June 1, 2023: The Debt Ceiling 💸🔝

Plus Updates on Conic, f(x) Protocol, Stake DAO, Curvance, Convergence, Prisma

An important debate occurred last night which has the power to affect the fate of the dollar as we know it.

If you thought we were talking about DC, we don’t presume many (any) of them are sophisticated voters. Could any of them run a brownie script to verify the legislation on which they’re voting?

Very soon, the initial $10MM in $sfrxETH collateral for $crvUSD is about to be supplemented by an additional $150MM in $stETH.

Why such a large market for $stETH?

Oh yeah, I guess it’s obvious.

But why start with $sfrxETH if the opportunity was in $stETH all along?

Oh. So it was actually a useful exercise to smart small and test in prod? Go reckon…

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Conic

One protocol scrambling to the forefront of the $crvUSD launch is Conic Finance. Voters are deciding how to apportion liquidity within their new $crvUSD omnipool.

As we’ve discussed, four $crvUSD pools play an outsized role in stabilizing the system through the PegKeeper module. Conic envisions that their omnipool can be function as a key piece of this infrastructure as a deleveraging agent, 0xAesop explains the concept well in this thread:

Ignore at your own peril, of course, as Conic passes the $100MM mark this week…

f(x) Protocol

Were you interested in the $FX token?

Well, it’s gone! The protocol’s token sold out in just a minute.

For a bit more background on f(x) protocol, much discussion in last month’s Llama Party:

Stake DAO

Don’t look now, but the veCRV Wars are taking a turn towards Stake DAO. In May, the big veCRV locks all flowed towards the elephant.

The protocol has lately been focusing their strategy towards the PENDLE wars, maybe worth keeping an eye on? Nah, it’s probably nothing…

Curvance

The Curvance team dropped a good thread on their plans as they continue to march towards launch. Return of the DeFi Summer?

Convergence

Convergence also released a thread on their governance token. Read or HFSP (NFA)

Prisma

Finally, what’s with all the noise about Prisma?

Full disclosure, author is an early investor in Prisma, albeit not one cool enough to get called out by name. Of mentioned assets, author also has exposure to $CRV, $SDT and $CNC.

More details on my investment thesis for subscribers…