👨‍🏫 Apples biggest threat is here?

June 24, 2022

What up, family, 👨‍👩‍👧‍👦

Seedphrase Daily here 👋. Happy Friday everyone! Get home safe from NFT NYC and make sure to tell your mom that we’re the ones that run you down on Web3 and Crypto.

Today’s estimated research time is 4 hours and 44 minutes condensed into a read time of 3 minutes and 43 seconds. Stay tuned to where we talk about:

  • ☀️Will we ever see Solana Summer?

  • 📱Solana announces a new decentralized smartphone!

  • 🤯 Does this confirm goblintown as the next blue chip?

  • 👨‍🏫 How to avoid losing thousands of dollars.

☀️Will we ever see Solana Summer?

Solana-based DeFi platform, Solend, has been dealing with the fear of potentially losing millions of dollars. One whale, 3oSE...uRbE, has the power to manipulate the market with massive liquidity. The platform tried to avoid a colossal selling pressure that could crash the market. Luckily, they are both in contact and working on a solution to deal with this.

The whale has a position of $170M SOL deposited and $108M worth of stables borrowed. They are 95% of the SOL deposits and 86% of USDC borrowings.

Their liquidation price is $22.27. If the whale got liquidated, it'd start with a partial liquidation capped at 20% of the outstanding borrows (~$21M).

Solend has a treasury with $20M that can help repay bad debt. However, this may not be enough in a worst-case scenario (which is what we want to be ready for).

Thus, they've been proactively trying to engage with the whale to get them to reduce their position and stop presenting such a systemic risk to other users of Solend while exploring other options just in case.

The protocol has also reduced the amount that can be liquidated within one transaction by lowering its maximum liquidation close factor to 1%. It also decreased the liquidation penalty for Solana from 5% to 2%. Both reductions are temporary and may change once the whale situation has been dealt with.

Solend asked users to vote on a new proposal to overturn the earlier vote, which received an overwhelming 99.8% "yes" vote. Not only is this contrary in every way to the "DeFi" ethos, but it's also illegal. With the potential to get much worse depending on how things play out.

It's important to note that liquidity is being affected by the market conditions. If you have money in Solana, you may want to keep an eye out! 👁

This isn't the only company suffering this week.

The Harmony team has identified a theft occurring this morning on the Horizon bridge of approximately $100M. They noted that this would not impact the trustless BTC bridge; its funds and assets stored on decentralized vaults are safe now.

Word on the street is that people doubt that anything was even 'stolen,' and it's a play to throw some money on the side, but either way, Harmoney isn't looking too great for investors.

📱Solana announces a new decentralized smartphone! Apples biggest threat?

Yesterday in New York City, blockchain company Solana announced its mobile phone, called the Saga, in collaboration with Osom. It's priced at $1,000, and preorders open today.

This device is for people entrenched in the universe of crypto wallets, Web3, and NFTs. It'll come with a unique feature: support for decentralized apps that rely on the Solana blockchain, which has at least briefly rivaled Ethereum on some good days, mostly regarding NFT volume.

NFT marketplace Magic Eden now valued at $1.6B (Unicorn status), Solana wallet maker Phantom, and cryptocurrency exchange Orca have signed on to back the Saga and Solana's new software efforts.

Early buyers will receive a limited-edition NFT marking the launch of the phone, which is also described by a press release as a "first ticket to influencing the direction of the SMS platform.

The world needs novel hardware companies to support the future that is Web3. Building out an ecosystem that looks to the end without being burdened by past legacy ecosystems is hugely exciting.

🤯Does this confirm goblintown as the next blue chip?

McDonald tweeted Goblintown style, NFT people say it's teasing the Goblins. In less than 24 hours, we saw Gobintown's floor price rise from 3.5 ETH to 4.15 ETH. I think McDonalds just wanted to go viral but then again who knows, its 2022 and it feels like the wild west.

The Mcdonald's tease has led the NFT enthusiasts to speculate an upcoming collab between McDonald's and Goblintown. Could this be the start of the most significant NFT collaboration?

👨‍🏫How to avoid losing thousands of dollars.

Here's a thread by @cryptoPothu on defining what works best for you while dealing with risk management. This is how you could save yourself from losing thousands of dollars. Shortened version:

1. Defining your portfolio size

This is going to vary from individual to individual. Think about how much money you're ready to lose. Crypto is risky. There's no getting around it. I wouldn't advise spending your life savings on crypto. Assess how much money you have and use regularly. You don't want to become illiquid or lose the money you can't afford to.

2. Defining your risk appetite

Crypto is volatile. You have to be somewhat distant from extremely risky investments. You have to be able to stomach ups and downs. A lot of people can't handle 30% dips in their portfolio.

3. Portfolio Allocation

Your portfolio allocation will be based on your portfolio size and risk appetite for the most part. Also, think about what goals you have. What kind of gains do you want? 2x? 10x? 100x?

The more money you want to make, the more aggressive you'll need to be. You'll have to take more risks. If you have a low-risk appetite, then play it safe. Allocate more money to blue chips like ETH and BTC.

4. Entering and Exiting positions

You must keep two key things in mind when entering and exiting positions. You want to go in with an exit strategy in mind. And figure out how much you want to make off of a trade.

To consistently be successful, you have to stick to this. Avoid holding unless you have extreme conviction in a project or token. Don't get greedy. This is an excellent way to get burnt.

5. Managing your emotions

Don't FOMO, don't get lost in the hype, and don't let crypto get you down. Crypto is a marathon. It's going to be around for years to come.

You're early, so take advantage of that.

NewSeeds ;

That’s a wrap! Do you think McDonald’s will be the first major company to bridge NFTs with their business? What could they be up to 🧐. Enjoy the rest of your weekend, make sure you’re taking care of yourself.

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See you on Monday! ✌️ 💎

Meme of the Day

Mom stop doxxing me.

Disclaimer

None of this is financial advice. This newsletter is strictly educational and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research!

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