BlackPool Bulletin #45

This week has been tough. The failure of Silicon Valley Bank was a major incident in the financial sector, and we are still unsure about the full repercussions. It also brought a lot of fear in the trad-fi ecosystem. People are realising that their assets are not safer in a bank than on-chain, not even a little bit.

We are on the edge of a major economic crisis, but institutions are still fighting imaginary demons while the banking system is collapsing. What a time to ride the crypto train.

1. Deep explanations of SVB and analysis from Delphi Digital
2. How to approach Arbitrum airdrop carefully.
3. Microsoft are building their own non-custodial wallet. What could go wrong?
4. Do you know $LUSD?
5. Why are all blue-chips down?
6. New fake transactions impersonating marketplaces.
7. GPT4 is here; will it steal your job?
8. How have the stablecoins reacted to the SVB failure?
9. How to manage a $1K portfolio?
10. GameFi & ERC-4337, we got you.

1. What a mess : Deep explanations of SVB and analysis from Delphi Digital.

TL;DR:

• Silicon Valley Bank collapses, causing the 2nd largest stablecoin, USDC, to de-peg and hit a low of $0.85.
• Treasury, Federal Reserve, and FDIC assure depositors will have full access to their money without taxpayer burden.
• Federal Reserve creates the Bank Term Funding Program to support eligible depository institutions.
• Circle CEO Jeremy Allaire confirms USDC reserves are secure and will transfer remaining SVB cash to BNY Mellon.
• USDC's peg nearly fully recovers across major exchanges as Circle initiates redemptions.

2. Airdrop? Soon. How can we price it? Good tokenomics approach (DYOR, of course).

• Arbitrum One gains significant TVL/volume and emerges as a profitable financial applications chain with promising fundamentals.
• Despite challenges like high initial supply and minimal year 1 emissions, $ARBI is expected to recover quickly and perform well.
• After the initial sell-off, minimal sell-pressure for the first year is anticipated, positively influencing ecosystem tokens through a trickle-down effect.

3. Microsoft are building their own non-custodial wallet on Microsoft Edge explorer.

• How do you feel about a crypto wallet in your native browser?
• Edge is known for its multiple vulnerabilities: how will this end?

4. Technical View: $LUSD by Liquity.

• Why was it so noteworthy this last Monday? A few key elements from this massive thread.
• Liquity Protocol's $LUSD stablecoin maintains stability through four key mechanisms: Redemption, Stability Pool, Redistribution, and Recovery Mode.
• Redemption and borrowing fees work together to keep $LUSD pegged to $1, with arbitrageurs profiting from temporary de-pegs to help restore the peg.
• The Stability Pool enables instant liquidation of under-collateralized loans and incentivizes users to participate as liquidators through potential profits of 8%-10%.

5. Floor Prices are down. How can you attract more people to these blue-chip collections?

• It is time to talk about holders' expectations. Did these projects overpromise? Underdeliver?
• How to fix this, and why massive blue-chips are harmful to the whole ecosystem when they fail.

6. Security is the key. Always take care of what you sign.

• Hackers simulating marketplace signatures is not new, but it is getting more and more tricky to do so.
• You can (and should) protect your wallet with multiple extensions to prevent these kind of hacks.
• In general, never sign if you are not 101% sure of what you are doing.

7. Futur is near. Is it?

• GTP-4 is here and way more powerful than 3.5.
• Is it perfect? Will you lose your job? No, of course.
• Is it useful? Yes, more and more.

8. How have the stablecoins reacted to the SVB failure?

• $USDC depegged and caused ripple effects throughout DeFi, then repegged.
• ATH for Curve with $8B in volumes.
• $LUSD stronger than ever…

9. Who has ever wondered which scenario to choose? Wen Lambo?

• These simulations can help you understand how to manage your wallet.
• Don’t forget time management and mental health management.

10. Next Reading? ERC-4337 and GameFi.

• The BlackPool Lab explains to you what will change with this major Ethereum update.
• How will it affect GameFi and the gaming industry in general?

That's all, folks: see you next week!