2/10
.@VaderProtocol is nothing new - it's rather interesting how it combines existing #DeFi elements. Its story started in summer 2021 and there are plenty of Medium articles since then you can go through. @invaderbaku tells the story in this thread:
3/10
What's special about @VaderProtocol is how it combines some of the most interesting aspects of #DeFi:
1⃣ A decentralized algorithmic stablecoin, not unlike $UST (backed by $LUNA)
2⃣An impermanent-loss protected AMM (like @Bancor) inspired by @THORChain's Continuous LPs
4/10
3⃣ Protocol-owned liquidity (POL) via bond sales, originally "invented" by @OlympusDAO / $OHM
4⃣ Minting of synthetic assets from pool liquidity (not unlike @synthetix_io@mirror_protocol and soon @THORChain)
5/10
But how do these elements work together?
The Vader Protocol uses its algo stablecoin $USDV backed by $VADER (which uses @terra_money's burn-to-mint LUNA/UST mechanic) as the base asset, which drives liquidity & demand of the stablecoin which is vital for an algo stablecoin.
6/10
LPs for Vader's own AMM are treated as first-class citizens like in @THORChain & @Bancor. They get full IL protection after 100 days and earn on the liquidity-dependent slip-based fees based on @THORChain's CLP. This again drives demand for $USDV as it's needed for each pool
7/10
To sum it up, @VaderProtocol combines multiple "flywheel/black hole" narratives into one protocol: the "liquidity black hole" shall drive demand for its algo stablecoin which again makes $USDV more resilient while reducing the supply of $VADER, plus a boost effect by POL.
8/10
Are there risks? Plenty. We face the typical protocol and smart contract risks, but also a DeFi bear market and algo stablecoins are still experimental, even with $UST at $10b market cap. Also, $MIM is currently the "#DeFi's lovechild stablecoin #1" across chains.
9/10
A short look at $VADER tokenomics:
25,000,000,000 max supply, currently at $333 market cap (with 4B tokens circulating)
30% "fair launch" holders
50% liquidity incentives
10% Ecosystem Growth
10% Team Allocation with 2-year linear vesting
2/ @BrokkrFinance originally started out on @terra_money but after the catastrophic events in May during which the #Brokkr team could salvage most of their treasury, they decided to set shop initially on #Avalanche before expanding to additional blockchains in the future.
3/ After the #Terra collapse, the @BrokkrFinance team told me that they wanted to avoid any similar scenario again. They defined security and decentralization as two of the most critical decision criteria regarding a new underlying blockchain which led them to @AvalaunchApp.
Let's have a closer look at an upcoming new #DeFi platform built on top of both @THORChain & @terra_money: @BrokkrFinance. Brokkr is a decentralized investment platform with the slogan "your brother in DeFi" and the goal to bring millions to DeFi.
$RUNE $LUNA $UST $BRO
1/ 🧵👇
2/n The @BrokkrFinance team are true THORChads and originally started as a THORChain-focused project, building out the concept of synthetic assets and the necessary front-end for these. Over time they pivoted more towards a product that can also attract the retail market.
3/n This has led them to embrace the possibilities of the @terra_money network, which is currently the second biggest blockchain in terms of #DeFi TVL. Dozens of DeFi primitives have been built on top of Terra, offering many opportunities to sophisticated investors.
3/n I already liked the 2021 edition but @TheSpartanGroup's @SpartanBlack_1 also delivered some interesting ideas for 2022, mainly high-level around Web3.0, #DeFi, OpenSea and Gaming.
1/n Before everyone posts theirs, let me come up with a few high-level #crypto predictions for 2022. These are just some personal thoughts around topics that I care about and, indeed, no investment advice. Will detail some of them later on.
🧵👇 #GameFi#NFTs $LUNA $RUNE #DeFi
2/n Cross-chain interoperability will become a reality. The focus will change from underlying protocols and platforms towards dApps that will be built on cross-chain layers or deployed on multiple chains. Eventually, dApp users won't know and care what underlying chain is used.
3/n Increased focus on applications also leads to more awareness about user experience (UX). This does not only include better UI design but also providing easy-to-use applications that solve real-world problems end-to-end. Think for example of built-in FIAT on/off-ramps.
What is Seignorage? Before being in #crypto I haven't ever heard of this term. 🧵👇
1/8 I tried to explain it in short and will especially highlight at the end of the thread what it means in the context of @terra_money for the relationship between $UST & $LUNA
2/8 Seignorage is the difference between the value of money and the cost to produce and distribute it. For coins, it is the face value of the metal plus the minting cost, for paper money it is mostly the production cost. The creator/issuer has traditionally been the government.
3/8 If the seignorage is positive (e.g. it only costs a few cents to produce a $100 bill) the revenue accrues to the issuer.
For coins, it can more often be negative, for example, if the metal value of a silver coin is worth more than the face value.
THREAD @anchor_protocol now supports $bETH as collateral with the help of @LidoFinance, allowing you to borrow $UST to either deposit directly at Anchor for 20% APY or farm on other venues like @mirror_protocol. $LUNA $ETH $ANC
But how you ask? Find a short guide below 🧵👇
1. You need to convert your $ETH to $stETH (staked Ethereum 2.0) either via @LidoFinance at directly stake.lido.fi (staking rewards 5.6% APY will later go to aUST holders)
2. Or you just swap your $ETH for $stETH on @CurveFinance at curve.fi via the respective ETH/stETH pool - slippage currently is low but always check before swapping