Thread by @haringsresearch

1/14 Since many people have forgotten about @DMMDAO, quick reminder and my thoughts/reason I'm bullish on it:
DeFi right now is still only focused on crypto-native assets. We have lending/borrowing, liquididity providing and margin trading only mainly of crypto-assets.

2/14 hile a handful of these Defi projects are innovative/have substance, a lot of them are quite simple copies of the same concept and we are still limiting the space by not opening up to traditional finance, it's liquidity and assets. A handful of DeFi projects simply only have

3/14 value because of an euphoria rush created by the leading DeFi's, but have severly inflated marketcaps due to governance tokens on promised and projected potential revenue streams. A slight pullback of that demand brings APY's and marketcaps back down rather quickly

4/14 While a good amount of the *total value locked* in defi is "real", most of it is stacked and inflated by cross-farming setups aka tokens wrapped and stacked from protocol to other protocols. The number of real, liquid capital of this TVL metric is way further down than 8bn

5/14 #DMMDAO is a project focusing on bringing "real" traditional liquidity and assets accessible to #DeFi. It's an ambitious goal but since #Chainlink went to mainnet and #PSD2 becoming a thing, a transparent and decentralized way of doing so can become reality rather quickly

6/14 They have been working on bringing car equity loans into a DAO-managed protocol onchain, making it possible for crypto investors to tap into this high-yield business basically with a simple click. Car equity loans bring an APY of 10-15%.

7/14 This is a real, tangible and stable revenue from one of the most liquid asset classes. While it can't keep up with the absurd high and unstable APY from recent yield farming campaigns, one has to consider the risk-level here in comparison. The high APY in yield farming

8/14 has been starting to become a thing just a few weeks ago. The profits are highly unstable and risky, because of the nature of the stacked-setups to gain these yields. People have to use and trust a handful of different, cutting edge experimental protocols, half of them made

9/14 by unknown and anon newcomer devs. A single flaw in one of the tokens used within or a single flaw within the design of these protocols can result in a total loss of funds. Yield farming rewards are simply put, yield for the highest risk averse people in the space

10/14 Revenue in money markets on the other hand is a few magnitues lower risk. #DMM #DMG introduced a model for tokenizing assets from the traditional money market while keeping the nature of crypto, trustlessness/transparency/composability/permissionless on a high level

11/14 User can already today, deposit stablecoins or ETH into DMMs dApp and receive 6.25% returns that are stable and safe from stacking-risks, most smart contract exploits and anon-devs-exitscams. It may not be your usual 100% APY from yield farming, but it's surely something

12/14 that can make you sleep comfy at night and where you can be sure about the rate not dropping down to 1% within a week. It's nothing where a simple copy could take over 60% of the TVL within 24h.. nothing where a faulty audit results in 100% loss. I'm looking forward

13/14 to the DMM team bringing their project to the next level. A few next steps they've talked about include:

- Monitoring payments/revenue flow form equity loans to a bank account via Chainlink + PSD2
- Introduce a "Coinbase" for their yield protocol where you can deposit&earn

14/14 without touching or understanding any crypto. As simple as paying online with a credit card with a Coinbase-like UI
- Adding more asset types to their DMM pool

I'm bullish on #DMMDAO and $DMG longterm. Currently my biggest alt position next to LINK. Bought ICO and this dip