November 30, 2021 · 8 min read
Emerging Tokens - 30th November 2021
We see a growing number of innovative DeFi projects gaining traction this week. Check out interesting projects listed on Uniswap V3 with Novum Insights!
Last updated: 11am GMT Nov 30th 2021
Rocket Pool (RPL)
Rocket Pool is a decentralized community owned staking protocol designed for Ethereum 2.0. With Rocket Pool, users can participate in ETH2 staking with as little as 0.01 ETH or run nodes using 16 ETH (rather than required 32 ETH outside the Rocket Pool protocol). There are more than 22k ETH staked and 447 node operators. When users deposit ETH, they receive rETH which represents the tokenized staking deposit and the rewards that accrue over time in the Rocket Pool protocol. While staked ETH is locked, rETH provides users with liquidity that can be used in DeFi platforms for additional trading or yield opportunities. Staking ETH with Rocket Pool gives an average APR of 4.77% and staking and running nodes gives an APR up to 6.36% on top of variable RPL rewards.
Rocket Pool’s native currency RPL has a circulating supply of 10.3 million and market cap of $504.7 million. The inflation rate of RPL is currently set at 5% to reward node operators that also stake RPL, Oracle DAO members that provide oracle data, and Protocol DAO Treasury to fund further development. The trading volume in the past 24 hours increased by more than 200%. The 7day RSI jumped from 40 to 55 in the past three days and the current RVI is now at 67 signaling a favourable volatility.
Ethereum Naming Service (ENS)
Ethereum Naming Service (ENS) is a decentralized naming protocol. ENS can represent web3 usernames, domains, and wallet addresses. Launched back in 2017, this project managed to resurface after an airdrop event three weeks ago. Up until now, there have been 489k registrations. See the registration costs here. There will be a total supply of 100 million ENS tokens and 25% has been airdropped. Another 25% of the total supply is designated for contributors who have helped ENS move forward in the past years, and the remaining 50% is for the DAO. 10% of the DAO allocation was made available at launch and the remaining will unlock over 4 years. The current circulating supply of ENS is 20 million with a market cap of $1.4 billion.
The ENS token launched on the 9th of November 2021 and ENS hit its ATH of $85.69 2 days after launch. ENS hasn’t yet had too many underbought or overbought periods in terms of RSI. It ranged between 43 and 70. The highest RSI of 70 had been reached yesterday and is now at 64. Yesterday RVI went up above 50, which is a favourable volatility signal, for the first time and is now at 48. When investors see an upward movement in RVI and RSI coupled with increasing trading volume, they could consider this as a potential buy signal.
Monthly .eth registration - Source: Dune Analytics
Ribbon Finance (RBN)
Ribbon Finance is a structured products protocol for DeFi users. Ribbon Finance currently deploys two strategies using options: covered calls and put selling. In covered calls, the asset that is deposited in a vault is used as a collateral to mint european call options weekly via Opyn, an options protocol. The optimal strike price is set by Ribbon’s vault automatically. The minted contracts are then sold via Gnosis batch auction and Ribbon vault depositors will earn option premiums. If the options expire in the money, the option buyers can exercise their options and withdraw the underlying asset from the Opyn vault. Ribbon depositors are left with the remaining amount of assets. Ribbon Finance charges a 2% management fee and 10% performance fee for the covered call strategy. Supported assets for this strategy are AAVE, ETH, WBTC and stETH (Lido staked ETH). In put selling strategy, the strike prices are set by the Ribbon team currently and charges a fixed 1% withdrawal fee.
Ribbon Finance’s tokenomics for its governance token RBN is not perfectly set yet. The team plans to introduce RBN staking and a backstop feature where RBN stakers can insure a loss beyond a certain point. Follow Ribbon Finance’s Medium for updates. Ribbon Finance is backed by investors like Dragonfly Capital, Coinbase Ventures and Nascent. Its TVL has been growing steadily since launch and now stands at $209 million. The total supply is 1 billion RBN and less than only 5% is currently circulating. RBN has a market cap of $82 million. RBN is currently trading at 1.79% up 5.78% in the past 24 hours. The RSI jumped from 32 to 42 yesterday and the RVI is now at 45. If both metrics move up continuously it might present a good investment opportunity. However, Ribbon Finance is a young project and natively presents a lot of risks compared to other DeFi protocols providing simply lending or staking services. So users of Ribbon Finance must be aware of how the structured products work and what the potential losses are.
Ribbon Finance TVL - Source: DeFi Pulse
Popsicle Finance (ICE)
Popsicle Finance is a multichain yield enhancement protocol. Popsicle Finance has two main products - Popsicle Stand and Sorbetto Fragola. Popsicle Stand is a farming product that lets users deposit their LP tokens from different AMMs to farm more ICE. Sorbetto Fragola is a Uniswap V3 yield optimizer. It saves gas fees for users by rebalancing all users funds in a single transaction. There is a 20% protocol fee for Sorbetto Fragola. The DAO has recently passed a new protocol fee of 10% for stablecoin pools in Sorbetto Fragola.
Popsicle Finance’s governance token ICE had a total supply of 69 million ICE. Then approximately 45 million of them were burned. 27.3% of the ICE tokens are allocated for LP rewards. Around 2% has been spent to pay back users who were affected by a hack in August. ICE has a market cap of $212 million and is currently trading at $16.47. The token is underbought at the moment (RSI of 34). The RVI of now is at 45, so if the volatility enters the favourable zone over 50, it could be a potential entry point for users who want to share the profit of Popsicle Finance’s.
Tempus is a fixed rate protocol running on Ethereum. Having raised a $1.9 million seed round in July and an additional $4 million strategic investment in early November, after months of developing the platform, Tempus will be launching on Ethereum mainnet in two weeks. To create an interest bearing token that provides a fixed rate, users first deposit an interest bearing token such as stETH, cDAI or aUSDC. The deposited asset is then split into tokenized Tempus principal share(TPS) and Tempus yield share(TYS). TPS can be seen as a zero-coupon bond that matures to a fixed (knwon) amount, and TYS is a zero-coupon bond that matures to an unknown amount of yield. Then using Tempus’ custom AMM, users swap TYS and TPS. To have a fixed yield, users convert their TYS into TPS, and if the user wants to speculate on yields, vice versa. Tempus will first integrate with Lido, Rari, Aave, Compound and Yearn.
The total number of 1 billion TEMP tokens will be made available in the first three years and after year 4, the inflation rate of 2% can be triggered by governance. Among the initial 1 billion tokens, 52% are allocated to community members. With a circulating supply of 63 million, TEMP’s market capitalization stands at $14 million. The trading volume is up by more than 140% in the past 24 hours. The RSI hovered between 25-29 in the past week and jumped to 44 yesterday.
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