2/ Sushiswap did $26 Billion volume in May, if Injective does that volume it would mean the total trading fees (maker + taker (0.3%)) would be $78 Million for the month
🔥60% are used to buy back and burn $INJ: $46.8 Million each month
🧑🤝🧑40% used for referrals: $31.2 Million
3/ 60% of the fees worth $46.8 Million (which contain lots of different tokens through the various pairs) will be auctioned (normally this will be every 2 weeks but for this example I will use per month as that is what the reported exchange volume of Sushiswap was based on)
4/ To win the auction the winner with the highest bid (has to be in $INJ) would win the $46.8 Million worth of various tokens and then sell them for arbitrage profit. cryptoseq.medium.com/why-injective-…
5/ The total amount of $INJ in the winning bid is burned, reducing total as well as circulating supply of $INJ and thus as supply is decreasing the rate the market cap will rise slower compared to the price increase per $INJ.
6/ Even if the price of $INJ stayed the same for a month the burn would still take place, reducing supply and thus reducing market cap despite the price per $INJ staying the same.
7/ Unlike BNB where Binance just move some of their team tokens to the burn address, with $INJ the bidders have to buy $INJ from the market taking it out of circulating supply. Not only that but there will be multiple bidders which amplifies the effect.
8/ $31.2 Million are used for referrals to relayers to incentivise providing liquidity and growing the exchange further. DAOs could be formed that run relayers and rewarded for the traffic they generate which could be used to burn their favourite token.
9/ As the platform grows, so too does the amount of $INJ burned, creating positive feedback loops and even faster price rises as there is even less circulating supply each time a burn takes place. The auctions happen continuously every 2 weeks burning further $INJ
10/Even if there is a sharp downturn in the entire market, there will always be trading volume, which results in large amounts of $INJ being bought from the market and burned. The lower the price of $INJ the more $INJ that is burned creating continuous support and buying pressure
11/ Uniswap did $83.18 Billion volume in May, if Injective has that volume:
Total Trading Fees: $249.54 Million
🔥60% used to buy back and burn $INJ: $149.72 Million each month
🧑🤝🧑40% used for referrals: $99.82 Million
12/ With Sushiswap and Uniswap being on Ethereum (The volume figures above represent) they inherit the high gas fees, slow performance and suffer from front running / sandwich attacks through MEV. They are also AMM rather than order book which see far more volume on CEXs
13/ Binance did $1.5 Trillion Spot and $2.46 Trillion Derivatives volume in May, if Injective has that volume:
Total Trading Fees (maker + taker): $12.45 BILLION
🔥 60% used to buy back and burn $INJ: $7.4 BILLION each month 👀
🧑🤝🧑40% used for referrals: $4.98 BILLION 👀
14/ CEXs provide high performance order book exchange but are facing increasing regulatory pressure and this volume will move to DEXs. Listing times are slow and costly and less secure than the decentralised alternatives and the markets they can trade are restricted.
15/ Injective combines the best features of DEX and CEX and then goes even further with unrestricted access to markets worth quadrillions of dollars as well as building an entire ecosystem around it with full EVM support and bridges to all the main Layer 1 platforms
16/ With up to 10k tps, 2 second finality, zero gas fees and a DEX which is front running resistant providing a fair platform for all. There are no listing fees and pairs are added through governance to ensure there are no scam copies of tokens like you see with other DEXs
17/ Crypto Exchanges saw $4.8 Trillion Spot volume and $5.5 Trillion Derivatives volume in May alone. If Injective captures just 1%
Total Trading Fees: $309 Million
🔥60% used to buy back and burn $INJ: $185.4 Million each month
🧑🤝🧑 40% used for referrals: $123.6 Million
18/ With 1/3 of the circulating supply already locked in staking (earns 5% APR), and $INJ being able to be used as collateral then there is going to be a lack of supply on exchanges for people to buy for each auction, leading to rapid price increases.
19/ Especially when people know that there are going to be further burns every 2 weeks with large amounts being bought from the exchange regardless of the price of $INJ then not many are going to want to sell resulting in price rising faster.
20/ The strong referral program has shown how well it worked for Binance in the early years
Having an entire ecosystem built around it has worked so well for the likes of $LUNA, and Injective also benefits from continuous demand regardless of market conditions
21/ Higher Volume > More $INJ 🔥+ more💵for referrals to drive further growth > Higher price per $INJ > More Volume > More $INJ 🔥 and so on as the cycle continues.
1/ #Avalanche Rush has barely even begun yet and looks set for exponential growth over the coming months
With Major DeFi Blue Chip Protocols about to launch, $10 Billion+ Dollar Asset classes, Trillion dollar markets, Exchange Listings, Subnets & more
Have you bridged yet?
🧵👇
2/ Currently only @BenqiFinance incentives are live on Avalanche Rush and within 2 weeks since launching it has more attracted more than $2 Billion TVL 👀
That is more than Fantom, Cosmos Hub, Tezos, NEO, Algorand, Cardano, Polkadot, Optimism & Arbitrum COMBINED 🤯
3/ The program has barely started yet
Incentives used: Less than $1 Million
Incentives to go: $469 Million
$AVAX Price: 3x in 3 weeks
1/ Solana is good and all, but it also has its disadvantages / inflated metrics which very few people seem to talk about. In addition to the answers given to @RyanSAdams and @TrustlessState I would also add the following 👇
2/ Whilst everyone talks about the high specifications of buying and running a machine (24 cores, 128 GB Memory, 2 TB NVMe, 1 GB Network and high end graphics card) many don't realise that Solana is the only blockchain that does consensus votes on chain)
3/ Up to 80% of tps are consumed just by validators voting on consensus. Even with the cheap cost per transaction, each validator has to spend between 1 and 2 SOL every day just voting in consensus.
1/ Avalanche isn't yet another over-hyped, centralised blockchain with no innovation
#Avalanche is the only consensus that can scale the active validator set whilst also offering visa-level throughput, sub second finality and unparalleled decentralisation cryptoseq.medium.com/what-sets-aval…
2/ Avalanche is a highly customisable Layer 0 heterogeneous platform of platforms, enabling an unlimited amount of blockchains to be built on top, with support not just for the EVM, but for any custom VM whilst using the revolutionary Avalanche consensus. medium.com/avalanche-hub/…
3/ Allowing projects from any blockchain to ultimately be easily ported over & benefit from the performance, decentralisation, and customisation Avalanche offers, whilst integrating with existing tooling and appealing to developers who want to use certain smart contract languages
This is just with $3 Million of the incentives currently in place with BENQI, there is another $177 Million still to come, with blue chip DeFi Protocols such as Aave, Curve and that's just phase 1 with more on the way
Plus so much more
2/ Dynamic Fees reducing fees by up to 66%
New $10 Billion+ Asset Class
$280 Trillion Real Estate Market coming to #Avalanche
Order Book DEXs
Permissionless Interoperable Subnets allowing entire blockchains to build and interoperate on #Avalanche
Not even listed on Coinbase yet.
3/ Avalanche offers an incredibly customisable platform that not only caters for but is the best platform for all requirements from DeFi, Payments, NFTs to Enterprises and the 1000’s of trillions of dollars in the traditional finance world.
2/ In addition to the new fast, secure and cheap Ethereum bridge, so many important DeFi lego pieces are all going live as well as innovative new asset classes. Examples of some of the projects that are launching soon below.
1/Quant are providing interop for LACChain the regional blockchain network for Latin America backed by the Inter-American Development Bank
Working with banks (CitiBank🤔)to enable cross border payments as well as work on a Multi-DLT Retail CBDC for the Latin Amercian Dollar $QNT
2/ Quant will be providing interopability with other regional networks such as The European Commissions European Blockchain Services Infrastructure and China. Initially consisting of 12 countries using Overledger to create an Interbank Network for payments ledgerinsights.com/idb-backed-lac…
3/ The Latin American Dollar will be used for Welfare and Emergency Payments in the Latin American and Caribbean Regions funded through the Inter-American Development Bank.