No doubt, money markets have seen explosive growth in revenues over the past year. We wanted to see what revenues looked like after you factored in costs (liquidity mining)
@compoundfinance has had liquidity mining for all of 2021. While for most of the year, it saw the highest revenues, it was also paying a lot in incentives.
Net revenue has been negative all of 2021
@AaveAave implemented LM recently in April. Initially, this resulted in negative net revenue, but the incentives created explosive growth for it on Polygon and it soon became positive
CREAM has yet to implement LM (although it maybe coming soon).
Despite this, net revenues are comparable with Aave
Note there was a drop off in May b/c of market crash which decreased the price of assets that revenue were collected in and also decreased the borrow/lending rates as yields across crypto dropped
Takeaway here is that liquidity mining can be quite expensive relative to revenues produced, but it can be used to varying degrees of efficiency
Compound having consistent net negative revenue is not necessarily a bad thing, although efficiency maybe able to be improved
It would undoubtedly be very profitable if incentives were turned off, but those incentives played a major role in getting it to become a multi B project
In VC speak, interest rate swaps are the largest component of the OTC derivs market in tradfi. Notional value of contracts is in the hundreds of trillions.
People need these markets to hedge their yields, borrow costs, and of course to express their views on future rates
We led the rounds in @pendle_fi and @StripsFinance who we believe will be some of the winners of this space
2/ NFTs like "Stay Free" sit at an intersection between Art and Historical Relics
From an Art POV, it's aesthetically impressive & meaningful having a shaded motif of Snowden's face set against court documents related to his whistleblowing
3/ With proceeds going to @FreedomofPress, the art piece was clearly meant to pay homage to both the Snowden saga and the resulting worldwide movement that resulted from his whistleblowing
3/ In terms of addressable market, Covalent serves every person, project and blockchain that needs data querying. Since January of this year, they’ve grown from 20 Million Monthly API calls to 142 Million API calls in March