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22 Jul, 13 tweets, 4 min read
1) My third thread aims to jot down some thoughts on the “conflicting” views that are often presented in crypto’s primary and secondary market. Quoting “A New Era of Financial Market Behavior” by @ashwathbk
2) There are so many misunderstanding elements for primary& secondary investment/trading. Newbies are often jealous about how primary market participants getting 100x ROI with many of them still at their book value which is a useless metrics to chase.
3) They often forget there is a significant opportunity cost component within the primary market opportunities. You might be locking your money for several years and slowly getting them back across the time horizon.
4) On a risk-adjusted basis, sometimes is just better off to hold market benchmark (i.e, #Bitcoin or #Ethereum) from an ROI point of view. It’s really hard to outperform the market. Survival bias is in full force.
5) Primary market participants often dislike degen culture in a way that the group of people doesn’t follow a set of rules. Yet, degen farmers are always one of the first to provide exit liquidity for the market and take significant risks to help projects bootstrap.
6) They often look at metrics such as fundamentals, market sizing, FDV, team capability, ecosystem bets, growth strategies, token vesting schedule, cap table, value add/synergies, branding needs, classifying deals into e.g. alpha/beta.
7) On the other hand, secondary market participants often look at metrics such as market narratives, circulating market cap combining with token unlocking schedule, fundamentals, etc.
8) Within the secondary market participants, degen farmers often leverage information asymmetric to YOLO in order to capture the market alpha as early as possible. #ApeStrongTogether 🦧
9) We operate on the ethos of if the market knows an opportunity very well, meaning this is the market beta, if no one knows about this, either we are early (market alpha) or we are wrong.
10) By aping into an opportunity early and trying to capture market alpha, degen farmers often absorb significant risks in the early stage in exchange for a higher return to compensate them. Sometimes FDV is a meme on the secondary market.
11) Holding views from both sides are extremely useful in crypto, as crypto is not your everyday TradFi market structure, if you are only thinking in TradFi term, you are #NGMI.
12) Clearly define the purpose and put a firewall in between the primary market and the secondary market brain often helps me to control risks and improving my investment/trading thesis. Some detailed metrics which I found useful.
13) Primary market (e.g. investment) in a way resembles a trade as well, you are trading off a portion of your AUM for future growth of the project that you betting on. So we kinda all degenerate but in a different way.

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More from @0xminion

26 Jul
Aside from @AxieInfinity @TheSandboxGame @decentraland @SorareHQ play to earn sector has grown significantly. A project thread on #Gamefi. If you have not yet joined the @YieldGuild discord, you are #NGMI. @YieldGuild is the community for you to play, earn, and meet in #Gamefi.
First and foremost, congrats to the @AxieInfinity achievement which started the play to earn trend. @AxieInfinity is a digital pet universe on the blockchain.
medium.com/axie-infinity/…
@PlayEmberSword is a new metaverse that combines the evolution of MMORPG gaming, DeFi yielding and NFT ownership.
medium.com/dialectic-ch/e…
Read 21 tweets
15 Jul
1) My second thread aims to try to cover some of the “conflicting” views between the crypto native and TradFi. Recently, I’ve seen a wave of #TradFi people joining crypto to start a project. As a #crypto native, here are some thoughts.
2) Firstly, welcome to #crypto and joining the wild east. You will see so many things that can be improved or leveraging the knowledge of TradFi to innovate in this young and vibrant industry.
3) Being a #crypto native meaning I’m forming my view about my life, financial market, and many other things mostly from crypto, although I have a finance background, I started to work in the crypto industry immediately after I graduated from university.
Read 15 tweets
29 Jun
1) “The fear of the unknown is possibly the most fundamental fear of human beings.” A piece on the rise of on-chain tokenized risk protocols.
@pendle_fi @element_fi @APWineFinance @SwivelFinance @Barn_Bridge @saffronfinance_ @88mphapp @NotionalFinance @Horizon_Fi @yield
2) #DeFi has experienced tremendous growth over the past year. With a total value locked of more than $100 Billion at its peak across all chains, growing from just over $ 1 Billion TVL roughly a year ago.
3) As the industry continues innovating and building momentum, #DeFi protocols are becoming increasingly sophisticated with their design and mechanisms. Hoping to bring structured products like risk hedging products, financial derivatives to the decentralized financial sector.
Read 21 tweets
29 Jun
1) On AMM vs Orde book for tokenized risk protocols. During this “bear” trend, we are seeing several tokenized risk protocols such as @pendle_fi @element_fi @APWineFinance @SwivelFinance popping up in the market.
2) I believe these tokenized risk protocols could form the basis of the interest/yield rate market for #DeFi, and potentially create a #LIBOR market for DeFi.
3) There were a few proposals in the early DeFi days, such as DIPOR (LIBOR for Open Finance) @TheBlock__ and CIRI (Crypto Interest Rate Index) @MessariCrypto. However, there weren’t enough DeFi infrastructure protocols to facilitate the creation of the #DeFi benchmark rate.
Read 24 tweets
20 Jun
1) @solana's lightning-fast environment makes on-chain derivatives/options protocol interesting. A thread on the Solana on-chain derivatives protocol.
2)@SoteriaCurrency is a P2P perpetual swap protocol uses @PythNetwork oracle to access index prices and SPL standard for long/short positions. It leverages pool-based AMM for better liquidity and market accessibility, liquidation is handled through 3rd party liquidators.
3) @ZetaMarkets and @MoetFi is an under-collateralized options trading protocol on @solana. It uses a hybrid CLOB and vAMM model that allows for efficient pricing and deep liquidity, achieving under-collateralization.
Read 7 tweets
19 Jun
1) The weekend vibe, going through the @solana Season Hackathon projects. #DeFi on Solana is still in its infancy with a lack of key infrastructures. This presents unique opportunities for the market to fill these gaps. A thread on the lending/Money Market protocols on Solana.
2) @solendprotocol is an algorithmic, decentralized protocol for lending and borrowing on @solana, featuring leverage long/short, interest-bearing collateral tokens (cTokens), AMM LP positions as collateral, isolated lending, and credit market on Solana. Image
3) Earn and borrow against any SPL tokens, borrow against any AMM LP position, leverage long/short any SPL token. Image
Read 15 tweets

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