I know a lot of Templars have a variety of viewpoints on how Temple is going to be revolutionary, but wanted to give my own two cents
1⃣ General Narrative
In the early days, of which unfortunately I did not partake, making trades on ETH was relatively inexpensive. $300 ETH meant maybe you were paying at most $30 for at trade, but now that ETH is at $3000 you're paying $300
Well that's a problem
1⃣ con
For one in creates a barrier to entry into the ecosystem for new participants.
How can I possibly justify an investment where 10-20% of my trade evaporates into gas cost?
Even if I'm already in the ecosystem there's a significant disincentive for me to participate
1⃣ con
If it's difficult for me to manage my portfolio and make the trades I want due to gas cost, then how can I effectively manage my risk/return ratio at a level that suits me?
This is effectively the market that TempleDAO is targeting with their innovative business model
1⃣ con
TempleDAO's mission is to provide a variety of investment vehicles to the layman market participant who's not "crypto rich" enough to actually execute on sophisticated investment strategies
AFAIK there is no one else serving this market segment
2⃣ Product
What actually is @templedao going to do to solve for this market need?
They're going to create a variety of investment pools to satisfy your given risk/return ratio
The first of which is going to be $TEMPLE, who's goal is to provide stable but significant returns
2⃣ Product
I'd direct specific product explanations to my prior post, and I might post some direct examples late, but my goal here is to show the future buy-in for the protocol and why its valuable
Here is where the real buy in for TempleDAO comes in for me. Ultimately when you choose to invest in speculative assets you're making an, hopefully, educated bet on their team and future success
3⃣ con
At this point hopefully you've understood that there is a market segment out there with demand for this product, but the real buy in is understanding the team and having confidence in their expertise
3⃣ con
The true show of success for TempleDAO is whether they can continually innovate and create new sophisticated investment pools for new users to buy into
The way I picture it is this: A long-view hedge fund that provides optimal risk-adjusted returns based on your profile
3⃣ con
The reason why IM so bullish is I've seen firsthand the capabilities of the team while participating in their discord. There's some great thinkers there who are developing the roadmap every day
Let me give you an example of a future product
3⃣ con
Consider the person who wants to take a loan out on their staked Temple. This is a commonplace need for DeFi investors
However, with an unstake queue in place for stakers the entire incentive dynamic is misaligned
3⃣ con
If I want to give a loan out on some collateral, I need to have confidence I can quickly liquidate that collateral
If I want to give a loan out on some collateral, I need to have confidence I can quickly liquidate that collateral in the case of default
3⃣ con
However with the unstake queue, there's going to be some additional variable timeframe before I can liquidate the staked Temple in the case of a default
So that disincentivizes me from giving a loan, I need to be appropriately compensated for that risk
3⃣ con
The standard mode of compensation then would be for me to charge a much higher interest rate on an illiquid asset like sTemple, but then you the borrower would be disincentivized from borrowing due to the high interest rate
How do we solve for this?
3⃣ con
It's actually quite simple, TempleDAO can create a separate investment pool for Temple stakers to take loans out on their sTemple
Why does this work?
Well if you stake your Temple with the DAO they're already in possession of the collateral and can liquidate easily
3⃣ con
That's an example of the future value of buying Temple now, access to their future investment products
I'm super excited to see their future roadmap and releases, and I'll be diligent in my reporting of them for my fellow Templars and friends
Not financial advice dummy
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TL:DR; Nation-states are built upon the manipulation of individuals by nationalism into sacrifice for nothing in return, however, the advent of DAOs represent a new social model of belonging built on symbiosis rather than predation
This is a thought provoking piece considering the archaic nation-state and how its deterioration is a result of social models evolving bringing people together for a common cause rather than a shared sense of identity (nation, ethnicity, etc.)
🧵on the lay of the modular blockchain land for @scribeDAO
TL:DR; Blockchains have now become composable removing the need for a singular chain to tackle the Blockchain trilemma, rather a variety of chains can specialize and work together as modules to provide the best solution
This article discusses the three main components of blockchains, and how now a variety of chains can specialize and come together to more efficiently tackle the trilemma
TL:DR; TempleDAO is creating the middle ground between insanely speculative tokens and stablecoins by providing a safe haven that reduces volatility, but still provides significant yield on your assets
As always this is NOT FINANCIAL ADVICE, but rather my OWN OPINIONS on TempleDAO and the brilliance of what they're trying to achieve.
I recommend all to DYOR by following their twitter @templedao, joining their discord, and reading their medium posts etc.
🅰️Problem statement
You can broadly sort crypto assets into two buckets
Protocol tokens and stablecoins (e.g. TOKE and USDC)
These two extremes represent for the former an extremely volatile asset and the latter an asset that, pegged to USD, loses real value every year
🧵On composability and its value in DeFi for @scribeDAO
TL:DR; Composability allows for the integration of multiple protocols into increasingly innovative and complex products
I noticed a lot of people throw the word composability around a lot, and non-crypto natives probably don't know what that means and why its important especially considering the rise of L2s
I'll try my best to explain the issue in the next few tweets
1⃣ What is composability?
The capability for applications and protocols to leverage each others code in a permissionless manner creating synergistic effects
Essentially one can pick and choose DeFi apps to amalgamate forming brand new financial products
🧵On the importance of community and the pitfalls of progressive decentralization for @scribeDAO
TL:DR; Protocols should focus on building a fiercely loyal community first and let product-market fit come later organically through co-design with stakeholders
Unfortunately I cannot find the original author on twitter, but if anyone knows him/her/they please tag below!
1⃣ Pursuance of product market fit
Crypto can seem analogous to startups and thereby the focus of protocols tends to default to product-market fit as they progressively decentralize over time
Thus protocols sometimes focus on building for the community and not with them
TL:DR; TokeMak solves for misaligned incentives within LM through providing sustainable liquidity to DeFi by means of an aggregation of LP rewards and the deployment of those rewards by the protocols LDs
As always; this is NOT FINANCIAL ADVICE. This only reflects my own synthesis and understanding of previous work by @Archer_MD_ , @LiquidityWizard , and the team at @TokenReactor.
If I misrepresent anything please feel free to correct me
🅰️ Problem Statement
The demand for liquidity is easily observed throughout the crypto ecosystem. People want to swap between different tokens on varying L1s and L2s and experience/use a variety of protocols
Protocols want liquidity to bring value and usage to their product