Parsec Weekly #50
1155tech and a wider market update
1155tech
I touched briefly on Canto and their RWA (or as they call it “Neofinance”) plans back in October (read here). Those plans are ticking along and TVL is trickling in slowly to capture the abundant yield opportunities, but today, I want to discuss a development on the NFT side.
1155tech launched on Canto earlier this week, it is an NFT platform modelled on the friend.tech key model with some nuances.
Users purchase keys from a linear bonding curve using NOTE, each key representing a different NFT. These keys can be burned to mint the associated NFT and equally, in the inverse case, the NFT can be burned to re-mint the key which can be sold back to the bonding curve. Keys are created and destroyed as they are bought or sold meaning that supply is infinite and only bounded by the marginal price a buyer is willing to pay.
Brian Morris put together the following graphic to demonstrate the mechanism:
A 9% platform fee is divided equally between Creator, Key Holders and Core Devs, aligning incentives well. Buyers and sellers are effectively paying the NFT royalty but in this case to access liquidity and the right to future cashflows (if buying).
The attempt to solve the royalties and liquidity problem inherent to traditional NFTs is clear - by locking NOTE into the bonding curve as a key is minted, 1155tech ensures liquidity is always available for that key should a holder wish to sell. Equally, traders who seek to avoid royalties and trade their NFT elsewhere are sacrificing cashflows.
Despite relatively high fees, the design seems elegant and well thought out. Whether it will be successful or not is yet to be seen as we are less than 1 week in but following a strong start to the week, volume has been tailing off a little:
No matter what becomes of 1155tech, it is good to see a Canto ecosystem taking form. The existence of products like these provide exogenous demand for NOTE and guarantee a positive Net Interest Margin (NIM) for the Canto Lending Market (if all outstanding NOTE is staked as cNOTE, the NIM is 0).
Keep up with 1155tech using this layout: https://parsec.fi/layout/chulie/xDvx2lt5
Market update
-kezfourtwez
gm onchain enthusiasts and welcome to the 50th edition of the Parsec Weekly!
“your biggest risk is being underallocated to the industry you log into every single damn day to talk about since you know its gonna go up again eventually but not having enough coins because youre a lil bitch” - @DegenSpartan
This quote feels more pertinent than ever today. The market has been mayhem, this week has been mint and do everything season, make two monthly salaries in a day and still cope season - to the point where you need to make hard choices about how to allocate your capital which usually result in you still missing out on generational wealth in multiple places every day. It can be overwhelming but remember to take it easy as this is a marathon and not a sprint, we are only just starting to see outside attention turn back towards crypto.
Looks strikingly similar to the TOTAL3 chart (all crypto except BTC & ETH), funny innit.
Some notable narratives from this week:
BRC tokens
Off the back of the recent Binance listings for ORDI and SATS, BRC adjacent tokens on Ethereum have been having their day. Notably MUBI, a bridge between the BTC and ETH chains has had an incredible 10x run over the last two weeks
$MUBI 4h Solana inscriptions
Over the last three weeks many chains have followed suit and begun doing their own inscriptions: ETH, DOGE, SUI etc, but Solana managed to jump on the train first and the one that everyone has clung to is called SOLS. A collection of 21,000 inscribed SPL tokens currently sitting at an 84 SOL floor price and a $132m market cap. I’m not going to lie and tell you that I understand what Solana inscriptions are, but what I do know is that similarly to BRC the east love them
SOLS rose from a bottom of 7 SOL to a top of 90 in under three days. The sales feed on tensor was non stop yesterday and SOLS managed to overtake Madlads in market cap
BONK
We have returned to our 2021 dog coin origins as Solana meme coin BONK has gone parabolic, it first began showing signs of life back in late October around a $20m market cap
Classically and as is tradition with (at least local) meme coin tops, we’ve had two major CEX listings in the last couple of days. Coinbase yesterday and Binance today, generally the final boss catalysts’s that only the onslaught of pure, fomo driven retail can top
In two short months BONK has ran up an extraordinary 100x from $20m to it’s recent high of a $2b market cap
$BONK 90d market cap
Four months ago it felt like there was a few hundred of us onchain and we couldn’t support more than one $5m shitter at a time, now we have literally hundreds across multiple chains and many different fields from AI to memes, to BRC. It’s definitely feeling a little frothy, but when I feel this way I like to direct my attention towards the ‘interest in crypto over time’ chart and remind myself that SHIB and DOGE reached $41b and $88b market caps respectively.
As always we appreciate your readership, if you enjoyed this article please leave a like and share it around. Have a good weekend and we’ll see you next week!
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