Double Bro Seven | Cat-in-a-Box | FAV Finance

co-founder @DeFiGarageDev & @catinaboxfi

[0xDerivadev @derivative_dr]

It’s 2024, almost a year since EigenLayer has launched. Restaking’s the talk of the town - if you aren’t earning, it’s time to start learning.

[TeamCAT @TeamCATfi]

From the end of December 2023 till today, The LRT sector has 100x’d in TVL. Currently at a staggering $9.9B cumulative TVL.

However, with rapid growth comes friction, and this friction needs addressing.

The Origins

EigenLayer launched in June 2023, kicking off the rise of restaking applications. It allows users to restake their ETH or LSTs, thereby aggregating ETH’s economic security to other networks and applications.

Liquid restaking protocols quickly became popular within the EigenLayer ecosystem.

The use case is simple: you stake with an LRT protocol, they manage the AVS risk and abstract away the complexities for you, and you earn some sweet restaking yield from the AVS’s that utilize your delegated ETH security.

Pain points

In a sector experiencing such rapid growth, problems often start to show at scale. More specifically, the problems stem from the liquidity infrastructure supporting the sector.

They are:
🐱Capital efficiency for users
🐱Security
🐱Scalability

Capital efficiency

Existing lending applications allow users to leverage their LRT exposure by depositing assets into a vault against which they can borrow more ETH to stake.

This design comes with the requirement of having a lot of unstaked ETH deposited as collateral. The lenders' profitability is then dependent on utilization ratios and borrower demand, which makes their returns unpredictable.

Instead, with CAT Protocol, the two-sided vault design is replaced by collateralized debt tokens that have access to a concentrated AMM pool with liquidity between the 0.9ETH to 1ETH range.

Sellers of the debt token can directly interact with their counterparties on this pool without these counterparties needing to have large amounts of unstaked deposited collateral.

This frees up counterparties (debt token buyers) to engage in any other on-chain activities with their capital while waiting to deploy it.

Security

One benefit of this design choice is that the protocol does not have a large amount of capital locked in smart contract vaults. In the event of a hack/exploit, user funds will remain largely unaffected since they aren’t locked up in a vault but rather in their own wallets.

Another security benefit is that there is no dependency on an AMM price oracle.

Other liquidity solutions price their LRTs using AMM oracles. So even if the underlying LRT is not devalued in any way, users will still be at risk of liquidation in case any news or other such event causes a major depeg on an AMM.

Scalability

The scalability issue is a direct result of incentivized systems.

Liquidity pools will tend to be only as deep as the estimated worth of the incentives on offer. Protocols offer points with future airdrop prospects. The demand for these incentives ultimately drives liquidity.

Hence, when you combine incentivized systems with reliance on that same liquidity, it presents scalability challenges for existing LRT liquidity infrastructure.

CAT drives maximal restaked value to EigenLayer by reducing the requirement of unstaked ETH deposits, thereby incentivizing users to restake their capital to participate in EigenLayer.

Stay tuned and turn on notifications for CAT Protocol. We will have more details coming for you very shortly.

MEOW 🐱

[TeamCAT @TeamCATfi]

This is the end of a @catinaboxfi official thread.

Any following tweet after this one might be from scum impersonators trying to scam.

Stay safe!

Cpt. Catina, out!

[TeamCAT @TeamCATfi]

🐈‍⬛ Cat-in-a-Box is launching an Airdrop campaign for the its new Cat token.

This will take place between the 21st-31st of March 2024.

Get in by completing daily quests and tasks to secure a spot.

Details in the thread 👇

[Cyrille @cyrille_briere]

A new Cat in a box version is coming. New collaterals, multichain, enhanced liquidity...a... (don't say the word)...new (no don't say it)...token?

Looks like the cat won't stay very much longer in that box 🙀

[Skilly Rockefeller @OneYoungSkilly]

Cool to see projects that sensibly buidled throughout brutal bear survive to gain new eyes during bullish market momentum. @catinaboxfi created a system that worked without hype, but impending introduction of a token and v2 could be just what it needs to catch DeFi degens 👍

[0xDerivadev @derivative_dr]

"She's no Uncle Sam but Cpt. Catina has a once in a lifetime proposal for you. Join her Cat Army by sharing your stories from the previous war with the Bears. Join the Cat Army!"

Cat proverb

[B🔻sed @0xUnbased]

The natural evolution of an already awesome protocol! Come in and chat, we may be cats but we don't scratch.

[MRT 💹🧲 @themrt123]

multi-asset and multi-chain yield printoor @catinaboxfi

[Miles FUTURE @miles_future]

The project @catinaboxfi has is very promising, I want to be part of the project and want to grow with them and see them progress every stage. I want to be part of the community and claiming the airdrop will be the first step as being part of the project.

[Olivier Depiesse @carismarus]

New player joined

[C4gg @C4dotgg]

[Project Updates]
@Minima_Global updates on scalability
@NetMindAI revamping tokenomics
@Catinaboxfi unveils v2
BNB Chain introduces RaaS solution
@Marginfi points trading on @WhalesMarket
@Avax foundation discloses community coin holdings
@eigencloud prepares for launch

[MRT 💹🧲 @themrt123]

I think I deserve the airdrop because i literally live in a cardbox with a cat

also give me @KUkcirtaP's share pls

thank you @catinaboxfi you are my best friend

[TeamCAT @TeamCATfi]

📦 We are curious about your journey with Cat-in-a-Box...

Share your stories!

Did you use Cat-in-a-Box, fumble a boxFEE bag, or build something epic for us?

Reply below and let's reminisce as we gear up for the new Cat-in-a-Box launch!

[0xnon0.eth @nono01022]

I need @catinaboxfi token to affort my 2 Cats Luxury dry food.

They deserve it for all their inactivity.

[Oskadim @oskadim]

I can't wait

[striker @thestriker117]

Why is the cat in a box? I know, but to find out you have to follow @catinaboxfi

[топчик @a_val]

Most overlooked lst product in defi
- moar yield
- unruggable™
- left curve frenly
- cute cat airdrop

gib