GM Seedphrase Nation 👋 Today's newsletter is piping hot. We got alpha, we got FUD, and we got premium. What more could you want?

Today's Agenda:

• 👀 Insiders Warn Against Binance

• ⏰ Get in Before it's too Late: A Yield Protocol to Make You $$$

• 📈 A Crypto to be bullish on

• 😂 Meme of the day

Insiders Warn Against Binance

The saga continues.

Binance thought it was pulling a rich flex by providing their Proof of Reserves. They thought it would prove they're nothing like their ugly sister, FTX...

The Storyline Rundown:

• Binance released PoR.

• Kraken CEO and others questioned them.

• Binance had a 3rd party audit their reserves in response.

• Everything seemed to check out.

• But the criticism is not whether Binance has healthy reserves...

• The criticism is: why did Binance not do a proof of their liabilities against their reserves?

• We can't do a proper balance sheet check on Binance if we don't know how the scale weighs in on their liabilities vs. assets.

NOW: we have even more FUD.

Dylan LeClair, a thought leader in crypto, shared these messages from an *anon*

The Short of It: Executives and VC firms are jumping ship from Binance. Red Flag.

Of course, this is alleged. We cannot confirm these statements at this time, but we thought you would want to know. Binance has now processed over $7 Billion dollars worth of withdrawals, many exchanges cant handle withdrawals of this size, so maybe the rumors are FUD?

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Today's Lesson: How to Prepare for a Promising Yield Protocol

Arbitrum is making a killing right now.

They're a layer 2 scaling solution for ETH. They've been hitting all time high transaction volumes and an increase in their total value locked reaching $1B.

One small problem: they don't have a native token. Instead, they generate revenue via the dApps built on top of it.

Introducing: Umami Finance. (one of those little dAppy things built on top Arbitrum)

Umami is a hidden gem, a small token with a ton of promise. And with small market caps, the sky's the limit on gains.

Simply, Umami Finance is a DeFi app designed to generate holders of crypto a yield on their bags.

They offer: - A vault for different assets, like ETH, BTC, and USDC.- Yield for locking these assets.- Access for centralized finance, aka institutions with a lot of capital, to invest in DeFi products.

UMAMI is the native token, generating both fees and system of governance.

Two Staking Options:

1. Compound: automatically reinvest wETH to the market- buy and stake more UMAMI.

2. Marinate: reward stakers with an impressive 50% of protocol revenues in wETH.

UMAMI has a hard cap of 1M max supply. Currently, 650K are already in circulation. Once that reaches 1M, no new UMAMI can be minted.

Risk Alert: we want to make sure you are managing risk. With high yield, tends to come high risk. Umami might seem to fit this high risk model, but there are some key differences.

Umami's risk tolerance is different. It's not a predatory protocol with fake & huge APY. AKA it passes the Ponzi test. Umami uses real revenue from transactions which is then paid out in wETH that is backed by USDC.

Holders get paid out via real revenue generated. Their yield system is sound.

What's to Come in 2023:

Umami is launching their DeFi vaults on Arbiritum, with a goal of reaching $1B TVL. The vault system acts as a hedge, a unique risk management stratefy many are not currently implementing.

Golden Nugget: Get into the vaults quickly, as the whales will fill them fast.

How: TURN ON POST NOTIFICATIONS for Umami Finance's Twitter. They'll be posting when vaults will be released there.

If you need more information, here's an excellent YouTube video breaking down why Umami is bullish:

A Crypto to be Bullish On?

This is one of Crypto's Best Fighters

While crypto markets have been attacked for the last 6 months by fraudsters, scammers, hackers, and even governments- this product remains intact. It feels a lot like this:

Why?

Because it's a damn good product.

So many crypto companies & NFT projects have forgotten the cardinal rule of business: provide a superior product. That's why they eventually get washed out.

We're not claiming they're a magic pill: its price has dipped significantly this crypto winter. But a smart investor sees this as an opportunity. Buy the dip, as they say.

The Fundamentals: What is it?

Before understanding what it is, you have to understand the problem it solves.

The problem: Blockchains are, by design, closed off from each other, and the rest of the world. This is great for security and data integrity, but it also means there are limits to the data blockchains can accept. Real-World Example: It's easy to use ETH to pay on Ethereum dApps like Uniswap and Aave. However, you can't use Ethereum-based assets on other blockchains, like Solana. So, if you only had ETH in your crypto wallet, there's no way to use a Solana dApp. Instead, you’d have to visit an exchange, buy SOL, and send it to a Solana-compatible wallet. 

The solution: a bridge that can provide blockchains data from outside the chain (off-chain).

Sounds simple enough, but with hackers successfully stealing $1.4B just this year in bridge hacks, the security risks of bridges have become one of the main concerns in Web3.

While there are tons of products that try to solve this problem, they are not made equal.

*KEEP READING*

Not only does this product allow for seamless interaction between different chains, it makes it possible for blockchains to connect with broad external data, like baseball scores or stock prices.

The function of this product is to be a secure, one stop shop for all data, on-chain and off-chain.

It's also, built on the Ethereum blockchain, open-source, and a decentralized network

Plus, it solves bridge security problems through its PoR mechanism.

To reveal what this Crypto is, upgrade to premium

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MEME OF THE DAY:

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