1.
Day 6/30 of @THORChain threads
Subject : The minimum deterministic value of $rune.
Why it captures so much value and why Thorchain's capital inefficient design will enable the creation of the most capital efficient protocols in DEFI
Day 6/30 of @THORChain threads
Subject : The minimum deterministic value of $rune.
Why it captures so much value and why Thorchain's capital inefficient design will enable the creation of the most capital efficient protocols in DEFI
2.
I will give a random @ThorGuards from my vault among everyone who retweets the first part of the thread.
I will give a random @ThorGuards from my vault among everyone who retweets the first part of the thread.
3.
@THORChain as a network is always over collateralized.
Node operators that secure it have to post more $rune in bonds as collateral than the total security of the network.
This is, as far as I know, 100% unique to Thorchain.
@THORChain as a network is always over collateralized.
Node operators that secure it have to post more $rune in bonds as collateral than the total security of the network.
This is, as far as I know, 100% unique to Thorchain.
4.
What does this mean ?
The total market cap of $rune can never be lower than 3x non rune liquidity in the network.
Everytime you deposit $1 $rune in a liquidity pool, $2 of $rune are required to be in collateral.
What does this mean ?
The total market cap of $rune can never be lower than 3x non rune liquidity in the network.
Everytime you deposit $1 $rune in a liquidity pool, $2 of $rune are required to be in collateral.
5.
This creates a unique design : The first protocol to have a minimum value. The token cannot ever go down any lower than 3x TVL.
As with any projects, it has a speculative multiplier. It ranged from 4x post hacks up to 20x.
app.flipsidecrypto.com/dashboard/dete…
This creates a unique design : The first protocol to have a minimum value. The token cannot ever go down any lower than 3x TVL.
As with any projects, it has a speculative multiplier. It ranged from 4x post hacks up to 20x.
app.flipsidecrypto.com/dashboard/dete…
6.
Once @THORChain has a high % of $rune tokens bonded in nodes, the deposits of non $rune assets in LPs will create a reflective cycle where the $rune value goes up in sync with the LP demand.
That creates unlimited cap space, the network is always overcollateralized.
Once @THORChain has a high % of $rune tokens bonded in nodes, the deposits of non $rune assets in LPs will create a reflective cycle where the $rune value goes up in sync with the LP demand.
That creates unlimited cap space, the network is always overcollateralized.
7.
Now let's do some maths.
We'll take the example of what would happen if BlockFI's deposits were deposited in @THORChain.
+- $40B in users deposits.
Offering up to 4% APR on $btc deposits.
Charging like 10% on the loans.
0 yield on collateral + liquidations possible
Now let's do some maths.
We'll take the example of what would happen if BlockFI's deposits were deposited in @THORChain.
+- $40B in users deposits.
Offering up to 4% APR on $btc deposits.
Charging like 10% on the loans.
0 yield on collateral + liquidations possible
9.
$40B in users deposits would mean :
$20B non $rune assets * 3 = $60B minimum deterministic value.
If we take the lowest speculative multiplier ever (post 3rd hack) : 3.44, that would mean a $206B marketcap, or $556 per $rune under current circulating supply.
$40B in users deposits would mean :
$20B non $rune assets * 3 = $60B minimum deterministic value.
If we take the lowest speculative multiplier ever (post 3rd hack) : 3.44, that would mean a $206B marketcap, or $556 per $rune under current circulating supply.
10.
This creates a very secure design free of any externalities and where NOs have no financial incentive to attack the network. They cannot rationally steal any liquidity, they have more to lose.
It is frankly quite capital inefficient and creates network limitations early on.
This creates a very secure design free of any externalities and where NOs have no financial incentive to attack the network. They cannot rationally steal any liquidity, they have more to lose.
It is frankly quite capital inefficient and creates network limitations early on.
11.
This is offset by $rune having the highest value capture of any crypto asset.
Thread about it here if you're interested :
This is offset by $rune having the highest value capture of any crypto asset.
Thread about it here if you're interested :
https://twitter.com/THORmaximalist/status/1503438975561875467?s=20&t=N2VB3ESY7FtS-IL8BtTP2g
12.
As you will see in tomorrow's thread, it will enable ThorFI & other protocols to build the most capital efficient designs in crypto on top of it.
This is only possible through the 3x TVL security design and it creates an incredible MOAT for @THORChain.
As you will see in tomorrow's thread, it will enable ThorFI & other protocols to build the most capital efficient designs in crypto on top of it.
This is only possible through the 3x TVL security design and it creates an incredible MOAT for @THORChain.
12.
Synths will open up composability. It will allow other protocols to create value on top of the most capital efficient assets in DEFI.
13.if $gmx held yield bearing synths as collateral for it's perp exchange, it would yield an additional 20% to 80%.3
Synths will open up composability. It will allow other protocols to create value on top of the most capital efficient assets in DEFI.
13.if $gmx held yield bearing synths as collateral for it's perp exchange, it would yield an additional 20% to 80%.3
14.
The protocol itself generates revenues and captures value. It also currently has a high growth rate.
In crypto, P&Es ratio range from $12 ($gmx) to $15 000 ($ltc).
Theses are factors in the speculative multiplier.
The protocol itself generates revenues and captures value. It also currently has a high growth rate.
In crypto, P&Es ratio range from $12 ($gmx) to $15 000 ($ltc).
Theses are factors in the speculative multiplier.
15.
Every asset and corporation in the world has a speculative multiplier that varies depending on conditions. S&P historically trades at 12-14x earnings. It went to 45x.
While 3.4x was the lowest multiplier ever on @THORChain, I don't expect it to go lower than 4x.
Every asset and corporation in the world has a speculative multiplier that varies depending on conditions. S&P historically trades at 12-14x earnings. It went to 45x.
While 3.4x was the lowest multiplier ever on @THORChain, I don't expect it to go lower than 4x.
16.
I would not be surprised if we saw a 10x+ speculative multiplier when we reach mainnet and institutions come in. That'd be $1390 $rune just from BlockFI deposits.
A higher speculative multiplier creates more cap space and creates higher yields for liquidity providers
I would not be surprised if we saw a 10x+ speculative multiplier when we reach mainnet and institutions come in. That'd be $1390 $rune just from BlockFI deposits.
A higher speculative multiplier creates more cap space and creates higher yields for liquidity providers
17.
If you want to experiment with a deterministic value visualizer, you can on this one.
Don't forget that there will always be a speculative multiplier.
thorchain.org/getting-starte…
If you want to experiment with a deterministic value visualizer, you can on this one.
Don't forget that there will always be a speculative multiplier.
thorchain.org/getting-starte…
18.
Plz retweet to spread awareness.
If you like my content, please delegate to my 0 fees $luna node :)
For more threads about @Thorchain and $rune, click here : linktr.ee/thormaximalist
Plz retweet to spread awareness.
If you like my content, please delegate to my 0 fees $luna node :)
For more threads about @Thorchain and $rune, click here : linktr.ee/thormaximalist
• • •
Missing some Tweet in this thread? You can try to
force a refresh
