While performing the exercise of valuing MKR tokens ahead of the SKY launch, one of the key questions to ask is what value the token captures from the launch of all these projects. What impact should we consider on the MKR token for having financed and created these startups? Spark is currently ranked 12th in DeFi, with a TVL of 2.5 billion. We can consider it as a Lending project that primarily has a protocol that provides capital to lend to third parties. This means that its business is ess...

While performing the exercise of valuing MKR tokens ahead of the SKY launch, one of the key questions to ask is what value the token captures from the launch of all these projects. What impact should we consider on the MKR token for having financed and created these startups? Spark is currently ranked 12th in DeFi, with a TVL of 2.5 billion. We can consider it as a Lending project that primarily has a protocol that provides capital to lend to third parties. This means that its business is ess...

One of the most significant debates for the Ethereum community is token issuance. The token issuance policy hasn't had as structured a design as the technology strategy, and I believe this can be seen in this chart that shows its evolution up until 2022.Ethereum Issuance HistoryI think it's fair to acknowledge that despite all these changes, there has been one constant in the issuance policy: a gradual reduction, leading to a point where we've even seen negative inflation for a...

One of the most significant debates for the Ethereum community is token issuance. The token issuance policy hasn't had as structured a design as the technology strategy, and I believe this can be seen in this chart that shows its evolution up until 2022.Ethereum Issuance HistoryI think it's fair to acknowledge that despite all these changes, there has been one constant in the issuance policy: a gradual reduction, leading to a point where we've even seen negative inflation for a...

The derivatives market is often described as a zero-sum game. In a zero-sum game, the gain of one participant is exactly balanced by the loss of another. This means that the total amount of wealth in the system remains constant; it is merely redistributed among the participants. In the context of derivatives, such as options or futures, when one party profits from a trade, another party must incur a corresponding loss. For example, if a trader buys a futures contract betting that the price of...

The derivatives market is often described as a zero-sum game. In a zero-sum game, the gain of one participant is exactly balanced by the loss of another. This means that the total amount of wealth in the system remains constant; it is merely redistributed among the participants. In the context of derivatives, such as options or futures, when one party profits from a trade, another party must incur a corresponding loss. For example, if a trader buys a futures contract betting that the price of...

Lens has lost the traction it initially had, and the activity does not meet the expectations we all had for the project. This statement does not imply denying that it is currently the leading Crypto Social Networks initiative, a position it now shares with Farcaster. These networks have managed to consolidate a reasonable level of activity, unlike other initiatives such as Friend Tech, whose activity is practically marginal. I think it is important to start by acknowledging the impressive wor...

Lens has lost the traction it initially had, and the activity does not meet the expectations we all had for the project. This statement does not imply denying that it is currently the leading Crypto Social Networks initiative, a position it now shares with Farcaster. These networks have managed to consolidate a reasonable level of activity, unlike other initiatives such as Friend Tech, whose activity is practically marginal. I think it is important to start by acknowledging the impressive wor...

In this article, I aim to model the value creation that SPARK brings to MakerDAO (SKY). In the previous article, we defined the various models that traditional finance uses when a company incubates ventures that eventually separate from the parent company. The model followed by SKY is very innovative and does not have a direct analogy in the traditional world (or at least I personally don't know of a similar case). We have defined this model as a Corporate spin-off with no retained equit...

In this article, I aim to model the value creation that SPARK brings to MakerDAO (SKY). In the previous article, we defined the various models that traditional finance uses when a company incubates ventures that eventually separate from the parent company. The model followed by SKY is very innovative and does not have a direct analogy in the traditional world (or at least I personally don't know of a similar case). We have defined this model as a Corporate spin-off with no retained equit...

One of the ongoing challenges Ethereum has faced is how to bring Bitcoin onto its network in a decentralized manner. Due to the characteristics of the Bitcoin network, there isn’t a fully decentralized solution yet, although the new DeFi movement on the Bitcoin network might bring that possibility closer. These are technical solutions that Ethereum could eventually adopt, but they are still a long way off. Until now, WBTC has been the most widely used implementation of Bitcoin on Ethereum, th...

One of the ongoing challenges Ethereum has faced is how to bring Bitcoin onto its network in a decentralized manner. Due to the characteristics of the Bitcoin network, there isn’t a fully decentralized solution yet, although the new DeFi movement on the Bitcoin network might bring that possibility closer. These are technical solutions that Ethereum could eventually adopt, but they are still a long way off. Until now, WBTC has been the most widely used implementation of Bitcoin on Ethereum, th...

BigTech FlippeningOne of the main theses of the Hedge Fund that I advise is that the value creation in technology within the Crypto market will eventually surpass the value creation in traditional markets. This scenario seems highly probable to me due to the competitive advantages offered by these new capital markets, which have demonstrated their capacity to finance large ventures by redefining the traditional stages of business financing. The decision to focus investment on Crypto Assets mo...

BigTech FlippeningOne of the main theses of the Hedge Fund that I advise is that the value creation in technology within the Crypto market will eventually surpass the value creation in traditional markets. This scenario seems highly probable to me due to the competitive advantages offered by these new capital markets, which have demonstrated their capacity to finance large ventures by redefining the traditional stages of business financing. The decision to focus investment on Crypto Assets mo...

We will attempt to conduct an initial analysis of the 600 million Token issuance that SKY has planned to carry out annually to remunerate USDS (DAI) depositors. The Token Reward rate will be 600 million NewGovToken per year distributed to participating NewStable holders This involves using an initial 2.67% increase in the project's total token supply, which will be primarily employed as a marketing budget with the aim of generating demand for USDs deposited in the DSR module. Assuming th...

We will attempt to conduct an initial analysis of the 600 million Token issuance that SKY has planned to carry out annually to remunerate USDS (DAI) depositors. The Token Reward rate will be 600 million NewGovToken per year distributed to participating NewStable holders This involves using an initial 2.67% increase in the project's total token supply, which will be primarily employed as a marketing budget with the aim of generating demand for USDs deposited in the DSR module. Assuming th...

The first-mover advantage cannot always be fully capitalized. Various factors explain the challenges faced by the project that introduced the concept of DeFi and was, for a long time, the undisputed leader in this category. The protocol has not only been recognized as one of the most significant financial innovations in DeFi but also as a spearhead in the rise of DAOs.DAI Supply historyIn 2022, with 10 billion, everything pointed to exponential growth for the project, but that was its peak ca...

The first-mover advantage cannot always be fully capitalized. Various factors explain the challenges faced by the project that introduced the concept of DeFi and was, for a long time, the undisputed leader in this category. The protocol has not only been recognized as one of the most significant financial innovations in DeFi but also as a spearhead in the rise of DAOs.DAI Supply historyIn 2022, with 10 billion, everything pointed to exponential growth for the project, but that was its peak ca...

It's a really important topic when we try to evaluate an L1 because they are the main source of revenue to sustain the network. However, it's difficult to justify their valuations based on the current data we have, and other revenue sources like MEV or considering the main asset as a monetary asset are emerging, which significantly diminish their importance, making it almost marginal.L1 FeesEthereum reached $9 billion in revenue in 2021, while in 2024 it seems likely that it will st...

It's a really important topic when we try to evaluate an L1 because they are the main source of revenue to sustain the network. However, it's difficult to justify their valuations based on the current data we have, and other revenue sources like MEV or considering the main asset as a monetary asset are emerging, which significantly diminish their importance, making it almost marginal.L1 FeesEthereum reached $9 billion in revenue in 2021, while in 2024 it seems likely that it will st...