The
$Dinero Thesis: Future Crosschain DeFi Bluechip
A significant portion of our Directional SIP is allocated to
$DINERO, the governance token of Redacted Cartel, and weāre betting on it becoming a mainstay of
$ETH and cross-chain DeFi protocols.
Context:
Weāve seen a huge rise in memecoins this cycle, with many participants bidding on coins on Solana, Base, and ETH. The Memecoin Supercycle thesis is in full swing, with coins like
$WIF,
$BONK, and
$TRUMP demonstrating the power of being allocated to such coins in crypto.
However, while memecoins have captured the attention of retail participants, thereās a sector of the asset class that continues to be undervalued and has the potential for massive repricing as
$ETH gains institutional adoption through ETFs and funds - DeFi.
After the rise of onchain DeFi protocols in 2021, most top protocols have been largely unnoticed by new retail investors. However, as institutional money continues to enter crypto, we expect this to change.
Thatās why we built a sizeable spot position of
$BTRFLY before the
$DINERO migration, and we will continue to hold
$DINERO.
Redacted Cartelās Evolution:
Redacted Cartel started as an OHM fork, launched to be a sub-DAO of Olympus DAO, focused on capital efficiency and maximizing value for token holders through meta-governance.
Understanding the market shift into a bear market, the Redacted team ventured into revenue-generating methods that have gained adoption and usage across
$ETH DeFi. Earlier this year, they launched Pirex with
$pxETH, which currently offers some of the highest APRs for staked
$ETH.
$pxETH has performed well over the past year, growing to over $44 million in TVL:
A pivotal move by Redacted was the acquisition of Votemak, laying the foundation for their Hidden Hand marketplace. This platform allows any protocol to launch a Bribe Marketplace, creating DeFi flywheels where participants are incentivized to pay for liquidity in return for bribes. For every bribe on Hidden Hand, a 4% fee is taken by Redacted Cartel and distributed to
$DINERO holders.
As of now, Hidden Handās metrics have been consistently growing from the bear market to July 2024:
With eight protocols onboarded onto Hidden Hand, thereās clear adoption and usage of what Redacted is building. With the launch of
$ETH ETFs and renewed institutional interest,
$DINERO stands out as a potential benefactor of both the revival of DeFi and the growth of
$ETH.
Following the recent token migration to
$DINERO, Redacted will soon launch their own stablecoin, pxUSD, attracting more attention to its ecosystem.
Future Prospects:
With a fresh chart and low unit bias,
$DINERO could attract renewed interest. For example, after
$MC rebranded to
$BEAM, it rallied over 10x.
We also speculate that Redacted may support Berachain, potentially building off their existing pxETH infrastructure to launch pxHONEY, which could bring additional staking fees and TVL to Redacted.
Berachainās last valuation was $420.69 million, and a partnership could signify that
$DINERO is vastly underpriced.
Additionally, Redactedās upcoming product, Marionette, is a voting optimizer for veToken holders, ensuring votes go to the most profitable rewards. In return, Redacted charges 10% of all voting power delegated to it. This allows them to amass voting power cheaply while removing a user bottleneck. If this product does well, it's another catalyst for
$DINERO to become a DeFi winner this cycle.
Conclusion:
We meticulously research any swing positions taken with our Directional SIP. Weāre committed to identifying the best cross-chain opportunities for our depositors, and we believe
$DINERO presents a compelling bet on the success of
$ETH and DeFi this cycle.