0xAcidDAO Weekly Roundup
#1 Edition - Apr 10th, 2023
Welcome to the ‘Lab Scoop’! 🧪🔬
This newsletter will be our weekly dose of all things 0xAcidDAO, delivered straight to your inbox. We’ll cover project updates and milestones, community spotlights, upcoming events, and some ‘DeFi shenanigans’.
Stay on top of the DeFi LSD game and explore the exciting realm of 0xAcidDAO with me. Don’t miss a beat; let’s grow together! 🌱
Project Updates
A new proposal has been submitted on the 31st of March, and it can potentially revolutionize the way 0xAcidDAO operates for the longer term. After the proposal passed on the 1st of April, the treasury’s rights will now be split into two parts: returns and principal, making the game mode even more thrilling! You can find the full proposal here.
TLDR
Locked ACID holders can expect similar rewards as before, but with a twist. They’ll still be rewarded when Ethereum reaches $10k and they will keep earning esACID rewards by locking their ACID.
Staked ACID holders will receive 100% of the protocol’s revenue & bond sales dividends. This change ensures a more balanced allocation of resources and promotes the overall growth of the protocol.
source: 0xAcidDAO substack
What’s more, the esACID vesting period has been extended from 30 to 60 days. While this may discourage some, it further boosts the longevity of 0xAcidDAO and reduces selling pressure for ACID. All the new mechanisms went live on April 3rd.
Recent Proposals
A new proposal passed yesterday, aiming to boost liquidity for the ACID-ETH Uni V3 LP by injecting 50 ETH and an equivalent value of ACID from the treasury. This move will help accommodate more users with the recent changes on staking ACID, providing a smoother entry for newcomers.
Partnerships and Integrations
This collaboration aims to bridge the ETH staking yield from Ethereum to Arbitrum, benefiting both L1 and L2 users. By bonding ankrETH, users can enjoy the native return of 3.44% without waiting for a year.
Additionally, the cross-chain Bond system allows for high-speed transactions and low gas costs, making the experience seamless.
Here is what you need to know:
🔹 Stake ETH with Ankr or buy ankrETH (3.58% APY + 2.3% discount)
🔹 Purchase ACID Bonds using ankrETH and get ~5% interest post-vesting
🔹 Swap future interests for near-term interests and earn returns sooner
🔹 Stake your ACID tokens for additional APY on your assets
Current Stats — Market Performance
i. Trading Volume & Market Cap
After the recent news of the partnership with Ankr Staking, the volume doubled in the past couple of days. In the last 7 days though, the average trading volume of ACID was ~$385k. Not too shabby!😉
As for the current FDV Market Cap, we can see the following stats:
Stats as of 07/04/23 — Dexscreener
By multiplying the total ACID supply X the current market price, we can see the Market Cap or FDV is $11.1m (in case you wondered about the numbers in the dexscreener chart since Coingecko and Coinmarketcap do not have the full updated stats). But there is more to consider here.
ii. Treasury Growth & Changes🔑
The beauty of a yield optimizer protocol utilizing LSD assets is that those stats above does not really matter to the user. Let me explain.
Total Locked & Staked ACID — Dune dashboard
What you see in the image, is the locked & staked ACID. With some quick math, we can see that 10,465 ACID are staked & locked (as of 07/04/23).
This means the actual circulating supply of ACID is ~2.5k making the native token even more attractive.
The treasury value is the most important thing when someone starts to interact with 0xAcidDAO. Why do you ask?
We explained this in a previous article here. But to round up, the actual value for ACID comes from staking/locking the token. With the mechanics that changed, ACID stakers can now enjoy a whooping ~80% APR which adjusts accordingly depending on how many are staking and the $ value of the treasury.
Since this is the first weekly newsletter, I’ll take the stats from the 28th of March which I have handy.😋 All I can say at the moment is that the treasury is growing at a good pace.
VS.
source: DeBank
LSD — Market News
I hope you are ready for the next week since it’ll be an exciting one, as the much-anticipated Ethereum Shanghai upgrade is set to go live! This update brings some significant changes to the Ethereum network, opening up new possibilities and stirring up discussions in the crypto community.
TLDR; With the upgrade, stakers will finally have the ability to unstake and withdraw their ETH, sparking some intriguing questions:
Which staking protocols will emerge as winners or losers?
Will the ETH price rise or fall as a result of these changes?
What are the long-term trends for ETH staking, and how will they evolve?
I don’t like to speculate much since this is a significant milestone for Ethereum and don’t want to jinx it by any means. But here it goes nevertheless!
As we speak, there are approximately 565,000 validators on the Ethereum network, locking up around 18.1 million ETH, equivalent to $33.7 billion USD. This staggering amount represents about 15% of the total existing ETH supply of 120.4 million.
Now, you may wonder, “What does this mean mid to long-term?”
I’ve identified a couple of possible scenarios:
Scenario 1: A significant number of validators might opt to exit and withdraw, unleashing a wave of newly liquid ETH into the market. These token holders could then decide to sell or trade their ETH, potentially causing a short-term decline in price.
Scenario 2: On the flip side, many potential token holders have been holding off on staking their ETH, waiting for the ability to withdraw as a condition for staking. This could lead to an influx of new validators and an increase in staked ETH.
It’s crucial to consider the following factors:
A substantial number of validators are motivated by their belief in the Ethereum network’s long-term potential, making it unlikely that they will withdraw.
Many validators have high ETH cost bases, which means selling their liquid ETH would result in a loss. As a consequence, they are less likely to withdraw and/or sell.
Speculators will place bets on how the upgrade will affect the price, leading to unpredictable price fluctuations.
In our upcoming weekly newsletter, we’ll keep a close eye on these developments and provide insights into how the Ethereum network and its community adapt to the evolving landscape. Stay tuned!
🎥 Community Corner 🎥
A massive thank you to all you wonderful ACID members and contributors who have been tweeting, retweeting, and spreading the good vibes about our project!
Your quirky, optimistic, and engaging content is the heartbeat of our ever-growing community. Your dedication and passion are not only appreciated but also play a crucial role in boosting the narrative and bringing more attention to our platform.
So, here’s to you, our amazing ‘Acid Scientists’ — keep rocking the Twitterverse and sharing the love! While this list could be bigger, we thank everyone!🙏
Shitgem_xyz explains in his thread how 0xAcid is optimizing its ETH treasury farming to provide higher yields to ACID stakers in wstETH. He also believed with over 65% of the total ACID supply locked and an undervalued MKC/TVL ratio, 0xAcid has significant growth potential.
FungiAlpha highlights the early-stage potential of ACID, with only 164 addresses holding 1 or more tokens. He also mentions that the latest developments with ACID/ETH LP on Uniswap v3 and changes in locking vs staking rewards create excitement and strengthen the ETH community.
0xFlips simply wants to buy more. Someone ‘swept’ earlier than him but he doesn’t care!🙌
Tanaka highlights the impressive statistics of 0xAcid, with a treasury of 5114.6 ETH (~$9.72M), which as we’ve seen above, changed today! He also mentions that LSD projects are experiencing growth due to the upcoming Shanghai event, and how 0xACID plans to optimize yield generation by using its treasury to farm on these projects.
Flowslikeosmo believes that cross-chain bonds are so underrated and that 0xACID ‘’is still one of the best-kept secrets in the LSD narrative.’’ I couldn’t agree more.
KingJulianIAm says that in the rapidly growing LSD market, 0xAcidDAO is a notable example of a platform offering incredible yields. As the space evolves and various LSDs emerge, it is evident that they will play a crucial role in the future of the market. While it’s hard to predict which LSD will be the winner, platforms like 0xAcidDAO demonstrate the potential and opportunities that lie ahead.
As we wrap up, we’d like to express that your support and enthusiasm have been inspiring. As we continue on this exciting journey, let’s keep the momentum going, embrace new opportunities, and reach even higher.
Remember, teamwork makes the dream work! So let’s stay connected, stay optimistic, and watch our 0xAcidDAO family thrive. Until next time, happy staking/locking, and see you on the next piece!
Don’t forget to join or check the official links of 0xAcidDAO:
📚Documents
💾Dune Dashboard
🖥️Website
🐤Twitter
💬Discord
🏹Telegram
💣Substack
Curated by Chrom ( Writer/Editor for 0xAcid )
Awesome stuff ~ Go ACID team!!!