1/ Pretty disappointed at defi innovation right now
Maybe that's why CT has been so encapsulated with NFTs - it's where the new ideas are
We need to stop copy pasta'ing the same degen playbook and reinvent new primitives that people will actually use after LM rewards dry up
2/ Here's some shit that I want to see:
- Composable primitives that aren’t possible in tradfi
- Structured products with real-world use
- Reputation-based primitives
Here's shit I don't want to see:
- leveraged pools
- same primitive, different L1
- ponzinomics yield farming
3/ Innovation means reimagining financial products from first principles, leveraging what blockchain can do that is impossible in tradfi
@AlchemixFi combined yield on Yearn w/ upfront loans @RariCapital created isolated lending pools @OlympusDAO created protocol-owned liquidity
4/ What other primitives can be build with a composable, permissionless financial system?
How about:
- "Productive" collateral that's rehypothecated across multiple interest-bearing strategies (s/o @SushiSwap bentobox)
- Perpetual insurance premiums from yield-bearing collateral
5/ Let's start wrapping primitives together for a holistic structured product
I like @ribbonfinance's option selling strategy for yield
I also want
- Yield farming w/ built-in options for hedging
- Liquidity mining w/ built-in insurance for contract exploits
6/ Let's build to get tradfi institutions to ape into our ecosystem
Fixed income and hedging instruments make tradfi normies wet
7/ Splitting interest from principal for risk-free rates (h/t @element_fi) will get normies onboarded too
Please, no more
- Leverage for the sake of it
- LM for the sake of it
- Algo stables with a new collateral basket / mechanism
8/ Undercollateralized lending is an insurance problem first, a reputation/underwriting problem second
How do we:
- build a robust, incentivized, accurately priced insurance market to ensure fail safes for defaults
- leverage the rich on-chain events to create light reputation
9/ I'm excited to see what we can do, and I can feel the tides turning from NFTs back to coins & defi
ORU L2s will soon be ready, Solana is maturing as an ecosystem
What can we build when we're not tethered by gas costs? When we're not obsessed with contract optimization?
/end
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TLDR; Smart contract insurance has PMF due to user need (from degens) and deterministic payout from on-chain events, but also has drawbacks due to subjectivity in the claims process
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