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19 Oct, 4 tweets, 2 min read
1/ DeFi has once again resurfaced among crypto's leading narratives, this time dubbed "DeFi 2.0".

The nickname has sparked infighting over the categorization of DeFi protocols and has pulled the attention away from what's actually happening.

So what actually IS happening? Is this DeFi 2.0?
2/ Liquidity mining, the heart and soul of DeFi Summer 2020, has fallen off as protocols struggle through the effects of mercenary capital providers draining value.

Projects realize they need better systems to ensure sustainable liquidity while aligning w/ long-term incentives.
3/ Additionally, "second order" protocols are coming to life.

Leveraging DeFi’s composable nature, these projects build on top of existing DeFi infrastructure to automate, enhance, or extend existing DeFi economic models and processes.

This comes at the cost of compounded risk. Abracadabra.money is one example of an "enhancer"
4/ Learn more about DeFi's innovation drivers in the full article from @chasedevens messari.io/article/beyond…

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More from @MessariCrypto

Messari Profile picture
18 Oct
1/ Web3 has taken time to fully manifest due to a need for infrastructure across computation, indexing, data management, hosting, storage, and other vital services.

However, data from @web3index shows that after years of building, many protocols are starting to generate revenue. Web3 protocols are starting to generate revenue as protocol
2/ Looking closer, Web3 protocols suffer from spikes of protocol usage & revenue generation followed by troughs where protocol revenue declines.

This is to be expected across early-stage networks that are trying to integrate vendors and developers to use their services. Web3 protocols are experiencing spikes in revenue & usage fo
3/ Network usage varies across networks.

Catalysts like new NFT projects may cause surges in use, but over time, volatility should smooth out as stable demand increases.

Of these six Web3 protocols, @Filecoin has generated the most lifetime revenue - approximately $3.8M. Filecoin significantly leads other web3 protocols in cumulat
Read 4 tweets
Messari Profile picture
15 Oct
1/ Perhaps the most polarizing project in recent memory, @OlympusDAO is an attempt to create a decentralized reserve currency through the management of a treasury of assets.

Within 7 months, it has accumulated >$400M in treasury assets, and has rocketed to over $3B market cap. Image
2/ @OlympusDAO has also garnered controversy over its tokeneconomics - specifically its bonds & treasury.

Simply stated, bonds are a mechanism for Olympus DAO to accumulate assets by selling $OHM at a discount.

This mechanism has helped accumulate 99% of its liquidity on-chain. Olympus DAO Bonding Overview
3/ @OlympusDAO aims to replicate the growth of Bitcoin, but with the key difference that it will accrue treasury as it grows.

This will provide intrinsic value to $OHM in addition to a monetary premium, but will also allow it to conduct more effective monetary policy at scale. Central banking on a blockc...
Read 4 tweets
Messari Profile picture
14 Oct
1/ Most stablecoin transaction volume is related to trading.

However, @CeloOrg has designed a process to use stablecoins for primarily p2p payment purposes.

Celo aims to make stablecoins a sound and reliable alternative to cash, especially where access to banking is limited. Celo system diagram
2/ @CeloOrg is designed to make global payments with cryptocurrencies accessible to anyone with a mobile phone.

Given the breadth of this ambitious goal, Celo relies on dApp devs to build solutions on top of it leveraging smart contract compatibility for a variety of use cases.
3/ The @CeloOrg stability mechanism relies on 2 types of tokens:

The first are elastic supply stablecoins pegged to fiat currencies like $cUSD or $cEUR.

The second is $CELO, the fixed supply governance and utility token of the system with floating value.
Read 4 tweets
Messari Profile picture
13 Oct
1/ @harmonyprotocol is the latest EVM-compatible smart contract platform to play the liquidity incentive game.

Its native $ONE token has also been one of the best performers among the smart contract platforms over the last year, gaining roughly 4,285% YTD in dollar terms.
2/ @harmonyprotocol has a complete ecosystem planned. Early priorities include:

+ Wallet compatibility
+ Bridges
+ Analytics, such as block explorers and @graphprotocol subgraphs
+ Basic DeFi
+ Service Infrastructure: operational and high availability RPC endpoints for dApp devs Harmony universe
3/ @harmonyprotocol's Horizon bridge currently transfers assets to @ethereum and @BinanceChain, while @terra_money's shuttle bridge has already transferred over $1M UST.

A @Polkadot bridge is on testnet, and it is quite easy to adapt the bridge to other EVM-compatible chains. Harmony bridge
Read 4 tweets
Messari Profile picture
8 Oct
1/ Web 3 infrastructure can be described with 3 pillars:

+ Computing
+ Storage
+ Networking

New Kind of Network, or @NKN_ORG, describes itself as the third pillar. It's a P2P network connectivity protocol that seeks to upgrade the modern client-server Internet infrastructure. Web 3 infrastructure
2/ @NKN_ORG sits on top of the current Internet stack and allows users to participate through their own devices.

Linking devices together overlays a new network layer above what exists today, bringing the privacy and censorship-resistant features notable from decentralization. Internet infrastructure
3/ The easiest way to earn $NKN is for a miner to serve as a node in the network.

This creates an economic incentive for devices to share bandwidth and to keep the node running 24/7 with a stable connection.

NKN can also be used to make transactions within the network. $NKN diagram
Read 4 tweets
Messari Profile picture
7 Oct
1/ The @anchor_protocol whitepaper describes its goal of disrupting central banks by providing a decentralized central bank target rate which will become a reference rate for the broader DeFi ecosystem.

The protocol aims to do this by building itself around the Anchor Rate. Terra Ecosystem
2/ Driven by @anchor_protocol's high headline fixed deposit rate, @terra_money's comparatively low costs versus @ethereum mainnet, as well as the strong run up in $LUNA's price, TVL has continued to increase since launch and in August it become the 3rd largest lending platform. Anchor TVL surpasses $3bn i...
3/ The $ANC token is designed to capture a proportion of the yield available and to scale with the assets under management in the protocol.

ANC is also used as borrower incentives (100m per year) as well as rewards within ANC liquidity pools.

ANC token supply is capped at 1B. ANC cumulative distribution...
Read 4 tweets

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