After the rumors involving the Multichain team being arrested, we decided to take a look at the protocols with the highest exposure to it.
In first place comes Fantom, with 35% of its total TVL locked in it and a significant portion of the chain's assets issued by the bridge.
2/ 40% of all Fantom assets, excluding its native $FTM token, are issued by Multichain.
These assets, primarily wrapped ones, amount to $650M, signaling a significant reliance on the bridge.
3/ Looking at stablecoins, the situation becomes more concerning
Multichain issues 81% of the total stablecoin market cap within the Fantom ecosystem, with $USDC leading at $194M out of $458M.
4/ Fantom's substantial exposure to Multichain presents a significant risk to be considered by users, especially in light of recent developments.
These could potentially impact the entire ecosystem and its liquidity.
5/ The higher a protocol's exposure to a specific bridge, the greater the risk to user funds, as the accessibility to those assets could be compromised.
Therefore, it is important to remember that diversification can be a good strategy when managing such risks.
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LSDfi - the next Lego on top of DeFi composability
As $ETH staking infrastructure matures and users get increasingly comfortable holding and earning with $ETH in its staked form, it is time to look forward to the next step in DeFi composability - LSDfi.
Let’s explore:
2/ Following Lido V2, the interest in staked $ETH remains strong.
Currently, LSDs sum up to nearly 48% of the 18.8M $ETH staked to date.
3/ Given the expectation of continued staked $ETH growth, various protocols have emerged to serve this pool of capital that would potentially be seeking out more utility and yield.
While not comprehensive, below are protocols we currently find notable within the LSDfi category.
$PEPE has surged 11x in the past few days, nearly reaching a $2B market cap, driven by major exchange listings such as Binance.
After analyzing over 200k Uniswap transactions, here are our findings on some of the most profitable $PEPE traders:
1/ First comes 0x4a2c, famously known as dimethyltryptamine.eth.
Initially, he spent $260 for 5.9T $PEPE tokens, and his holdings are now worth over worth over $9M
2/ A few days ago, he began aggressively selling, as expected after such a massive run, offloading 56% of his position for over $4M in realized profits.
He then transferred the funds to other wallets in 100.1 $ETH clips.
Despite this, his remaining holdings are still worth $9M