The Humble Farmer's Digest 11/22

Your weekly dose of Crypto, DeFi, and more...

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Nov 22, 2023

Hello Humble Farmers, thanks for reading!

This substack aims to share everything we’re paying attention to, including new launches, good farms, tokens, and much more. If any of that sounds interesting to you, please subscribe!

What We’re Watching

Trac

With BRC-20s and Ordinals starting to pick up once again, Trac seems well-positioned to do well in the coming weeks.

For those who aren’t familiar, Trac is an umbrella protocol that is building various products for the Bitcoin ecosystem. These products include Trac Core, TAP Protocol, and Pipe Protocol, all of which we’ll briefly break down below.

Trac Core

Trac Core is the key infrastructure that Trac provides to the Bitcoin ecosystem, which include a fully open source and decentralized oracle and indexer service.

“Designed to serve across the whole Bitcoin ecosystem, Trac Core acts as a comprehensive tool that sifts through, tidies up, and simplifies the access to Bitcoin’s expansive data. It fetches updates from the blockchain, methodically sorts them out, and promptly avails them for searches and analyses via APIs, constantly refreshing this information with the blockchain’s ongoing activity.
Simultaneously, Trac Core embodies the role of an oracle for Bitcoin, establishing a reliable channel to the world beyond the blockchain. It fetches necessary data from external sources to feed into the blockchain, which is vital for the operational operations that depend on accurate and secure data from outside their closed environment to function correctly. Trac Core, therefore, stands at the crossroads of internal blockchain navigation and external data liaison.”

TAP Protocol

The next part of the Trac ecosystem is TAP protocol, which enables developers and users to expand the functionalities of their BRC-20 tokens. These functionalities include…

Swapping and Staking: Within the TAP ecosystem, users can effortlessly swap tokens and stake them to bolster the network and earn rewards, merging liquidity with incentive.
Liquidity Pools: TAP supports the creation of pools of tokens that users can contribute to, enabling decentralized trading and earning fees in return.
Token Authentication: It provides a framework for authenticating tokens within platforms, potentially for use as in-game currency or items.
TAP Art: Allows for linking Ordinals with tokens living on the TAP protocol, allowing for fractionalized ownership of value art. By extending the TAP protocol, the provenance of both, token deployment and Ordinal ownership will be preserved.
Multi-send: Users can send multiple transactions in one go, simplifying the process of distributing tokens to various recipients. Airdropping tokens within Ordinals has never been easier and cost-effective than with TAP.
Multi-asset Protocol: Finally, TAP acts as a multi-asset protocol, meaning it can handle various types of assets beyond just one standard, broadening the scope of transactions and interactions within the Bitcoin blockchain.

Pipe Protocol

Finally we have Pipe Protocol, which uses Unspent Transaction Outputs (UTXOs) to monitor transactions.

This model ensures security against double spending and provides enhanced privacy and efficiency.
Adding to this, Pipe extends the capabilities of Bitcoin’s UTXO system with features aimed at digital art and collectibles:
Art: Pipe supports transactions related to buying, selling, or transferring digital art pieces.
NFT (Non-Fungible Tokens): It allows for the creation and management of NFTs, which can represent ownership of unique digital items or art.
Inscribe: Users can inscribe data onto a Bitcoin transaction, which could be used to add details or authenticity to digital art.
Transfer: Pipe enables the transfer of UTXOs, which can represent various assets, including digital art and NFTs.
Pipe leverages Bitcoin’s fundamental UTXO architecture to bring advanced functionalities for digital assets and NFTs to Bitcoin.

These protocols are connected by the TRAC token, which serves as a governance and utility token within the ecosystem. This could be a lucrative bet going forward, but as always do your own research before investing.

RDPX V2

Dopex seems to be extremely close to releasing the RDPX V2 tokenomics, which will reform the token from a standard rebate token to a hyper-deflationary asset. Users will be able to mint a yield-bearing synthetic ETH derivative called rtETH against ETH and RDPX. A portion of this RDPX will be burned (similar to Luna/UST), and the Dopex team plans to maintain peg stability through an AMO.

Theoretically, there will be a high demand for rtETH due to the high yields (from RDPX backing treasury rewards), the ability for it to be used as collateral for options, as well as its utility as an LP token. If this flywheel gets going, it seems likely that RDPX will do well going forward.

Farms of the Week

Upcoming Projects

Fuse (Smart wallet for Solana, coming soon)
Exocore (Omnichain restaking protocol)
USDV Money (The first omnichain tokenized treasury-backed stablecoin)
Redstone (Cost effective L2 for onchain games, worlds, and other ambitious applications)
Avara (The house of the most innovative web3 brands)
ZKP2P (Building the first trustless P2P fiat onramp powered by zk proofs)
Succinct (Building towards a proof-based future)