Research Summary
The report from Ouroboros Research provides an in-depth analysis of various crypto investment opportunities, focusing on Ethena’s revenue redirection to sUSDe holders, Hyperliquid’s extended points season, and the rise of political memecoins. It also discusses the impact of governance proposals on mETH and cmETH tokens.
Key Takeaways
Ethena’s Revenue Redirection
- Increased Revenue for sUSDe Holders: Ethena has increased the revenue provided to sUSDe holders from 50% to 80%, leading to a surge in farmers staking USDe to chase the increased yield. This has resulted in the USDe staked rising from 16% to 39% in two weeks.
- Growth in Ethena’s TVL: The growth in Ethena’s Total Value Locked (TVL) is entirely due to the increase in sUSDe, which has grown faster than USDe and accounts for all of Ethena’s TVL growth.
Hyperliquid’s Points Program
- Points Program Extension: Hyperliquid has extended its points program, indicating a significant expansion of its product suite. The last two epochs of the prior points season rewarded activity on its spot product, specifically buying and holding PURR.
- PURR Benefits: PURR, which constitutes ~90% of Hyperliquid’s spot product market cap, should benefit from the new points season.
Political Memecoins
- Politicians Embracing Crypto: The price of TRUMP, a political memecoin, has risen 3x since early May, driven by Trump’s support for crypto and his acceptance of crypto donations for his campaign.
- Event-Driven Price Action: The price of political memecoins is correlated with event appearances. Upcoming events such as the Biden-Trump debate and the Republican National Convention could act as potential drivers of prices for political memecoins.
Actionable Insights
- Monitor sUSDe Yields: With the increase in revenue provided to sUSDe holders, it’s crucial to track sUSDe yields and consider yield farming when these yields rise.
- Participate in Hyperliquid’s Points Program: Given the extension of Hyperliquid’s points program and the potential benefits for PURR holders, it may be beneficial to participate in this program.
- Track Political Memecoin Trends: With the rise of political memecoins and their correlation with event appearances, it’s important to monitor these trends, especially leading up to the presidential election in Nov’24.
