Coin Metrics is committed to building the crypto economy on a foundation of truth, providing authentic and accurate data with the highest standards of clarity and precision. With this mission in mind, we are proud to share our February edition of Movers and Shakers, the monthly resource aiming to bring more transparency and credibility to the rapidly evolving crypto space.
As new assets reach a certain degree of accessibility to investors, specifically as they achieve alignment with our Market Selection Framework and the Trusted Volume Framework, Coin Metrics uses its crypto expertise to describe the assets’ context of use. The following assets are expected to reach alignment this month:
Bonk (BONK) is a dog-themed meme coin on Solana that aims to create the largest Web3 community of token holders. 50% of the total supply was airdropped to Solana NFT and DeFi ecosystem participants, attempting to democratically distribute wealth. The remainder of the supply is set aside for future initiatives. One recent partnership included airdropping 30 million BONK to Solana Saga Phone owners, creating demand for the phone and attraction to mobile blockchain hardware. Early contributors are subject to a 3 year linear vesting period to ensure long-term growth. Holders can help integrate Bonk into other Solana applications, adding liquidity to exchanges or lending BONK to other users on the network.
Jito Network (JTO) is an asset management platform enabling users to mint the liquid staking token JitoSOL when staking Solana (SOL) to a pool of validators. JitoSOL allows stakers to earn inflationary rewards helping secure and decentralize the network while retaining asset control for additional yield opportunities. Due to Solana’s low transaction fees, MEV bots tend to spam sign the same transactions multiple times to beat others, creating network congestion. Jito aims to mitigate MEV spam from cluttering network activity by allowing validators to host auctions for traders bidding on transaction ordering. Stakers receive a portion of these MEV auction rewards in addition to inflationary rewards. JTO tokens are used to participate in governance proposals to advance protocol development and determine security standards for current products.
OriginTrail (TRAC) is an data services parachain on Polkadot combining blockchains with knowledge graph technology to bring real world assets on-chain. OriginTrail’s Decentralized Knowledge Graph (DKG) is a semantic network that helps generate connections between tokens, applications, and real-world assets. The DKG creates relationships between items for software to easily access and implement in applications. Developers can use the DKG to message applications across chains while maintaining and adding connections to the knowledge graph for future reference and updates. TRAC tokens are used to publish assets on the network and held to interact as a node with the DKG.
Frax Finance (FXS) is a stablecoin issuer providing an ecosystem of decentralized products. Frax currently issues three stablecoins: FRAX, an algorithmic stablecoin; FPI, a stablecoin pegged to a basket of consumer goods; and frxETH, a pegged stablecoin and LST alternative to Wrapped ETH. Frax maintains pegs using Algorithmic Market Operations (AMOs), multiple oracles, and yield-incentivized assets. AMOs consist of smart contracts monitoring a variety of Real-World Assets, stablecoin deposits, and subprotocol allocations to maintain overcollateralization. Fraxswap and Fraxlend natively enable users to swap, lend, and borrow assets to back and use the FRAX stablecoin. FXS or Frax Shares use a vote-escrow model to participate in governance votes on product development and risk parameter proposals. veFXS tokens receive operation fee revenues and increase in scarcity as protocol profits repurchase and burn FXS supply.
Oasis Network (ROSE) is a blockchain network enabling privacy and scalability through the separation of blockchain layers. Oasis separates its consensus layer, from its compute layer, using a Proof-of-Stake consensus mechanism to secure the network. Oasis’ compute layer or ParaTime layer hosts multiple parallel runtimes in different execution environments to support applications built in different programming languages. This provides users with lower gas fees as simple transactions are not affected by complex transactions on an alternate Paratime. Developers can deploy their own ParaTimes to support different on-chain capabilities. Nodes processing transactions use a Trusted Execution Environment to maintain user privacy. Users can tokenize and control their data to sell or share with applications for revenue. ROSE tokens are rewarded to stakers securing the network, used to pay transaction fees, and delegated on the consensus layer.
GMX (GMX) is a decentralized derivatives and spot exchange on Arbitrum and Avalanche. Users can trade perpetual contracts on up to 50x leverage. Liquidity providers deposit specific assets from a basket of tokens for traders to leverage positions, receiving GLP tokens in return. GLP tokens reward liquidity providers with 70% of the trading fees in the base network asset; they also receive Escrowed GMX, which can be converted to GMX over a one-year vesting period or staked to increase trading fee rewards. Staking esGMX or GMX gives liquidity providers multiplier points to increase the proportion of trading fees receivable from GLP staking. esGMX and GMX simultaneously earn 30% of trading fees in the base network asset. GMX is the governance token used to vote on proposals including treasury swaps and adjusting emission schedules.
Raydium (RAY) is a decentralized exchange on the Solana network supporting fast token swaps with multiple Automated Market Maker products. Raydium initially supported a Central Limit Order Book AMM to create on-chain order books similar to traditional finance swaps. Solana’s low fees enable AMMs to manage a centralized limit order book to provide traders with information on liquidity at various prices and obtain 3rd party liquidity. While it continues to maintain the CLOB AMM, Raydium also provides a concentrated liquidity AMM for liquidity providers to strategically allocate tokens at various prices along the swap range. Liquidity providers can perform various strategies with two different AMMs while earning trading fees and users can select an AMM that may occasionally provide lower slippage trades. RAY tokens are staked to receive protocol fees, participate in governance votes, and participate in IDO (Initial DEX Offerings) from the AcceleRaytor token launchpad program.
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