What You Need to Know About Dolomite
friend.tech & BTC Sell-off
GM, this is your Daily Bolt briefing
In this edition we’re providing some notes on Dolomite. Dolomite is an Arbiturm lending & margin trading platform with some unique capabilities that include being able to support complex assets, like Pendle yield tokens… Keep reading to learn how Dolomite has integrated Pendle assets, their plans for the future, & more.
We’ve also included some notes from seasoned traders Avi Felman of Golden Tree & Jonah Van Bourg of Cumberland, so you can gain some nuanced insights into the latest developments in the crypto markets.
Over and out ⬇
1/ Dolomite Twitter Spaces with Pendle
Preview: Adam, Corey, and Bobo from Dolomite hosted Vu Gaba Vineb from Pendle to discuss new pools on Dolomite, future plans, & more! Click here to listen to the full episode (45 mins).
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Vu explains that Pendle has launched two new pools: sDAI pool and Flux USDC (fUSDC) pool. The $sDAI Pool allows speculation on DSR rates, while the Flux USDC pool enables speculation on real-world assets. Both pools on Pendle aim to optimize yield management.
Adam asks Vu to elaborate on what Pendle is and what it aims to achieve. Vu describes Pendle as a trading protocol that allows users to manage and optimize their DeFi yields. It offers fixed or floating yields and enables users to bet on yield directions to potentially earn better returns.
Adam talks about Dolomite as a lending protocol and margin DEX that supports a wide range of complex assets. Dolomite aims to push DeFi into the next generation by supporting assets with staking, vesting, and rewards.
Corey adds that Dolomite's unique feature is the ability to support expiring assets like YT-GLP (Yield Token-GLP). Dolomite has built-in expiration mechanisms to protect the system's solvency. He mentions that Dolomite aims to be a close partner with Pendle and support more of their assets in the future.
Adam emphasizes that Dolomite's ability to list expiring assets like YT-GLP sets it apart from other lending protocols.
Corey says that most lending protocols are limited in the types of assets they can support, especially those that expire or have complex yield structures.
He also explains that Pendle infrastructure consists of PT (Principal Token) and YT (Yield Token) assets. PT represents the principal portion of an investment, while YT represents the yield. Holding one YT-GLP token allows you to claim yield as if you held one GLP token. The market price of YT assets can differ from the yield it represents, depending on market expectations and asset maturities.
Adam asks Corey about the Pause Sentinel feature in Dolomite. Corey explains that Pause Sentinel allows Dolomite to shut off a part of the market in real-time if an asset is compromised, thereby reducing spillover effects and enhancing risk mitigation.
Adam asks about the cap on PT-GLP. Corey says that they are planning to raise the cap from 500,000 units to 1 million units by the end of August, 2023, as they have observed responsible usage of the asset on Dolomite.
Corey discusses the yield-claiming feature for YT-GLP on Dolomite. Users can claim yield on the total amount of YT-GLP deposited, regardless of how the assets are split between the borrow and balance pages, simplifying the user experience.
Adam asks about the future plans of Dolomite. Corey mentions they're looking to support Pendle AMM LP tokens and are excited about expanding liquidity for YT assets.
Bobo asks Vu about the possibility of bringing real-world assets (RWAs) to Arbitrum. Vu says that Pendle is open to this idea and will let Dolomite know if they proceed.
Corey talks about Dolomite's roadmap, which includes new features for the web app and protocol. They plan to release limit orders to enhance portfolio management and strategy execution.
Adam mentions Dolomite's Community XP program. He encourages everyone to claim their XP and join Dolomite's Discord for more updates on the program.
2/ 1000x Podcast - Trading Principles & Friend.tech's "Perfect Use Case"
Preview: Avi Felman and Jonah discuss crypto trading strategies, the rise of Friend.tech, the recent $BTC sell-off, and more! Click here to listen to the full episode (38 mins).
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Jonah says that the recent 15% sell-off in the crypto market makes him nervous. He says the market could go even lower but also sees it as a buying opportunity. He credits the sell-off to market participants being overly optimistic about the Grayscale vs. SEC decision, which didn't go as expected.
Jonah says that the weak positions have been liquidated, making it a clean slate for buying. He highlights the importance of having a consistent trading process, especially when the market is not going in your favor.
Avi explains the importance of context when using indicators like the 200-day moving average. He keeps a set of rules and contexts where certain indicators work or fail, which he reviews and applies to the current market situation.
Avi says that understanding why someone is saying something in a podcast can help listeners adapt to new information. He says that equities like COIN and MSTR are particularly useful for predicting BTC's direction when it is range-bound.
Jonah mentions the utility of equities as indicators when Bitcoin and equities are trending in the same direction. He highlights the importance of having a consistent trading process to avoid making impulsive decisions. He sees it as a framework to cling to during losses, while Avi views it as a set of rules and contexts to apply to the current market.
Jonah says he had to unlearn bad habits and almost got fired for day trading without a framework. He highlights the importance of having a process and taking a long-term view on assets, acknowledging his weakness in short-term trading. He used to have a sticky note on his monitor to remind him not to day trade without a backtested strategy.
Avi agrees that having a process is crucial and discusses the importance of quantifying strategies. He talks about mean reversion in correlated assets like ARB and OP and how to quantify these situations. Avi sees unique trends in cryptocurrencies like DOGE and BCH.
Jonah says that Friend.Tech, is a new app that allows users to buy shares in influencers for access to private conversations. Avi says that he's on the platform.
Jonah questions the value and potential dangers of Friend.tech, saying that selling access to influencers could be problematic. Avi says that assigning monetary value to access is common in various aspects of life, and mentions examples like paying for a table at a club or for lunch with Warren Buffett.
Avi mentions an investment in FAN3, a platform that allows artists to issue special access NFTs. He says that people are willing to pay for access to individuals they find important, useful, or idolize, adding that Friend.tech also has a gambling element where access can be resold.
Jonah recognizes Friend.tech's success, noting it's the third biggest revenue generator on the Ethereum network in the week. He expresses skepticism about the value and potential dangers of the platform, especially in the trading space.
Avi says that Friend.tech is about to go mainstream and that it's an extension of existing platforms that allow people to invest in sports stars. He sees various innovative uses for the platform, like buying shares to attend a concert.
Jonah agrees that Friend.tech is part of a larger trend and suggests that traders could profit by buying shares of people who are about to go viral. He even proposes the idea of a bot to automate this process.
Jonah says that Friend.tech is a perfect use case for crypto. He says that it is a topic worth paying attention to and anticipating its impact in the crypto space.
If you read these 2 Notes on Revelo Intel you would have saved: 2 hours and 16 mins!
