0/ In today’s Delphi Daily, we analyzed @MonteCarloDEX, an on-chain futures and derivatives platform.

We examined perpetual trading volume and funding rates for both ETH and BTC.

For a deeper dive 🧵👇
1/ Market Update-

🔹Crypto is having a slow day as BTC finds it difficult to climb above $58K.

🔹BTC is still well above the trend break we outlined last week, but considering BTC is leading the market at the moment, a downturn could turn ugly for all of crypto.
2/ MCDEX is an on-chain platform to trade futures and derivatives.

The project launched on mainnet alongside Arbitrum on Aug. 31, and followed through with a deployment to BSC on Sep 28.

Over $1B of volume has been traded on MCDEX since it launched.
3/ As expected, MCDEX’s volume on Arbitrum was primarily ETH, but BSC traders traded more notional volume on the ETH perp than traders on Arbitrum.

ETH has been relatively quiet compared to BTC as of late, which may have stung trading volume as incentives on Arbitrum wore down.
4/ There’s been a fair amount of volume for BTC perps as well. Activity here looks stickier than ETH, as evidenced by the slower decline in volumes from the peak.

So far, there are only BTC, ETH, and BNB perpetuals on MCDEX. New pools have to be bootstrapped by external parties.
5/ One of the organic incentives on MCDEX arises from funding arbitrage (i.e. can users pay less funding using MCDEX over an established derivatives CEX).

For BTC perps, funding rates on Arbitrum have been consistently lower than Binance. But liquidity on Arbitrum is fairly dry.
6/ On ETH perps, funding rates on Arbitrum have started to run up while the cost of entering a long position on BSC is lower than Binance.

At 0.1% slippage, traders can enter up to 3kETH worth of longs on the BSC deployment, where liquidity is competitive and rates are lower.
7/ Tweets of the day!

Say hello the newest browser wallet

8/ @MakerDAO is voting to onboard stETH as collateral

10/ For the full report that inspired today’s thread 👇👇

11/ Join the channel below to get all Delphi updates as soon as they are released!


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More from @Delphi_Digital

11 Oct
0/ In today’s Delphi Daily, BTC is leading the way and @0xPolygon transactions drop.

BTC’s dominance has been rising and taking the total crypto market cap with it.

For a deeper dive 🧵👇 Image
1/ Market Update-

Besides a market sell of $40m worth of BTC leading to pullback yesterday, the weekend was rather uneventful, with a handful of altcoins outperforming BTC.

Bitcoin swiftly recovered and continues exuding strength, relative to most of the digital assets market.
2/ It’s officially Bitcoin season. In the last 24 hours, only 4 crypto assets in the CoinGecko top 100 have managed to outperform Bitcoin’s immense strength.

In the last 7 days, only 12 crypto assets outperformed BTC. Image
Read 11 tweets
8 Oct
0/ Paging all $DYDX holders

When the $DYDX token was launched, several recipients of the airdrop and liquidity rewards staked their $DYDX tokens into the protocol’s safety module

1/ The safety module is an insurance mechanism that allows $DYDX holders to stake their tokens to create a backstop, and earn rewards for providing this service
2/ What was unknown at the time was that there was an error in the implementation. The ratio of DYDX to staked DYDX was supposed to be 1:1, but was actually 1:0

Read 5 tweets
7 Oct
0/ In today’s Delphi Daily, we examined how incentives have recently been ruling the multichain crypto world.

We analyzed the similarities between @FantomFDN, @avalancheavax, and @AlgoGrand’s recent growth.

For a deeper dive 🧵👇 Image
1/ Market Update-

🔹After yesterday’s rally, BTC is having a breather as L1s take center stage again.

🔹Apart from L1s, DeFi is surprisingly the only other sector in the green.

🔹Top performers over the last 24 hours are FTM, SHIB, AR, and DOT.
2/ Flows from Ethereum to @FantomFDN averaged $10-25M per day over September. But over the last two days, flows to Fantom increased by an unprecedented amount on the back of a new yield farm.

@GeistFinance, a fork of @AaveAave, was giving LPs ridiculous incentives. Image
Read 11 tweets
4 Oct
0/ In today’s Delphi Daily, we examined delta neutral AXS farming, LUNA burning, recent L1 rally, and yield generating NFTs.

For a deeper dive 🧵👇
1/ Market Update-

🔹The broader crypto market is seeing a slight pullback after the weekend run-up, seemingly weighed down by traditional markets, with major equity indices down on the day.

🔹Nonetheless, AXS, LUNA, and DYDX were among today’s top gainers.
2/ AXS staking began on Friday and opened up opportunities for yield arbitrage via perpetual futures.

This can be done by buying spot AXS to stake, while shorting the AXS-perpetual future. The trade is delta-neutral, meaning there’s no price risk, and captures the difference.
Read 12 tweets
29 Sep
0/ In today’s Delphi Daily, we examine the near-term bull case for ETH, and offer the slightest bit of hopium.

We analyzed ETH open interest, options buying, and usage levels.

For a deeper dive 🧵👇
1/ Market Update-

🔹It’s a relieving sight to see green across the board for crypto today, although it isn’t a very convincing bounce for majors such as BTC and ETH.

🔹Coins like DYDX (+12.1%), AR (+11.6%), AXS (+10.5%), and BNB (+10.3%), are leading this bounce at the moment
2/ OI for ETH futures and options is down nearly 40% since the start of September. The market is crippled by fear, but, thankfully, there is a silver lining.

Options open interest fell as dramatically as it did at the end of this month due to a large number of recent expiries.
Read 11 tweets
28 Sep
0/ Today’s Delphi Daily focused on Bitcoin’s current market structure, miner fees, and lightning Network activity.

For a deeper dive 🧵👇 Image
1/ Market Update-

Virtually all of crypto is in the red today.

The Sep. 21st bottom remains intact, but the market still looks fairly weak.

For now, the signs point to a ranging market, so it’s probably wise to prepare yourself for some incredibly frustrating price action.
2/ Last Friday saw the largest expiration of BTC options since Apr. 2021. This isn’t all too surprising, as quarter-end expirations tend to be larger than regular monthly expirations.

However, OI tends to recover quite dramatically over the course of the month post-expiration. Image
Read 11 tweets

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