Classic down market strategy is OTC desks selling structured product deals to project treasuries with questionable terms

Happened last cycle, gonna happen again this cycle
For project teams, unless you're doing massive layoffs, burn rates will remain the same through bear as it was in the bull, but you can't take the easy route of raising more $ at higher and higher vals

Generating yield through selling options seems like an answer, but is it?
Last market cycle, there were even funds that spun up their own structured products to sell to others. Selling vol was the original yield farming

There's alpha in understanding these secular shifts in market structure, but those that trade vol already know this

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More from @Rewkang

16 Jul
1/ Our team @MechanismCap recently did some research on the growth of @CreamdotFinance in 2021

We share our findings in this thread
2/ We’ll cover:

- Cross-chain coverage (Arbitrum, Fantom, BSC)
- New developments (Iron Bank, Staking Services, Security Features, Community)
- Protocol growth (TVL, PS/PE ratios)
3/ On cross-chain coverage, CREAM’s money market on BSC saw rapid growth earlier this year.

The protocol also went live on Fantom in March and recently announced plans to launch on Arbitrum mainnet…
Read 15 tweets
16 Jul
Impact of liquidity mining on protocol revenue
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
Read 9 tweets
2 Jul
imo the next big extension of the DeFi and crypto casino is going to be in interest rate speculation

Leveraged interest rate trading going to give the adrenaline addicts the thrill they want if prices and vol drag lower
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
Read 4 tweets
14 Jun
1/ Someone recently asked why the @Snowden NFT could have sold for as much as it did ($5.4M)

Here's why NFTs will have a huge role in cultural memorabilia and why such NFTs are valuable…
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
Read 10 tweets
8 Jun
Developing a cross chain AMM protocol like @THORChain requires world-class expertise in:

- Cryptography/MPC (Multiparty Computation)
- Cryptoeconomics
- Mathematical Finance
- Distributed Computing Architecture
- etc
Many teams have tried to build a decentralized crosschain DEX and failed because it requires a one of a kind combination of skill sets

Launching a Dapp is much different from building a secure cross chain liquidity protocol with its own validator set. The latter is 10x harder
Thorchain ecosystem and community also cannot be forked

Read 4 tweets
18 May
1/ DeFi Summer Round 2 - The Game Plan
2/ So you remember the craziness of the first DeFi Summer (or maybe you're new)

How will DeFi Summer Round 2 be different? More Chains. More Incentives. More participants.
3/ How will it start? It's actually already just started - kicked off by our good friends at @0xPolygon

Read 10 tweets

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