Bitcoin has 48% of the total crypto market cap but only 9.6% of DeFi's TVL. Why is that?

We've prepared a report on Bitcoin's place in DeFi and why we think it has room to grow. In it, we introduce @BadgerDAO's eBTC, which could be the missing piece.

Summary included below: Part One looks at the reasons why Bitcoin has seen renewed interest over the past few months, and why we've been bullish on it. Banking failures, CPI numbers, and breakthroughs in the tech that could lead to a renaissance on the Bitcoin network.

ERC-4626 vaults offer unique capabilities to DeFi protocols, for which Tradfi has no equivalent.

This week, we're looking at a few projects that incorporate them in new and exciting ways.

Next up: @FujiFinance. Fuji Finance is a money market aggregator that allows users to lend and borrow assets on-chain.

A couple of attributes set it aside from comparable protocols, though.

The ERC-4626 standard was a big step forward for DeFi, and this week we're looking at projects that have been quietly incorporating it since it passed.

First up: @Rodeo_Finance and their leveraged yield farming vaults. Rodeo offers vaults that you can deposit tokens in if you want to invest in different LP yield farming strategies.

Where Rodeo differs from the competition, however, is in offering built in margin loans.

You can guess what that means: Leverage.

We've been looking at the @arbitrum ecosystem all week and spotlighting small cap projects.

The last protocol we'll discuss is @y2kfinance.

Y2K revolves around stablecoin pegs, and it's a great way to go long volatility if you're expecting market unrest.

Read on for details: @arbitrum @y2kfinance Stablecoins are a $140B sector of the crypto market, but their pegs can loosen at times of extreme volatility.

@y2kfinance is a novel stablecoin insurance marketplace, where users can hedge or speculate on these depeg events.

It's been a few months since we checked in with @LiquityProtocol, and a lot has happened.

@ChickenBonds launched, new integrations with DEXes, bridges, and lending platforms, and protocol usage is up dramatically.

Lots to talk about, so read on for Frogs's Liquity Q4 report: @LiquityProtocol @ChickenBonds Protocol usage was up significantly, with the number of active troves being one indicator.

As you can see on the chart, active trovers went up by 40% in Q4.

Looking for promising small caps on Arbitrum? Look into @contango_xyz.

It's a DEX for expirables - same degen trading, without the funding rate.

Great instrument you can use in trading, and a good way to engage with Arbitrum in case of a future airdrop.

Read on for details: @Contango_xyz Expirables are similar to perpetuals, allowing for speculation on future prices, except with a set duration.

Widely used in tradfi, this type of contract has yet to be replicated on chain, until @Contango_xyz entered the scene.

Looking for promising small caps on Arbitrum? Look into @VendorFi.

Permissionless, P2P lending where you set the terms of your own loan.

The use cases for this are countless, and if you’re reading this, you are definitely still early.

Read on for details: Vendor facilitates permissionless p2p lending with customizable terms and no liquidations.

While the general DeFi lending market is quite saturated, Vendor's flexibility and unique use cases can allow it to carve out a nice niche.

Great news, guys!

@STFX_IO has concluded their public sale and the token is now up on Uniswap.

STFX is one of five emerging Arbitrum protocols we profiled this week, so read on below and check the report to learn more:

frogsanon.neworder.network/articles/five-… @STFX_IO Trading profitably is a complex art, especially in crypto with the heightened volatility and immense amount of factors that can move prices.

Enter STFX, which functions like a hedge fund for individual trade ideas.

Really great intro to music #NFTs this week from a couple of new writers.

In part one, they give an overview of how the music industry has historically been structured before exploring how NFTs are poised to turn it on its head.

Here’s a quick summary: The music industry has always been a well-connected chain of actors, with many people playing a part.

In the past, record labels did most of the work, taking on the risk of developing new talent, coordinating with record/CD manufacturers, and managing distribution channels.

Crypto could make some big moves soon, but are we going up or down?

Well, what if it didn’t matter?

Using long vol strategies, you can make money whichever direction the market goes.

Here’s a list of six ways to capitalize on the return of volatility:

frogsanon.neworder.network/articles/six-l… 1.OTM Put Options

Buying put options pays off handsomely in the event of a sudden breakdown

Market giving you a headache these days?

Perhaps you could use a few indicators to help gauge sentiment and market direction.

What are they, you ask?

Well, dear degen, read on below:👇 2
First up is funding rates.

Because perpetual futures never expire, there’s no mechanism in place to prevent their price from diverging infinitely from spot.

To remedy this, whichever side is more crowded pays the other a funding rate.

AMM design may be entering a new era thanks to @traderjoe_xyz’s Liquidity Book model.

The premier DEX on Avalanche is introducing new mechanisms to mitigate impermanent loss and offer low or even zero slippage trades.

Let’s take a look under the hood👇 @traderjoe_xyz 2
Without AMMs, DeFi couldn’t function – they are the basic tool that DEXs use to connect traders and liquidity providers.

Certain problems like impermanent loss, however, have plagued AMMs from the beginning, and demanded a new wave of innovation in their design.

Backed entirely by ETH, LUSD is arguably the most decentralized stablecoin we have.

Its peg is robust, and the stability pool is one of the best kept secrets in DeFi.

Here’s how it keeps the $1 peg, and how @LiquityProtocol's stability pool can help you accumulate cheap ETH: @LiquityProtocol 2/13

Liquity is a decentralized borrowing protocol where you can lock up ETH and borrow against it.

Much like MakerDAO’s DAI, borrowing takes the form of minting a stablecoin against the collateral – in this case, LUSD.

LUNC is pumping, and this time there's a reason for it.

A group of devs have taken over the chain to bring Terra back to its former glory, and their plan starts tomorrow.

It's a bold proposal - but will it work?

Here’s what the Terra Rebels are attempting to do:👇 2/13

Terra collapsed in May after a death spiral of panic selling caused its UST stablecoin to depeg.

Because the peg was maintained by arbitrage between UST and LUNA, the death of UST meant the death of LUNA as well.

All in all, the failure wiped $45 BILLION from the market.

Opinions are split about ETH yield after the Merge.

Will it be higher or lower than expected?

@Timeless_Fi offers a novel mechanism for speculating on yield rates like this - and it's also a great way to interact with Arbitrum.

@willodoteth investigates in the thread below👇 @Timeless_Fi @willodoteth 2/7

Timeless’s mechanism is simple:

Take any asset with an ERC-4626 token or a Yearn v2 vault.

Lock it on the dapp, and Timeless will give you two derivative tokens in return.

The Macro situation is not looking pretty

The rally has stalled and we’re all going to find out how much the Fed can tighten before something breaks

What does this mean for us? @blk_7wan is gonna tell you.

Keep reading for the September report on macro’s influence on crypto👇 @blk_7wan 2/11

When he’s not managing his VC fund or hosting New Order’s alpha drop podcast, @blk_7wan writes monthly macro reports for Frogs

In June, he pointed out a massive drop in ISM expectations and estimated future new orders, suggesting that things would soon hit the skids

Looking for a way to pull >20% passive returns in a variety of market conditions?

Structured products on Solana might be the answer.

@risk_taker88 presents his first article on @friktion_labs -- article and thread below 👇

frogsanon.neworder.network/articles/the-s… @risk_taker88 @friktion_labs 2/10

Friktion has four separate strategies for passive income, which it packages into structured products called volts.

Some of these are simple, some are a bit more complex.

Ever wish you could take a 5x short on an NFT?

@nftperp is releasing an NFT futures DEX later this year, and @rxndy444 did a deep dive on what we know so far.

This one could be huge, so check the article on the site and peep the tl;dr below👇

frogsanon.neworder.network/articles/new-w… @nftperp @rxndy444 2/6

NFTs have been around for a while now, and their popularity doesn’t seem to be going anywhere.

A lot of collections offer benefits to members of their community, so it’s worthwhile to hold onto them.

It's that time again: another round of deep dives on NFT finance.

Today and tomorrow, @rxndy444 will cover the cutting edge of JPEG tech: NFT appraisals and NFT perps (yep).

Today we look at @abacus_wtf, so check the site and the tl;dr below: 👇

frogsanon.neworder.network/articles/new-w… @rxndy444 @abacus_wtf 2/9

Today we’re looking at Abacus, which has designed a clever way for NFT owners to crowdsource appraisals.

If this image doesn't answer all your questions, maybe we can simplify.

What will you do if inflation keeps rising?

@landxfinance offers exposure to agricultural commodities – one of the few good trades against not only inflation, but stagflation.

Here's a tl;dr and an article where you can learn more:
frogsanon.neworder.network/articles/landx… @landxfinance 2/5
Agricultural commodities are perfect for inflation, even in periods of low growth.

Prices may be going up, but people still need to eat.

Does Solidly live on? @VelodromeFi is a fork of the famous ve(3,3) AMM now providing deep liquidity on Optimism.

Velodrome has also made some improvements to the Solidly model, so check out @rxndy444’s piece below and peep this thread for a preview:

frogsanon.neworder.network/articles/velod… @VelodromeFi @rxndy444 2/5

Earlier this year, Andre Cronje created the Solidly AMM. Unique in its design, it tried to combine Olympus DAO’s (3,3) tokenomics with Curve’s vote escrow system to incentivize deep liquidity on the Fantom network.