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
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
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
1/ People that don't understand the pudgy pengus don't understand the power of mimetic desire & in-group signaling
If there are people that you respect and want to be 'accepted' in their group, you'll likely mimic their behaviors & actions
2/ Mimetic desire is baked into our brains, as an evolutionary mechanism to belong to a group in order to maximize survival
In our modern society, this is reflected in literally 90% of our actions & behaviors: our hobbies, our clothing, our slang
All to belong
3/ For all pfps, there's a sense of signaling. It's the combination of two reasons why ppl are saying that pfp projects are pumping: flexing & community.
Flexing = ur signaling outwardly of being a part of an exclusive group
Community = u reap the benefits of being in the group
2/ First growing pain: getting voter active participation
some DAOs' progress grinded to a halt due to voter apathy - something that's endemic in any pure democracy (see: Ancient Greece, modern day Switzerland)
1/ ETHcc takeaway #2: NFTs and DeFi are rapidly colliding together
NFTs have seen a resurgence since its peak earlier this year led by new pfp projects like BAYC, generative art like @artblocks_io, 1/1s like @Ghxsts
And I don't need to restate the crazy punk pump today lol
2/ Now NFT holders are facing the same problems that early crypto holders xp'd, esp those who have a big portion of their net worth in digital assets:
+ how do i get liquidity for my holdings
+ how get i get value generated from my NFTs
that's where the power of defi comes in
3/ liquidity
NFTs are illiquid assets. @nftx and @NiftyMuseum created pools that basically tokenized NFTs 4 easier buying selling + swapping
@genie_xyz takes it 1 step further: an aggregator for NFTs, routing to any liquidity source - even os or fnd - for the best order fill
2/ For context, there are 9 1/1 Cool Cats that exist — of which 7 are already owned by existing cat holders
Of the two that aren't released yet (the devil cat, and the golden lucky cat), the Cool Cats team will give them away to the community
3/ These cats fetch the prize of 50+ ETH. Winning 1 would be life-changing for some (me)
I put together a proposal that could simultaneously:
+ give some1 life-changing money
+ ensure the lucky cat is a focal point of the community
+ make sure the cat has exposure to the world