Decentralized perpetual may be the next crypto market boom; with tons of perpetual popping up, let's look at two protocols that offer organic, non-inflationary yields.

Decentralized derivatives exchanges' market share has increased tenfold in a year, but it's still 2% of CEXs'. DEXs have a long way to go before they can compete with centralized exchanges in speed, liquidity, user experience, and composability.

I'll cover gains.trade and GMX protocol in Polygon, Avalanche, and Arbitrum. Both protocols support leveraged perpetual crypto, stock, and Forex trading.

Why these protocols?

Decentralized GMX Gains protocol

Organic yield: path to sustainability

I've never trusted Defi's non-organic yields. Example: XYZ protocol. 20–75% of tokens may be set aside as farming rewards to provide liquidity, according to tokenomics.

Say you provide ETH-USDC liquidity. They advertise a 50% APR reward for this pair, 10% from trading fees and 40% from farming rewards. Only 10% is real, the rest is "Ponzi." The "real" reward is in protocol tokens.

Why keep this token? Governance voting or staking rewards are promoted services.

Most liquidity providers expect compensation for unused tokens. Basic psychological principles then? — Profit.

Nobody wants governance tokens. How many out of 100 care about the protocol's direction and will vote?

Staking increases your token's value. Currently, they're mostly non-liquid. If the protocol is compromised, you can't withdraw funds. Most people are sceptical of staking because of this.

"Free tokens," lack of use cases, and skepticism lead to tokens moving south. No farming reward protocols have lasted.

It may have shown strength in a bull market, but what about a bear market?

What is decentralized perpetual?

A perpetual contract is a type of futures contract that doesn't expire. So one can hold a position forever.

You can buy/sell any leveraged instruments (Long-Short) without expiration.

In centralized exchanges like Binance and coinbase, fees and revenue (liquidation) go to the exchanges, not users.

Users can provide liquidity that traders can use to leverage trade, and the revenue goes to liquidity providers.

Gains.trade and GMX protocol are perpetual trading platforms with a non-inflationary organic yield for liquidity providers.

GMX protocol

GMX is an Arbitrum and Avax protocol that rewards in ETH and Avax. GLP uses a fast oracle to borrow the "true price" from other trading venues, unlike a traditional AMM.

GLP and GMX are protocol tokens. GLP is used for leveraged trading, swapping, etc.

GLP is a basket of tokens, including ETH, BTC, AVAX, stablecoins, and UNI, LINK, and Stablecoins.

GLP composition on arbitrum

GLP composition on Avalanche

GLP token rebalances based on usage, providing liquidity without loss.

Protocol "runs" on Staking GLP. Depending on their chain, the protocol will reward users with ETH or AVAX. Current rewards are 22 percent (15.71 percent in ETH and the rest in escrowed GMX) and 21 percent (15.72 percent in AVAX and the rest in escrowed GMX). escGMX and ETH/AVAX percentages fluctuate.

Where is the yield coming from?

Swap fees, perpetual interest, and liquidations generate yield. 70% of fees go to GLP stakers, 30% to GMX. Organic yields aren't paid in inflationary farm tokens.

Escrowed GMX is vested GMX that unlocks in 365 days. To fully unlock GMX, you must farm the Escrowed GMX token for 365 days. That means less selling pressure for the GMX token.

GMX's status

These are the fees in Arbitrum in the past 11 months by GMX.

GMX works like a casino, which increases fees. Most fees come from Margin trading, which means most traders lose money; this money goes to the casino, or GLP stakers.

Strategies

My personal strategy is to DCA into GLP when markets hit bottom and stake it; GLP will be less volatile with extra staking rewards.

GLP YoY return vs. naked buying

Let's say I invested $10,000 in BTC, AVAX, and ETH in January.

• BTC price: 47665$

• ETH price: 3760$

• AVAX price: $145

Current prices

• BTC $21,000 (Down 56 percent )

• ETH $1233 (Down 67.2 percent )

• AVAX $20.36 (Down 85.95 percent )

Your $10,000 investment is now worth around $3,000.

How about GLP? My initial investment is 50% stables and 50% other assets ( Assuming the coverage ratio for stables is 50 percent at that time)

Without GLP staking yield, your value is $6500.

Let's assume the average APR for GLP staking is 23%, or $1500. So 8000$ total. It's 50% safer than holding naked assets in a bear market.

In a bull market, naked assets are preferable to GLP.

Short farming using GLP

Simple GLP short farming.

You use a stable asset as collateral to borrow AVAX. Sell it and buy GLP. Even if GLP rises, it won't rise as fast as AVAX, so we can get yields.

Let's do the maths

You deposit $10,000 USDT in Aave and borrow Avax. Say you borrow $8,000; you sell it, buy GLP, and risk 20%.

After a year, ETH, AVAX, and BTC rise 20%. GLP is $8800. $800 vanishes. 20% yields $1600. You're profitable. Shorting Avax costs $1600. (Assumptions-ETH, AVAX, BTC move the same, GLP yield is 20%. GLP has a 50:50 stablecoin/others ratio. Aave won't liquidate

In naked Avax shorting, Avax falls 20% in a year. You'll make $1600. If you buy GLP and stake it using the sold Avax and BTC, ETH and Avax go down by 20% - your profit is 20%, but with the yield, your total gain is $2400.

Issues with GMX

GMX's historical funding rates are always net positive, so long always pays short. This makes long-term shorts less appealing.

Oracle price discovery isn't enough. This limitation doesn't affect Bitcoin and ETH, but it affects less liquid assets. Traders can buy and sell less liquid assets at a lower price than their actual cost as long as GMX exists.

As users must provide GLP liquidity, adding more assets to GMX will be difficult. Next iteration will have synthetic assets.

Gains Protocol

Best leveraged trading platform. Smart contract-based decentralized protocol. 46 crypto pairs can be leveraged 5–150x and 10 Forex pairs 5–1000x. $10 DAI @ 150x (min collateral x leverage pos size is $1500 DAI). No funding fees, no KYC, trade DAI from your wallet, keep funds.

DAI single-sided staking and the GNS-DAI pool are important parts of Gains trading. GNS-DAI stakers get 90% of trading fees and 100% swap fees. 10 percent of trading fees go to DAI stakers, which is currently 14 percent!

Trade volume

When a trader opens a trade, the leverage and profit are pulled from the DAI pool. If he loses, the protocol yield goes to the stakers.

If the trader's win rate is high and the DAI pool slowly depletes, the GNS token is minted and sold to refill DAI. Trader losses are used to burn GNS tokens. 25%+ of GNS is burned, making it deflationary.

Due to high leverage and volatility of crypto assets, most traders lose money and the protocol always wins, keeping GNS deflationary.

Gains uses a unique decentralized oracle for price feeds, which is better for leverage trading platforms. Let me explain.

Gains uses chainlink price oracles, not its own price feeds. Chainlink oracles only query centralized exchanges for price feeds every minute, which is unsuitable for high-precision trading.

Gains created a custom oracle that queries the eight chainlink nodes for the current price and, on average, for trade confirmation. This model eliminates every-second inquiries, which waste gas but are more efficient than chainlink's per-minute price.

This price oracle helps Gains open and close trades instantly, eliminate scam wicks, etc.

Other benefits include:

• Stop-loss guarantee (open positions updated)

• No scam wicks

• Spot-pricing

• Highest possible leverage

• Fixed-spreads. During high volatility, a broker can increase the spread, which can hit your stop loss without the price moving.

• Trade directly from your wallet and keep your funds.

• >90% loss before liquidation (Some platforms liquidate as little as -50 percent)

• KYC-free

• Directly trade from wallet; keep funds safe

Further improvements

GNS-DAI liquidity providers fear the impermanent loss, so the protocol is migrating to its own liquidity and single staking GNS vaults. This allows users to stake GNS without permanent loss and obtain 90% DAI trading fees by staking. This starts in August.

Their upcoming improvements can be found here.

Gains constantly add new features and change pairs. It's an interesting protocol.

Conclusion

Next bull run, watch decentralized perpetual protocols. Effective tokenomics and non-inflationary yields may attract traders and liquidity providers. But still, there is a long way for them to develop, and I don't see them tackling the centralized exchanges any time soon until they fix their inherent problems and improve fast enough.

Read the full post here.

Don't sleep with your own sister.

70% of lottery winners go broke within five years. You've heard the last one. People who got rich quickly without setbacks and hard work often lose it all. My father said, "Easy money is easily lost," and a wealthy friend who owns a family office said, "The first generation makes it, the second generation spends it, and the third generation blows it."

This is evident. Corrupt politicians in developing countries live lavishly, buying their third wives' fifth Hermès bag and celebrating New Year's at The Brando Resort. A successful businessperson from humble beginnings is more conservative with money. More so if they're atom-based, not bit-based. They value money.

Crypto can "feel" easy. I have nothing against capital market investing. The global financial system is shady, but that's another topic. The problem started when those who took advantage of easy money started affecting other businesses. VCs did minimal due diligence on FTX because they needed deal flow and returns for their LPs. Lenders did minimum diligence and underwrote ludicrous loans to 3AC because they needed revenue.

Alameda (hence FTX) and 3AC made "easy money" Genesis and DCG aren't. Their businesses are more conventional, but they underestimated how "easy money" can hurt them.

Genesis has been the victim of easy money hubris and insolvency, losing $1 billion+ to 3AC and $200M to FTX. We discuss the implications for the broader crypto market.

Here are the quick takeaways:

• Genesis is one of the largest and most notable crypto lenders and prime brokerage firms.

• DCG and Genesis have done related party transactions, which can be done right but is a bad practice.

• Genesis owes DCG $1.5 billion+.

• If DCG unwinds Grayscale's GBTC, $9-10 billion in BTC will hit the market.

• DCG will survive Genesis.

What happened?

Let's recap the FTX shenanigan from two weeks ago. Shenanigans! Delphi's tweet sums up the craziness. Genesis has $175M in FTX.

Cred's timeline: I hate bad crisis management. Yes, admitting their balance sheet hole right away might've sparked more panic, and there's no easy way to convey your trouble, but no one ever learns.

By November 23, rumors circulated online that the problem could affect Genesis' parent company, DCG. To address this, Barry Silbert, Founder, and CEO of DCG released a statement to shareholders.

• A few things are confirmed thanks to this statement.

• DCG owes $1.5 billion+ to Genesis.

• $500M is due in 6 months, and the rest is due in 2032 (yes, that’s not a typo).

• Unless Barry raises new cash, his last-ditch efforts to repay the money will likely push the crypto market lower.

• Half a year of GBTC fees is approximately $100M.

• They can pay $500M with GBTC.

• With profits, sell another port.

Genesis has hired a restructuring adviser, indicating it is in trouble.

Rehypothecation

Every crypto problem in the past year seems to be rehypothecation between related parties, excessive leverage, hubris, and the removal of the money printer. The Bankless guys provided a chart showing 2021 crypto yield.

In June 2022, @DataFinnovation published a great investigation about 3AC and DCG. Here's a summary.

• 3AC borrowed BTC from Genesis and pledged it to create Grayscale's GBTC shares.

• 3AC uses GBTC to borrow more money from Genesis.

• This lets 3AC leverage their capital.

• 3AC's strategy made sense because GBTC had a premium, creating "free money."

• GBTC's discount and LUNA's implosion caused problems.

• 3AC lost its loan money in LUNA.

• Margin called on 3ACs' GBTC collateral.

• DCG bought GBTC to avoid a systemic collapse and a larger discount.

• Genesis lost too much money because 3AC can't pay back its loan. DCG "saved" Genesis, but the FTX collapse hurt Genesis further, forcing DCG and Genesis to seek external funding.

bruh…

Learning Experience

Co-borrowing. Unnecessary rehypothecation. Extra space. Governance disaster. Greed, hubris. Crypto has repeatedly shown it can recreate traditional financial system disasters quickly. Working in crypto is one of the best ways to learn crazy financial tricks people will do for a quick buck much faster than if you dabble in traditional finance.

Moving Forward

I think the crypto industry needs to consider its future. This is especially true for professionals. I'm not trying to scare you. In 2018 and 2020, I had doubts. No doubts now. Detailing the crypto industry's potential outcomes helped me gain certainty and confidence in its future. This includes VCs' benefits and talking points during the bull market, as well as what would happen if government regulations became hostile, etc. Even if that happens, I'm certain. This is permanent. I may write a post about that soon.

Sincerely,

M.

The company seeking 24/7 ultra-powerful solar electricity.

We're rushing to adopt low-carbon energy to prevent a self-made doomsday. We're using solar, wind, and wave energy. These low-carbon sources aren't perfect. They consume large areas of land, causing habitat loss. They don't produce power reliably, necessitating large grid-level batteries, an environmental nightmare. We can and must do better than fossil fuels. Longi, one of the world's top solar panel producers, is creating a low-carbon energy source. Solar-powered spacecraft. But how does it work? Why is it so environmentally harmonious? And how can Longi unlock it?

Space-based solar makes sense. Satellites above Medium Earth Orbit (MEO) enjoy 24/7 daylight. Outer space has no atmosphere or ozone layer to block the Sun's high-energy UV radiation. Solar panels can create more energy in space than on Earth due to these two factors. Solar panels in orbit can create 40 times more power than those on Earth, according to estimates.

How can we utilize this immense power? Launch a geostationary satellite with solar panels, then beam power to Earth. Such a technology could be our most eco-friendly energy source. (Better than fusion power!) How?

Solar panels create more energy in space, as I've said. Solar panel manufacture and grid batteries emit the most carbon. This indicates that a space-solar farm's carbon footprint (which doesn't need a battery because it's a constant power source) might be over 40 times smaller than a terrestrial one. Combine that with carbon-neutral launch vehicles like Starship, and you have a low-carbon power source. Solar power has one of the lowest emissions per kWh at 6g/kWh, so space-based solar could approach net-zero emissions.

Space solar is versatile because it doesn't require enormous infrastructure. A space-solar farm could power New York and Dallas with the same efficiency, without cables. The satellite will transmit power to a nearby terminal. This allows an energy system to evolve and adapt as the society it powers changes. Building and maintaining infrastructure can be carbon-intensive, thus less infrastructure means less emissions.

Space-based solar doesn't destroy habitats, either. Solar and wind power can be engineered to reduce habitat loss, but they still harm ecosystems, which must be restored. Space solar requires almost no land, therefore it's easier on Mother Nature.

Space solar power could be the ultimate energy source. So why haven’t we done it yet?

Well, for two reasons: the cost of launch and the efficiency of wireless energy transmission.

Advances in rocket construction and reusable rocket technology have lowered orbital launch costs. In the early 2000s, the Space Shuttle cost $60,000 per kg launched into LEO, but a SpaceX Falcon 9 costs only $3,205. 95% drop! Even at these low prices, launching a space-based solar farm is commercially questionable.

Energy transmission efficiency is half of its commercial viability. Space-based solar farms must be in geostationary orbit to get 24/7 daylight, 22,300 miles above Earth's surface. It's a long way to wirelessly transmit energy. Most laser and microwave systems are below 20% efficient.

Space-based solar power is uneconomical due to low efficiency and high deployment costs.

Longi wants to create this ultimate power. But how?

They'll send solar panels into space to develop space-based solar power that can be beamed to Earth. This mission will help them design solar panels tough enough for space while remaining efficient.

Longi is a Chinese company, and China's space program and universities are developing space-based solar power and seeking commercial partners. Xidian University has built a 98%-efficient microwave-based wireless energy transmission system for space-based solar power. The Long March 5B is China's super-cheap (but not carbon-offset) launch vehicle.

Longi fills the gap. They have the commercial know-how and ability to build solar satellites and terrestrial terminals at scale. Universities and the Chinese government have transmission technology and low-cost launch vehicles to launch this technology.

It may take a decade to develop and refine this energy solution. This could spark a clean energy revolution. Once operational, Longi and the Chinese government could offer the world a flexible, environmentally friendly, rapidly deployable energy source.

Should the world adopt this technology and let China control its energy? I'm not very political, so you decide. This seems to be the beginning of tapping into this planet-saving energy source. Forget fusion reactors. Carbon-neutral energy is coming soon.

Las Vegas hosted CES 2023. This third and last look at CES 2023 previews upcoming consumer electronics trends that will be crucial for market share.

Definitely start with ICT. Qualcomm CEO Cristiano Amon spoke to CNBC from Las Vegas on China's crackdown and the company's automated driving systems for electric vehicles (EV). The business showed a concept car and its latest Snapdragon processor designs, which offer expanded digital interactions through SalesForce-partnered CRM platforms.

Qualcomm CEO Meets SK Hynix Vice Chairman at CES 2023 On Jan. 6, SK hynix Inc.'s vice chairman and co-CEO Park Jung-ho discussed strengthening www.businesskorea.co.kr.

Electrification is reviving Michigan's automobile industry. Michigan Local News reports that $14 billion in EV and battery manufacturing investments will benefit the state. The report also revealed that the Strategic Outreach and Attraction Reserve (SOAR) fund had generated roughly $1 billion for the state's automotive sector.

Michigan to "dominate" EV battery manufacturing after $2B investment. Michigan spent $2 billion to safeguard www.mlive.com.

Ars Technica is great for technology, society, and the future. After CES 2023, Jonathan M. Gitlin published How many electric car chargers are enough? Read about EV charging network issues and infrastructure spending. Politics aside, rapid technological advances enable EV charging network expansion in American cities and abroad.

New research says US needs 8x more EV chargers by 2030. Electric vehicle skepticism—which is widespread—is fundamentally about infrastructure. arstechnica.com

Finally, the UNEP's The Future of Electric Vehicles and Material Resources: A Foresight Brief. Understanding how lithium-ion batteries will affect EV sales is crucial. Climate change affects EVs in various ways, but electrification and mining trends stand out because more EVs demand more energy-intensive metals and rare earths. Areas & Producers has been publishing my electrification and mining trends articles. Follow me if you wish to write for the publication.

Producers This magazine analyzes medium.com-related corporate, legal, and international news to examine a paradigm shift.

The Weekend Brief (TWB) will routinely cover tech, industrials, and global commodities in global markets, including stock markets. Read more about the future of key areas and critical producers of the global economy in Areas & Producers.

TotalEnergies, Stellantis Form Automotive Cells Company (ACC) A joint-venture to design and build electric vehicles (EVs) was formed in 2020.

He built a $40M hip-hop empire from street drug dealing.

50 Cent was nearly killed by 9mm bullets.

Before 50 Cent, Curtis Jackson sold drugs.

He sold coke to worried addicts after being orphaned at 8.

Pursuing police. Murderous hustlers and gangs. Unwitting informers.

Despite his hard life, his hip-hop career was a success.

An assassination attempt ended his career at the start.

What sane producer would want to deal with a man entrenched in crime?

Most would have drowned in self-pity and drank themselves to death.

But 50 Cent isn't most people. Life on the streets had given him fearlessness.

“Having a brush with death, or being reminded in a dramatic way of the shortness of our lives, can have a positive, therapeutic effect. So it is best to make every moment count, to have a sense of urgency about life.” ― 50 Cent, The 50th Law

50 released a series of mixtapes that caught Eminem's attention and earned him a $50 million deal!

50 Cents turned death into life.

Things happen; that is life.

We want problems solved.

Every human has problems, whether it's Jeff Bezos swimming in his billions, Obama in his comfortable retirement home, or Dan Bilzerian with his hired bikini models.

All problems.

Problems churn through life. solve one, another appears.

It's harsh. Life's unfair. We can face reality or run from it.

The latter will worsen your issues.

“The firmer your grasp on reality, the more power you will have to alter it for your purposes.” — 50 Cent, The 50th Law

In a fantasy-obsessed world, 50 Cent loves reality.

Wish for better problem-solving skills rather than problem-free living.

Don't wish, work.

We All Have the True Power of Alchemy

Humans are arrogant enough to think the universe cares about them.

That things happen as if the universe notices our nanosecond existences.

Things simply happen. Period.

By changing our perspective, we can turn good things bad.

The alchemists' search for the philosopher's stone may have symbolized the ability to turn our lead-like perceptions into gold.

Negativity bias tints our perceptions.

Normal sparring broke your elbow? Rest and rethink your training. Fired? You can improve your skills and get a better job.

Consider Curtis if he had fallen into despair.

The legend we call 50 Cent wouldn’t have existed.

The Best Lesson in Life Ever?

Neither avoid nor fear your reality.

That simple sentence contains every self-help tip and life lesson on Earth.

When reality is all there is, why fear it? avoidance?

Or worse, fleeing?

To accept reality, we must eliminate the words should be, could be, wish it were, and hope it will be.

It is. Period.

Only by accepting reality's chaos can you shape your life.

“Behind me is infinite power. Before me is endless possibility, around me is boundless opportunity. My strength is mental, physical and spiritual.” — 50 Cent