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The ETH Demand and NU WorkLock 🐳

This gets us to another point - the launch of decent actual projects. How do you expect me to touch your stuff if I have 10000% reasonably stable APY in some weird shitcoin farm? This is kind of the question DODO, Mooniswap, and others are facing now - people kinda like these projects, they have cool stuff to research there... but how can they justify participating there? I don't think good teams should actually give away a fuckton of tokens just to be competitive. It's impossible sustainability-wise. They need another marketing approach imho. Can't win this battle with weird scams.

Now to ETH. People make a bullish case because of Medalla, yETH vault... hold on a second, yETH vault will have over 60% APY expected and max out Dai supply?! Yep, very likely within hours after launch. Here is some more info: https://twitter.com/bantg/status/1300786653481631752. Does this influence the security of the staking? In the case of ETH, no, in case of other PoS tokens - surely it does (check Tarun's articles in the chat). Vitalik has been very much of a careful boomer and doesn't think such tools with higher APY will have any effect - seems like he feels that such things will be complimentary end of the day, perhaps with liquid staking for ETH later on: https://twitter.com/VitalikButerin/status/1297669121711042560

Also 🌀 NuCypher WorkLock started today. You either make a node yourself (and your ETH comes back to you during 6 months) or you participate with CoinList and get your ETH back after 6 months - but they will run a node for you. With the node you also need to price in your gas costs accordingly - so while it is nice to support the network running it locally, it's hard for plebs like me.

Here is a good FAQ, has all you need: https://coinlist.co/help/nucypher-worklock-faq. Speaking further, trying to hedge for 6 months might be a futile idea, but maybe some have an alpha on how to do it. Putting your ETH bag that you just hold and not trade seems to be a fine idea. Otherwise see how much more random LockDrops and Sushi-style farms can deliver to you. If this bullshit farming starts dying down, I might throw it all into there before September 28. Unless the maximum amount of nodes gets reached and then I will be sad.

Just 69K ETH to Make It 🦄

One cool thing - as we discussed in the first ever and last newsletter (lol) https://lobsters.substack.com/p/the-next-round-must-be-priced-higher - to keep the psychological price above the private sale price, over 32.5M USD needs to be WorkLocked. That means at the ETH price of 475 USD, it is just 69K ETH. The more ETH gets locked, the more psychologically media and shillers will use this metric as ser TVL big demand and the stronger support it would show. So I'd say NU would benefit if these farms will have less ETH pools by September 28... From a speculative standpoint.

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PS 🙏 my apologies for the noise and the degeneracy. We stay true to our vision of good research, giving spotlight to founders, and advancing legitimate crypto use cases forward. But in markets where 500% APY makes you non-competitive, it's close to impossible to get good eyes unless your product has 10x engineers. We will be back to good founders soon, but for now the market just shows that due diligence is a sad thing. Again, remember to not fuck people over and trap them in shit. Always talk about risks and warn them to not buy if they can farm for free. Stay safe sers.

I do not hold any positions actually. I am 85% in stables (most are in yVault) and then single digits BTC and ETH. Farming goes straight into the book. IL on ETH-USDC is ok for me.