digital slowmad

Digital Slowmad newsletter

4 August 2023

📊 Crypto portfolio update

Exposure: 18.2%

Net return: 565.0%

Comments: The crypto industry is on the edge of its seat, as several Curve pools were drained due to an exploit in the Vyper smart contract.

The price of CRV has since fallen over -30% and this has caused some panic... because prior to the exploit, Curve's founder (Michael Egorov) had taken an 8-figure stablecoin loan on various lending protocols (Aave, Fraxlend, MIM, etc) using CRV tokens as collateral.

On Aave alone, Michael is reported to have deposited 34% of the total CRV token supply to borrow 8-figures in stablecoins (which he used to buy two Australian mansions).

Now if the price of CRV keeps falling and his collateral gets liquidated, we might see an industry-wide liquidation cascade leaving 8-figures of bad debt across various lending platforms.

The latest news is that Michael has managed to OTC-sell some of his CRV tokens to Justin Sun and other parties... so we can all breathe a sigh of relief. Michael has bought some time to pay down his loans and it looks like a crisis has been averted for now.

In terms of broad crypto prices, the bigger concern is the equity markets which look to be bouncing off the ATH resistance area:

Should equities continue dipping from here, crypto is likely to follow suit.

So although - in the grand scheme of things - these are generally good levels to be DCA-ing (into crypto), there's an increasing risk of a shorter term move to the downside.

Accordingly, I've reduced my portfolio exposure in preparation of (hopefully) buying in at lower prices.

Ongoing details available in private group

🪙 SPARTA token airdrop

The SpartaDEX TGE event is on and holders of Spartan NFTs have been airdropped SPARTA tokens.

Since I've already withdrawn my initial capital from this project I'm going to hold my airdropped tokens -- The downside is zero and the upside is substantial... assuming the devs do a good job with the game aspect.

The moonshot thesis is that SpartaDEX becomes the first successful case of a gamified DEX (that has an actual game behind it).

📝 Admin update

🎵 'Never Gonna Give You Up' anime opening

For people of culture:

💬 Quote of the week

Beware of looking for goals: look for a way of life. Decide how you want to live and then see what you can do to make a living within that way of life.

- Hunter S Thompson

Thanks for reading, and have a great weekend. 🥃


P.S. If you have any questions or feedback, let me know at: chris[at]digitalslowmad[dot]com

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