Bear Market Characteristics, ATOM 2.0, and Decentralized Perps
Guest Contributors: Romano, Dynamo DeFi, Thor Hartvigsen
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This Week’s Esteemed Contributors:
- Romano - Bear market types and characteristics 🐻
- Patrick from Dynamo DeFi - What is ATOM 2.0? Important Cosmos Update ⚛️
- Thor Hartvigsen - 3 Defi Protocols Are KILLING It! (HIGH ETH & DAI Yield) - GMX, Gains & Mycelium 💰
1. Romano RNR - Bear market types and characteristics 🐻
- A bear market is a period in which asset prices fall for a sustained period of time, and general economic conditions are unfavorable. 3 types of bear markets: structural, cyclical, and event-driven
- A structural bear market is a prolonged decline caused by structural economic or financial system problems. These problems can include imbalances in the economy, such as a trade deficit, or bubbles in asset prices, such as a stock market bubble. Structural bear markets are often accompanied by a “price shock,” such as deflation
- Cyclical bear markets are market declines that are caused by the business cycle. They typically occur when interest rates are rising, a recession’s impending, and corporate profits are falling. Cyclical bear markets are a normal part of the economic cycles.
- Event-driven bear markets are market declines caused by a one-time event, such as a war, an oil price shock, or a technical market dislocation. These events typically don’t lead to a recession in the country where they occur, but they can cause a sharp decline in asset prices. An example is the EM crisis.
Read the full article here.
2. Patrick - What is ATOM 2.0? Important Cosmos Update ⚛️
- What are Cosmos and the Cosmos Hub:
- Cosmos - The internet of blockchains - an interoperability protocol that allows different blockchains to seamlessly communicate and transfer information with each other over the IBC. Cosmos also has the Cosmos SDK which allows developers to easily spin up a blockchain used by networks not connected to the IBC like Binance Smart Chain and THORchain.
- Cosmos Hub - First blockchain on the Cosmos Network - intended to facilitate growth of the Cosmos ecosystem and the native ATOM token. ATOM has been previously criticized for not accruing value from the growth of Cosmos ecosystem
- Interchain Security
- A problem currently with Cosmos is that running a blockchain is expensive, difficult and requires maintenance. Interchain security aims to solve this problem by allowing approved networks to rent security from the Cosmos Hub by paying fees and tokens to validators and ATOM stakers. Essentially an upgraded value proposition.
- ATOM 2.0
- Revamped tokenomics for ATOM token revealed during Cosmoverse convention, Secure economic scaling, ATOM as reserve currency, New economic engine. Aims to solve the issue of infinite inflation and to incentivize more people to stake. Big picture is to provide a better way for ATOM to accrue value than the current airdrop method.
Watch the full video here:
3. Thor Hartvigsen - 3 DeFi Protocols (HIGH ETH & DAI Yield) - GMX, Gains & Mycelium 💰
A breakdown of 3 different decentralized perpetual trading protocols. Explains how these are able to generate high “real yield” for liquidity providers and examine their native utility tokens to see if they are good investments given current valuations and the revenue these protocols are generating. Provides a comparison of their trading fees, on-chain activity, and a yield strategies comparison.
- GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades on Arbitrum and Avalanche. Market Cap: $374M with a Real Yield of 6.89%. Upcoming catalyst: launch of synthetics
- Gains Network brings liquidity-efficient decentralized leveraged trading architecture to Polygon. Market Cap: $48M with a 6% staking yield.
- Perpetual swap DEX on Arbitrum - fork of GMX. Trade with liquidity, leverage, and low fees. Market Cap: $31.5M with a 8.5% lending yield.
Watch the full video here: