Thread by @0xJim

1/ It's finally dawning on me that NFTs unlock the next level of degeneracy. One that is:
✅community-driven
✅internet-native in its social sharing/virality
✅has individual utility baked in

And the next wave of innovation will be to feed this degeneracy

Ser, this is a casino

2/ Community-driven

Everything comes down to in-group signaling - it's baked into our evolutionary need to belong to a tribe in order to survive

NFTs (esp pfp projects) show that you have shared ownership in a community of peers

https://twitter.com/mewn21/status/1424566939641421827?s=21

3/ Imagine if, during the GameStop wsb craze, there was a way for you to signal demonstrable proof that you invested in $GME

That you could wear it as a badge when you went online and everyone else who invested would instantly know that you were "one of us"

That's NFTs

4/ Social sharing

It's not that cool to show a screenshot of your Robinhood account, nor is it cool to share a txn hash of your Dogecoin purchase

But going on OpenSea (and eventually other more social-centric experiences) and seeing a wallet is pretty damn fun

5/ Individual utility

Jpegs are FUN to look at - way more than a token or stonk

Imagine buying $DOGE and actually having a cute, unique-to-you Doge in your wallet. You'd feel more inclined to hodl or at least buy more

https://twitter.com/wongisrite/status/1424534217958957061?s=20

6/ It also says something about identity/sentimentality - you grow emotionally fond of your jpegs and that leads to higher conviction

https://twitter.com/Cryptopathic/status/1424479933062160384?s=20

7/ So why am I making so many analogies to wsb, doge and shib?

Bc imo NFTs basically multiply degen aping 100x due to the 3 factors I just listed

And I think the next wave of innovation for NFTs will be to enable this degeneracy as much as possible

https://twitter.com/guccitr0ll/status/1424577318245253121?s=20

8/ While DeFi is copying TradFi, NFTs can copy DeFi and bring over all the crazy af innovations

Lending/earning yield: let's make money on our NFTs
@BunchyProtocol
@MetafiProtocol
@nftfi
@renftlabs

https://twitter.com/markusjayvc/status/1421296350163980289?s=20

9/ How about a mf'ing pool2 fund?

Provide liquidity for tokenized NFTs (via @NFTX_ or @fractional_art) on Sushi or Uni v2

Take the LP tokens, stake them as collateral on @RariCapital fuse, and borrow stables to ape into something else

10/ How about our favorite degen thing: leverage?

Go 2-5x long with permissionless borrowing

Have an oracle/liquidation protocol like @genie_xyz for liquidation thresholds. Allow NFT liquidity providers to earn yield from liquidations+interest earned

https://twitter.com/abetrade/status/1424414033999011843?s=20

11/ Liquidity mining anyone?

Earn yield from your NFT in:
1) the tokenized NFT (e.g., $PUNK)
2) a protocol's token

Provide liquidity and earn the token. Use the dapp and earn. Stake the token for claim to the protocol's revenue.

Our favorite game to play in defi

12/ And NFTs inherently amplify this level of degeneracy because
a) they're expensive as hell. Ppl will ape more than they realize / have a risk tolerance for
b) there's signaling. Ppl will ape more bc then they have flex / have an entrance into an exclusive community

13/ That's also why I think fractionalization like @fractional_art @NFTX_ @prtyDAO will become so important

It'll allow people to ape in quantities that they feel more comfortable in & they still get the benefits of NFTs like the community + the art

https://twitter.com/0xJim/status/1423707972920913920?s=20

14/ They'll add some much-needed liquidity to the game (and also aggregators like @genie_xyz)

Because trying to flip jpegs with an illiquid, one-sidedly priced market like OpenSea is basically trading on hard mode lol

15/ Looking back, I think my original thesis of "people want to earn passive income with their jpegs" was too naive

People want to APE. They want that dopamine hit. And they want to socialize while doing it. I saw that much through r/wsb

Making money is an afterthought

/thread