Alpha on-chain tools

During the past six months, basis.markets have developed tools that are able to extract precious data from the blockchain. Recently, these tools have been made available to the community members via the discord server. These features are exclusive to basis.markets NFT owners.

These tools can show users in real-time, any on-chain opportunities and/or threats that present. Tooling thus far includes: lending rate optimization, total value locked (TVL) fluctuation, APR changes, usage increase percentage, whale alerts, and many others.

How can I access these tools?

These tools are available via the Discord, in dedicated channels. Users are able to visit any of the specified channels below, and pick the type of alerts that they would like. When a new alert becomes available, Discord will notify users based on their choices.

The channels are:

# ⭕︱alpha-lending
# ⭕︱alpha-stablecoin
# ⭕︱alpha-tvl
# ⭕︱alpha-whales
# ⭕︱alpha-bte-top-plays
# ⭕︱alpha-bte-funding-rates

Let's go over each channel with a description of what they do and how users can benefit from them.

# ⭕︱alpha-lending

Shows real-time, best USDC lending rate.
This channel notifies users of the best lending rate for USDC, a stablecoin. It also shows a list of the top 3 protocols that allow for lending of that asset. As shown via the image below, the best USDC rate at 17:30 UTC was at Tulip.

# ⭕︱alpha-stablecoin

Monitors stablecoins.
This channel notifies users of changes in stablecoin pricing. The goal of a stablecoin is to hold its peg to the FIAT asset it’s pegged to. So that 1 USDC = 1 USD, 1 DAI = 1 USD, and so on.

The # ⭕︱alpha-stablecoin channel lists the current price of all the major stablecoins on Solana (USDT, USDC, etc), as well as alerts users for sudden changes in pricing (BUSD price decreased in the image below).

# ⭕︱alpha-tvl

Daily report on Total Value Locked.
This channel notifies users of Total Value Locked (TVL) for major DeFi protocols on Solana. It includes updated lists of current TVL values, but also changes in assets, by protocol. The image below shows changes for each protocol’s TVL (e.g.: Marinade, Solend, etc). It also shows major single changes for a particular protocol and asset (eg.: BTC on Mango increased its TVL), as well as, current TVL and changes for each asset for the protocols listed (eg.: Mango lending pools rates for SOL, mSOL, etc).

# ⭕︱alpha-whales

Check up on large wallets.
This channel notifies users of activity on large wallets, fondly known as “whales”. The wallets are from known participants on the solana blockchain, identified by name. In this example, the image shows “Alameda wallet 2”, a large wallet on Solana, along with changes in its assets. In the past 24 hours, this wallet has bought an additional 231.24 BNB, 34.11 BTC, 2,6900 ETH, and several others.

# ⭕︱alpha-bte-top-plays

Best daily plays for the BTE.
This channel notifies users of the 5 best daily plays for the Basis Trade Engine (BTE).  In this example, our tool shows users the top 5 basis trades, listing the asset with the type of basis (ONT is the asset, Reversed Basis is the trade); where to go long (ONT on Binance); where to go short (ONT on KuCoin) and the current APR (66.48%).

The APR value shown is the average of that day's funding rates multiplied by 365. In this example, the exchange FTX reports funding rates hourly.

Let's suppose at the end of the day the average of all the funding rates for ONT-PERP was 0.0075890%. The formula would be:

24h funding rate average * 24 * 365 = APR

Which would result in:

0.0075890 * 24 * 365 = 66.48%

# ⭕︱alpha-bte-funding-rates

Tracks CEX and DEX funding rates.
This channel notifies users of big changes in funding rates on centralized and decentralized exchanges. To be more precise, this tool shows intermittently a list of:

• current perpetuals funding rates and their change (e.g.: BTC-PERP on Mango)  and;
• perpetuals going from negative to positive or vice versa (e.g.: BNB-PERP on Mango went from negative to positive).

Note: funding rates are different per exchange: Mango and FTX report funding rates each hour, while Binance and ByBit report in eight hour intervals.

How is this useful?

Let’s take the example of # ⭕︱alpha-stablecoin. This channel allows you to monitor stablecoins on Solana. You get a Discord ping if a stablecoin loses its $1 depeg. Which would have been a useful thing to know in the May 2022 Terra collapse, for example.

How about the # ⭕︱alpha-whale channel? It can be used to check up on what the “big players” are doing in Solana. Why are they buying so much BTC and ETH? Or, why are they selling SOL? This type of information can often provide clues to the kind of strategies these large players are executing, likely with high probability.

How to get these notifications?

Users go to the 👇︱choose-alert channel and pick alerts based on their preferences. They do so by reacting with the emoji related to the alert.

For example, if users want to see alerts related to a large wallet on solana, they react with the  🐳 (whale) emoji in the post on the 👇︱choose-alert channel.

This will make the ⭕︱alpha-whales channel visible on the list of channels on the left.

The user will then get a Discord notification from the ⭕︱alpha-whales channel when there are new large wallets movements. Users can react with just one or all reactions available in that post. But they may want to stick to only one or a few if they’re not interested in other alerts.

One more thing to do

In this blog post we’ve been referring to the discord notifications as ‘alerts’, but to actually receive an ‘alert’ there’s just one more thing to do…

To receive notifications for a specific channel, right-click the channel, choose "Notification Settings" and choose "All Messages". This will notify the user of all posts (alerts) posted in that channel.

If users do not want to receive notifications, they can simply “unreact” to the emoji(s) on the 👇︱choose-alert channel. This will make the corresponding channel(s) invisible.

Summing Up

basis.markets NFT owners can spot opportunities and threats with the on-chain tools developed and made available in the project’s Discord server. These tools are available in the form of channels that notify users of various activities on Solana.

These tools can help with a number of things, such as timely warning about stablecoin depegs, the best interest rates, what large players are doing and more.

We hope you find these tools useful and that they can help you on your journey in crypto.