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In today’s newsletter:
🚀The Rise of Farcaster
📊This Week’s On-chain Alpha
🗞️The Latest DeFi news
Today’s email is brought to you by Saucerswap - the largest DEX on Hedera
The Rise of Farcaster
The Social Finance (SocialFi) narrative is gaining traction again.
Over the past few days, Farcaster has taken crypto by storm.
Here are some of its recent milestones:
Over 61k users have used it in a single day
The number of reactions on the platform surpassed 8 million
the platform ascended to the top 40 in App Store downloads
All the charts that show the adoption of Farcaster over time are now looking like this:
So, first of all, what is Farcaster?
Farcaster is a decentralized social network built on Ethereum.
As Farcaster is public and decentralized, anyone can build a social media platform on top of it that interacts with its data.
The most popular application built on top of it is Warpcast, which is very similar to X (Twitter).
Users on Farcaster own their data. This makes it possible for content creators to bring their audience from one app to another.
Interestingly, as the protocol is built on Ethereum, many highly respected people in the crypto community such as Vitalik are now more active on Farcaster than on X.
What’s all the hype around Farcaster about?
There seem to be 2 main reasons for its recent insane growth:
1. Airdrops for the active users
Early adopters of the social network protocol have recently got a pretty big airdrop in $DEGEN tokens. ($DEGEN is a memecoin that’s part of the Farcaster ecosystem)
And 40% of the $DEGEN total supply is reserved for future airdrops. So by simply using the app, you can get heavily rewarded.
Many Farcaster early adopters got a $DEGEN airdrop worth over $5k. This is one of the things that created a lot of hype around the protocol.
2. Farcaster’s “Frames” feature
Frames is a new web3 primitive that was just introduced by Farcaster.
It essentially allows anyone to build apps inside the platform.
Frames make the links that are shared within an app interactive and enable dynamic user responses.
Posts with images, links, and buttons can now be turned into small apps.
For instance, imagine scrolling through your Twitter feed and being able to shop for something by interacting with an ad on Twitter, but without leaving Twitter.
This is one of the things that’s now possible to do on an app like Warpcast, which is built on top of Farcaster.
Some cool early experiments with Frames include:
The total number of user registrations on Farcaster doubled since Frames was launched on January 25th.
Is it worth trying out Farcaster?
Personally, I just created an account on the platform and I intend to test Warpcast (the Twitter-like app built on Farcaster) over the next few weeks.
If you want to follow me there, my handle on Warpcast is @thedefinvestor.
The protocol looks relatively interesting and a lot of people in the crypto community seem to be active on it.
What’s more, Farcaster raised $30M in funding and given that it’s tokenless, its most active users might get an airdrop from Farcaster in the future.
If you want to sign up for the platform, here’s what you have to do:
download the Warpcast app on your phone
open it and pay for data storage (there’s a ~$5 per year fee for storage)
It’s not ideal that the app is not free, but the reason for this seems to be to reduce the spam on the platform, and this appears to have worked well so far.
In crypto, you can get heavily rewarded for trying the new hot thing, so that’s why I decided to give Farcaster a shot.
Together with SaucerSwap
LEVEL UP YOUR DEFI EXPERIENCE
SaucerSwap is the largest DEX on Hedera, with over $75M in TVL.
Recently, the project released SaucerSwap V2, a new iteration of its DEX that supports concentrated liquidity just like Uniswap V3.
Here are a few things that make it stand out:
Volatility Strategies - To simplify the process of liquidity provision, Saucerswap interface offers strategies with preset price ranges for different LP styles
Liquidity Position NFTs - each liquidity position is uniquely represented by a transferable NFT
the liquidity-aligned reward Initiative (LARI) - on top of trading fees, liquidity providers also earn token incentives for efficient liquidity contributions
As Saucerswap V2 supports concentrated liquidity, LPs can provide liquidity with up to 4,000x capital efficiency in comparison to SaucerSwap V1, thus receiving higher returns on their capital.
What’s more, the protocol has a very user-friendly interface and is an official partner of the HBAR Foundation.
Grayscale’s BTC selling pressure has significantly decreased
Since the spot Bitcoin ETFs were approved in the US, Grayscale has sold billions of dollars worth of $BTC.
Happily, the Grayscale selling pressure is starting to slowly come to an end. Yesterday for example, Grayscale had an outflow of only $80M, which is its 2nd lowest outflow since the spot ETFs went live.
The latest developments in DeFi
Wormhole announced the launch of its own token. 17% of its token supply is allocated to an airdrop
Frax Finance has launched Fraxtal, its own modular blockchain. Fraxtal is the first chain with blockspace incentives for its users
Dymension mainnet went live. Dymension is a blockchain for easily deployable & lightning fast app-chains
ENS announced a partnership with GoDaddy, the world's largest domain registrar. Godaddy users can now easily associate an Ethereum address with their DNS domain name (.com, .xyz, etc.)
DeltaPrime got $350k in Avalanche Rush incentives
ZKX OG Trade, a new gamified Perp DEX, went live on Starknet. The new platform features 30-minute trading battles with rewards for the winners
Stride introduced stTIA, a new liquid staking token for TIA. Stride also announced an airdrop of 5% of STRD max supply for early stTIA holders
Persistence One announced its plan to bring restaking to Cosmos. Users will be able to restake Liquid Staked Tokens (of ATOM, TIA, DYDX, etc) on Persistence
EigenLayer deposits reopened until Feb. 9th. All pools are now fully uncapped
Kelp DAO teased the release of native liquid restaking with no caps on Eigenlayer points
Sudoswap went live on Base L2
Renzo, a liquid restaking protocol, announced the first cross-chain restaking integration on Eigenlayer for Arbitrum
Conic Finance launched Conic v2. Conic V2 introduced liquidity allocation modules, which enable Omnipool liquidity provision
Synonym Finance, a new cross-chain money market, went live on mainnet. The money market is powered by Wormhole
That’s all for this week!
Until next time,
The DeFi Investor
For more DeFi content, follow me on Twitter.