Daily Edition · Page 5

THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

REVOLUT X: FINTECH FIRM VENTURES INTO CRYPTO EXCHANGE ARENA

Revolut has announced Revolut X, a dedicated cryptocurrency exchange catering to professional traders, making it the first banking institution to venture into this arena. With a user base of 40 million worldwide, Revolut aims to provide specialized trading experiences with lower transaction fees and access to digital assets like Bitcoin, Ethereum, and XRP, initially available on desktops for UK customers with plans for further expansion.

4 BIG TAKEAWAYS FROM FARCON

Farcon was the first conference for the decentralized social media protocol Farcaster. Greater personalization is coming to Web3, with services like Daylight creating a more unique and catered Web3 experience. As part of its growth strategy, Farcaster is creating Legos for developers to build on, like its frames feature. It is encouraging users to take as many chances as possible and try out several apps and mechanisms to increase consumer adoption.

UNFILTERED THOUGHTS ON BERACHAIN

One of the biggest issues for new DeFi protocols is bootstrapping liquidity. Much like how EigenLayer connects ETH validators with Web3 protocols for economic security, Berachain's Proof of Liquidity system allows DeFi protocols to get liquidity from validators through a staked token pool. BGT is a staking and governance token, which is non-transferable and rewarded to liquidity providers, and BERA is a gas token. The liquidity flywheel is expected to work as long as the APRs on liquidity provision are sufficiently high.

WHY THIS CYCLE IS COOKED

Points-based airdrops create a rift between private and public markets as the abundance of VC funding and lack of new market entrants incentivize companies to stay private longer and open at multi-billion dollar valuations. The SEC's regulatory pressure has further exacerbated this issue by making it harder for startups to distribute tokens to users, which forces retail users to farm projects for an allocation. A new, more thoughtful approach is needed to balance the interests of regulators, investors, and the community.

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