Wipe – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Tue, 13 May 2025 18:40:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Wipe – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 DeFi Savings Protocol Sky Slumps to $5M Loss as USDS Interest Payments Wipe Out Profit https://earlybirdsinvest.com/defi-savings-protocol-sky-slumps-to-5m-loss-as-usds-interest-payments-wipe-out-profit/ https://earlybirdsinvest.com/defi-savings-protocol-sky-slumps-to-5m-loss-as-usds-interest-payments-wipe-out-profit/#respond Tue, 13 May 2025 18:40:54 +0000 https://earlybirdsinvest.com/defi-savings-protocol-sky-slumps-to-5m-loss-as-usds-interest-payments-wipe-out-profit/

DeFi savings protocol Sky posted a first-quarter loss of $5 million after interest payments to token holders more than doubled, according to a report created by Sky contributors from Steakhouse Financial.

The loss is a stark turnaround from the previous quarter, when Sky, formerly known as MakerDAO, registered a $31 million profit. The reason for the 102% increase in interest payments is the decision to incentivize use of the protocol’s newer Sky dollar stablecoin (USDS) over the existing DAI.

“The Sky Savings Rate was kept very high at 12.5% relative to the rest of the market, driving massive inflows” Rune Christensen, co-founder of Sky, told CoinDesk over Telegram. When Sky began lowering interest rates to 4.5% in February, a lot of investors stuck around, he said.

The situation is a double-edged sword for the protocol, which was among the first cohort of decentralized finance apps to spring up on Ethereum in 2017.

Sky operates similar to a traditional bank. It needs to lend to others at a rate higher than it pays its savers.

However, offering higher rates on USDS without a corresponding increase in demand for the stablecoin is hurting the protocol’s profitability, PaperImperium, governance liaison at blockchain research and development company GFX Labs, told CoinDesk over Telegram.

“USDS is a major drag on earnings,” he said. “DAI makes money. USDS, not so much.”

The push toward USDS is part of Sky’s so-called Endgame plan, an initiative led by Christensen aimed at transforming the protocol into a more decentralized and resilient system.

No new demand?

When Sky rebranded from MakerDAO and launched USDS in August as part of Endgame, the plan was that the new stablecoin would appeal to a different set of users than DAI.

USDS was designed to better comply with regulations and financial reporting requirements. It was targeted toward sophisticated investors like hedge funds, family offices and other institutions looking to dip their toes into decentralized finance.

But it’s unclear if USDS has been able to attract a substantial number of new users.

The returns investors can earn on USDS comapred to DAI is different: USDS pays out 4.5%, while DAI yields 2.75%.

Many investors swapped their DAI for USDS, meaning Sky had pay out more to people who previously were happy to earn a lower yield or, in many cases, no yield at all, PaperImperium said.

To be sure, the report said the combined supply of USDS and DAI has increased 57% since the start of the quarter. But a large part of this increase is from Ethena, the synthetic dollar protocol. It has piled over $450 million into staked USDS, and passes the yield on to those who stake its own stablecoin, USDe.

Over the past week, Ethena has switched some of its reserves from USDS to USDtb — a stablecoin backed by BlackRock’s USD Institutional Digital Liquidity Fund, or BUIDL.

The move means there’s less USDS in circulation. But it may also benefit Sky by reducing the amount of interest the protocol must pay out.

Read more: MakerDAO’s Christensen Hopes for ‘Firm Decision’ as MKR Holders Vote on Sky Brand

]]> https://earlybirdsinvest.com/defi-savings-protocol-sky-slumps-to-5m-loss-as-usds-interest-payments-wipe-out-profit/feed/ 0 36034 Will Trump’s Trade War Wipe Out His Meme Coin? Price Dives 17% Overnight  https://earlybirdsinvest.com/will-trumps-trade-war-wipe-out-his-meme-coin-price-dives-17-overnight/ https://earlybirdsinvest.com/will-trumps-trade-war-wipe-out-his-meme-coin-price-dives-17-overnight/#respond Thu, 10 Apr 2025 20:23:19 +0000 https://earlybirdsinvest.com/will-trumps-trade-war-wipe-out-his-meme-coin-price-dives-17-overnight/ TRUMP coin has taken a heavy hit, dropping 17% overnight and now sitting 70% below its pre–tariff war highs from just over two months ago.

Appetite for risk assets has cooled after global investment markets plummeted in an event likened to 1987’s Black Monday—hitting top meme coins particularly hard.

Still, today brings a slight turnaround. The wave of market-wide liquidations has sparked a broader “buy-the-dip” push, nudging TRUMP up 2.75% on the daily.

Could TRUMP Coin be Wiped Out?

Celebrity meme coins are intrinsically tied to hype and public perception, with Trump’s approval rating slipping to 46% amid aggressive foreign policy moves, TRUMP has taken the hit.

Trump’s approval rating as of April 7. Source: The Economist.

This follows past legal action calling for an investigation into whether Trump violated federal laws by promoting and soliciting money for his meme coin.

With stacking controversies and the bearish market backdrop, TRUMP coin stands to lose its status as a billion-dollar meme coin.

TRUMP Price Analysis: ‘Buy-the-Dip’ opportunity?

A rally may well be in Trump coins cards, with the breakout of a symmetrical triangle pattern forming since early February.

TRUMP / USDT 4-hour chart, symmetrical triangle and descending channel. Soruce: Binance.

Since the breakout, the meme coin has slipped into a descending channel.

Today’s “buy-the-dip” event marks a bounce marks a key retest of the triangle’s upper boundary and the channel’s lower support—an early signal the bulls may be eyeing a move.

Since the breakout, the meme coin has been trading within a descending channel, with today’s rebound marking a successful retest of its lower support and the upper boundary of the triangle.

If buying pressure returns, TRUMP could retest the channel’s resistance. A breakout there could confirm the triangle’s path, setting up an 80% rally to $14.

With the Relative Strength Index (RSI) now below 28, TRUMP sits deep in oversold territory—indicating seller exhaustion and leaving room for bulls to take charge.

However, risks remain. The MACD has just printed a death cross and is beginning to drift further below the signal line, suggesting downward pressure could linger.

If the current support fails, the descending channel could break down—potentially setting a bottom around $3 and fully invalidating the bullish triangle setup.

This ICO Taps Into an $85 Billion Industry

After a multi-month freefall across the altcoin market, presale investing has become a popular strategy—offering a hedge against downturns and a shot at above-average returns.

One project catching early attention is SUBBD ($SUBBD), an AI-powered web-3 content platform redefining a $85B industry by giving fans true access and creators better monetization tools.

Traditional creator-subscriber platforms often take hefty cuts—up to 20%—while giving users little agency over their communities.

SUBBD flips the script, cutting out the middleman and putting the power directly in creators’ hands—to great support with over $100,000 raised in the first 48 hours of its presale.

These perks extend to fans in an access-driven ecosystem. Token-gated content, discounts, and early access allow supporters to engage with their favorites in a meaningful way.

You can keep up with SUBBD on X, Telegram, and Instagram, or join the presale on the SUBBD website.

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