I have found an interesting perps play I think could be a 20X+ which offers significant differentiation vs current products on the market like $HYPE, $DYDX and $GMX. It is a super low market cap sitting around ~$9M FDV so obviously incredibly risky but has good upside potential in my mind if things go well for them. The project is @quanto $QTO. Hyperliquid is by far the most successful application to come out of this cycle, perp exchanges accrue immense value and have incredible network effects from the liquidity they provide + are proven multicycle fee generating businesses. Another phenomena from this cycle has been the acceleration of memecoins driven by platforms like $PUMP. Quanto combines these two markets together, unlocking capital efficiency of all crypto coins through their extensive coin margining system. Furthermore, they allow a long tail of assets like memecoins and other altcoins to be tradeable. It’s like FTXs old cross margining system on steroids. Users can deposit basically anything and trade most coins; they offer up to 200x leverage on majors. So how does Quanto achieve this? It’s through their Quanto perpetual futures which are denominated in their native exchange token QTO. This is going to get a bit technical but let me explain how this works and show the flywheel QTO is creating. Okay so everything on the site is denominated in QTO (position sizes, PNL, collateral) in the UI you see USD but in the backend, it uses QTO. By doing this you unlock the ability to margin basically any asset in crypto to trade perps, I think the huge unlock here is having the option to deposit any coin you don’t want to sell and use them as margin to trade majors. Quanto’s design makes it incredibly reflexive, the $QTO flywheel is as follows: 70% of fees go towards buying and burning of QTO (annualizing its burn from its launch in July they would be burning 12% of the total supply and 20% of the circulating supply per year (5-9x burn)). 30% of fees go towards the native liquidity providing vault of the platform QLP (think GLP, HLP, etc) This model is new and untested but in theory if you have deep QTO<>SOL or QTO<>USD liquidity then it can work, especially for small-medium size traders. When a trader wins they earn QTO. This QTO comes either from QLP or another trader. If the position on the other side of the trade is non QTO collateral, then that collateral of the losing trade will be automatically sold and used to buy QTO. This buying is automated and can be seen on-chain, check out the chart below: (Had trouble generating the full chart so used an old screen shot - can verify this on DEX screener by looking at buys from dev wallet). Now you have the winner of the trade with a QTO balance as their PNL. Beholden to QTOs liquidity they can choose to sell it for USD / SOL or hold on to it because it’s a deflationary exchange token of something that could grow a lot given their unique functionality vs other perp exchanges. If more users hold their QTO PNL because they want to own a piece of Quanto exchange (like people want to own $HYPE as a piece of Hyperliquid or $BNB as a bet on Binance) this effectively sucks in altcoin collateral people want to trade with and turns a portion of it into QTO over time as PNL is exchanged. QTO is supported by this mechanic alongside 70% of fees going towards a burn. You also have the potential for huge positive reflexivity here as the market is ripping, QTO could be ripping, if this happens your QTO denominated longs in USD terms will be increasing. A cool feature is users can deposit QTO<>SOL Raydium LP shares into QLP so if QTO/SOL goes up so does the size of QLP. Doing this will allow depositors to: 1) Earn fees from QTO DEX volume trading fees on Raydium + 2) Earn QLP fees which are 30% of platform fees + fees from funding. If many people do this it can expand liquidity on the platform and allows Quanto to facilitate larger trades. This could be pretty bullish as it ramps up the size of QLP and diversifies its collateral base, it also provides ample liquidity to QTO increasing its money-ness and allowing people who want to use Quanto but don’t want to hold QTO an easier more liquid way to convert their PNL to USD. Some potential issues I see with this model: 1. Quanto offers perps on a large set of smaller cap coins, so people could try to manipulate them (think about the $JELLYJELLY situation on Hyperliquid). I would encourage the Quanto team (paging @yqboom ) to diversify away from this and lean more into the altcoin as collateral model. They can also limit risk here by imposing global OI limits on smaller coins. 2. The crazy amount of reflexivity in the flywheel cuts both ways. If QTO dumps or volume falls off then all the numbers shrink, and the flywheel has a negative reflexive loop. But the underlying functionality of allowing users to use any coin as collateral to trade majors is very strong and they should always have a floor number of users who demand this product since its unique to Quanto. Quanto has also recently implemented proof of reserves ensuring transparency into all of their holdings/users deposits to help with any solvency fears. The fact that PNL is denominated in QTO significantly reduces solvency risk vs having PNL in USD given its flexible price. I have used the exchange with no issues depositing / withdrawing decent size sums of various altcoins. Proof Of Reserves: At an 8M market cap this feels worth a punt and could be a 10-100x ($80M-$800M is only 0.64% - 6.4% of $HYPE’s circulating market cap, 0.174%-1.74% on an FDV basis). Looking at it a different way, They have generated 25M in QTO from fees since their launch on July 12th, 70% of that is burned which is 17.5M, that is 330K/day burned. Annualizing those numbers is 120M QTO burned per year which is 12% of the total supply (or 20% of the circulating supply) representing a 5x multiple on burn for circ and 8.3x on FDV. Either way you look at it given Quanto’s unique product suite it trades at a reasonable multiple and is offering a truly differentiated product in the perp market vs a ton of protocols which offer the same thing. Since liquidity in perps is so crucial why would anyone not use Hyperliquid unless there were unique features? I think allowing practically any altcoin as collateral is a true innovation and meaningful differentiator vs what exists on the market right now (albeit the model isn't significantly stress tested). If Quanto were to grow volumes and catch up to competitors, it would be a 19X to GMX’s market cap and a 58x to DyDx’s market cap from it’s current $8M FDV. Disclosure: I own $QTO and I am bullish on it but obviously very very risky and a low cap. Do your own research on how Quanto works and of course this is not financial advice I am just sharing my thinking.

If people are excited about the buybacks on $HYPE or $PUMP, they should have a look at the $QTO buybacks : The buyback wallet bought $800k of $QTO over the last 30 days (verifiable on-chain) ... on a $12M market cap coin And all of this is happening while the volume on @quanto is still quite small, which means it could easily go up multiples. I love this asymmetric setup, so I am obviously very long $QTO

Pump exhibiting gamma effects at ico price now as expected. Imagine being a liquid fund who bought at 4b, sold at 3b, and watching it run to 6b and having to explain this.

Is fartcoin an algorithmic stablecoin now?

Deposit $TROLL - @trololol_io as collateral and trade up to 200x leverage on any asset in crypto. Unlock your $TROLL with loans on perpetuals at https://t.co/pNta9NzjQu. https://t.co/3orf7wkAWj

primed, next leg for @quanto quantoL84tL1HvygKcz3TJtWRU6dFPW8imMzCa4qxGW https://t.co/sd9De0Cuaw

Fartcoin seems unaffected by all this

It is kinda Tale of Two Cities in crypto atm, half the ogs are summering in mykonos with btc 6% from ath and the other half are scrambling to setup DATs for coins I’ve never heard of