Jonah isnt wrong. Incentives are all over the place and is currently in its "play to earn" but for hardware stage.

But solving the problem wont take years. Much like the fed, if there's "inflation," you introduce an "interest rate" to manage the economy

Aka DePIN Loans

https://twitter.com/jvb_xyz/status/1902346586090246232

1. @KoschigRobert did an excellent report detailing the high emissions that depin protocols are providing to remain competitive among miners. Its extraordinarily high, and even higher for expensive "node" assets

https://x.com/KoschigRobert/status/1898069581140459654

1/ USD0++ Depeg: A 1-Month Review

People talk about “discounted value” like it’s a simple NAV problem, but that’s missing the point.

Introducing Queue Extractable Value (QEV): a way to price liquidity dynamically instead of relying on secondary market discounting 2/ USD0++ flaw was in the mint mechanism in of itself.

The single maturity (4 year lock) is exactly the core issue because it strains the methods of redemption.

Redemption is the MAIN arb mechanism to keep collateralized asset pegged. Market forces will always price it <1.

i guess what really bothers me about RWAs is that deep down, it is effectively "LegalFi"

it certainly has a role, but in the end you are beholden to growth parameters established by "lawyers as PMs"

eg, we dont often equate DePIN as RWAs.. because its token-aligned, vs legal so something can definitely be physical, but you call it RWAs because you put a legal wrapper around it

but if you tokenize to represent it on chain (without having to use a lawyer for each series LLC batch rolled onchain) it's suddenly not an "RWA"?

1/ I lost -$700k in a single trade... and I was lucky.

In 2021, it was known as the Widowmaker Trade. The single reason for all the blowups (3AC, Blockfi, Silvergate, FTX).

I even sent an email & had a call about the systemic risk, but the market was pumping, so who cared? Me 2/ This is the perspective of an insider that went through this hellhole of a trade, and survived.

At the very end, the trade was net down -38%.. which was probably the best performing fund in the trade.

Some were down >-1,000% their original investmt, and FORCED to repay.

1. Question: "Why is DeFi dead?"

Explanation: Liquid Staking is likely the reason why there's been a large defi extinction event through "indirect monetary tightening."

It created a "risk free rate," or rather it "raised rates" of holding ETH rates from 0% -> 3-4%.


2. Staking yields are effectively the RFR of crypto, so why deposit in aave or elsewhere when you get totally reliabl sources of yield thats higher?

you really think the validators are gonna slash or something?

1/ In 2022, 2 types of DAOs that have made revenue & real returns

a) 🪙Investment DAOs: @TheLAOOfficial @VENTURE_DAO @FLAMINGODAO @FingerprintsDAO
b) 🏦NFT Lending DAOs: @squiggleDAO @goblinsax @NEPTUNEDA0

In 2023, the 2nd category will grow MASSIVELY 2/ Why?

a)⚔️ Patriotism: there is an insane amount of pride in to one's identity assets
b)⤴️ Money: you make money by being patriotic. Money
c)👩‍🏭 Reduced labor costs: DAO infra has made it cheap to spin up mission-driven daos (check out @seedclubvc's portfolio)