If @THORSwap keeps a 25% market share of volume and volumes 3x that would be the approximate buyback rate. This isn’t a very agressive proposition considering the roadmap.
The inflation is 100% distributed to stakers until the may unlock, so is irrelevant.
3.
@THORSwap will also aggregate every major chain / tokens that’s not supported natively by Thorchain. This will also add volume.
What P&E multiple would you give it?
6x would mean 300 circulating market cap. That’s 7.69x from now.
4.
The reality is that the total volume of trading in crypto is $100b+ a day.
Capturing 1% of that would mean $1B in protocol revenues a year at 0.03% fees.
TAM is high.
5.
Another thing to keep in mind : It’s pegged/corrolated to $rune until the CEX listings (soon).
So if the $rune tides goes up, $thor comes up with it.
This isn’t a price prediction, just a possibility / scenario.
I might eventually rotate back some $thor into $rune when it gets closer to market value to gear up for the nodes bond wars, right now I think $thor is still under valued at this level.
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Today : Value capture. Why utility and tokens price don't always go hand in hand and why this benefits $rune
TDRL : We have no comparables for tokens that capture value as a core feature of their mechanism like $luna and $rune
2.
I will randomly give away a @ThorGuards NFT from my vaults among everyone who retweet the first part of the thread.
(This is a random one, one given might be different)
3.
In real free market capitalism, the most efficient industry has an economic profit that equals zero.
DEFI is the most efficient free market I have witnessed. Almost everything is open source and can be forked almost immediately. This pushes competition and innovation.
Here's simple math why I think @THORSwap is undervalued.
The mechanism to to buyback with 75% of fees and redistribute to $vTHOR stakers will be enabled with the launch of V2.
Fees generated could by the protocol could be 3.375m next month, with the standard 0.3% DEX fees.
2/5
That buyback alone represents 20%+ slippage in the pool in a month alone. $thor isn't denominated in $usd, it's denominated in $rune. It trades against it and the ratio of $rune VS $thor represents the value.
If $rune goes up, $thor follows.
It's a leveraged bet.
3/5
My theory includes the launch of the $eth DEX aggregator and the launch of $luna / $ust. I'm doubling today's volume.
Thorswaps accounts for roughly 25% of all TXs on @THORChain. The rest is arb bots and other interfaces. It might be a little lower because of synths.
We are on the eve of. the $luna integration. It's the first Cosmo tokens listed on @THORChain.
A custom bifrost design has been created for this effect. It will be reused to integrate other @cosmos chains.
2/7
After the core team has created the BiFrost, it's then audited by ThorSEC (the internal adversarial security team), Halborn / Trailsofbit security firms and is in the hands of TerraSCV for a final audit along with bug bounty
Integrating cosmos assets will now be faster.
3/7
A @THORChain hardfork is needed to integrate $luna. It has been done successfully on the stagenet (Thorchain's live testnet).
It should go live on mainnet (still chaosnet beta) within hours/days.