Triaconta Weekly #248

The following topics will be addressed in this weekly:

  • Bundle performance
  • Winners & Losers
  • What is Curve DAO and Lido DAO?

Bundle performance
Finally some movement in the market, but unfortunately it is going considerably in the wrong direction. Bundles are giving back part of the year’s gains this week. During Powell’s speech last Tuesday it became clear that interest rates in America will go higher than 5% to curb inflation and even 6% could be reached this year. Next week we will get the CPI (inflation data) on Tuesday, March 14, and the week after that the FOMC’s latest interest rate decision on Wednesday, March 22. Here the development of employment in the US plays a big role. Today, the historically low unemployment rate was shown to have fallen even further, so the Fed may raise interest rates further without harming the economy. So we expect much more movement up and down this month for Bitcoin and the entire crypto market. For now, Bitcoin has technically found support at the 200-day moving average at $19,700 (€18,500) and has since returned above $20k.

Big3:
1 Month: -7.96% | 7D: -9.40% | 24H: -9.40%

Top30:
1 Month: -19.69% | 7D: -18.55% | 24H: -11.17%

Penny:
1 Month: -25.09% | 7D: -25.74% | 24H: -15.61%

DeFi:
1 Month: -22.90% | 7D: -23.00% | 24H: -13.33%

Winners & Losers
The least declining coin this week is XRP (-1.5%) on good news about the lawsuit where the judge rejected a key witness for the SEC. Market giants Bitcoin (-12%) and Ethereum (-12%) are doing equally poorly while much of the altcoin market is down 20-30% in just a few days. BNB (-7%), Cosmos (-9%) and Cardano (-10%) are doing relatively well.

What is Curve DAO and Lido DAO ?

The latest revision added the Curve DAO and the Lido DAO tokens to the DeFi bundle. Curve and Lido are both decentralized autonomous organizations or DAO on the Ethereum blockchain. A DAO is a new form of organization made possible by blockchain technology. This new business form has no central governance but leaves management and decision-making to token holders. How these processes work is defined in smart contracts on the same blockchain.

With direct participation and voting rights on all matters, token holders feel even more connected to the DAO than shareholders with a company run by a board of directors and only controlled by shareholders. Because every vote is visible on the blockchain, every vote is public and the voter’s reputation also counts in their decision. All in all, it allows for more interaction and cooperation among “owners” worldwide and the establishment of a community working together to build a vision in addition to the desire to make money from it.

What is Curve
Curve.fi is a decentralized exchange for stablecoins launched in 2020. The platform makes money by charging a modest fee on transactions, which is paid to liquidity providers. Curve provides liquidity for multiple stablecoin lending pools on Aave and has a Synthetix USD pool for exchanging sUSD with other stablecoins. The CRV is the governance token of the Curve DAO organization.

What is Lido
Lido.fi is a liquid staking solution for proof-of-stake (POS) blockchains. With staking, normally the tokens and thus the value are locked while with liquid staking the tokens are locked but the value can still be deployed in other DeFi applications such as Yearn.Finance, for example. Lido works for several major blockchains such as Ethereum, Polygon and Solana. The LDO is the governance token of the Lido DAO organization.

Both projects provide more efficient trading by bringing liquidity together on their platform. Sufficient liquidity means that if someone wants to sell, there are enough buyers for that quantity and vice versa. Without liquidity, the price can fluctuate significantly due to an individual buying or selling large amounts and that is not in the interest of most traders who want to pay or receive a current market price without having to pay attention to how much one exchange differs from another.

DeFi is the future
The growth and innovation in the DeFi sector has been significant in recent years, showing a new way of offering financial services to a much larger group of people around the world. DeFi is certainly going to change the financial sector but is still in the early stages of development with regulatory, scalability and security challenges. Both Lido and Curve serve an important function in the current DeFI sector and employ revenue models that generate profits for token holders. Lido in particular has a lot of Ethereum tied up and thus this token is dependent on Ethereum price movements while Curve generally benefits from the demand for and use of stablecoins.

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