
- Legal action: Two Russian individuals have been charged by the Department of Justice for laundering 600,000 BTC from the Mt. Gox hack, with suspicions that the funds were funneled through BTC-e.
Sentiment Analysis
- Bullish: The hosts expressed optimism about the potential of the new project Prisma, despite acknowledging that it may not work in the current market. They also discussed the possibility of Coinbase moving to Hong Kong, indicating a positive outlook on the crypto-friendly environment there.
- Bearish: The hosts expressed concerns about the actions of Curved Finance’s founder and the implications for Ave and other lending platforms. They also showed disappointment in the lack of a significant drop in USDT’s value.
- Neutral: The hosts maintained a neutral stance on the concept of “deep pegging”, questioning its definition and implications. They also discussed the charges against two Russian individuals for laundering BTC without expressing a clear sentiment.
