1/

With the upcoming release of the AMM Trident and NFT marketplace Shoyu, @SushiSwap is poised to capture increased DEX market share as well as build out its moat, all while becoming the most complete DeFi ecosystem.

$SUSHI #SUSHI
2/

Trident is a one-of-a-kind AMM model that increases LP flexibility as there are 3 new pools:

- Weighted Pools (Think Balancer)
- Hybrid Pools (Think Curve)
- Concentrated Liquidity Pools (Think Uniswap)

Increased optionality = decreased capital elasticity
3/

Sushiswap's native NFT marketplace is also releasing soon, and this should bring plenty of new and incumbent users. $SUSHI is also trying to make NFTs more interactive by building a metaverse display, and allowing for creators to experiment with 'social tokens'.
4/

Cool Shoyu social token features:

- Burn-and-participate: holders can burn tokens to redeem real-life items, such as merchandise (think of @0x_b1's initiative with Spunks, but anyone can do it)
- Revenue sharing: token creators can decide to re-distribute on-chain earnings
5/

2.5% of every transaction on Sushi's NFT marketplace will go towards $xSUSHI holders, which means that the token's value accrual isn't solely dependent on token swap activity anymore.

Diversified revenue streams = stronger 'business' model
6/

$SUSHI's P/E ratio sits at 60.70x and its P/S ratio sits at 10.12x, which is fundamentally sound for a protocol that is operating in numerous exponentially growing industries (DEXes, NFTs).

We also expect Sushi's market share to increase after Trident's release.
7/

Sushiswap's horizontal expansion approach is proving to be an excellent protocol model.

Lastly, we believe that team strength is the most important factor in an open-sourced world, and it is evident that Sushiswap is in great hands.

DYOR, NFA.

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More from @Block49Capital

13 Aug
Why @AaveAave will be an essential piece to the Web 3.0 Puzzle. [Thread]

A couple weeks ago @StaniKulechov hinted at building a decentralized social network. That got us thinking about how that might work. Here's what we think.

$AAVE
The current problem with the current social media landscape is that the centralized entities hold too much power. The goal of these entities is not to maximize user value but rather shareholder value, creating unaligned incentives.
What would a decentralized social media look like? We imagine it will be wallet-based. Given users a non-KYC identity that they can build through their on-chain activity. Whether it be metaverse, DeFi or gaming, your wallet will be your sign-in.
Read 7 tweets
12 Jun
1/ A thread on decentralized crypto insurance:

Nexus Mutual is currently the leading insurance platform in the space. Time will tell whether or not the insurance model will last, as although it improves upon a P2P model, in theory, it's less efficient than a pooled model.
2/ In terms of the fund, Nexus Mutual is currently stuck at a 100% MCR, and has been for all of 2021. There is a minimum capital requirement of 162,425 ETH. This means that no one can swap out of NXM, but only out of WNXM, which is a liquid version of NXM.
3/ WNXM ($59.34) trades at an extreme discount to NXM ($89.83) because it essentially serves as the price to pay for exit liquidity.

Anyone that wants to be a cover provider will have to face this illiquid issue, potentially making it less desirable to use Nexus Mutual at all.
Read 7 tweets
11 Jun
Layer 1 Comparison [Thread]

As more and more layer 1's begin to flourish with their own ecosystems of users, DeFi and Dapps, we decided to take a look into how each of the smaller L1's compare on a variety of metrics.

1. Market Cap
2. Number of Addresses

This can provide an effective surface-level view of the number of users on a particular chain.

$SOL $LUNA $ETH $EOS $DOT $FTM $AVAX
3. Addresses/Market Cap

This basically tells us what value the market has assigned for each address within the individual blockchain. The higher the number, the higher the market values each additional address within that L1.
Read 4 tweets
14 May
Why @BalancerLabs will step into the spotlight as Defi's most Flexible and Efficient AMM [Thread]

$BAL was one of the first AMM's to provide liquidity through pools weighted by multiple tokens, unlike competitors such as $UNI offering 50/50 currency pairs 1/n
The protocol is backed by several leading funds, most notably @AlamedaResearch, @DeFianceCapital and @placeholdervc, playing a central roll in expanding their innovation further 2/n
The customizability of $BAL pools includes 6 pool variables and 3 pool types for liquidity providers to chose from, significantly more than traditional AMM's 3/n
Read 8 tweets
12 May
DeFi Blue Chip valuation [Thread]

As requested by @Arthur_0x

1. Market Cap/TVL

Measures the value of each $ locked in the protocol. Protocols that trade at higher multiples are not necessarily overvalued, as they often generate more revenue per $ of TVL
$UNI $AAVE $MKR $COMP Image
2. FDV/TVL

Similar to the previous metric except now we are looking at the fully diluted value (if all coins were in circulation).

$UNI $AAVE $MKR $COMP $SNX $SUSHI $YFI $CRV Image
3. Annual Revenue / TVL

This shows how much each $ locked generates in revenue. This metric helps explain the MKT/TVL ratio as it is clear the market assigns a premium for protocols that are more capital efficient.

$UNI $AAVE $MKR $COMP $SNX $SUSHI $YFI $CRV Image
Read 8 tweets
3 May
Why @SushiSwap is one of the most overlooked DeFi protocols. [Thread]

Many see $Sushi as simply another AMM competitor to Uniswap. However, Sushi’s plans are to be more than just a DEX. They want to be the home of DeFi through the creation of a synergistic ecosystem. 1/n Image
@SushiSwap has partnered with several of the most well known DeFi protocols as part of their aggressive expansion strategy. These partnerships will allow Sushi to tap into additional liquidity and further build their Moat.

@iearnfinance @AaveAave 2/n Image
Let’s take a look into the various aspects of Sushi.

SushiSwap is the most well known part of the SushiSwap ecosystem. Similar to $UNI it uses a constant product market maker. Sushi does about 20% of all DEX volume and is expanding to become multi chain 3/n Image
Read 9 tweets

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