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At Dragon Stake, we have conducted an analysis of the research done by Nethermind for the protocol, regarding the recommendations that should be followed. These are our initial conclusions. https://drive.google.com/file/d/1PqmyyNKA_ISl-pTrmQT5qArkR_Iqi1lz/view 1 Recommendations: Protocol Revenue Distribution First of all, it is important to clarify a financial concept regarding Staking costs, which in our opinion does not truly reflect the nature of this financial flow. We explain this in det...

We invite you to delegate to our validator if you find these analyses interesting. https://www.mintscan.io/dydx/validators/dydxvaloper1he9yn4jhuq50vtf95ncv9rvplnqug8w9yw8dwc *Derivatives are a zero-sum game*It is important to analyze the capital flows that the governance proposals ultimately generate, in order to assess the value created for the protocol. The protocol's profitability should come from charging fees on all trading activity and creating the necessary conditions to become th...

What are the reasons why the market assigns such a low price to the Maker token (MKR/SKY)? At this moment, the project has a market capitalization of around 1.2 billion, while if we annualize the company’s expenses based on the September expenditure, the company would be spending close to 300 million per year. These expenses are largely covered by tokens that are sold on the market. The new token issuance increases the supply by 3% annually, which will be used for marketing purposes and will ...

Eigen LayerLow Float, High FDV (Fully Diluted Valuation) and its impact on price formation:Low FloatA low float refers to a situation where only a small portion of a cryptocurrency’s total supply is in circulation or available for trading. This small "float" of available tokens can lead to significant price volatility due to the limited supply. Prices can increase quickly with relatively small amounts of demand since there aren't many tokens available to buy or sell in the open market.Hi...

What is the role of investors in Crypto? Before starting a valuation of the SKY token, I think it’s necessary to reflect on the role investors play in the Crypto ecosystem. The reality of the financial markets is that the ownership of the world’s leading companies is highly concentrated. The value creation in these companies is often distributed very unequally. Typically, the great fortunes we see in the world are often associated with the founders of large companies who have capitalized on m...

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...

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...

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...

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...

The main value proposition of a Public Blockchain is its blockspace, a resource whose price is determined by market supply and demand. This demand experiences occasional spikes that we can observe at certain times on the network, and an average price that used to fluctuate within ranges that gradually shifted depending on the market conditions. The significant demand for Ethereum's space has allowed this protocol to lead the revenue of the entire crypto ecosystem, generating over $10 bil...