Thread by @GoneMultichain

🚨 EXPLOSIVE HAZARD WARNING 🧨

$SD is a ticking bomb waiting to explode (upwards). 💣

@staderlabs_eth $ETHx Mainnet is ~1 month out.

Something very bullish happened last 3 weeks, but the market did not wake up to it... yet. 🤫

Curious? 🤔

Follow me, it's easy math 👇

First off, if you don't know what #ETHx is, have a look at DeFi Monkey's Take™️

https://twitter.com/Web3_buidl/status/1649200792346439680?s=20

And if you don't know what $SD is and what the investment thesis are, check what's happening over the next two months:

https://twitter.com/GoneMultichain/status/1637535348891996160?s=20

Now that you are up to speed with #ETHx and $SD, let's see what happened over the last couple weeks... 🥁

- 700 individuals joined the testnet.
- 300 of them successfully spin up a node and validator

THREE HUNDRED. That's a lot, and that's bullish.

Let me explain.

As you probably know, once an individual becomes Node Operator (N.O), he can spin up as many validators as he wants on the same machine.

All he needs is 32 ETH per validator.

Remember that, in ETHx architecture, a node operator will only need to put up 4 ETH on his side, and 28 ETH will be delegated from the liquid stakers.

So... how many validators could those 300 people be spinning up?

We can look at @Rocket_Pool to try to get an estimate. There, N.Os run ~6.1 validators on average (numbers pre-Atlas LEB8).

That sums up to ~100 ETH (plus the gov token)

What could you do with ~100 $ETH in #Stader?

100 ETH / 4 ETH per validator = 25 validators

That means:
- 4 ETH * 25 = 100 ETH
AND
- 0.4 ETH worth of $SD * 25 = 10 ETH in $SD

At $2k $ETH price, that'd be ~$20k per Node Operator worth of $SD as a bond.

So in general terms, that would make up to:

$20k * 300 N.Os = ~$6 million in $SD bonded to the validators.

Now, here is when it starts to get a bit crazy:

$SD is just a ~$30 million marketcap token.

Yes, you heard that right.

With :

75,000 stakers,
$120 million TVL across 6 chains,
$20+ million of runway...

...and the $ETHx timebomb we are discussing now.

The thing is, that with a ~$30 million mcap, ~$6 million demand pressure is a solid 20% of current $SD marketcap.

If that is effectively locked as a bond for validators, which is a long-term strategy, feels like it's pretty much a one-way ticket up.

Even if the numbers ended up not being as high as the rough estimate above (some will scale up gradually), there seems to be quite obvious that a decent chunk of circulating $SD will be bonded.

Did these bullish fundamentals reflect on the $SD price yet?

No, as @LouisCooper_ calls it, $SD is still on stablecoin-mode.

That's it folks.

Remember: Nothing here is financial advice. These are dangerous explosive materials that should be used with care & caution, $SD could explode in any moment. 😂

And if you liked it, RT & follow me to keep up to date with $SD + #ETHx!

https://twitter.com/GoneMultichain/status/1650595334744322048