Earth State Markets Brief 13/05/22

Your latest intelligence brief on the tokens and markets relevant to ReFi that are contributing to growth of the sustainable and regenerative Tokenised Earth Economy.

Earth State Markets Brief 13/05/22

Here's your latest intelligence brief on the tokens and markets relevant to ReFi that are contributing to growth of the sustainable and regenerative Tokenised Earth Economy.

Earth State Markets

The markets are REKT! And this is a sober reminder of the systemic, non-linear failures that can (and will) result from over-engineering and over-gearing financial systems in our complex and interconnected world.

A giant has fallen. The entire terra ecosystem has virtually been wiped out. The Terra ecosystem had the largest algorithmic stable coin in the market, known as $UST. It had so much adoption that even centralised exchanges had it as a trading pair.

This algorithmic stable coin worked well whilst there was a demand for both $UST and $LUNA. But if both lose demand, it falls into a death spiral, and the tokenomics basically hard-code it to keep going down, until the peg is restored.

It looks like this was a targeted attack, as the downward spiral all began when the Luna Foundation removed $150m from the Curve 3 pool in preparation for the new Pool 4. Liquidity was drained, and the depeg began. Mass panic ensued, and Do Kwon’s tweets were not reassuring. Suddenly, $14 billion of UST sitting in Anchor protocol started selling. $LUNA and $UST combined had a market cap of around $60 billion. To put that into perspective, Enron, at its high, was worth $70 billion. The Luna foundation did have a reserve of $3 billion BTC to protect the peg, but it doesn’t look like it was fully deployed, as they most likely realised it wouldn’t be enough.

This led to an all-round mass-market sell-off. The Cosmos ecosystem was hit particularly hard as it had massive exposure to $LUNA and $UST in LP pools. But anyone in Defi knows how deeply $UST was spread across almost every chain. During this mass sell-off, we were at least optimistic that US inflation numbers would come in better than expected. But unfortunately, the opposite occurred. Inflation numbers came in higher than most expected. A 75% bp hike is back on the table.

📈Reference Markets over the past week

BTC

The OG of cryptos

-16.3%

$30661

Bitcoin briefly touched below $23k this week! 

ETH

The king of Alts

-24.5%

$2090

For the onchain gurus, follow the breadcrumbs of the curve UST attack here.

ATOM

Interoperable Blockchain Chain

-39.2%

$10.86

Tendermint technology proved itself as a serious contender with the Terra chain under immense pressure, we saw no outages. Is this a bullish moment for Cosmos?

OSMO

Yield Farming on cosmos

-59%

$1.59

Osmo is in a tricky situation. Their largest pools were paired with UST and Luna. An emergency proposal is out to avoid any further impermanent loss. Vote here!

CRO

Crypto.com 

-32.1%

$0.19

Following an incident that began Thursday, trading of $LUNA was halted on the platform. For latest updates and details, follow this link.

JUNO

Smart-contracts on IBC

-58.3%

$4.96

Will Juno win over the terra builders? With the same technology it seems to be a possible next choice for terra projects.

LUNA

Terra ecosystem

-99.99%

$0.00001

The CEO of Binance is not happy with communication from Terra founders. In this tweet he expresses his lack of trust in the team. Binance suspends all trading of Luna and UST.

📊Impact Markets over the past week

REGEN

Ecological State Ledger

-38.7%

$0.36

Find out more about how value chains can unlock the potential for ReFi in this article by Regen Foundation.

IXO

The Layer 1 for Refi Projects

-59.5%

$0.09

The Opera SECP256k1 signing method goes live. IXO protocol is now able to send IXO tokens from an Opera wallet address to any other via the ixo blockchain!

CELO

Seigniorage stablecoins collateralised by crypto and natural assets.

-30.7%

$1.64

Flowcarbon has partnered with Celo to develop open on-chain carbon market infrastructure. Flowcarbon’s launch on Celo will create the first liquid market for carbon credits on-chain that is designed to make carbon offsetting widely accessible and transparent.

BCT

Toucan Protocol: Base Carbon Tonnes

-11.4%

$2.63

On May 18, 5pm CET, they’ll be speaking with Solid World DAO about pain points in the legacy carbon markets. Set a reminder for the space!

DOVU

Moving carbon from the sky into the soil.

-37.8%

$0.01

Dovu staking goes live on the 16th of May!

📉DAO Shares over the past week

ℹ️ Remember that DAO’s with a rebase mechanism should be valued on their treasuries, and market cap increases are a more important metric than token prices, as high yields try to outpace price fluctuations.

KLIMA DAO

Carbon Credits as its treasury

-33.2%

$7.84

The UST saga has put an emphasis on actual collateralised assets. Will we see a shift in DeFi to more tangible assets? See the advantages of centralised C02 vs decentralised in this great infographic!

Gitcoin DAO

GTC - Platform to find meaningful open-source work

-46.5%

$2.44


Gitcoin Grants Round 14 is going down from June 8 - 23! “Numbers can’t stop us regens from doing what we do best, BUILD!”

EarthFund DAO

1earth 

-45.8%

$0.008

Alex Vergara gives an exclusive first look at the EarthFund manifesto on EarthFund’s TV.

Popcorn DAO

-30.8%

$1.29

They have inspired a wave of DeFi products for financial professionals through their launch of Butter - a crypto-ESG yield product.

💡
What are the Impact DAOs and Tokens you want to see included in the Earth State Market tracker? Get in touch to let us know!

Token Analysis

In the wake of the downward spiral, Romain gives his analysis of $LTC and explains how the OG @litecoin demonstrates for ReFi the core utility of decentralised electronic payment systems – regardless of what the currency tokens represent.

Litecoin Technical Analysis
With Litecoin we have an example of the core utility of electronic payment systems –regardless of what the currency tokens represent, using layered networks to achieve Internet scale alternatives to traditional centralised financial systems that extract rent from the economy.

Earth State Snippets

  • The White House wants to know. What are the energy and climate implications of digital assets? KlimaDAO responded to this Request for Information and you can read more about this here.
White House Request for Information on the Climate Impacts of Digital Assets
KlimaDAO submitted a response to the White House OSTP’s Request for Information on the Energy and Climate Implications of Blockchain Technologies.

🌍 For the Earth!

As we witness the meltdown of the over-heated speculative crypto economy, let's continue to build the real Tokenised Earth Economy, with real Earth state-change technologies, to solve real problems.

Join us every Tuesday at 15:00 UTC for a weekly conversation in the Earth State Twitter Space, where we share intelligence with the thought-leaders, problem-owners and solution-builders of this new economy. This week, we'll be joined by the PrimeDAO team!


Not financial or tax advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. For tax advice talk to your accountant. DYOR – do your own research.