Public Releases

Diamond Hands

May 21th, 2021

Bitcoin crashed nearly 30% on Wednesday, sending crypto markets into a full-on meltdown. By several measures, it was the worst single day since March 2020.

Volume, liquidations, futures, and ETH gas prices all went berserk simultaneously, as we discovered in a post-mortem. (The analysis is this week’s free Daily and available to all.)

Perhaps the most telling signal was BTC inflow to exchanges, which topped over 20,000 BTC in just one hour on Wednesday. That is the highest daily AND hourly inflow since Black Thursday in March 2020, when Covid-19 roiled global markets.

Miraculously, bitcoin prices rebounded in the same trading session, and Wednesday closed near to where it had started. On Thursday, things appeared to stabilize. But on Friday, the selloff continued.

The cause? Well, it’s a choose-your-FUD adventure.

There’s China banning bitcoin for the thousandth time. There’s speculation Elon will dump Tesla’s bitcoin treasury (despite tweeting “Tesla has [diamond hands emoji].” There’s the Wall Street Journal, ​​which cited a combination of the China ban and the “highly unstable borrowing that has shackled together the prices of different digital assets.” Finally, there’s the fact that May is historically a rough month for bitcoin performance.

It’s hard to point at a single cause or catalyst. We noticed open interest in bitcoin options fell ahead of the big price shock. Plus, the concurrent hack of BSC-based PancakeBunny, which lost $45M in user funds, may have compounded market fears. (We explored the hack’s implications in a client-only daily.) Whatever the case may be, one bright spot was DeFi’s performance, where major DEXes held steady through the turbulence.

In Delphi news, we published new yield farming strategies and a deeper look at BSC and DODO. On the podcast side, we we sat down for an interview with Gmoney, who is co-leading the worlds’ first on-chain NFT fund with Delphi Ventures. Lastly, Institutional clients should revisit our report on Polygon, which had the best 7-day performance in a sea of red. Plenty of alpha to dig through over the weekend.

Stay degen,

Nick
@NpappaG

Here were the highlights from this week’s research:

[DeFi] BSC’s Top Liquidity Aggregator

  • Several DeFi protocols native to Ethereum had the foresight to explore the multi-chain world before it became the trend. Protocols like Aave even encouraged migration to other chains like Polygon/Matic. While the familiar front-end stayed the same, users were now given a choice on what back-end it would plug into.
  • In this post, we analyze 1inch, 0x and DODO to see who is the top liquidity aggregator on BSC, and how it compares to their activity on Ethereum.
  • Delphi Insights and Institutional subscribers & clients can see the full brief here.

[Delphi Daily] Polygon Shines, Perpetual Protocol’s Growth, and Uniswap Capital Efficiency

  • Polygon continues to grow as BSC stagnates.
  • DeFi coins led relief rally.
  • Uniswap v2 vs v3 capital efficiency.
  • Perpetual Protocol’s massive growth.
  • Delphi Daily subscribers & clients can see the full brief here.

[Delphi Daily] What’s Up With Bitcoin?

  • Change in BTC options OI by strike price.
  • Deribit futures flash crash amidst put buying.
  • BTC OI declines with price, but volume increases.
  • BTC options implied volatility rockets.
  • Delphi Daily subscribers & clients can see the full brief here.

[Ethereum] Yield Strats #12

  • In this week’s edition, we cover yield farming opportunities for yEarn Finance on Ethereum, Sushiswap on Polygon and Liquid Driver on Fantom.
  • Delphi Insights and Institutional subscribers & clients can see the full brief here.

 

Delphi Daily Of The Week

[Delphi Daily] Black Wednesday

  • Over $2 billion of BTC exposure liquidated today.
  • Deribit futures trade at -75% basis.
  • Gas hits 1700 gwei.
  • BTC exchange inflows at highest level since March 2020.

Get The Full Daily for Free

Featured Podcast

The Delphi Podcast Host and GP of Delphi Ventures Tom Shaughnessy hosts Gmoney to discuss his journey from spending $150K on a cryptopunk to launching Delphi INFINFT, an on-chain NFT fund with us at @Delphi_Digital.

 

 

As mentioned, we will continue to iterate on the design of our Delphi Debrief based on your feedback—so please let us know which section you enjoy the most and what else you’d like to see!

Nick Pappageorge Calendar
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