📢 EXCLUSIVE: New Play-to-Earn Collective HumanDAO Announces Token Sale

Hello Defiers! Here’s what we are covering today,

News

• EXCLUSIVE: New Play-to-Earn Collective HumanDAO Announces Token Sale
• Tokemak Onboards SushiSwap’s 0xMaki Amid Liquidity Direction Pre-Launch

Research

• Concentrated Liquidity Increases Risk of Impermanent Loss, Bancor and IntoTheBlock Found

Podcast

• Listen to this week’s podcast with Geoff Cook here

Video

• The Defiant Weekly: DeFi 2.0 is not what you think it is...

Links

• Why I have changed my mind on tokens: Deribit
• Axie Infinity plot of virtual land sells for record $2.4 million: The Block
• A step-by-step roadmap for scaling rollups with calldata expansion and sharding: Vitalik Buterin

Most Read on The Defiant

• New Layer 2 Boba Leapfrogs Optimism and Races Past $1B in TVL
• Wolf Game NFTs Spark Frenzy with Sales of $52M in Five Days
• The Story of Ethereum to Become a Movie and NFT Collection

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• Aave, an open-source and non-custodial liquidity protocol where users can earn interest on deposits and borrow assets.
• Fintech Meetup, is fintech’s next big event--30,000+ online meetings for 3,000+ DeFi & TradFi participants! Online Mar.22-24. Learn More

Token Sale

📢 EXCLUSIVE: New Play-to-Earn Collective HumanDAO Announces Token Sale

HDAO PUBLIC SALE HumanDAO, a decentralized autonomous organization connecting play-to-earn (P2E) gamers with digital asset owners, has announced it will hold a public sale for its forthcoming governance token HDAO on Dec. 1.

10 YEARS HumanDAO will sell 5% of HDAO’s supply (or 50M tokens). Price will be determined through a Dutch auction. 55% of HDAO’s supply will be allocated to the community over 10 years to “ensure participation opportunities are still available for future underserved communities,” the team said in a post shared exclusively with The Defiant.

P2E DAOS Play-to-earn DAOs have gained popularity this year, with Yield Guild Games raising $12.5M in 30 seconds in an initial DEX offering, and $4.6M in a financing round led by venture capital firm Andreessen Horowitz. A similar project, Merit Circle, raised $105M in 72 hours. HumanDAO says it is different from other play-to-earn DAOs because it plans to issue a greater proportion of tokens to its community as opposed to the founding team at launch, and because tokens will be distributed over a longer time frame than its counterparts.

👉READ THE FULL STORY IN THE DEFIANT.IO👈

DeFi 2.0

🍱 Tokemak Onboards SushiSwap’s 0xMaki Amid Liquidity Direction Pre-Launch

0XMAKI 0xMaki, SushiSwap co-founder, has joined Tokemak as its new chief strategy advisor. Tokemak also completed its liquidity direction pre-launch on Nov. 24, allowing TOKE holders to earn rewards in exchange for voting on how assets deposited into the protocol should be mobilized.

CAPITAL EFFICIENCY Tokemak, a decentralized market-making and liquidity provision protocol commanding a ten-figure total value locked (TVL), is designed to address inefficient liquidity provision and inflationary token incentives plaguing DeFi.

ANNOUNCEMENT 0xMaki announced his new position via Nov. 24 tweet, predicting the protocol’s vision for tokenized liquidity will have a significant impact on the DeFi landscape.

DEPLOYMENT The protocol is aiming for liquidity deployment to begin by mid-December, pending the completion of smart contract audits. At launch, liquidity will be deployed to popular decentralized exchanges Uniswap, SushiSwap, Balancer, and 0x.

👉READ THE FULL STORY IN THE DEFIANT.IO👈

Research

🦄 Concentrated Liquidity Increases Risk of Impermanent Loss, Bancor and IntoTheBlock Found

IntoTheBlock replicates Bancor report on Uniswap V3.

AMPLIFIED IL Uniswap v3’s concentrated liquidity improved capital efficiency, but also amplified the risks of impermanent loss.

IL BEAT OUT TRADING FEES IN STUDY Recently an interesting paper was published by the Bancor team related to impermanent loss when providing liquidity on the protocol. The study gathered data from the launch of Uniswap v3 in May until the end of September. It concluded that the impermanent losses (-$260.1M) out shadow the returns earned from trading fees ($199.3M).

ACTIVE VS PASSIVE MANAGEMENT The report found no evidence that certain highly active management strategies would be outperforming those more passive strategies when readjusting liquidity.

UNPROFITABLE At IntoTheBlock we had access to the raw data of the study and were able to replicate the results. We were particularly interested in how the performance was per wallet and per position and to compare each of them. Summing up, 53.50% of the positions were profitable versus 46.50% that were not. When looking at wallets those that were in profit were a minority with 48.25% over 51.75% that were unprofitable. So up until the date of the study, we can state that the majority of the addresses providing liquidity in Uniswap v3 were not making money.

👉READ THE FULL STORY IN THE DEFIANT.IO👈

Sponsored Post

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The Tube

Okay, so you wanna know what the SBF is up with this Defi2.0 bizzo. Well you’ve come to the right place. What is Defi2.0. You can do yourself a favour and avoid having to watch the rest of this video and make yourself look cool at your next DeFi mixer with this simple explanation. DeFi2.0 - It’s a meme. End of story. or is it?.....

Links

🔗 Why I have changed my mind on tokens: Deribit

Tokens like SUSHI are among the most hotly debated topics over the last years and divide most crypto fans and researchers into two camps. The first camp sees tokens as a liability to be minimized, often accompanied by cries of “why does project XYZ need a token?” I used to fall firmly into this first camp, but now find myself increasingly in the second, which sees tokens both as a necessity and an important incentive mechanism. Let me explain how I changed my mind.

🔗 Axie Infinity plot of virtual land sells for record $2.4 million: The Block

A virtual land plot in the Axie Infinity NFT game sold for a record price of 550 ether (about $2.4 million) on Wednesday.

🔗 A step-by-step roadmap for scaling rollups with calldata expansion and sharding: Vitalik Buterin

Rollups are in the short and medium term, and possibly the long term, the only trustless scaling solution for Ethereum. Transaction fees on L1 have been very high for months and there is greater urgency in doing anything required to help facilitate an ecosystem-wide move to rollups. Rollups are already significantly reducing fees for many Ethereum users: l2fees.info frequently shows Optimism and Arbitrum providing fees that are ~3-8x lower than the Ethereum base layer itself, and ZK rollups, which have better data compression and can avoid including signatures, have fees ~40-100x lower than the base layer.

Most Read on The Defiant

• New Layer 2 Boba Leapfrogs Optimism and Races Past $1B in TVL
• Wolf Game NFTs Spark Frenzy with Sales of $52M in Five Days
• The Story of Ethereum to Become a Movie and NFT Collection

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🧑‍💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Samuel Haig, DeFiDad, and yyctrader, and edited by Edward Robinson, yyctrader, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.

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