Welcome to your #1 source for crypto news, DeFi, and everything in between. If you want to know what's happening in the world onchain, well, you've come to the right place.

What's in this edition:

1. Cracking the Code: How to Launch a Stablecoin That Sticks
2. Maker rebrands to Sky
3. OpenSea receives a Wells Notice from the SEC

Cracking the Code: How to Launch a Stablecoin That Sticks

When it comes to launching a stablecoin, it’s not just about having a solid product; it's about how you bring that product to market.

We’re talking strategy, timing, and knowing how to play the perception game.

In this week's episode of Flywheel, Stuti from Kraken Ventures recently broke it all down, giving us the ultimate playbook for stablecoin success.

The Go-to-Market Play: More Than Just a Launch

So, what’s the secret sauce to getting a stablecoin off the ground?

It’s all about perception.

In DeFi, perception isn’t just reality—it’s everything. If people think your stablecoin will be the next big thing, that alone can drive adoption.

Enter the “Signal Waterfall”—a concept where attention drives liquidity, which then draws even more attention. When done right, it’s a cycle that can catapult your project into the spotlight.

The Signal Waterfall: A Strategic Blueprint

Stuti’s Signal Waterfall is like the cheat code for stablecoin launches.

It’s a step-by-step guide to building credibility and gaining market traction. Here’s how it breaks down:

1. Philosopher Builders: First, you need a great founder. These are your Vitalik Buterins of the world—the thought leaders who can give your project the nod of approval it needs to get noticed. They are the ones who create the vision of what a stablecoin could be.
2. Venture Capitalists (VCs): Once you’ve got the philosophers on board, it’s time to get the VCs in. They bring cash and credibility, signaling to the market that your project is one to watch. VCs are an important signal showing that funds should be allocated to a project and other industry participants should take notice.
3. DeFi Builders and Apps: Next up, you’ve got to integrate with existing DeFi protocols. This is where the magic happens—getting your stablecoin used across the ecosystem is key to long-term success.
   
   Integration is important. If you launch a stablecoin and you can't get added to the largest apps like Maker, Aave, and others, you're ngmi. Without integrations, there's zero point to hold or use your asset.
4. Crypto Institutions: These are your centralized exchanges and big-name media outlets. Their involvement helps scale your project and boost legitimacy.
5. DeFi Degens: Now we’re talking about the traders who love to take risks. They’re in it for the gains, but their participation can drive early liquidity and buzz.
6. General Consumers: Finally, you reach the masses. This is where your stablecoin needs to prove it can stand on its own without heavy incentives.

Timing is Everything: The Ethena Example

Ethena is a prime example of a stablecoin that nailed its launch.

Timing was on their side, launching when market conditions were just right. But don’t be fooled—Ethena’s success wasn’t just luck. They had a killer go-to-market strategy, focusing on getting early support from exchanges and DeFi protocols.

They also had influencers like Arthur Hayes laying the groundwork with his blog posts on Ethena's mechanism design published months before their launch.

It’s proof that having a solid plan is just as important as catching a lucky break.

Staying Power: Beyond the Launch

Getting a stablecoin off the ground is one thing, but keeping it there?

That’s the real challenge. Stuti emphasized the importance of “monetary premium”—a fancy way of saying your stablecoin needs to have real use cases that keep people coming back.

Whether it’s being used as collateral in DeFi protocols, for remittances, or as a store of value in volatile markets, your stablecoin needs to offer something that goes beyond just hype.

The Future of Stablecoins: More Than Just Survival

The stablecoin market is growing, and it’s not just about USDT and USDC anymore. There’s room for innovation and new players, especially those that can cater to specific needs. Whether it’s offering different risk profiles or targeting niche markets, the potential is there for stablecoins to evolve and thrive.

Maker rebrands to Sky

Maker is dead, long live Maker.

DAI, the first and most prominent decentralized stablecoin is finally winding down, after rebranding to Sky. DAI will still exist and be used in DeFi, however, it will not be eligible for earning rewards in the new system.

Sky is issuing USDS, a new stablecoin that abandons its former decentralization ethos in favor of growth.

USDS will be backed by US treasuries, have a freeze function governed by the DAO, and will earn rewards paid out by the DAO on their treasury collateral.

Additionally, MKR will be converted into SKY at a rate of 1:24,000. The changes will go into effect on Sep 18.

OpenSea receives a Wells Notice from the SEC

If anyone thought the Biden-Harris administration was easing up on the industry, here's yet more proof of their targeting of legitimate companies.

OpenSea published on X today that they had received a Wells Notice from the SEC.

A Wells Notice is a formal communication issued by the U.S. Securities and Exchange Commission (SEC) to inform individuals or companies that the agency plans to bring an enforcement action against them. 

The SEC believes that OpenSea has violated securities laws by facilitating the sales of NFTs and will most likely try to force them to register as a broker-dealer or securities exchange.

It's wild, though, to believe that securities laws govern the sale of digital art. The jurisdictional claims the SEC is making will be a vast overstretch of its regulatory purpose. Let's hope this gets resolved before it goes to court.

Good Reads

• Andre Cronje thread on "Why DeFi"
• Arthur Hayes publishes "Sugar High"
• Donald Trump drops an NFT collection
• France’s Telegram blunder means Europe will hunt for Satoshi next
• Perena on why stablecoins are central to financial infrastructure
• The Optimism Collective writes "How (and why) the Superchain drives fees to the Optimism Collective"