Chain Digger

25y in betting
In crypto since 2017
Same game, different odds

[Chain Digger @ChainDigger82]

PiggyBank (@piggybank_fi) just reported a ~15% drawdown in its USDC vault.

The loss came from a locked $LAB basis trade. Extreme volatility and negative funding rates forced the team to close the hedge.

The remaining $LAB position is currently valued at $1.35M but excluded from NAV due to illiquidity until the first unlock on Aug 14.

More details next week.

[Chain Digger @ChainDigger82]

If the initial position size was only ~$100k (~2% of NAV), how did it translate into a ~15% drawdown for USDC vault depositors?
What was the total PnL impact from funding payments versus mark-to-market losses?
Why was the hedge removed entirely instead of partially reducing exposure?
What percentage of current NAV is now represented by locked LAB exposure?

Looking forward to the detailed report.

[Chain Digger @ChainDigger82]

@CryptoHayes How low have you sunk?

How does quite a respected figure in crypto become someone who profits at the expense of his own followers?

$HYPE, $NEAR, $ZEC, $WLD, next?

Shill.
Pump.
Sell.

I feel sorry for everyone who trusted your calls and became exit liquidity instead.

[Chain Digger @ChainDigger82]

@PeterWong179151 I strongly believe NEAR can make it up to Top 10 Crypto in long term, surpass all these zombie chains like Cardano etc.

[Chain Digger @ChainDigger82]

A month ago I said NEAR was underrated at $1.40.

Today: $2.53 (+81%).

The market is finally catching up:

– Intents becoming real cross-chain infrastructure
– fee-driven buybacks from growing volume
– AI + privacy positioning
– post-quantum upgrades
– institutional inflows via Bitwise ETP
Still early imo.

[Chain Digger @ChainDigger82]

NEAR is still one of the most underrated plays.

Low DeFi TVL? Yes.

But NEAR isn’t trying to win on TVL anymore.

It’s becoming infrastructure for seamless cross-chain swaps via Intents.

Users don’t even realize they’re using multiple chains.

Fee burns → natural deflation.

I’ve been accumulating NEAR.

What’s the bear case?

[Chain Digger @ChainDigger82]

@FabianoSolana An old saying goes, if you don't have shit, you can't fuck shit up.... Solana has many "great" apps ... like Drift... and it kills the ecosystem and the token price. Thanks to Drift ppl left Solana forever... so sometimes less is more..

[Chain Digger @ChainDigger82]

While most DeFi protocols apologize and use their Treasury to compensate users after an exploit, @DriftProtocol chose to give users the middle finger, focusing only on team payouts and their own recovery.

Math doesn't lie: full recovery will take 40-50 years. Factor in inflation, and users get close to zero either now, or decades later. Long live Drift? Ehm, NO! Protocols like this have no place in DeFi.

[Chain Digger @ChainDigger82]

If CME and ICE secure the regulation of Hyperliquid through lobbying, it can change the trend.. Combined with massive HYPE unlocks exceeding buybacks, the tokenomics headwind is real.

Solana has the highest retail DEX volume, Firedancer incoming, and the strongest memecoin/consumer app ecosystem. The real problem is capture of value — but that's a tokenomics issue, not a technology one. Still key one for the price of the token

[Chain Digger @ChainDigger82]

@sergeyx128 @Dimadimadu @DriftFDN Exactly this. Insolvency is insolvency regardless of cause. The lending pools in the IF don't ask "why" — they cover the shortfall. That's the whole point.

[Chain Digger @ChainDigger82]

@Dimadimadu @DriftFDN Fair and honest take, respect that. My point is simple — if smart contract exploits were meant to be excluded, Drift had an obligation to say so explicitly. They didn't. They collected yield on that silence. That ambiguity is their liability, not a defense.

[Chain Digger @ChainDigger82]

@CraigBeck @DriftFDN Table legs don't read whitepapers. Apparently neither do you 🤣

[Chain Digger @ChainDigger82]

@Dimadimadu @DriftFDN Actually I did. Whitepaper says IF covers situations where "accounts fall below zero" and exchange is "left to pay bad debt." It doesn't exclude bad debt caused by exploit vs normal trading. Bad debt from invalid collateral is still bad debt — regardless of how it was created.

[Chain Digger @ChainDigger82]

NEAR keeps shipping.

Now adding post-quantum security while building seamless cross-chain UX via Intents.

One of the few L1s actually thinking years ahead.

Feels like the market is finally catching up (+21% last 7 days).

[Chain Digger @ChainDigger82]

NEAR is still one of the most underrated plays.

Low DeFi TVL? Yes.

But NEAR isn’t trying to win on TVL anymore.

It’s becoming infrastructure for seamless cross-chain swaps via Intents.

Users don’t even realize they’re using multiple chains.

Fee burns → natural deflation.

I’ve been accumulating NEAR.

What’s the bear case?

[Chain Digger @ChainDigger82]

Good to see @MeteorWallet taking a structured approach after the April exploit (DewNear-related):

– full AI audit completed
– vulnerability already patched
– on-chain monitoring now live
No new fund loss risks found.
Fixes pending final review (per team update).

[Chain Digger @ChainDigger82]

@PeterWong179151 Dragdown may come, if btc does not keep 77k levels, liquidations of longs would come according to the heatmap, sol would follow… there is no clear catalyst for sol at the moment, it just driven by btc moves

[Chain Digger @ChainDigger82]

One of the most macro-heavy weeks of the year.
– 5 central banks (Fed, ECB, BoJ, BoE, BoC)
– Big Tech earnings (AAPL, MSFT, AMZN, GOOGL, META)
– US GDP (Wed) + Core PCE (Thu)
Meanwhile, oil just spiked above $105 on Hormuz tensions.
Macro is back in the driver’s seat.
Crypto won’t ignore this.

[Chain Digger @ChainDigger82]

Well written! What is another red flag for me is the insurance fond. This pool is for bad debts, what else than a bad debt was the exploit… fake token without any value as collateral caused a bad debt. But Drift won’t distribute the money to the victims…what a derision! In all aspects Drift showed they care about themselves and their salaries, did not take any responsiblity, any excuses, user dont matter at all

[Chain Digger @ChainDigger82]

@JKChe82 @FlashTrade well, they try to be one super app for everything, but sometimes it is better to focus on something deeply and make it TOP, instead of doing everything just mediocre

[Chain Digger @ChainDigger82]

After Jupiter walked back the airdrop, I started looking for alternatives.
Ended up using @FlashTrade more lately.
• 0% fee limit orders (real orderbook)
→ Jupiter “limits” still pay swap + routing fees
• More perp pairs
→ not just BTC / ETH / SOL
• Lower entry fees on perps
→ ~0.05% vs ~0.06% (+ different funding model)

Feels like this is flying under the radar.