The 🔴🔵Optimistic Newsletter #14
The unique DEFI Newsletter on OP Superchain written by Defi Users for Defi Users
First of all, i’d like to express my thanks to you, for your comments, support, likes on this 🔴🔵Optimistic Journey. Big 👏 to my 4 teammates & all the translators as all this work could not have seen the light without them.
And finally, welcome to the 259 new subscribers to this newsletter.🚀🚀
Thanks for reading The 🔴🔵Optimistic Newsletter. Subscribe for free to not miss anything on the OP Superchain.
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TOPICS OF THE WEEK - IT’S NFT TIME THIS WEEK
🔴Tutorial: New quests on CoinbaseWallet
Coinbase & Base seem to have found their ways to attract their 100 million users. What’s best to airdrop few OP tokens while doing the primitive tasks in DEFI using Coinbase Wallet. So today, let’s mint a NFT & earn some OP together.
🟣Project Review : GumBall V2
When NFT meets DEFI, you have NFTfi. Welcome GumBall to the Optimism community. GumBall is a launchpad, a dex and a lending protocol for NFT. Let’s discover this new project after my long chat with the founder. And surprise for our readers who can earn WL for the incoming NFT mint on Optimism.
🟡Project Review: Sound.xyz
Sound.xyz is among the largest builders in the Music NFT business, and recently deployed on Optimism. Let’s get through this.
🟢Crypto market review & Learning tips
Bi-weekly update on the Crypto Market
🟤Farming Strategy: Smart Farming on Metronome
>100% APY on ETH,🔴OP single farming at 30% APY + leverage position on your OP at minimum risk! 😱 Thinking if we should share this…
🟠Podcast: Project interview (Updates & Roadmap)
The last 2 weeks, i was pleased to receive on Live :
Metronome & Vesper (Written notes available)
How to detect scams: Justin Bebis (Oath Foundation & Fav-Truffle (Hats Finance)
Podcasts available at the end of the newsletter.
Spotlight project: Ethos Reserve
Ethos Reserve is an official Sponsor of The🔴🔵Optimistic Newsletter
Ethos Reserve is for me the most simple leverage position available on Optimism. Deposit ETH, wBTC or OP and mint ERN stablecoin with only a fixed fee on your borrowed amount, no more variable interest.
Ethos Reserve has recently revealed its roadmap to scale ERN usage in three phases: init, advance, and evolve - ERN omnichain, staked ERN, support of Liquid Staking Tokens assets, … Curious on what it says? Give it a read by clicking here.
If you wanna try Ethos Reserve, here is the official link: https://ethos.finance/
⚫The Optimistic series Campaign is live - Engage to Earn 30k OP
Questoors, come, engage about #Optimism by completing this series of quests, and earn OP token.
https://www.tideprotocol.xyz/users/spaces/258
Timeline:
Quest #1: 🟢Live - End on 31-July
Quest #2: 🔴Closed - 🔥14 🔴OP earned by every NFT holder! CONGRAT’S! 🪂
Quest #3: 🔴Closed - 🔥25🔴OP earned by every NFT holder! CONGRAT’S! 🪂
Quest #4: 🔴Closed - 🔥11🔴OP earned by every NFT holder! CONGRAT’S! 🪂
Quest #5: 🟢Live - End on 27-July
Quest #6: 🐻You’re not ready for this…
GOVERNANCE TIMELINE
Cycle 13 : Ended / Cycle 14: started
Spotlight Project: Overtime
Overtime Markets is an official Sponsor of The🔴🔵Optimistic Newsletter
Join the thrill of the game with Overtime, your premier web3 sportsbook, offering incentivized campaigns (OP & ARB) around the biggest sports events.
With over 35 leagues and innovative on-chain parlays, why just watch when you can earn?
Try Overtime Here.
🔴Tuto: CoinBase wallet - New quests available
Hello folks and welcome to a new episode of the Coinbase Wallet Quests, where you learn more about Coinbase Wallet and the Optimism ecosystem while earning OP tokens! As always, these quests must be done on Mobile.
But before the tutorial, let’s learn more about the Manifold platform that is hosting the NFT minting for this quest!
What is Manifold ?
Manifold can be divided into several sectors such as:
Manifold for Creators is a platform that helps digital creators with tools and applications to create innovative NFT experiences for their audiences.
Manifold Gallery is an ecosystem that allows creators to sell their art with zero fees! They also reward people that help the creators finding their collectors. It’s a great way to support creators!
Manifold Studio enables any creator to create a NFT mint without any knowledge in coding. With a high level of provenance and ownership of your own work. This makes your collection more special and gives the collectors something unique!
Now let’s see how you can mint an NFT from different collections and earn an airdrop of 10$ worth of OP tokens!
Remember to keep some ETH on your wallet to mint the NFT and pay the gas fees!
Discover and collect NFTs on Optimism
Start the quest and you will be redirected to the Manifold minting page, where you can choses between 5 collections!
Personally I’ve chosen this beautiful Bored in Blu NFT from the Bored Town team! You can mint more than one NFT but for this quest you will only need one!
Once you’ve completed the purchase, 10$ worth of OP tokens will be airdrop to your Coinbase wallet address!
I hope you liked this tutorial and if you found it useful, do not hesitate to share it!
As the summer season approaches, we wish our readers and community a wonderful time. Enjoy this season and thank you for being part of this optimistic journey!
🟣Project Review : GumBall V2
GumBall is a brand new project, that I’ve been using personally during my time as spying the Berachain Ecosystem. And the least I could say is that I found this project trully innovative, user-friendly & capital efficient.
GumBall protocol is now deploying soon on other chains, and also on Optimism as part of their V2 Roll-out. So what should you expect? When could you use the protocol?
Here is everything you need to know after having intensively discussed with the project founder (aka: Sir BroccoliHampton).
When NFT meets DEFI = NFTfi
First, take the whitepaper, take the documentation…Throw that into the bin and read my own experience. I write it the same way I would have explained it to my GrandMa.
TL;DR: GumBall is NFT launchpad, DEX & lending protocol, but with the same user experience as if your NFT was a liquid token (aka ERC-20).
I discovered GumBall during the minting phase of Beradrome project, the equivalent of Velodrome, but on Berachain. Beradrome released a NFT collection called “Tour de Berance” on GumBall back in February 2023.
GumBall is at first a launchpad where NFT collection can be minted. During the mint, GumBall issues an equivalent amount of ERC-20 token which price follows a Bonding curve during the minting phase, system well known for public IDO you may have already experienced. So instead having all NFT minted at the same price, the more NFT is minted, the higher the price goes.
Bonding curve definition: A bonding curve is a mathematical equation used to set an asset’s price based on a supply metric. Bonding curves are most commonly used in public token sales to establish sale prices as the event progresses. At a high level, bonding curves increase token prices as the number of tokens sold increases.
During the minting phase, users buy a GumBall Token (GBT) which can be redeem at any time to a NFT. But in addition it solves the liquidity issue of the underlying NFT. GBT token lets users to:
Sell his GBT to exit his position
Buy a new GBT
Stake his GBT to earn swap fees
Borrow against his GBT
What is GumBall V2:
GumBall V2 aims to complete the GumBall marketplace suite introduced with V1 and improve numerous features. The main focus of V2 is user experience, both for NFT creators and buyers alike.
Several new features will be released such as:
User Interface:
New UI Design/Flow
Cart System & Dashboard View
Support for any EVM-compatible chain
Zappers for easy swaps between Base Asset ← → NFT
Anti-sniping algorithmic tool which prevents sniping for rare NFTs at the time of mint
Technical features:
Easy to use permission-free launch UI
Collection management dashboard
More versatile whitelisting parameters
Customizable swap fees and redemption fees
On-chain affiliate links: Earn swap fees from users you bring into the ecosystem via your address link. 10% of the swap fees generated by users are redirected to their affiliates if this option is chosen at collection creation.
Infinite Supply Bonding Curve or “ISBC”:
The GumBall ISBC plays a critical role in the token model by maintaining the floor value of the GBT token while enabling price discovery. The curve is designed to give GBT both a market price and floor price, while maintaining that the market price is always greater than or equal to the floor price of GBT.
You don’t know Tapioca DAO? You don’t know the latest release of Bond Protocol $oBOND? Nor the latest news of Yearn Finance oYFI? Where have you been the latest weeks Anon?
oTOKEN is replacing step by step standard liquidity mining. Instead of incentivizing Liquidity Providers by distributing $TOKEN, user receives $oTOKEN which is an option to buy $TOKEN at a certain price. For the most familiarized one about Options, it’s a Call Option.
Let’s say the $oTOKEN has a strike price of 1$, meaning you need to spend 1$ to swap your $oTOKEN into $TOKEN.
So if $TOKEN < $1, users will keep $oTOKEN in their wallet, thus reducing beating the sell pressure that would have created a standard liquidity mining.
If $TOKEN > $1, users will use their $oTOKEN to buy $TOKENB for 1$ and thus making a profit (=$TOKEN – 1$).
Again, when NFT meets DEFI, you can find some pretty innovative products to ensure floor price of a NFT collection.
So when on 🔴Optimism?
The team told me that launch might happen by the end of August (still to be confirmed), and the 1st Optimism collection on Gumball V2 will be “Hyper Collectibles”. You can find more info here:
This NFT is simply a ticket into the founder world. Holders will receive creative content for free as the team produces it.
The team is offering 20x WhiteList for our fellow readers. Whitelisted users get early mint which potentially means a better price than public sale. To qualify for this, DM the answer to the below question to JiRaYa_OG. First Come, First Serve.
What is the project that recently announced to users, the possibility of opening DCA positions on Coinbase's liquid staking token, on the Optimism network?
Tips: Answer can be found in one of the previous newsletters.
Minting Phase:
Here are some preliminary information about the minting phase and some data about the bonding curve:
Conclusion:
GumBall is one of the few examples of operation NFTfi projects. With 2,660 $ETH of total trading volume, GumBall is a successful launchpad that manages to catch the curiosity of users like me.
And once more, the number of NFT projects that keeps building on the OP Stack (Holograph, Zora network, Sound.xyz, etc…) and now GumBall will provide all the infrastructure for any creator to mint, launch, and create a liquid market for any NFT collection.
We are maybe living the Capitulation phase on the NFT ecosystem as you may have seen with the Azuki mess, but in my opinion there is no world where NFT is not one of the most used asset in WEB3.
Finally, as any Optimism user you already know what is Velodrome. Try to guess what could happen if you Merge Velodrome style of project & GumBall?
=> Voting Incentives on top of the Bonding Curve!
Bullish on Velodrome + Bullish on NFT + Bullish on Defi + Bullish on Brock = Bullish on GumBall!!
🟡Project Review : Sound.xyz
NFTs are not only JPEGs, they can also be Music. According to “Music NFT Market Size 2023-2030 Revenue Analysis” research report, the global Music NFT market size was valued at USD 1.75b$ in 2022 and is expected to expand at a pace of +27.92%/year during the forecast period, reaching USD 7.7b$ by 2030. And among the most significant leaders of this business, Sound.xyz just deployed on Optimism.
What is Sound.xyz?
On June 12, Sound.xyz was launched on the Optimism Mainnet.
Sound.xyz is a decentralized music platform that leverages blockchain technology, specifically the Ethereum blockchain, to enable the creation, distribution, and ownership of music as non-fungible tokens (NFTs). It aims to revolutionize the music industry by providing a more direct and transparent relationship between artists and their supporters.
The platform allows artists to mint their music as NFTs, essentially turning their songs or albums into unique digital assets that can be bought, sold, and collected by fans. These music NFTs represent ownership and provide a way for artists to monetize their work directly without relying solely on traditional intermediaries like record labels or streaming platforms.
By tokenizing music as NFTs, Sound.xyz introduces new possibilities for artists and listeners alike. Artists can retain control over their creative output, set their own terms for distribution and royalties, and directly engage with their fan base. They can also benefit from the potential for increased revenue through the sale of limited editions, exclusive releases, and other unique offerings.
There are some advantages of Sound.xyz for artists:
For listeners and collectors, Sound.xyz offers a new way to support their favorite artists. By purchasing music NFTs, fans can not only enjoy the music but also participate in the artist's success by owning a piece of their creative output. They can also trade or resell these NFTs within the platform or on various NFT marketplaces.
Sound.xyz, in partnership with the Optimism Foundation, aims to bring onchain music to Layer 2 (L2) of the Ethereum network. This development significantly lowers the barrier to entry for artists to upload their music and allows collectors to easily collect it as non-fungible tokens (NFTs).
The integration with Optimism Mainnet offers several advantages for users:
Firstly, there is a substantial reduction in gas fees, with approximately 90% lower fees compared to transactions on the Ethereum Mainnet. This reduction in fees makes it more affordable for artists to mint and sell their music NFTs while also providing collectors with a more cost-effective way to acquire them.
Secondly, transactions on the Optimism Mainnet are approximately six times faster compared to the Ethereum Mainnet. This increased transaction speed ensures a smoother and more efficient user experience, allowing artists and collectors to interact with the platform more seamlessly.
Furthermore, Sound.xyz on Optimism Mainnet offers multiple payment options. Users can pay with their credit/debit cards, Optimism ETH (OETH), or Ethereum Mainnet ETH. This flexibility provides users with greater convenience and accessibility when purchasing music NFTs.
The excitement surrounding Sound.xyz coming to Optimism is rooted in the desire to address the challenges faced by artists in the music industry. Traditional music streaming platforms often result in only a small portion of streaming royalties reaching the artists themselves. Sound.xyz aims to change this by allowing users to directly support the artists they love.
By leveraging Optimism's technology, Sound.xyz can provide lower gas fees, making it more economically viable for artists to monetize their work and receive fair compensation. This aligns with the mission of RetroPGF, which is to empower creators and ensure that they are adequately rewarded for the impact they create.
In summary, the integration of Sound.xyz with Optimism Mainnet brings the benefits of reduced gas fees, faster transactions, and multiple payment options to the world of onchain music. This event represents a significant step forward in creating a fairer and more artist-friendly ecosystem where creators can be properly rewarded for their contributions.
To commemorate the launch of Sound.xyz on OP Mainnet, were released an open-edition music NFT created by none other than Optimism Co-founder @ben_chain (AKA Weird ETH Yankovic) and Sound Co-founder @Gigamesh.
Let’s explore Sound.xyz together:
🟢Crypto market review & Learning Tips
Crypto Market Review
Let's begin with a new cryptocurrency market update during this summer period, which typically experiences lower trading volumes.
But before an interesting point on the US Economy provided by Genevieve Roch-Decter:
Bitcoin
After reaching a new 2023 ATH in the latest upward movement that you could have anticipated if you followed our recent newsletters, we can now observe that the bullish momentum is losing momentum. In addition to the decrease in volume, we now have a bearish divergence on the daily Relative Strength Index (RSI).
And a weekly divergence is starting to emerge as well.
So, what can we expect in the coming weeks? A resurgence of momentum that could align with the global macroeconomy & potentially drive Bitcoin towards the $35,000 price gap. Alternatively, a price consolidation phase may occur to absorb the significant selling pressure at the pivotal $30,000 level.
DXY
The situation with the US dollar has not changed since the last update: the dollar continues to exhibit a bearish trend on the daily timeframe, while a possible bullish move remains plausible on the 4-hour timeframe (which currently shows a bullish trend), before resuming the bearish trend on the larger scale. There is no relevant short-term information to draw from the chart. We will provide an update as soon as there is activity.
CME
As a reminder, the remaining open gaps are at $20,000 and $35,000, along with a strong liquidity zone between $24,000 and $21,000. There is a significant likelihood that this zone will be retested in the future.
Altcoin
Despite the bullish weekly divergence on altcoins, there has only been a minor rebound at the beginning of the year, indicating that further consolidation may be forthcoming for altcoins. Historically, altcoins tend to reach a bottom point during Bitcoin's halving, scheduled for spring 2024. A rebound before this date cannot be ruled out; however, the highly anticipated altcoin season may require some more patience.
The altcoin season index is recovering but still remains low, amidst the Bitcoin season.
Between 2024 and 2025, two zones are worth monitoring, and the ongoing accumulation may not be complete yet. It is not unlikely that altcoins could decline further, possibly down to 190 billion. Another hypothesis to consider for the next bullish cycle is that we might be experiencing a correction of the movement seen in recent years, making a record altcoin market capitalization unlikely in the next cycle. The range of 600 to 800 billion will be a profit-taking zone to watch out for.
Conclusion
Trading: This zone remains a profit-taking area for us as we stipulated months ago. Now it’s time to wait to see what the market will give. Never over-trade.
Quote from last newsletter “If the price of Bitcoin surpasses the $31,000 to $31,500 range, we will reenter the market”, which is still valid.
Investing: We are still at interesting levels for altcoins, but we keep in mind that this period could still extend further with lower prices. So our plan is to DCA slowly for the coming months. For Bitcoin, it would be more relevant to wait for a retracement to the above stated prices & continue our DCA.
🟤Farming Strategy: Smart Farming on Metronome
Any Optimism community member can see his farming strategy published in this newsletter. You just need to publish your strategy on twitter and send me the link via DM.
If you want to know more about Metronome, i advise you to listen to the podcast in the section below.
This week we are going to present the “Smart Farming” solution of Metronome, available on Optimism. You can find more information on the tweet below:
What is Smart Farming?
Metronome allows you to deposit $ETH or Stable, that are being deposited on Vesper to earn yield.
Your Vesper proof of deposit aka vawstETH for example can be used as collateral on Metronome where you can borrow Synth such as msETH. msETH is then swapped for mor wETH on Velodrome, and back to the beggining re-deposit on Vesper.
Smart Farming allows you to do all the above in A-Click. You define which asset to deposit, your leverage factor (here 3x) and you can confirm. You can go up to 4.3x on this specific position for example.
Risk of such strategy
The main risk of course is Liquidation. While the risk is not ZERO, the risk is minimum due to few things:
Your borrowed Synth is the same asset as your deposit (Deposit ETH, borrow msETH)
msETH peg is ensured by:
Being paired to wETH on a stable pool on Velodrome. And if you want to know more how a stable pool is working, i would advise this research report we have done previously: https://sublidefi.notion.site/DePeg-mechanism-in-a-Liquidity-Pool-47885bbd913e4699b0ca23d46afdb9ce
Currently the pool is balance is very healthy, you may not worry until it reaches a 80/20 imbalance.
msETH/wETH Pool TVL on Velodrome msETH/wETH pool is incentived through voting incentives to create generous yield (currently set at 101% APR) attracting TVL
Collateral value in $ is ensured by a Chainlink price feed
The collateral increased in value since earning yields from Vesper Strategy over time
So you can enjoy a 28% APY on a leveraged position, but also earn 100% APR on Velodrome.
What’s the cherry on the cake?
“Smart Farming” on OP token.
Vesper yield is insane:
vaOP already set in Metronome and soon msOP will start existing (feedback from Live with Metronome → Listen to the podcast in the Podcast section).
So imagine a 3x leverage position on OP 😲with the same type of risks as above! Count on me personnaly, Subli, to farm my op there!
That’s it farmers!
🟠Podcast:
Note: The 🔴Optimistic Podcast partnered with Revelo Intel to provide written notes of some of the podcasts. Access granted to Revelo members.
Optimism Twitter accounts:
@OPLabsPBC for protocol development
@OptimismGov for governance
@OptimismGrants for Grant Council uipdates
Optimism Website:
Base Social links
Twitter: @BuildOnBase
Subli_Defi Social accounts:
Discord Handle: Subli#0257
Twitter: Subli_Defi
Lenster: Subli_Defi
Notion (Research database): https://sublidefi.notion.site/sublidefi/Subli_Defi-c57a3141c983433ca74e785a0bf1bcd0
Youtube: https://www.youtube.com/c/Subli_Defi
Disclaimer: Nothing in this content is financial advice. We may have some positions on the presented projects, however these articles are written in a non biais way so that you can make you own opinion out of it.
Do your own research before investing, and remember that Crypto is extremely volatile and risky.
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