Good day ser! Once or twice a week, I talk about some tokens I am looking at. None of these are financial advice; I most likely own most the coins I talk about or about to build a position; No paid advertisement here unless stated otherwise.
With that out of the way, letโs get started.
- BTRFLY v2 / rlBTRFLY
[Redacted] Cartel announced today that the highly anticipated BTRFLY v2 and token migration will happen on Aug 8th. Check out the thread below and read the full details here.
The main change is getting rid of rebase/OHM model and introducing rlBTRFLY which stands for revenue lock BTRFLY, their version of the ve tokenomics. BTRFLY holders will be able to migrate to the v2 on Aug 8th and lock immediately in exchange of rlBTRFLY, the locking period will be 16-17 week epochs. rlBTRFLY grants voting power, in addition to that lockers will earn protocol revenue paid in ETH and additional BTRFLY emissions. Rewards will be distributed every two weeks.
Also worth to mention is that BTRFLY will move away from infinite supply to a capped supply, estimated at 5,000,000 which gives BTRFLY a current FDV of ~$194M.
Real Yield has been a trending narrative lately in the crypto space, BTRFLY turning on the fee switch and paying long term investors in ETH is huge. Image below showing you the three revenue streams for rlBTRFLY ๐
- Hidden Hand has earned total of $91,250 in bribe fees since launch, last week earned a record high of $21k bribe fees, in a bear market.
- Pirex currently has a TVL of $6.4M
- Redacted Cartelโs non-BTRFLY treasury currently valued at $31M
You can find more data here.
All of these will be used to generate real yield for rlBTRFLY. Also worth mentioning, Hidden Hand and Pirex were able to do these numbers with zero incentives, proving there is a real demand for these two products. Now with BTRFLY v2, the protocol will use Pulse Emissions(37.5% of the total BTRFLY supply) to incentivize the growth of HH and Pirex.
Pulse Emissions โ More Users โ More Fees โ More People Locking BTRFLY
The Alpha doesnโt end here. Redacted Cartel dev @0xSami_ took the chance and shared this on twitter ๐
Multichain Hidden Hand and rumoured stablecoin DINERO is coming, fees go brrrโฆ
There are a lot to talking about regarding BTRFLY, Hidden Hand and Pirex, I will try to put together a twitter thread soon.
I am at least short term bullish on BTRFLY, it has a proven team and a based dev(@0xSami_), veTokenomics + CRV/CVX eco + Real Yield will give BTRFLY a lot of momentum in the coming days and weeks.
- Optimism Eco: LYRA, thoughts on VELO and TAROT
Optimism had an amazing week, surpassed Arbitrum in TVL with AAVE launching OP incentives. $1B TVL within reach.
Among all the tokens I track, guess which one had the best week?
LYRA 53%
L2DAO 33%
PERP 31%
THALES 30%
OP 22%
SNX 14%
VELO -23%
If you are not familiar with LYRA, I wrote about it in my last newsletter which you can find it here. Lyra is another protocol that is offering delta neutral Real Yield with its sETH strategy right now but rarely gets talked about. The Council is actively exploring new utilities to add to the LYRA token, pay attention to LEAPs.
$0.187 was an important resistance to be taken out, $0.25 level is what I am looking at next.
VELO was the only loser on the list, not too surprised as it was one of the earliest to move and did a 20x from the bottom. Velodrome is a crucial piece in the OP eco, bribing is coming in, TVL is pumping, team is building (vote delegation coming soon), but with $132M farming in it, the sell pressure most likely will be greater than the buy pressure. A potential catalyst will be a Convex like protocol coming into Optimism, Liquid Driver? Hidden Hand? Or Velodrome will build something themselves?
A potential wildcard is Tarot, a Leverage Yield Farming protocol started on Fantom, and now also live on Optimism. Currently holding $6.6M TVL on OP, and $22.6M on Fantom. Total TVL to Marketcap ratio is around 7.
The catalyst here is that Tarot is going to bribe veVELO $5,000 USDC per week to incentivize its LP on Velodrome, proposal has already passed, and initial LP already has been added on Velodrome. Velodrome likely to co-incentivize the bribe, I expect high APR for this pool.
Tarot has also applied for OP grant, details can be found here. Total of 600K OP token asked, if passed, these rewards will go to TAROT LP.
TAROT has already pumped a bit but still sitting at a very low marketcap, once Velodrome emission goes live, I expect more upside.
Thoughts on Optimism Eco:
I think OP & gang had a great run, and now people are taking profits and narrative starts to shift to other plays like Metis and Arbitrum. I do expect more correction across OP eco, but I donโt think Metis is ready yet, take a look at their incentivized Sushi farms and recent network issue brought the network down for hours ๐
Metis coins are pumping due to CT rotating profits and low liquidity, while I think HERMES has some great potential(up 50% since mentioned in last newsletter) with v2 launching utilizing omnichain technology, but if you are in any Metis tokens, donโt marry your bags.
On the other hand, Arbitrum has seen some of the best DeFi ideas given birth there this year, and with Nitro launching(faster and cheaper) end of this month and Arbitrum Odyssey coming back, we will see a great L2 battle between Arbitrum and Optimism.
In tomorrowโs newsletter I will talk about some of the Arbitrum tokens. Spoiler alert: TCR, VSTA, UMAMI, GMX just to name a few.