(0) Now that we have AMM, lend/borrow, derivative platforms, and potential L2 scaling solutions emerging, I think it’s about time where we start seeing active / passive management products emerge, where users can benefit from someone else’s alpha without losing custody.
(1) A pooled capital base funded by users, like an asset manager , hedge fund, should be able to make trades using simply the AMM / derivative infrastructure, issue bonds with promised rates backed by asset, and have its equity/NAV floated in AMM.
(2) …whereby the construct dictates that the manager of such a pool cannot siphon capital out, and can only play within the confines of instruments approved by capital providers; or if it’s a very trusted allocator, almost free rein to participate in any tokens native in defi.
(3) Part of fees collected (carry & performance) can be used to further build up the platform, liquidity mining can be introduced to bootstrap initial adoption, and real alpha generators (funds or individual) can gain significant leverage with other people’s money.
(4) …and key opinion leaders can form cadres to really juice their own returns, while masses get to benefit despite the potentially high carry. Such structure can be more expansive in things like backing poker players or video game pros down the road.
(5) There are some really cool attempts already by the likes of @SetProtocol (no token) and @melonprotocol (20 mm USD seems quite cheap). The limitation seems to be always range of tokens available and lack of 2-sided network effect…
(6) …whereby integrating products out-there is a full-time job (similar to any CeFi listings), and so is bootstrapping / building PMF that people actually want. I personally view this space highly interesting and expect some heightened experimentation in 2H20.
(7) …the winner here would a hybrid of Millennium / Citadel, SS&C, and Bloomberg / CIQ. A multi-sided network that provides info, marketing, access, scale, and infrastructure for capital managers, while friction-less, low-cost, and highly alpha-generative of users.
(8) I would say the likes of research / analytics (@Delphi_Digital , @skewdotcom , @tokenterminal , etc) as well as derivative (@synthetix_io , @dydxprotocol , etc) are well-suited to explore. Such effort also requires deep integration with likes of @AaveAave, @BalancerLabs, etc
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