Good Morning Saints,
Hope you’re having a wonderful weekend?
If you’re reading this, you’re always one of the chosen Saints and you’re special.
Now, let’s get to the topic of the day……Grab a cup of coffee and let’s chill.
Here’s what we’ve got today:
The DeFI Saint Recap for the week
Updates on L2s and Protocols building on L2s.
Alpha from other Chads.
The DeFI Saint Recap for the week
The past few weeks had been quite impressing and amazing following the recent events happening in the market.
I see this year 2023 as the year of different narrative plays
Below are different narrative plays to keep an eye on
Liquid Staking Derivatives (LSDs) e.g $LDO, $RPL, $FXS and $SWISE.
HyperScaling Solution (Eigen Layer).
NFT Financialization (NFTFI)
Layer 2s
Modular Blockchain (e.g Celestia)
zkEVM
Decentralized Social Media (e.g Lens)
Privacy (e.g Aztec)
Modular Blockchain (e.g Celestia)
Bridge Aggregators (e.g LIFI, Bungee, Rango and VIA)
Meme Coins.
Now let’s look at few of these narratives
Liquid Staking Derivatives
LSDs aim to secure the network based on trusted validators and Ethereum migrating from POW to POS after the merge have been a huge spotlight to these LSDs.
Following the Shanghai upgrade which is expected to arrive late Q1 2023 has made these LSDs to gain a lot of traction most especially on $LDO, $RPL, $SWISE and $FXS.
Let’s see how these has performed in the past 7 days
Before that, LSD TVL according to DefiLlamma is $9.32B and now the third most TVL in DeFI Category.
So, this is how these LSD protocols has performed over the past 7 days.
$SWISE has outperformed all, followed by $SD.
Keep an eye on these low cap gems, because when the narrative goes hot, easy '“Xs” on these tokens.
Also, Here’s a well detailed thread on LSD Narrative by Hartvigsen
After the shanghai upgrade which will enable withdrawals for stETH on the beacon chain, LSDs will keep on being the centre of attraction for securing the ETH network and also expect to see LSDs Wars in battle for TVL and APR.
Here’s a recent tweet i made of the LSD wars and its Catalysts.
HyperScaling Solution
What’s Next after stETH are withdrawn once shanghai upgrade is complete??
This question was everyone’s nightmare as once stETH are withdrawn will lead to a lot of selling pressure, but i guess that’s not a big deal anymore.
Here comes “Eigen Layer” which is hyperscaling ethereum by providing a re-staking solution to power services like Dapps and oracles aside securing the Network.
To understand how Eigen layer aims to achieve this, here’s a well detailed thread by the founder
Also, there’s some kind of partnership with Rocket pool, which might be a bull case for $RPL.
This article below is the Shot.
https://mirror.xyz/jasperthefriendlyghost.eth/CvGJPdUZ7Fnnpa8DsEXtL-W4FxoBoublwsmN-Im0kfg
NFT Financialization
NFTFI is another hot narrative to keep an eye on, This sector is NFT based and this seems to bring back the NFT season a bit.
NFTFI is Simply DeFI applied to NFTs, thereby adding extra utilities for NFTs aside PFP usage.
Below is the Overview of the NFTFI Ecosystem
Updates on L2s and Protocols building on L2s
Cairo 1.0 is live
Cairo is the programming language for Starknet Ecosystem.
Optimism also made an update regarding its fund grant that will be live on 26th jan and don’t forget to keep an eye on this as it’s being speculated that those who donate for the public fund goods might be eligible for the second retroactive airdrop.
Here’s another milestone for Arbitrum
Arbitrum Nova is now being supported by Opensea
ConsenSys iterated on Eigen Layer
Synthr DeFI Testnet is live but still in private for OGs.
keep an eye on this too, as its public beta will be coming soon.
Alpha from other Chads
Here’s a thread by Zoomer Oracle on Redacted Protocol
Redacted protocol is an investment platform that allows user to participate earn revenue from redacted treasury.
Here’s an another alpha by DeFI Minty
Thanks for reading and if you like it, do leave a feedback and forward to your Friends, There is love in Sharing.
DeFI Saint
Founder, The Saints Creed
Great read. Thank you