Thread by @Crypt0_Andrew

Okay, okay dear degens, here is a new and interesting protocol built on @arbitrum, a mixture of @StargateFinance and @UmamiFinance 👀

Sounds interesting? It is! Today we will dive into @MugenFinance $MGN 🧵 🔽

1/x What is @MugenFinance ?

Think about @UmamiFinance built on top of @StargateFinance but without hedging component (so far) 🤔

TLDR: you deposit whitelisted tokens, get $MGN, stake it and receive $WETH (vested) as a reward from strategies utilized on different chains 💵

2/x Right now they only use $GLP strategy on 🤨@arbitrum, basically, they DCA into it

I know that it does not sound too exciting, but they are going to release new strategies on Ethereum Mainnet, Optimism and Polygon. All rewards from all these chains will go to stakers 🫰

3/x @MugenFinance takes 10% as a performance fee, else 90% goes to $MGN stakers 👏

Besides it, users will be able to mate cross-chain swaps on the platform, but personally don't think it will be a big deal 🧐

Psss, there is no website yet, so it is in its infancy 🤫

4/x Main @StargateFinance utility is to use treasury assets in different strategies on different chains. It will allow @MugenFinance to find and execute the most profitable strategies and be very flexible 💪

Team is anon, there are no VCs, no backers (which is 2 edge sword) 🤔

5/x Tokenomics 🪙

$MGN:
✅All Tokens that come into existence will be distributed to depositors
✅The team is unable to mint new tokens
✅The more $MGN is minted, the higher the price of minting
✅Arbitrage opportunities will allow to align market price with minting price 🚀

6/x ELI5: the more $MGN is minted▶️more assets are deposited to the protocol ▶️ treasury becomes bigger ▶️ deployment of more strategies ▶️ more income ▶️more demand for $MGN ▶️more minting▶️$MGN price goes up🔄 #flywheel

7/x PA/volume/liquidity 📊

MC = FDV = 2.6M. Liquidity is >500K on Uniswap (good), volume is >100K, decreasing (poor)

Given that floor price was around $12-13 (docs), now these ppl are sitting on 9x. However, main shilling started at $60-70 range, so they are less than 2x 🙌

8/x Social presence 🗣️

CT - 1.3K, TG - 800, Discord - 500+. Have some good mutual followers. Was heavily shilled by 10k+ CT accounts, but the amount of shilling has significantly decreased recently 📉

But many of its followers have not mentioned it yet 🤔

9/x Upcoming catalysts 💥

☑️New chains (ETH, OP, MATIC)
☑️New strategies (@mycelium_xyz strategy)
☑️Website launch (lol) + xMGN launch
☑️Arbi szn
☑️#realyield
☑️xMGN as collateral on @RDNTCapital

10/x Competitors and possible r/r

First protocol I thought about was UMAMI, but without hedging. $UMAMI had 20M+ MC, so here we can see 7-9x if the market favors and they deliver new strategies 🤓

11/x Let’s try to sum up all aforementioned
Pros 👍

✅Hits all hot narratives
✅Interesting tokenomics
✅Strong catalysts ahead
✅Small cap

12/x Cons 👎

✔️Only one strategy so far
✔️Decreasing volume
✔️Recent significant reduction of the CT traction

13/x Conclusion

@MugenFinance $MGN is still in its infancy, but might become a very interesting protocol of #realyield and play if they deliver what they promise. Small cap with huge upside potential. If we see a true Arbi szn, might go crazy. Thus, worth keep an eye on it👀

Hope this thread was useful for you! Thank you for reading 🙏



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@Crypt0_Andrew

Acknowledgements for incspiration 👏

@DAdvisoor
@hc_trades
@cryptodetweiler
@500altcoins
@Crypto_Penn
@BarryFried1
@blocmatesdotcom
@wassiecapital
@fawoz_
@dotdotdotd1
@CryptoMatt87
@0xMaki
@PaikCapital
@BlocksNThoughts
@AstrologyCrypto
@ethersole
@0x_d24