What's going on in web3 this week? Oh, you know, not much...one of the biggest crypto-focused venture firms essentially just went insolvent, but aside from that, it's just another typical Monday.

This week, we cover:

• Three Arrows Capital and the pitfalls of trading with leverage

• Creators of USDC announce launch of Eurocoin

• Anna Delvey launches a new NFT collection

• Something big is coming to your inbox from Layer3....

Sarah at Layer3

Your Web3 Briefing 📝

A roundup of the biggest Web3 headlines over the last week

Three Arrows Capital (3AC) positions liquidated by FTX, BitMEX, & Deribit

Three Arrows Capital (3AC) is facing a liquidity crisis. In the wake of plummeting BTC and ETH prices, 3AC failed to meet several margin calls by lenders, and had its positions liquidated by FTX, BitMEX, and Deribit just last week. Ouch!

Founded in 2012 by former classmates Zhu Su and Kyle Davies, 3AC quickly grew to become one of the biggest venture firms in crypto, with star-studded investments such as Avalanche, NEAR, AAVE, Terra/Luna, and Axie Infinity.

With an estimated assets under management (AUM) between $10-$18bn - and not to mention Zhu's Twitter following of over 550k - 3AC was one also one of the most influential firms in the space. They could afford to do things you and I couldn't...like buy $559.6m worth of locked LUNA before the collapse of Terra last month, which is now subsequently worth ~$670!

The ability of 3AC to trade with leverage* was also the source of their downfall. As crypto prices continued to dip, it's likely that 1) 3AC couldn't make back the cost of what they borrowed, and 2) were unable to pay back their lenders.

Their solution? Ghost everyone. Not looking so hot 🥶

*P.S. Want to get the lowdown on leverage trading? Scroll all the way to the bottom, where we go over some of the basics in our Web3 101 section.

The company behind $USDC launches Euro Coin

Circle, the creator of USD Coin (USDC), is planning to launch Euro Coin (EUROC).

According to the official announcement, EUROC is 100% backed by euros held in euro-denominated banking accounts, so that it’s always redeemable 1:1 for euros.

It's officially launching on June 30th on Ethereum mainnet, with support from exchanges like Binance, FTX, and Huobi Global, as well as protocols like Compound, Curve, and Uniswap.

EUROC is also being issued under a regulated framework for money transmission, under the same statutes that regulate USDC. Institutional customers with a Circle Account can begin accessing EUROC on June 30, while developers could begin integrating with the EUROC smart contract starting from June 16.

What else you should know

• Bitcoin falls below $18,000, Ethereum to under $900 over the weekend

• Solend Labs seizes control of a "whale wallet" on their protocol that's at risk of liquidation

• Arbitrum announces the start of Arbitrum Odyssey, set to begin on June 21st

• Anna Delvey of "Inventing Anna" launches NFT collection

What we've been BUIDLing 🏗️

Keep an eye out in your inbox. we're launching a new feature soon, and we think it's something that you'll love!

Hint: it'll look a little something like this.

🛣️ Stay up to speed on what we're building: Take a look at our roadmap to see what we've been cooking at Layer3, and a preview of what’s to come.

🚢 And if you want to help decide what we ship next: You can submit a feature request here and vote on your favorites! Some top community requests have already made it onto our roadmap.

Community Spotlight 🔍

A weekly spotlight on some of our favorite DAOs, communities, and L3 community contributors

Featured Community: Syndicate

Write a blog post for Mirror

🤓 What: Write a 1,000-word blog post for Syndicate that they can publish on Mirror

📝 Instructions: Dig out your writer toolkit and analyze the differences between investing in tokens, NFTs, & traditional equity for this Syndicate blog post. Remember to include how this applies to investment clubs!

Web3 101: Leveraged trading💡

Each week we’ll cover an essential web3 concept in simple terms. This week we’re looking at leveraged trading ✨

What is leveraged trading?

Leveraged trading isn't a crypto-exclusive concept, but it's been used by crypto traders for years to make the most out of an investment. Leverage refers to using borrowed capital to trade cryptocurrencies or other financial assets.

How does leveraged trading work?

The amount of leverage is described as a ratio or multiple, which refers to how many times your initial capital will be multiplied. Say you only have $100 in your account but you want to open a position worth $1,000 in ETH. With 10x leverage, your initial $100 will multiply by 10, allowing you to have the same buying power as $1000.

Traders use leverage to increase their position size and potential profits, as it allows traders to buy or sell assets based on what they borrow, and not just their holdings. However, because crypto is volatile, your collateral could get completely liquidated due to price fluctuations. When traders can't meet their margin calls, it means that they cannot add more funds to increase their collateral against a leveraged position.

How do I start trading with leverage?

There are a variety of ways to trade with leverage. Most centralized exchanges, including Binance, FTX, and Kraken offer a variety of leveraged trading products, including leveraged tokens and margin trading. Certain DeFi protocols also offer leveraged trading.

Cryptocurrencies are inherently volatile assets, and leveraged trading has a particularly high risk of liquidation. We recommend you do your research into each protocol and platform before proceeding. This section is not sponsored and does not contain financial advice.

Cryptocurrencies are inherently volatile assets, and leveraged trading has a particularly high risk of liquidation. We recommend you do your research into each protocol and platform before proceeding. This section is not sponsored and does not contain financial advice.

Want to get your hands on a Layer3 NFT, mug or even a much coveted hoodie?

PS👇

Join our Discord or follow our Twitter to stay up-to-date on the latest DAOs and contests.

That's all for today!