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LET THE LP GAMES BEGIN
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BEQUANT Crypto&Coffee

Bitcoin continued to edge higher, making a steady progress through the congestion area between $16,100-17,150. The risk on sentiment shows no sign of abating and the trend higher is therefore expected to remain in place. With that in mind, the aggregate open interest (OI) rose yet again to a new record high and continuing with the recent theme, the OI increase was led by stablecoin margined futures as opposed to Bitcoin margined products. As result, the market is in a much healthier condition, than it would have been if the said transition into stablecoin margined products did not take place. Not every venue offers stablecoin margined products and something to keep in mind is the provision of such products for alt coins and not just Bitcoin. 

Looking at the network metrics and the hashrate has stabilised following the recent upside in the wake of a sharp mining difficulty adjustment lower and also as miners transitioned their ASIC hardware to coal-powered northern regions like Inner Mongolia and Xinjiang following the end of the rainy season in China’s Sichuan province. The focus may be on the Bitcoin and its looming re-test of an all-time high but elsewhere in the market, another theme looks set to be emerging and that is a much more heated battle for LPs by DeFi based venues.

To wit, Uniswap liquidity fell sharply, down 45%, as UNI liquidity mining rewards program ended. At the same time, Sushiswap started incentivizing the exact same pools as Uniswap on the day Uniswap's subsidy ended. As Uniswap liquidity fell, Sushiswap liquidity continued to increase and with that SUSHI token value which still trades at a much lower P/S ratio that its peers. However, it isnt just Sushi that is trying to grab a piece of the much sought-after liquidity. Bancor also announced proposal for BNT Liquidity Mining (LM) — aimed at driving new liquidity to Bancor pools & incentivizing long-term liquidity provision. What’s more is that Uniswap community members are also not giving up the fight and as per CoinDesk reports, a governance vote for continuing farming on the same four asset pairs – WBTC/ETH, USDC/ETH, USDT/ETH and DAI/ETH – was proposed by Audius strategy lead Cooper Turley and pseudonymous “monet supply” Monday. The proposal will have to pass a series of governance polls before farming restarts Dec. 4.

Broadly speaking, it appears that while some liquidity did shift from Uni to Sushi, ie Vampire attack 2.0, most of the capital remains in ETH and stablecoins. Said otherwise, LPs are looking for best opportunity to maximise their revenue potential. All of the above is good news for DeFi ecosystem and with that, the total value locked is expected to rise even further. Look for “blue chip” DeFi tokens to outperform its peers, ZRX and KNC also to benefit alongside increased trading volumes.

In other news, Grayscale Investments now holds more than 500,000 BTC in its Bitcoin Trust. According to a November 16 post, Grayscale now holds to $8.35 billion worth of Bitcoin — equating to 2.69% of Bitcoin’s (BTC) outstanding supply and market cap.
Elsewhere, Cointelegraph reported that Galaxy Digital, a cryptocurrency merchant bank founded by Mike Novogratz, is expanding its crypto offerings in Canada. According to a Nov. 16 announcement, Galaxy Digital has partnered with major Canadian investment company CI Global Asset Management to launch a public Bitcoin (BTC) fund in the country.

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