Research Summary
The report discusses the recent price movements of various tokens, including UNI, LDO, FTM, and XRP, and the market events that influenced these changes. It highlights the introduction of a trading fee by Uniswap Labs, the challenges faced by Lido, a hack on Fantom Foundation wallets, and the addition of Ripple’s XRP token as a payment method by Xsolla and BitPay.
Key Takeaways
Uniswap Labs’ Trading Fee Impact on UNI
- Introduction of Trading Fee: Uniswap Labs announced a 0.15% fee on all trades conducted through its website and mobile app, which has been met with backlash. The fee benefits the equity portion of Uniswap’s business at the expense of UNI token holders.
- Revenue Estimation: If Uniswap Labs had introduced this fee 2 years ago, they could have made up to $2.89B in revenue. However, other estimates show far less trading activity, with Uniswap only earning $33m YTD.
Lido’s Challenges and Impact on LDO
- Loss of Grant and Support: Lido lost out on a grant of ARB tokens during the Arbitrum grant funding round and announced the sunsetting of support for Solana staking over the next 2-3 months due to high maintenance costs.
- Reduction in Business Lines: A governance proposal recommended winding down support for Polygon staking, which, along with the sunsetting of Solana staking, reduces Lido’s business lines to only supporting Ethereum staking.
Fantom’s Security Breach and Impact on FTM
- Security Breach: Fantom Foundation wallets were exploited in a Google Chrome zero-day hack, which drained about $550K from Foundation wallets and numerous other funds from a foundation employee’s personal wallets to the tune of $7m.
Ripple’s XRP Adoption by Xsolla and BitPay
- XRP Adoption: Gaming payment processor, Xsolla, and blockchain payment processor, BitPay, announced the addition of Ripple’s XRP token as a payment method. This could potentially increase the volume of transactions done through XRP.
Actionable Insights
- Monitor the Impact of Uniswap’s Trading Fee: The introduction of a trading fee by Uniswap Labs could have significant implications for UNI token holders and the platform’s revenue. Stakeholders should closely monitor these developments.
- Assess the Implications of Lido’s Challenges: Lido’s loss of a grant and the sunsetting of support for Solana and potentially Polygon staking could impact its business model and the value of LDO tokens. Stakeholders should evaluate these changes.
- Investigate the Security of Fantom: The recent hack on Fantom Foundation wallets raises concerns about the platform’s security. Stakeholders should investigate these issues further.
- Explore the Potential of XRP: The adoption of XRP as a payment method by Xsolla and BitPay could increase its usage and value. Stakeholders should explore this potential.
