🟣 Hehe We’ll Just Deprecate Your Wallet Account

Starknet deprecates wallets, and then magically restores access.

Good morning frens, I have unfortunate news to report. In their latest report, Fidelity did a DCF on ETH, and in their sensitivity table, even with their most bullish scenario of a 5% terminal growth rate and 8% discount rate, the present value of ETH should be $3,612. That's not a lot of upside. I thought we all agreed that ETH would be going to $10K? "It seems unlikely that any other digital asset could improve upon Bitcoin as a monetary good because Bitcoin is viewed by some as the most secure, decentralized, sound digital money to this point, and any "improvement" would require tradeoffs." Evidently, these analysts have not met ETH ultrasound money maxis.  However, they did note that "modeling the future of any growth-sensitive asset and applying an associated discount rate is highly subjective, and therefore, valuation may only be useful in theory." I'll take it as we like valuation frameworks if we like the price target (pls gib VanEck $51K ETH target). If we don't like it, then we'll stick with our TA. Starknet has run into a bit of a PR disaster, as the network upgraded to new contracts, which meant that any wallet accounts using old contracts were deprecated and could no longer be accessed. This caused some uproar within the crypto community, because I thought we were all here for a public, permissionless, and immutable ledgers?  The devs said that "we communicated this with a permanent banner within the wallet, and several posts across our social channels" and further said that "the wallets that did not upgrade in time will lose their assets." This was meant to occur on August 21st.  It turns out, they can magically restore access to all these accounts  (containing $550K) which they had previously stated users would no longer have access to. I'm not an expert, but this saga isn't exactly giving off a huge amount of decentralized vibes. Especially if users can lose access to their wallets, and then suddenly someone can flip a switch for users to restore access to these wallets. But oh well, what do I know, someone posted a discord message of a STRK token soon anyway. That's what we're here for, right? In another win for crypto, the court sided with Uniswap in a class action lawsuit, which alleged that Uniswap was responsible for "rampant fraud" on the exchange. However, the court said that "due to the protocol's decentralized nature, the identities of the scam token issuers are basically unknown and unknowable, leaving plaintiffs with an identifiable injury but no identifiable defendant." In the most optimistic interpretation, it means that protocol devs aren't liable when someone else misuses their protocol, especially if there is no centralized ownership structure. Big wins for Mr.Hayden Adams. Now all that is left to close off this wonderful week of legal news would be the spot Bitcoin ETF decisions for iShares, Bitwise, VanEck, Widsomtree, and Invesco who all have initial deadlines set for Friday or Saturday. A man can dream.    - purplepill3m Permissionless II is just around the corner.   We would love to see you join the Blockworks family in Austin, TX, for the world's largest DeFi event. Pro tip—FOMO in now, don't wait until the tickets are gone.   More information and tickets can be found here.   MKR is one of the top performers over the past 24 hours, up over 13%. MKR has seen over $500M of volume and ~$660k of short liquidations over the same time frame. Our resident MKR expert, the one and only 0x__Brick, says that excess cash from the HVB vault, which is a majority of the vault's AUM, will likely be returned to the DAO in the near future. If these funds get redeployed in T-Bills, it should have a positive impact on Maker's revenue run rate. Brick was so kind to release a full report alongside a financial model for BWR subscribers, so be sure to check that out for more insight into MKR's current valuation. Aerodrome, a fork of Velodrome V2, launched on Monday, with AERO incentives kicking off last night at 00:00 UTC. The genesis AERO supply includes 450M tokens locked for 4 years as veAERO, with the remaining 50M tokens circulating in the genesis liquidity pool (10M) and distributed as voter incentives (40M). The price of VELO has been extremely volatile since launch, ranging between $0.25-$0.70. This equates to a circulating market cap between $12.5M and $35M if we exclude the 450M veAERO that is locked for 4 years. If we time travel 2 years into the future, the implied FDV based on the current trading range and supply schedule is $1.12B.  The AERO supply will inflate by 10M during the first epoch (week), and gradually increase by 3% per epoch until topping out above 15M per epoch, which will then be followed by a 1% weekly decay rate into perpetuity. The AERO/USDbC pool is being heavily incentivized with AERO emissions in the initial epochs, which is currently yielding a ~1,800% APR. This is a hard play to dissect because on one hand, we have a token that faces massive inflationary headwinds and a track record for Solidly forks of down only price action, but on the other hand, we have Base/OP Stack narrative tailwinds, and plenty of OG Ethereum-native and more novel Base-native protocols that will need to establish liquidity for their protocol's tokens on Base. We expect Aerodrome revenue to be extremely robust during its first week as users hop on to try it out, which is supported by the $120K+ of fees that have been generated over the past 24 hours. Don't forget that all fees and voting incentives accrue to veAERO voters each epoch, so hefty revenue could add a floor price to AERO if the volume sustains. Stargate V2: The Cross-chain Bridge Upgrades with a Wrapped Asset Masterplan Stargate V2 is a significant improvement to the core protocol, and should help it remain competitive and profitable after a potential airdrop. Project Hydra could be a genius long term strategic move if executed correctly, and could completely eliminate the need for liquidity incentives. Read More → MakerDAO's 12M Financial Outlook & Valuation: Balancing Growth Against Costs To offset DSR costs, MakerDAO still has assets on its balance sheet that it can deploy into RWAs, but the project will also have to continue expanding its stablecoin supply to reach a similar free cash flow level that it maintained in June 2023. Read More → Reaching a billion users is 'the wrong goal' for crypto, says former Tinder VP The Web3 game is different because "everything is monetizable" Read More → Swift details findings in tests of Chainlink's cross-chain interoperability Banking system messaging giant Swift to provide a single entry point to streamline tokenized asset transfers for financial institutions Read More → The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. 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