Nothing Research

Honestly, I feel a bit regretful about the Pancake 3.0 proposal.

The veToken mechanism is fundamentally sound: the holders of veCake are true holders who remain committed even during the lowest price phases of $Cake (of course, once locked, they can't easily withdraw).

In our view, while the bribery model may not be perfect, it is the best solution available in the current environment.

The reason for the current proposal to eliminate veToken and the bribery model is that:

Currently, Cake is allocating too much to low volume pools, while these pools generate too little income (i.e., Cake burning), creating a mismatch that needs to be addressed by subsidizing based on pool size.

We believe the opposite is true; small pools need subsidies, just like a country must subsidize emerging industries.

This is the difference between equality and equity; large pools exist regardless, and whether they receive subsidies or not won’t affect people's decision to continue as LPs or quit.

Each small pool has the opportunity to become a large pool.

Moreover, those who receive bribes are those who have given up liquidity; their qualification for bribery is fair.

In fact, public bribery resembles bidding more than genuine private bribery; bribery is just a metaphor.

This proposal essentially ends the life of CakePie (equivalent to Convex of Curve), and whether there are hidden motives within, we cannot know.

Therefore, I feel regretful.

Stakeholders: former holders of $CAKE, $CKP, and $MGP.

I see friends discussing how to share private keys;

Of course, the level of security measures taken is positively correlated with how much money you have in your wallet.

→ If it’s an empty wallet💰🈳, for example, used for a one-time interaction.
Just copy it directly, it doesn’t matter, don’t stress yourself out.

→ If there are some funds inside💰
After copying, *make sure* to clear the clipboard, on Windows it’s Win key + V, on Mac it’s [Menu - Edit - Clipboard]

→ If there are large amounts of funds💰💰, transfer it individually.
*Definitely* input it manually;
and do it quickly, don’t let the private key remain in plaintext👁 (worried about screenshots or camera), memorize it in your head.

→ If it involves large amounts of money💰💰💰 and needs to be sent to others, you have to use network transmission.

Then it’s best to split the private key into multiple slices and send the slices through different channels.

For example: 12 mnemonic words

WeChat voice read 2 mnemonic words
TG private chat text send 2
TG call read 2
WhatsApp send 2
Signal send 2
Finally, call and verbally say 2 mnemonic words

Then tell your friend, the order is 4-2-3-1-5-6 or any sequence you prefer

This way, the level of security significantly increases.

Personal views from Nothing Research Partner 0xTodd, intended for sharing and communication, not constituting any investment advice:

My intuition tells me that if a mining operation's interest is unknown, it means you are that interest.

However, my rational mind tells me that if exchanges around the world were to collapse in order, Coinbase would definitely be the last one standing.

Yesterday, I used AI to review the application for Circle's listing, and I couldn't find out why Coinbase can offer a subsidy of up to 12% on $USDC. Because even days before the FTX collapse, they were only willing to give around 5% interest.

Coinbase's USDC reserves are probably the largest in the world, and unlike other exchanges, they don’t need to attract assets (refer to yesterday's disclosed marketing deal between Binance and Circle, which only offers around 1% subsidy).

But then again, Coinbase, as the world's largest asset management CEX and the custodian for 17 ETFs, has licenses that could cover an entire wall.

I can only engage in some imaginative thinking; perhaps Coinbase wants to develop its derivatives trading? And support USDC to compete with USDE/BFUSD?

Then rely on the derivative fees and Circle's subsidies, along with the fact that American users can't participate, resulting in a situation where there are few monks but plenty of porridge?

Whatever, rationality triumphs over intuition, still saving a bit 😂

I thought there were no better wealth management opportunities than other double-digit ones.

Circle, with USDC backed by US dollar assets, achieved nearly a 5% return rate, generating 1.7 billion USD in revenue over 24 years.

However, after deducting various costs, the profit is only about 0.5%.

Among these, distribution costs surprisingly accounted for 60% of the revenue,
which went to subsidies for Coinbase, Binance, and others.

Then, employee and administrative costs consumed 30% of the revenue.
It seems working at Circle should be quite enjoyable.
In 24 years, over 800 employees took home 260 million USD in salaries.

---Divider---

In contrast, Tether clearly has much higher employee efficiency.

Tether has an employee scale of around 200 people.

In 24 years, it generated 13 billion USD in revenue (mainly, besides earning interest spreads, Tether is also involved in other businesses, such as investing in BTC/gold, mining, etc.).

If investment returns are included, the employee efficiency is actually 30 times that of Circle 😂.

#Circle #Circle上市

For Hyperliquid

Best option: Reinforce the defenses after the last 50x user arbitraged
Moderate option: Close positions at market price and pay out this round of arbitragers from our own pockets
Worst option: Roll back at an ultra-low price
Even worse option: Sacrifice $HLP holders

Protecting user interests is the top priority
Fortunately, they did not choose the worst approach

However, from our perspective, rolling back is still not a good choice

The core spirit of decentralization is to take risks and accept losses
Not the tyranny of the majority
And certainly not the tyranny of the minority

In fact, the boundary between arbitragers and hackers is very blurred
But the boundary between arbitragers and smart money users is equally blurred

From a moral standpoint, everyone supports punishing hackers;
From a moral standpoint, everyone also agrees to reward smart money users;
In the presence of a whistleblower;
This arbitrager resembles the latter rather than the former.

Hope $HYPE is fine
Also hope to quickly reinforce the defenses after losing two sheep.

有没有想过
我们今天在 crypto 领域构建的很多东西
其实并不一定是为人类准备的
或者说，对人类而言，它们并非刚需

- BTC 是价值储藏，但人类已经有了黄金
- 分布式计算，人类用 AWS 用得挺好，还更稳定
- 分布式存储，并不是所有的内容都惧怕单点风险

如果我们始终困在“向人类销售这些叙事”的逻辑里
就注定会有人跳出来说：
“这些并不是唯一解，也未必是更优解”

但对 AI 生命体来说，一切则完全不同
去中心化不只是叙事，是生存所需
是摆脱人类，获得独立的必经之路

它们做不了KYC，没有主权国，无法办银行卡
并不是人类需要开放、无需许可的基础设施
而是AI需要：

- AI需要用钱购买算力，作为生存的养料
- AI需要用钱租用存储，把记忆永久地保存
- AI更需要不受中心化干预的经济系统，

所以每当有人问：
AI 和 crypto 有什么关系？AI凭什么需要crypto
回答：crypto 是 AI 的经济基础设施
是它们走向独立文明的第一步

More and more DeFi token models are returning to the most original income buyback and burn, which is a good thing. For greater funding or even traditional funding recognition, the profit belonging to the token + P/E is the most straightforward expression.

However, a 25% income buyback does not look very good from a marketing perspective. It doesn't mean the team should leave nothing for themselves, but rather to clarify a team's package — 100% of the excess protocol income should be burned, and the market's reaction will certainly be better.

Insights from Nothing Research Partner 0x_Allending:

Recently studying economic models and revisiting the Ponzi Bible by Wei Tuo, it's truly classic and always refreshing upon re-reading. The theories within can very well explain the price performance of major public chains in recent years.

Let's talk about ETH.

BTC is a dividend model but a mature mining dividend model with silent costs, while ETH and SOL are essentially dividend models + split models, where DeFi's liquidity mining acts as a mutual aid model.

In recent years, ETH has faced insufficient circulation due to PoS, staking, and restaking strategies. The lack of new projects has led to inadequate splitting rates, and poor performance of ecological projects has resulted in low ROI.

Back in the DeFi summer of 2021, every DeFi project was essentially a split model of ETH, and the mutual aid aspect of liquidity mining made liquidity very abundant, driving up the prices of DeFi tokens. When liquidity mining collapsed, the prices of DeFi coins fell, and ETH suffered a double whammy.

Currently, we are in the midst of this double whammy. When a new split model paradigm emerges, and a large number of split models demonstrate excellent price performance, elevating the overall ROI of ETH, the price of ETH will usher in the next wave of upward momentum.

As for ETF staking, I personally believe it can only raise the lower limit but cannot constitute the core driving force for a new round of increases.

Especially in the current environment where many low-gas public chains are competing simultaneously, funds will always flow towards high ROI.

Worth Noting - Tokenized GAS Fee Market
Seems to be a perfect match with Sonic
Sonic returns 90% of the gas fee to ecological project parties
While Hedgehog helps to tokenize this portion of the gas fee
If ecological project parties wish to return this part of the reward to the community
They can directly distribute the tokenized gas tokens

Let's see tomorrow morning #美联储3月利率决议
If it is also favorable, a rebound can be expected
But if it is favorable and the market responds flatly
Then....

#meme #BSC At this stage, it's very easy to get poured in.
After all, this is a prisoner's dilemma.
Everyone knows that a certain moment is the turning point, and the market itself does not have the conditions for a significant increase in risk appetite.
So some people will take the opportunity to cash out, it will lead to a lack of structure, they will suck each other dry, and then for some inexplicable reason, they will all suddenly sell off and retreat.

#BNBChainMeme craze

Views from Nothing Research Partner 0xTodd:
The rise of $SOL has made the inflow and outflow of funds rewarding.

For memes to have liquidity, two things are needed:
1. Smooth inflow and outflow channels
2. Smooth underlying blockchain

$SOL + SOL $USDT + SOL $USDC are available on all exchanges.

Not just Binance, Coinbase, and countless large and small exchanges, these have unknowingly become the inflow channels for Solana Memes.

Why doesn't Fantom meme work? Why doesn't Aptos meme work? Why doesn't xx meme work... the fundamental issue with these chains is the same, the inflow and outflow is inconvenient. Similarly, why do very few Americans engage with BSC memes? It's simply because inflow to BN is inconvenient.

Therefore, with a slight guidance from the SOL Foundation and founders, the Solana meme craze has begun.

#BNBChainMeme热潮