1/ Pro-tip for long term investors: Principal Tokens from @element_fi are a good way to long high conviction #cryptoassets at a discount to spot: app.element.fi/fixedrates
2/ How is the cryptoasset offered at a discount?
@element_fi allows users to split the base asset of a *yield generating position* into 2 separate, fungible tokens: The Principal Token and the Yield Token.
@element_fi allows users to split the base asset of a *yield generating position* into 2 separate, fungible tokens: The Principal Token and the Yield Token.
3/ At the end of a set term (eg, 6 months) each Principal Token is redeemable for its proportional share of the initial stake, while Yield Tokens are redeemable for the yield generated by the principal over the same time period.
4/ When buying a Principal Token it trades at a discount to its underlying value due to illiquidity, acting as a zero-coupon bond that will converge on its whole value at maturity (providing a fixed yield).
5/ Beyond simple longing, opps abound for composability with @element_fi's P & Y Tokens.
#DAO treasuries have been tinkering... and there's more innovation to come on the governance front.
Want to join the fun? They're hiring👇
#DAO treasuries have been tinkering... and there's more innovation to come on the governance front.
Want to join the fun? They're hiring👇
https://twitter.com/element_fi/status/1444709788567343111?s=20
6/ For the curious, @jmonegro wrote more on @element_fi here: placeholder.vc/blog/element-t…
@placeholdervc is an investor.
@placeholdervc is an investor.
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