The Humble Farmer's Digest 12/13

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

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Dec 13, 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

LandX

We’ve been watching LandX for a while, and they’ll finally be releasing their token on the 14th. For those who aren’t familiar, LandX is an RWA protocol that aims to bring agriculture on-chain. By forming contractual agreements with farmers around the world, LandX can create fully-backed tokens that represent real crops.

Many potential complications arise when trying to bring something of this magnitude on-chain, but if done right, LandX could do very well. The LNDX token will be seeded with liquidity on Arbitrum at $0.50, which is a circulating market cap of roughly $3M with a $40M FDV. The tokenomics aren’t great with roughly 50% of the total supply going towards early investors, and it’s probably a good idea to be cautious with such an inflationary token supply. This could still be seen as cheap depending on your outlook, and we’ll be closely monitoring this launch regardless.

Across

We’ve talked about bridges in past newsletters, and Across seems like the best bet in this sector. With aggregators being the decider of which bridges get volume, a race to zero in terms of fees seems likely, and Across dominates here.

By leveraging UMA, an optimistic oracle, Across frequently comes in first when it comes to both bridge times and fees. Across has also pioneered cross-chain intents in the context of bridging, and has been expanding their relayer network to grow their dominance even further. While the ACX token is only a governance token right now, a fee switch within the near future could change this.

Layer Zero’s token launch has been confirmed to be coming in the first half of 2024, and with it likely launching at a multi-billion dollar valuation, we believe that many of the current bridge tokens/messaging layers will get repriced in comparison. In comparison to Layer Zero, bridges that dominate in volume like Across will seem extremely cheap. We’ve already started to see this thesis play out with bridging tokens like Axlear, Connext, and Across up multiples in the past couple of months, and this trend seems likely to continue.