Fully diluted market cap (FDMC) is the maximum supply of tokens multiplied by the token price.
It asks the question: What if all tokens were in circulation?
If a #fullydilutedmarketcap is much higher than the market cap, it means there are a lot of tokens locked up waiting to come on the market.
Example:
If the market cap is only 10% of the FDMC and assuming the tokens are all released in the next year, the project has to demonstrate 10x growth (1000% !) in a year just to MAINTAIN its current price.
This is an extreme case. Usually, 90% of the supply is not released that quickly. But you can use the comparison of FDMC and MC to guide you toward asking the pertinent next questions in your research.
#Sui is a low-latency, high-throughput permissionless L1 whose instant transaction finality makes it a prime candidate for on-chain use cases like #DeFi and #GameFi.
It focuses on horizontal scaling enabling parallel unrelated transaction processing
Is @LiquityProtocol The holy grail of decentralized, resilient stablecoins in DeFi, and perhaps even the MakerDAO killer?
Following $USDC's depeg, $LUSD has been the biggest stablecoin winner in terms of market cap percentage gain.
Here's how it works🧵by @imajinl
Liquity is a decentralized stablecoin issuer that allows users to open collateralized debt positions (CDPs) by minting $LUSD stablecoins against their $ETH collateral, arguably one of the most pristine collaterals in crypto
Let's get into the details.
First, let me introduce you to troves, the core of the Liquity protocol.
The diagram below is a high-level overview of how troves work.
Think of troves as Liquity’s equivalent of MakerDAO’s vaults, but with a few nuances.
$DOT is used for payment of the transaction fees. Users can stake their $DOT and secure the network while enjoying staking rewards. Moreover, holders can participate in governance and parachain slot auctions.
🙌Demand Drivers
There are multiple demand drivers, such as payment of transaction fees, on-chain governance, parachain slot auctions, and staking yields.