The AB Newsletter is for informational purposes only. Do not construe any of the following as investment, financial, or other advice. You make your own decisions.
The AB Moonletter🚀 is a culmination of research & perspectives from the diverse capacity of the AB Team. Ultimately our focus & mission is financial freedom. Letter #9🌎 includes:
Highlights:
Real World Assets (RWAs) On-Chain
DAOs & SubDAOs: MakerDAO’s Evolution
TradFi (Traditional Finance): The FED Impact On Crypto
Altcoins: Recent Buys & Watchlist
1. Real World Assets (RWAs) On-Chain
Advantage Blockchain's own Alec Beckman will be speaking at two upcoming conferences surrounding real world asset markets in blockchain. The first conference, the Global Real Estate Blockchain Summit (Sept 26 – 28), hosts Alec to speak about the collateralization of real world assets on-chain. Alongside 3 experts in the on-chain lending space, the panel will be discussing what technology is available right now, and whats coming for the future of collateralized lending and borrowing on-chain. The asset classes to be discussed will be real estate, fixed income, fixed income alternatives, and other objectively appraised assets.
Alec will also be hosting a panel on ‘Tokenization of Real World Assets’ and what that means during the Future of Digital Assets Conference (Nov 14). Joined by four other expert panelists, Alec will facilitate a conversation on the existing real world asset tokenization market, how it can improve, who are the biggest market participants, and much more.
The RWA space is exciting many larger private investors as the infrastructure blockchain provides will make borrowing against private assets significantly easier moving forward. The AB Team is very excited to be building in this area, educating fellow business leaders and growing representation in this valuable new sector.
The Global Real Estate Blockchain Summit is taking place virtually on Sept 26-28.
The Future of Digital Assets Conference is live on November 14 in New York.
Authors: 0xChex
2. DAOs & SubDAOs: MakerDAO’s Evolution
Recently we have learned a bit more about the nature of MakerDAO’s upcoming launch of new SubDAOs to help manage the Maker protocol system. MakerDAO is known for pioneering the first widely successful DAO (Decentralized Autonomous Organization), so when they propose a brand new structure, the industry pays close attention. First let’s explore what this means for MakerDAO.
SubDAOs will be new governance “entities” each with their own mission to grow the adoption of DAI (application native stablecoin). The DAI we know today can be migrated to newStableToken and MKR can be migrated to newGovernanceToken. The newStableToken will be used to farm newGovernanceTokens creating an incentive to support the new SubDAOs and hold newStableToken.
So how far into this transition is MakerDAO? Well, earlier this year Spark Protocol was introduced as the first SubDAO, giving DeFi users direct access to Maker’s appealing DAI debt/lending programs. Thanks to recent approval through DAO governance, the Spark Protocol D3M Max Debt Ceiling increased from 200 million DAI to 400 million DAI. Spark Protocol currently boasts a TVL of ~$450 million.
Beyond the first subDAO, we have a bit more insight on the next three in the pipeline.
Sakura SubDAO is a community focused DAO with roots in Japan.
Quantitative SubDAO is a RWA focused DAO with plans to use technology to massively grow the AUM of Real World Assets and help with market making.
Qualitative SubDAO is another RWA focused DAO with roots in China focused on specialized private credit and more complex high yielding instruments.
All three of these SubDAOs are set to launch in early 2024 where their respective governance tokens will be made farmable to newStableToken holders.
MKR has experienced an upward price change since June of 2023 with help from the buyback program built into the protocol when the system surplus is above $50 million.
MKR buyback progress: 95,744 MKR
DAI total supply: $5.4 billion
DAI in DSR: $1.5 billion
Total value locked: $8.4 billionReference:
For further MakerDAO analytics, see makerburn.com
Author: UEV Guy
3. TradFi - The FED’s Impact on Crypto
The Federal Reserve has decided to hold rates steady, while also allowing room for one more hike this year. The Fed aims to maintain high rates as long as possible to curb potential future inflation. Market expectations have fluctuated significantly over the past 12 months, transitioning from anticipated cuts this year to now foreseeing just two cuts in 2024. These heightened rates pose a challenge to risk assets, but it's worth noting that conditions can change swiftly. Should unemployment rise or inflation falter further, the Fed might relax its stance, potentially fostering a rally in risk assets.
What are the implications of these developments for the crypto market?
Bullish. The Federal Reserve is anticipated to commence an easing cycle in 2024, possibly even sooner. This timing coincides fortuitously with the next Bitcoin halving event slated for April 2024, and a probable approval of a Bitcoin ETF. These three catalysts are converging to create a fundamentally buoyant liquidity environment for Bitcoin in 2024. In the crypto sector, a wealth effect is observed: as the value of Bitcoin appreciates, investors experience an increase in wealth, prompting them to diversify their gains into other crypto assets, facilitating a trickle-down effect into lower market cap altcoins. Consequently, 2024 is shaping up to be a favorable macroeconomic landscape for Bitcoin and the broader cryptocurrency market.
AB Fund continues to buy ETH sub $2K, primarily looking for entrances below $1,600 per ETH. Since selling ETH at an average price of ~$3,500 in 2021, our current average ETH buy-back price is $1,337. We are very proud of this buy-back accumulation. In the meantime, we continue to increase our research and investment positions in alternative projects (altcoins) revolutionizing various sectors of the greater blockchain industry, technology industries and global financial system.
Author: Digital Douk, 8-Bit, AB Rocket Pilot
4. Altcoins: Buys & Watchlist
Disclaimer: Our buys/watchlist should not be takin as financial advice/investment suggestion. We share this information in the nature of education & transparency. We value the ability for our network to be aware of new projects & ecosystems we’re actively researching, participating & investing in. Always invest responsibly. And remember… Fundamentals > Pumpamentals !!
Recent Buys
Optimism (OP) @ $1.34