What's Up With DeFi Derivatives DEXs
Leverage in financial markets will always have demand, whether equity based assets, commodities, or token based assets. This is a historical trend that has not buckled. Providers of leverage (i.e. exchanges) benefit from this constant stream of demand. While centralized exchanges are the main providers of leverage within crypto markets, over the last couple of years, onchain alternatives like dYdX, GMX, Synthetix, Perpetual Protocol have set out to compete with centralized exchanges, and have...
What's Up With DeFi Derivatives DEXs
Leverage in financial markets will always have demand, whether equity based assets, commodities, or token based assets. This is a historical trend that has not buckled. Providers of leverage (i.e. exchanges) benefit from this constant stream of demand. While centralized exchanges are the main providers of leverage within crypto markets, over the last couple of years, onchain alternatives like dYdX, GMX, Synthetix, Perpetual Protocol have set out to compete with centralized exchanges, and have...
A High Level Overview on L2's
The Layer-2 Investment Thesis: Optimistic Rollups Rule the Medium TermSetting the Stage: 2021 and 2022In 2021, the development of a robust application layer on top of Ethereum was well underway, with DeFi at its centre. NFTs sparked mainstream attention and adoption of Ethereum soared. Infrastructure projects that were designed to serve as foundational pillars for future applications also began to take shape. Projects including Covalent, Akash, IPFS, Livepeer, The Graph, Arweave, have made it...
A High Level Overview on L2's
The Layer-2 Investment Thesis: Optimistic Rollups Rule the Medium TermSetting the Stage: 2021 and 2022In 2021, the development of a robust application layer on top of Ethereum was well underway, with DeFi at its centre. NFTs sparked mainstream attention and adoption of Ethereum soared. Infrastructure projects that were designed to serve as foundational pillars for future applications also began to take shape. Projects including Covalent, Akash, IPFS, Livepeer, The Graph, Arweave, have made it...
The Ethereum Merge: You Decide If The Economics Matter
The Ethereum merge is the transition of the Ethereum blockchain from a PoW based network, to a PoS based network. This is a major, one-time event for Ethereum as a protocol often likened to a triple halving event. In this report, we will explore what these effects look like, and how we should look to position ourselves for The Ethereum Merge.Major Changes Post Merge 1. No more Miners: Block producers in a PoS model are validators that stake at least 32 ETH. They are rewarded with staking yiel...
The Ethereum Merge: You Decide If The Economics Matter
The Ethereum merge is the transition of the Ethereum blockchain from a PoW based network, to a PoS based network. This is a major, one-time event for Ethereum as a protocol often likened to a triple halving event. In this report, we will explore what these effects look like, and how we should look to position ourselves for The Ethereum Merge.Major Changes Post Merge 1. No more Miners: Block producers in a PoS model are validators that stake at least 32 ETH. They are rewarded with staking yiel...
Valuing AAVE
AAVE — Valuation (Based on AAVE V2 Data operating on EthL1) Since it is actually possible to carry out some sort of fundamental analysis for tokens, considering these protocols are actually generating revenues that can be tracked on chain, I thought I’d try valuing AAVE using a Discounted Cash Flow valuation methodology, using projected cashflows from all of AAVE’s revenue streams for the next 5 years (spread, flash loans, loan origin fee) to calculate NPV using total supply. Assumptions: · T...
Valuing AAVE
AAVE — Valuation (Based on AAVE V2 Data operating on EthL1) Since it is actually possible to carry out some sort of fundamental analysis for tokens, considering these protocols are actually generating revenues that can be tracked on chain, I thought I’d try valuing AAVE using a Discounted Cash Flow valuation methodology, using projected cashflows from all of AAVE’s revenue streams for the next 5 years (spread, flash loans, loan origin fee) to calculate NPV using total supply. Assumptions: · T...
AAVE — Better Than Your Local Bank
IntroductionWhile learning about how blockchain ecosystems can be the building blocks of transparent, easy to use, permissionless, efficient businesses — one of the platforms that had an instant impact on me, and one that I would encourage anyone to explore in order to get a feeler of what blockchain technology can really do, is AAVE. Before we dive in to what AAVE exactly is and how it functions– there are a few core concepts that we should get out of the way. Ethereum While many of us may h...
AAVE — Better Than Your Local Bank
IntroductionWhile learning about how blockchain ecosystems can be the building blocks of transparent, easy to use, permissionless, efficient businesses — one of the platforms that had an instant impact on me, and one that I would encourage anyone to explore in order to get a feeler of what blockchain technology can really do, is AAVE. Before we dive in to what AAVE exactly is and how it functions– there are a few core concepts that we should get out of the way. Ethereum While many of us may h...
