Research Summary
This report covers a range of topics in the cryptocurrency and blockchain space. It discusses the upcoming court decision on FTX’s liquidation of select crypto assets, the launch of Mountain Protocol’s US treasuries backed stablecoin, and a funding round led by Castke Uskabd Ventures. It also covers a proposal for Arbitrum incentives, the launch of Sushi’s decentralized exchange on the Aptos network, and legal action by Remilio Corporation against individuals involved in fund diversion. Lastly, it mentions the launch of Synapse’s testnets and trends in asset performance and TVL.
Key Takeaways
FTX Estate Developments
- FTX Liquidation Decision: A court decision is pending on whether FTX can commence liquidation of select crypto assets. If approved, FTX will initially have a $50M per week sales limit, increasing to $100M per week in the second week.
- SOL Position: SOL, a large holding of the FTX estate, has been under sustained selling pressure as market participants short the token ahead of the court decision. A significant portion of this $1.16B SOL position is locked until 2028.
- FTX Assets and Claims: Besides the top 10 Crypto assets, FTX also owns 38 properties valued between $185 – $214 million and has secured ~ $2.6 billion in cash since its initial bankruptcy. Currently, 36,075 customers have filed claims for a total of $16 billion in funds.
Mountain Protocol and $USDM
- Protocol Launch: Mountain Protocol has launched its protocol and $USDM, a US treasuries backed stablecoin that provides daily rewards reflecting the rate on US treasuries.
- $USDM Features: $USDM is pegged to $1 and aims to provide non-US individuals access to the high yield of treasury bills. It also has potential for use as a foundation for liquidity in other protocols.
- Funding Round: Mountain Protocol announced a funding round led by Castke Uskabd Ventures with participation from notable VC’s like Coinbase Ventures, New Form Capital, and Daedalus Angels.
Arbitrum Incentives Proposal
- Proposal Details: A proposal has been posted to Arbitrum’s snapshot to decide on the amount of Arbitrum ($ARB) to be granted to eligible protocols. The proposal provides several amounts and is currently in favor of up to 50 million $ARB.
Actionable Insights
- Monitor FTX Liquidation: The court decision on FTX’s liquidation of select crypto assets could impact the market, particularly SOL. Stakeholders should monitor developments closely.
- Explore $USDM: With its unique features and backing by US treasuries, $USDM could present opportunities for non-US individuals seeking high yield. It may also serve as a foundation for liquidity in other protocols.
- Consider Arbitrum Incentives: The proposal for Arbitrum incentives could impact eligible protocols. Stakeholders should consider the potential implications.
