Thread by @MapleLeafCap

1- I may have spoken about this before, but I think it’s rather likely existing #DeFi protocols would vertically and horizontally expand into financial conglomerates. What’s 1 module of financial primitives would expand to a full suite of services

2- …for the main reason being (a) you spent the CAC for customer & TVL, might as well monetize, (b) devs need new things to put minds on + take on more cool projects, (c) token-holders demand more, and (d) meaningful synergy across primitives.

3 – for #DeFi on ETH. The barrier of entry is starting to form – there’s L2 to think about, there’s “should I be on DOT / have my own chain”, but there’s also “is my team stacked enough to compete against XYZ while XYZ broadens the scope.”

4 – In that sense, the catch-up trade on $SUSHI towards $UNI is cool (growth in TVL + volume, multiple rerating), but what’s way cooler is new non-AMM initiatives that diversify fee-streams to xSushi beyond just the 5 bps from AMM.

5 – For a lesser team, diversification could mean being eclipsed by more focused niche solutions. But judging the bench @ $SUSHI they might just pull it off. At maturity I’m imagine derivs fee, loan spreads, tranching fees, etc all feeding into xSushi stakers.

6 - …the current framework of TVL * volume * take-rate would need to be expanded dramatically to account for the soon “Sushi FinCo” vs. just “Sushi AMM”, this will be a massive rerating, and quite frankly that’s the future all these finance primitives are sprinting towards.

7 – The first to realize such vision (hopefully with L2 and solid execution) while linking well with CeFi & direct B2C apps + other L0/L1s will have a real shot at top 10 or even top 5 in 2021. To do so I think you’d have to be a bazaar + open-sourced with well-comped chad coders

8 - …alongside strong community guidance on continuous PMF iteration, rapid forking of what works, relentless biz-dev into all hook-points, and degenerate meme-ing to achieve best valuation (and thereby best compensation for most talented devs).

@mcuban you may find this thread about $SUSHI amusing.