Thread by @JackNiewold

People are piling into the $FTM ecosystem as they realize it's got a few key catalysts in its favor:

• Strong price momentum
• @andrecronjetech's ve(3,3) token launch
• An undervaluation of project TVL
• A $1b incentive program

So what are the projects I'm looking at?

Well, value will probably accrue back to $FTM, making it a clear option, but for higher-leverage/higher-risk plays, most are looking at ecosystem coins.

Additionally, the top 20 ecosystem coins by TVL all stand to benefit from the new ve(3,3) token launch.

First, a top-down look at $FTM protocols by TVL.

Measuring protocols by TVL/MKT CAP isn't a perfect way to find undervaluation, but it can give us a place to start when gem-hunting.

Here's a table of the following coins and their $ETH analogs:

(Not a perfect comparison)

Off the bat, we can see relative under- and over-valuations.

We've got to consider a few things here:

• How large the market cap is
• What emissions and tokenomics are like
• How TVL translates to value accrual/adoption

Here are my favorites:

1. Spookyswap ($BOO)

I think a lot of Alt-L1 exchanges are really undervalued.

Spooky is at the top of that list, doing 20x its market cap in weekly volume.

That's nearly twice as much Volume/Mkt Cap as its next competitor.

(Graphic: @fantom_insider)

Pros:
• Insane Mkt Cap/TVL ratio
• Fees are turned on, generating value for holders
• Staking offers 40% APR

Cons:
• Bad UX
• Emissions

As the number one exchange on $FTM, it has the most to gain from the $FTM gold rush.

Billions of dollars, all funneling through $BOO

Staked $BOO is called $xBOO

And you can stake your xBOO in Spiritswap to earn even more rewards in the form of other small cap $FTM protocols: $LQDR, $TREEB, $wFTM, $SPA, $HEC

All paying out over 50%.

Free lottery tickets.

2. Scream ($SCREAM)

Scream is just a Compound fork on $FTM that happens to be wildly undervalued on TVL terms.

And Compound itself is thought to be an undervalued project in the $ETH DeFi space.

At a market cap of just $20 million, $SCREAM seems to have tremendous potential.

It's still a 4x from a 'fair' valuation in terms of TVL, a 5x away from $100,000,000, and a 12x from Compounds market cap.

All this despite its adoption and a clear product-market-fit with over $600m in TVL.

Ask @rektfoodfarmer about it

3. Beethoven X ($BEETS)

Beethoven X, a clone of Balancer V2 (a DEX), is relatively overvalued by TVL, but I still like it.

The $BAL V2 model has huge potential as it allows you to create an index of assets and earn fees by providing liquidity for that asset group.

But Balancer itself has been a bit of a disappointment, trading today at the same price as in June.

I think the $BAL / $BEETS model is highly underrated and innovative compared to conventional AMM models.

We'll have to see if that translates to trading volume and value capture.

Perhaps an influx of DeFi-interested capital will allow the $BAL/ $BEETS model (and its new V2 improvements) to thrive on $FTM where it couldn't on $ETH

And at a $40m valuation in seems like it has some room to grow.

There are some problems with $FTM, however: in runups like these the final bagholders can get burned.

And with so many original holders in profit, price can collapse as quickly as it moons.

How long will the runup continue?

Another issue?

The massive yields available (up to 200% on stablecoins) are simply unsustainable. These rewards are sometimes referred to as an 'incentives pump,' and can fade as the money dries up.

Yields and APYs come directly from Fantom's $1 billion incentive coffers.

Nonetheless, there is clear momentum in the sapce and TVL/adoption metrics show that $FTM still has a long way to go.

And with catalysts coming and new devs/users flocking in I still think we're looking at significant upside.

Thanks for reading! If you liked the thread, please help me get it out to more people by RTing/Favoriting the first tweet, linked below: 👇

https://twitter.com/JackNiewold/status/1481374653029384193?s=20

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