Jason Choi Profile picture
Jan 18, 2021 โ€ข 10 tweets โ€ข 3 min read โ€ข Read on X
As DeFi matures, quantifiable metrics will supplant vaporware memes in determining valuations for cryptoassets.

A brief look at some of the major protocols today ๐Ÿ‘‡
1/ While liquidity is highly mercenary and hence TVL is a poor benchmark for protocol value, it is a serviceable benchmark.

More sophisticated approaches will likely use trailing 6m average TVL to factor in retention.

Here are the DeFi aggregators: Image
2/ One note here is that there's option value with auxiliary products not reflected here - e.g. $ALPHA has an upcoming perpetual swaps product which may warrant another way of ascertaining a multiple.

Such as the one below...
3/ For decentralized exchanges, the meaningful KPI is volume.

A more sophisticated way to do this would be to use say 3m revenues, or fees captured by token.

The following is just a 24h snapshot. Image
3/ Few observations:

- Among DeFi peers, $SUSHI seems to be grossly undervaluing its volumes on a fully diluted basis

- People have high expectations for Synthetix's Optimism implementation (can't wait!)

- For tokens with long dilution schemes this metric is less useful
4/ For lending protocols, borrow volumes is the meaningful KPI as that is where fees are extracted.

Following is in line with my expectations that people are pricing $AAVE as the higher growth counterpart to $COMP. Image
5/ Just like tradfi multiples, a lower multiple does not necessarily mean the token is better value, and a higher multiple does not imply the token is overvalued.

I'd rather pay 2x the price for a team that ships 10x as a fast than pay a discount for a product with no PMF.
6/ One day we'll get to a point where @DuneAnalytics is this industry's 10-K but until then narratives probably matter more than fundamentals in a bull market.

But narratives can go as quickly as they come...
fin/ Disclaimer: not financial advice; writer is long multiple assets in the post above

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More from @mrjasonchoi

Jul 18
How to Get Rich in Crypto (Without Getting Lucky) - Part II
3 years ago, I wrote a thread about how people got rich in crypto based on 100s of convos with founders + investors on @theBlockcrunch.

This thread is a follow up providing principles for speculators + builders, based on my new learnings as an investor.

There are two ways to compound wealth: hold assets that appreciate over time, or swap them for ones that appreciate faster.

Statistically, <1% of people who try the latter succeed over time.
Read 38 tweets
Jul 19, 2023
Few thoughts on $MNT and why I'm long

TLDR ๐Ÿงต
1/ Yesterday, @BitDAO_Official successfully migrated its token to @0xMantle, a new Layer 2.

Mid-curvers saw this as a "sell the news" event but objectively the migration represented a significant event that is now derisked. Image
2/ I've stood by my view that tech is necessary but not sufficient; distribution is king.

Despite the rebranding of $BIT to $MNT, @0xMantle is effectively @Bybit_Official's attempt at creating their BSC, but one that is more in line with Ethereum's L2-vision.
Read 7 tweets
Jul 15, 2023
After my interview with @ArkhamIntel released today on @theblockcrunch, I dug into some of the claims made on the show.

Here's a short follow-up thread to address one of the comments made.

1/ On the episode, I asked @RealMiguelMorel why it took so long for @ArkhamIntel to rectify the issues regarding user's emails being publicized. Specifically, I brought up @NFTherder's claim about being able to tie emails to wallet addresses.

2/ Miguel cites that the claim has "never been verified", that images may be doctored and that "it is impossible to do so", "on Arkham and elsewhere on the Internet".

Given the responses I've gotten for this statement, I decided to fact check this.

Read 10 tweets
May 5, 2023
After months of work...

Finally dropping our 30-page report on $FIL on @theBlockcrunch, commissioned by @protocollabs!

This is the one read you need to be completely caught up with @Filecoin's past traction and future plans.

A few highlights: Image
1/ Over the past 2 years, @Filecoin has quietly exploded in growth since the launch of its FIL+ campaign

Year over year, this represents a 1800% growth in usage - in a time when most charts in crypto went the opposite way.

bit.ly/3LYteO5 Image
2/ Filecoin's dominance against other "storage networks" is almost comical.

No single Web 3 storage network provides *remotely* as much capacity as Filecoin has in the 2.5 years since its launch.

bit.ly/3LYteO5 Image
Read 7 tweets
Apr 21, 2023
DVTs is one of the most overlooked narratives for $ETH.

One of the leading projects just raised $12.5M from VCs.

Only one token is tradable today (see below) ๐Ÿ‘‡ Image
1/ Now that the Merge + Shapella are completed, Ethereum's vision as a PoS network is realized.

To recap, there's 4 main ways holders can stake their $ETH today: Image
2/ Currently, Staking-as-a-Service, Pooled Staking and CEX's control majority of stake.

While some of these services are more decentralized than others (e.g. @Rocket_Pool vs. @LidoFinance ), client diversity remains a concern. Image
Read 9 tweets

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