DAOs Teeing Off

Good morning. Apparently this newsletter went to most people's spam folders yesterday, so I'll be repeating a couple things in today's intro. Over the next few weeks, I'll be adding a couple new sections to the newsletter, hopefully getting an official logo (check!), and making other general improvements. As always, let me kn0w if you have any suggestions at jmaxxyoungii@gmail.com.

Today we've got the latest DAO that has raised millions of dollars in a extremely short window of time, updates in the DeFi TVL pecking order, new stablecoin offerings, and more!

Bonus Content: I'm targeting early next week to have my notes out from Messari's Crypto Theses for 2022. I'll include a link to my notes in this newsletter, however, the full report is definitely worth a read.

Market Update (as of 7:45am ET):

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Top 5:

1. Links the Golf DAO - Digital Communities Will Change Our World
We're gonna buy a golf course! Last December, two buddies came up with the idea to use a DAO (decentralized autonomous organization) to raise funds to "acquire and operate a prominent golf course." Three weeks later and LinksDAO has raised $11 million dollars via an NFT sale that will fund the hiring of a "chief DAO officer", legal counsel, product teams, developers, etc. While ownership of the NFTs does not grant you ownership of the course itself, they do provide you with governance rights in the DAO via the $LINKS token. The team plans to identify a course to purchase early this year, with the potential for additional fundraising being required. Descriptions of the two NFTs and associated perks are below.

2. DeFi Protocol Convex Finance Crosses $20B in Locked Value
Over the weekend, Convex Finance took the number two spot in DeFi protocols as measured by total value locked (TVL). So, what is Convex Finance and is there a Concave Finance? Two great questions. First, Convex Finance "allows users to access liquidity and earn fees" on the stablecoin exchange Curve Finance, which itself is the largest DeFi protocol as measure by TVL, with $23 billion locked. Curve users can convert their curve tokens (CRV) into vote-escrowed CRV (veCRV), which allows holders to participate in platform governance, earn higher rewards and feeds, and receive airdrops. The issue with converting your CRV into veCRV is that it drys up users' liquidity. That's where Convex steps in. The Convex protocol pools all users assets to purchase CRV which is then converted in veCRV, with the benefit being that users now receive Curve rewards without locking up their curve tokens. Back to question #2...there does not appear to be a Concave Finance.

3. DeFi platform releases first decentralized stablecoin revenue aggregator
Zunami, a new stablecoin focused protocol, aims to get boomers out of their savings account and into the friendly realms of stablecoins. The pitch is simple, interest rates at banks are basically zero (before even considering the impacts of inflation), and there needs to be a way to get even the least tech-savvy investor into products with higher returns. Zumani provides this solution by acting as an automated asset manager that automatically invests in the most profitable stablecoin pools. The protocol also automatically sells and reinvests profits on behalf of users. While this seems to be a good potential first steps for some folks, it's unclear to me if the risks are outlined clearly enough for Zumani's target market (e.g., people who don't really understand crypto). Ex: stablecoins are not FDIC insured, DeFi does not provide a lender of last resort, tax impacts from yield farming and taking profits, etc.

4. FTX Wants to Pay Your Bank to Accept Stablecoins
My mother, who is the president of a mid-sized regional credit union (basically a bank), should take FTX up on the offer in the below tweet.

The crypto exchange wants to, "form a relationship like this if it means FTX users would have near instant and near free deposits and withdrawals.” Sending and receiving funds from banks to crypto exchanges and other platforms is a challenge for many users trying to access the space. Transfers can incur high fees and take days to process before funds become accessible. So Mom, please consider reaching out and taking your credit union to the moon!

P.S. today is also my mom's birthday, so please feel free to send any well wishes to me to pass along.

5. Eminem Purchases Bored Ape Yacht Club #9055 for $452K, Shady's Portfolio Holds 166 NFTs
As mentioned at the top of the issue, we covered this story yesterday but the email wound up in most subscribers' spam folders. My current theory is that having 'Eminem' in the subject line is a red flag for email providers. But, because I'm a big fan of Slim Shady I'm also including this story today (guess who's back, back again). Many are saying the Bored Ape looks like Eminem and it is apparently being referred to as the 'EminApe'. You decide, below.

Top Sharers of the Crypto Top 5:
1. Jake Y. - Greenville, SC
2. Cameron S. - New York, NY
3. Lauren A. - Nashville, TN

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.