💰 Aave Launched A New Stablecoin

Gm, this is doodhwala, the only crypto newsletter that’s as good as waking up two minutes before your alarm. ⏰

Take That Technology. 🥊

Here’s what we got you today:

• 🏠 CELO’s Homecoming: CELO Is Coming Back To ETH As Its L2 Solution

• 👻 New GHO-stablecoin: AAVE’s New Stablecoin Reaches $2.5 Million Market Cap In 48 Hours

• 📈 Cheese and Charts: Bitcoin Hashrate and Price are inverse?

• 🛠️ Resourcewala: Navigating L1 And L2 Solutions.

• 🍼 Doodhshots: .Eth Is The New Best Website Domain!

🥂 Celo’s Homecoming!

Guess who's coming home? 🏠

Our dear Celo blockchain, an EVM-based layer 1 blockchain with nearly $100 million in total value locked (TVL).

But wait... what does 'coming home' mean? 🏡

Okay, a quick intro first.

Celo is a carbon negative, platform that makes sending and receiving crypto easy from your mobile phones.

It was an independent EVM-compatible Layer-1 blockchain but now, Celo's is coming back to the Ethereum ecosystem as its Layer-2 solution. 🔄

And they're doing it by using something called the Optimism or OP stack.

So what's with this Optimism stack? 🤔

It's a lot of optimism indeed! 🌈

Let's break down what this means:

• Celo developers will have an easier job.

• There would be a new system for storing data off-chain, managed by Ethereum node operators, and protected by staked Ether (ETH). 💂‍♀️

• The people checking all the transactions on Celo (the validators) may get a new job as decentralized sequencers for L2. 🔄

Wtf is a Sequencer tho?

What good comes from all of this?

Imagine better safety with still low gas fees. 💪

(oh and the carbon offset of Celo)

According to the plan, gas fees won't change much and could even be lower than on other L2s. 🚀

What about the users and people holding CELO tokens? 🤔

No worries! Everything stays the same for them! 🍹

The move won't affect them and they can still use CELO tokens to pay for gas. 🚙

But, with every change, there can be some downsides. 😬

More money might move between Celo and other chains, but costs might go up for sequencers. And it's still unclear if sequencers will get the same rewards as before. 🤷‍♀️

Doodhwals’s Take:

Celo is dreaming big, always improving, and focusing on helping the planet by being carbon-negative (just like we are).🥛

💰One Dashboard For ALL Your Crypto

When June moves to July and umbrellas come out, you know what season is approaching right?

It starts with an M.

I’m not talking about Monsoon. ☔️

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🤦 Another Algorithmic Stablecoin Enters

If you’re a psychopath who wants to see something like LUNA and TERRA UST possibly happen again, then we’ve got a story for you.

Say hello to GHO - the algorithmic stablecoin by Aave protocol.

The rise of GHO begs the question - Is there finally an algorithmic stablecoin that:

👉 is Stable.

👉 won’t De-peg.

👉 doesn’t make the doodhwala write another article about it?

We don’t think so. 💀

What is GHO? And how has it gained over $2.5 million in market cap in just 2 days?

Time to spook the 💩 outta this GHO-st.

1️⃣ What is GHO?

If you don’t already, let’s first understand what AAVE is👇

Pssst AAVE in Finnish means “Ghost”. 👻

That’s why they follow the Cute X Spooky theme all the time!

Anyways, the hype behind the GHO stable coin is quite simple.

👉 GHO is overcollateralized (there’s more valuable crypto backing it than stablecoin issued)

👉 GHO is minted by providing collateral on AAVE. (ETH, USDT, DAI, AAVE, and USDC)

👉 GHO enables yield earning on the collateral while GHO is minted and in circulation.

Here’s AAVEs official announcement👇

2️⃣ GHO is already de-pegging.

Guess what y'all, the doodh is already spilling on this one.🥛

GHO stablecoin…wait for it…is not so stable. Been 2 days since the launch and it's already missing its peg. 🤣

Not just on one side → But two!💀

Yup, GHO has been over-pegged and de-pegged 48 hours since its launch. 🤷

Just look at that chart☝️

It looks like a humour level indicator of this newsletter. 🤡 (We're always de-pegging)

3️⃣ Will GHO dominate?

It’s tough to say anything at the moment.

The prospect of an algorithmic stablecoin sound fascinating. But everybody is hella scared to touch them at this point. 💀

Let’s take DAI for example.

DAI is currently the largest stablecoin on Ethereum with over $4.28 billion market cap. 😮

DAI is an algorithmic stablecoin that has been facilitated by MakerDAO.

And even DAI isn't able to beat centralized stablecoins like USDT and USDC. 🤷‍♂️

Doodhwala’s take:

Q. Is GHO dominating anytime soon?

It’s the same answer we gave whens someone asked us – will oat milk replace cow milk?

A. Nah we don’t think so.

Until it maintains its peg properly. 🙇

📈 Cheese and Charts: Hash UP, Bitcoin DOWN

Now, don’t get happy just yet (this is a different hash we’re talkin’ bout).

So, Bitcoin's hash rate just reached an all-time high (so did our love for doodh). 🥛

What’s Hash Rate tho?

Take a deep breath…

So, the higher the hash rate, the more computational power is being dedicated to the network, resulting in faster and more secure transactions.

Now, it's gone up a huge 500% since 2021! 🚀

And Bitcoin's price is down by 50%.

So what?

That's weird because people usually think that when the hash rate goes up, so does the price.🤔

Let's take a quick trip down memory lane.

• Back in December 2018, Bitcoin's price fell from $6K to $3K.

• This caused a big drop in the hash rate too. 📉

• Then in 2021, China banned Bitcoin mining.

• The result? Another big drop in price and hash rate.🇨🇳

So, it seemed like the hash rate and price were connected, like dance partners.🩰

But in 2023, things are different.

The price has fallen by 50% from its high in 2021, but the hash rate is still going up. 🌕

Has the connection between hash rate and price changed, or are we just in a temporary phase? Could there be another big drop in price and hash rate?

What do you think? Let us know 💭

🛠 Resourcewala: Navigating Layer 1 and Layer 2 Innovations 💡

Blockchain's had more layers added to it than a lasagna at an Italian restaurant. 🍝

But hey, you're not here for the food analogies, you're here for the crypto knowledge bombs. 💣

And today, we're talking about the tradeoffs between Layer 1 and Layer 2 innovations, and how to manage them. We're dealing with the whole sandwich, not just the fillings. 😉

So, let's break this down like a beatboxer in a rap battle:

• Layer 2 Innovations - are they just Layer 1's younger, cooler sibling?

• Balancing Acts - the tradeoffs between Layer 1 and Layer 2, it's like trying to walk a tightrope in clown shoes! 🤡👟

• Strategies to manage these tradeoffs - Because let's face it, nobody likes a faceplant. 🤕

Wen Moon? - Well, let's dive in and find out! 👇

🍼 Doodhshots: .com → .eth

• 🤑 ARK’s Cashing!: Cathie Woods ARK investment is cashing in by selling another $50.5M worth of Coinbase shares. She may be wild, but she knows how to make the bag!

• 💳 Crypto Card: Gnosis launches a new self-custodial VISA debit card called Gnosis Pay. Innovation at its peak?

• 🌐 Website Naming: With the new feature of unstoppable domains, you can now end your website with .eth instead of .com. Doodhwala(dot)eth coming soon?

• 📉 Binance Layoffs: CZ admits to layoffs at Binance, but is saying that the numbers being shown are way off. Employees not SAFU?

• 📝 Under Review: The SEC has launched an official review of all the Bitcoin ETF applications filed so far*. Hope no one copied for this assessment!*

🤣 Milky Meme Of The Day

If you want more doodh then, be sure to follow our Twitter, LinkedIn, and Instagram.

That’s all for today folks! See ya tomorrow!

Yo! Our legal and financial advisors (aka our good ol’ conscience) have asked us to add this boring disclaimer. None of what you read here is financial advice. We aren’t here to get you to buy or sell crypto. We’re only here to tell you what’s up in crypto today and make you laugh. So, if you screwed up on a trade, that’s on you G. Stay safe in the markets.

Today’s edition was brought to you by Ritik Gupta and Sumanth

Edited by: Arvind Krishna and Aakash Athawasya