Share this page!

Economics Design Profile picture
Twitter logo
25 Aug, 6 tweets, 2 min read
Type of Decentralised Bonds

Most projects offer two products at the same time to take full advantage of blockchain and as a mechanism to transfer risk between two groups of people:

#decentralised #bonds #cryptocurrency #DeFi
(1) those wanting a fixed interest rate and (2) those wanting to speculate based on fluctuations in interest rates.
Barnbridge SMART Yield, 88mph, Pendle, APWine, Element and Swivel are focused on this decomposing:
A Fixed Rate Asset (or Zero-Coupon Bond);

Floating Rate Bond (or a “floating” yield token, or tranche).

Other protocols such as Horizon and SwapRate also involve fixed and floating decompositions, each in their unique way.
Read the entire article on crypto bonds here:

economicsdesign.substack.com/p/crypto-bonds…
Follow us @EconsDesign and join our discord to chat with us and the ED community:

discord.gg/gZGEZfu74X

• • •

Missing some Tweet in this thread? You can try to force a refresh
　

Keep Current with Economics Design

Economics Design Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @EconsDesign

Economics Design Profile picture
26 Aug
Mirror Derivative

@mirror_protocol allows users to create synthetic assets based on real assets, thereby making it easier for users to buy and sell ($mAssets).

#Derivatives #DeFi #cryptocurrency #Blockchain #cryptoderivatives
Example: If a house costs $100,000 but the user only wants to buy $50,000 worth. Then, it can be purchased by splitting 100,000 tokens, each worth $1. The user only purchases 50,000 tokens.
To generate $mAssets, users must collateralise assets worth > 150% (if using stablecoin) or > 200% (if using $mAsset). For example: If you want to mint $100 worth of $mXAU, you must collateralise 150 $USDT or $mBTC worth $200.
Read 5 tweets
Economics Design Profile picture
24 Aug
Gyroscope is an all-weather stablecoin that is decentralized, scalable, and highly liquid based on revolutionary new designs. It's not out yet, still in testnet phase. But we'd like to share how the protocol works.

#stablecoin #decentralized @GyroStable
3 main highlights of GYD:

1. All-Weather Stablecoin
2. Dual AMM Mechanism
3. Still in development
Mechanisms:

1. Reserve Based: The reserve ratio, in the long run, is supposed to be 100%
2. Algorithmic: It has a dual AMM model which is basically an AMM in the primary market and an AMM in the secondary market.
Read 10 tweets
Economics Design Profile picture
30 May
Crypto Economics vs Tokenomics (Thread)

Are crypto economics and tokenomics the same thing? No. Tokenomics is a subset of crypto economics.

#economics #tokens #cryptocurrency #DeFi #blockchain #incentives
Crypto economics is about 3 things:

1. Messages in the past (through cryptography)

2. Economic incentives to be used in the present (through game theory and mechanism design)

3. Desired system properties in the future (through token design)
Tokenomics (or token economics) is a subset of crypto economics. It is basically economics of the token; aka the crypto project. It does not include the crypto-system (aka blockchain technology like #ETH, #NEO, #NEM).
Read 5 tweets
Economics Design Profile picture
29 May
Supply and Demand 101

In #economics, we always talk about supply and demand. They are 2 lines. And usually when they intersect, that is what we call "market equilibrium". That point where the 2 lines meet is the market price and market quantity.

#market #demand #supply
But what these lines share, is the relationship between both parties. When prices are low, buyers will demand more. When prices are high, buyers will demand less.
It is the opposite for sellers. When prices are high, sellers want to sell more. When prices are low, sellers want to sell less.
Read 5 tweets
Economics Design Profile picture
18 May
How does #NFT work?

First of all, we need to understand that NFT is essential items that can be collected. Like a painting, rather than a typical token which has lots of incentives associated with it to increase buyer demand.

#NFTCommunity #NFTartist #blockchain #Crypto
Therefore, valuing NFT is like valuing a real-life precious item; whoever feels it has a price, will pay that price.
Example: There are a lot of abstract paintings that are worth a few thousand dollars. Very few people understand what they mean, for example, but people still buy them.
Read 6 tweets
Economics Design Profile picture
18 May
You've heard of no-loss lottery. Now, get ready for no-loss stable coins! This week, we discussed $ALCX, @AlchemixFi, ft interview with @scupytrooples!

#stablecoin $alUSD $ALCX
How does #Alchemix work?

Deposit DAI into the system to borrow alUSD
Borrow up to 50% of the DAI collateral
Deposited DAI is used to generate yield
The yield is used to pay off the 50% alUSD borrowed
Why is it a no-loss stable coin?

Both assets are correlated
You can always trade alUSD for DAI
And they move in the same direction
Read 7 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

Like this author's thread?

Get emails when @EconsDesign has new unrolls!

Check out other threads from @EconsDesign!

Read all threads by @EconsDesign

:(