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Phenom Alpha

Bullish:Our Rating.

Med:Risk

DeFi:Sector

Price: $6.91

Symbol: $FXS

Catalyst 

In the ever-growing landscape of liquid staking derivatives (LSDs), frxETH has emerged as a frontrunner, positioning FXS for continued bullish momentum. Over the past month alone, frxETH has experienced a remarkable growth rate of 38%, second only to Swell (which currently holds a modest 8300 ETH in deposits). As it stands, frxETH proudly holds the title of the fourth-largest LSD and the 14th largest staker on the Beacon Chain, boasting an impressive 154,000 ETH and capturing 0.8% of the market share.

Price Impact

The resounding success of frxETH not only bodes well for the Frax ecosystem but also has a positive impact on Frax's revenues. Consequently, this paves the way for increased yields paid out to veFXS stakers. This virtuous cycle is poised to persist in the months ahead, as more ETH finds its way into staking, courtesy of the successful implementation of Shapella in April 2023. The triumphant performance of frxETH serves as a strong testament to Frax's ability to execute its vision of becoming a DeFi conglomerate. Currently, Frax's very own stablecoin, FRAX, ranks as the seventh-largest by market capitalization.

Protocol Preview

• Website | Twitter | Docs

• Sector: Defi - Real World Assets

• TVL: $5.5M

What is it?

OpenEden stands at the forefront as the inaugural on-chain Treasury Bill vault, managed via a bankruptcy-resistant, regulated body, thereby elevating it as one of the most secure options for obtaining real-world yield.

Underpinning the protocol is a rigorous emphasis on compliance and transparency. Funds are entrusted to a fund registered with the Monetary Authority of Singapore, reinforcing security. OpenEden further offers a suite of investor-focused features such as Chainlink Proof of Reserves attestations in real-time and daily custodian reserve summaries. A 5% USDC reserve enables immediate redemptions, guaranteeing swift liquidity for investors.

The protocol's first yield-generating ERC-20, TBILL, marks the beginning of their journey, with expectations of integrating DeFi functionalities shortly.

Did Binance Co-mingle funds?

The cryptocurrency industry is no stranger to its fair share of drama, reminiscent of high school hallways. And the latest buzz involves Binance, as a recent Reuters report suggests that the exchange may have mixed customer funds with its own corporate revenue, causing quite a stir.

According to Reuters, here's what they are alleging:

1. Binance allegedly commingled users' funds with corporate accounts held at Silvergate Bank, which has since declared bankruptcy.

2. This commingling of funds occurred on a daily basis throughout 2020 and 2021.

3. The total sums involved were in the billions. Notably, $20 million from a corporate account was mixed with $15 million from an account that received users' funds in a single day.

Fortunately, no funds were reported lost or stolen during this commingling debacle, offering some relief amidst the controversy.

So, what has Binance had to say in response? Binance claims that user funds and corporate money are maintained on separate ledgers, asserting their innocence, much like a student proclaiming their innocence to a teacher. Furthermore, Binance clarified that the accounts in question were not used to collect users' funds but rather for processing user purchases, particularly transactions involving BUSD, Binance's stablecoin.

In an attempt to counter the allegations, Binance's communication chief took to Twitter, posting a lengthy response and dismissing the entire report as a conspiracy.

Our Take: Reuters cited 3 anonymous sources in their reporting. When it comes to anonymous sources, it's like playing a game of "he said, she said" - who really knows what's going on? But hey, where there's smoke, there's sometimes fire. And speaking of commingling funds, remember FTX? Yeah, that didn't exactly end well, did it? 🔥 

Speaking of FTX….

FTX is considering coming out of bankruptcy and relaunching the FTX Exchange. Current CEO John Ray told the WSJ that he has put together a task for to look at restarting the exchange.

Large companies have come out of reorganization and become successful but no crypto company has yet. If FTX takes this path given the current regulatory, global liquidity levels and brand damage it will be a long and difficult one. We will be watching from the sidelines with our popcorn.

The Twitterverse

Bullish Signal: China back on Bitcoin.

Buy ETH

For the Alpha DIYer

Closing the ledger for now, but the crypto revolution continues. Stay curious, stay bold, and keep chasing those blockchain gains!