Thread by @0xkydo

#Fantom , #Celo, and #Avalanche

Incentive program comparison.

A thread:
0/18

First on why these kinds of program exist:

Solving the chicken and the egg problem: you don't have builders because you don't have users; and you don't have users because you don't have good projects (built by builders).
1/18

Now onto highlevel stats of each program.

#Avalanche key stats:

🔴Purpose: bring blue-chip DeFi applications to Avalanche
🏦Allocation: 10M $AVAX tokens.
🥧% of total supply: 1.4%
💸Dollar value of incentive: $420m
medium.com/avalancheavax/…
2/18

#Fantom key stats:

🔴Purpose: incentivize building on Fantom
🏦Allocation: 370M $FTM tokens.
🥧% of total supply: 11%
💸Dollar value of incentive: $370m

fantom.foundation/blog/announcin…
3/18

#Celo key stats:

🔴Purpose: bringing DeFi to the 6 billion smartphone users around the world
🏦Allocation: ?
🥧% of total supply: 1.25% - 0.75% ?
💸Dollar value of incentive: $100m

medium.com/celoorg/aave-c…
4/18

Although all these programs seem alike at first, we can spot the differences when looking at its purpose and % of total supply allocated.

#Avalanche and #celo are quite similar, ~1% of total supply used as incentive and aim to bring #DeFi onto their platforms.
5/18

#Fantom is quite different as it is allocating a bigger % and also its focus is not just in #DeFi. From the wording of its article we can see that it will let the BUIDLer to decide what to do with the incentives.
6/18

Now let's deep dive into each program to spot the differences.

#Avalanche launched first out of these three with an aim to bring more users to Avalanche with liquidity mining incentives. The first patch of protocols to come are @AaveAave, @SushiSwap, and @CurveFinance
7/18

#Avalanche 's incentive is straight forward, similar to #Polygon's program.

To solve the chicken and egg problem, it focused on the user side first. However, we are seeing a shift in tone from @avalancheavax, as they are also considering incentivizing native protocols.
8/18

We do not know what the future allocation on Avalanche will be or how long the program aims to last.

I hope they can be more transparent about this; maybe the plan will be changed in the future, some disclosure of their current plan would be nice.
9/18

#Celo's program seems similar with Avalanche's and I just do not know much about its eco. One interesting thing from their blog post is that:

"The majority of program participants will jointly contribute half the funds for incentive programs."

Keep an eye out for this.
10/18

#Fantom's program is very interesting and also more complicated to analyze.

One comparison is BSC's program in Sept. 2020
binance.com/en/blog/421499…
11/18

#BSC program aims to incentivize the builder side of the chicken and egg problem. By enabling builders to come and build on BSC, it can offer its users a wide array of products.

Also, since BSC can import a lot users from its CEX, the user side of things is less painful.
12/18

#Fantom's program has a lot of nuisance worth talking about:
1. check size of incentive is around $1m - $5m.
2. needs TVL >$5m to qualify
3. all rewards has 2 month cliff + monthly vesting.
13/18

Main pro: diversity of projects

Main con: fragmented liquidity

Also, at the moment, this measurement of TVL as requirement would pose interesting barriers to non-DeFi projects, such as NFT and gaming.

This program seems to last a lot longer than the others.
14/18

Conclusion:
1. Avalanche and Celo programs seems similar, focusing on user adoption.
2. Fantom focuses on builders and seems to last longer, since this amount of FTM makes up 33%+ of their entire market development portion (30% of total supply)
15/18

Predictions:
1. Celo will see massive growth, especially when their LM incentive begins with Aave and Curve.
2. Avalanche has another leg up when Aave and Curve launches, but will be hindered given current market sentiment.
3. Fantom will see speculative highs and dips.
16/18

Predictions (cont.)
4. By mid-2022, eco projects will see the most growth (by diversity) on Fantom
5. Short-term, eco projects on Avalanche will take a price dip.
6. Short-term, eco projects on Celo will moon.
17/18

Thank you @TaikiMaeda2 @CryptoMessiah @0xWangarian @Darrenlautf @noahseidman @rogerclu for sharing your insights on Twitter and Youtube.

I look forward to talking more with developers, investors, and meme lords in these ecosystems! Thank you everybody.

⬆️NFA.

18/18