Economics Design Profile picture
Define and measure economic incentives and governance in a token-based economy. Consult I YouTube | Podcast | Newsletter | Online Academy
Feb 17 12 tweets 6 min read
Recession in @AxieInfinity : how and why.

NOTE: This is not a big problem! This is normal. We have economic cycles IRL. of course we have it in the metaverse land too.

Difference: we can better anticipate and change

Here are 7 ways Axie can manage inflation and recover 🧵 Economics is the most important aspect to get right in your economy. It builds the backbone of the entire market, but it is complicated to get right.
Feb 15 5 tweets 2 min read
Purpose Of A Market

A market is a space for buyers and sellers to come together to trade and transact. The market is not owned by anyone and is just a space for people to come in and trade. Examples of some public markets are countries, farmer’s markets, listed companies, etc. Examples of a private market are small little Facebook groups or it could be small online social media groups that you create with your friends.
Feb 14 6 tweets 2 min read
Why is @CurveFinance valuable?

These three reasons make Curve difference with other protocols in Defi:

1. Curve focuses only on the niche market as a stable asset with a formula optimised for slippage reduction.

#DeFi #cryptocurrency #blockchain 2. Curve allows users to provide liquidity by one or many assets. Curve automatically split token to difference tokens which match the rate in pools.
Dec 7, 2021 7 tweets 4 min read
What is @oceanprotocol ?

At its core, Ocean empowers and works to give data publishers the power to take control of their data, share data the way they want to, and monetise it.

#data #Web3 #decentralized #cryptocurrency $OCEAN The main problem that Ocean tries to solve is that we do not feel comfortable sharing our data and also do not really know the true value of our data or how to accurately price it.
Nov 17, 2021 12 tweets 3 min read
We upgraded from DeFi 1.0 to DeFi 2.0. What does that mean for the economics?

Here's Tokenomics 2.0 🧵

TLDR: economic balance. DeFi 1.0 was to build the infrastructure and tools in finance. Think of it as the basic foundation in your skyscraper.

DeFi 2.0 is to use that existing foundation and built that skyscraper.

E.g. stablecoin for transaction.
Interest-bearing stablecoin for capital leverage.
Aug 26, 2021 5 tweets 3 min read
Mirror Derivative

@mirror_protocol allows users to create synthetic assets based on real assets, thereby making it easier for users to buy and sell ($mAssets).

#Derivatives #DeFi #cryptocurrency #Blockchain #cryptoderivatives Example: If a house costs $100,000 but the user only wants to buy $50,000 worth. Then, it can be purchased by splitting 100,000 tokens, each worth $1. The user only purchases 50,000 tokens.
Aug 25, 2021 6 tweets 2 min read
Type of Decentralised Bonds

Most projects offer two products at the same time to take full advantage of blockchain and as a mechanism to transfer risk between two groups of people:

#decentralised #bonds #cryptocurrency #DeFi (1) those wanting a fixed interest rate and (2) those wanting to speculate based on fluctuations in interest rates.
Aug 24, 2021 10 tweets 2 min read
Gyroscope is an all-weather stablecoin that is decentralized, scalable, and highly liquid based on revolutionary new designs. It's not out yet, still in testnet phase. But we'd like to share how the protocol works.

#stablecoin #decentralized @GyroStable 3 main highlights of GYD:

1. All-Weather Stablecoin
2. Dual AMM Mechanism
3. Still in development
May 30, 2021 5 tweets 3 min read
Crypto Economics vs Tokenomics (Thread)

Are crypto economics and tokenomics the same thing? No. Tokenomics is a subset of crypto economics.

#economics #tokens #cryptocurrency #DeFi #blockchain #incentives Crypto economics is about 3 things:

1. Messages in the past (through cryptography)

2. Economic incentives to be used in the present (through game theory and mechanism design)

3. Desired system properties in the future (through token design)
May 29, 2021 5 tweets 2 min read
Supply and Demand 101

In #economics, we always talk about supply and demand. They are 2 lines. And usually when they intersect, that is what we call "market equilibrium". That point where the 2 lines meet is the market price and market quantity.

#market #demand #supply But what these lines share, is the relationship between both parties. When prices are low, buyers will demand more. When prices are high, buyers will demand less.
May 18, 2021 6 tweets 2 min read
How does #NFT work?

First of all, we need to understand that NFT is essential items that can be collected. Like a painting, rather than a typical token which has lots of incentives associated with it to increase buyer demand.

#NFTCommunity #NFTartist #blockchain #Crypto Therefore, valuing NFT is like valuing a real-life precious item; whoever feels it has a price, will pay that price.
May 18, 2021 7 tweets 2 min read
You've heard of no-loss lottery. Now, get ready for no-loss stable coins! This week, we discussed $ALCX, @AlchemixFi, ft interview with @scupytrooples!

#stablecoin $alUSD $ALCX How does #Alchemix work?

Deposit DAI into the system to borrow alUSD
Borrow up to 50% of the DAI collateral
Deposited DAI is used to generate yield
The yield is used to pay off the 50% alUSD borrowed
May 17, 2021 4 tweets 2 min read
#Flashbot: What are the Vulnerabilities?

Arbitrage bots front-running the transactions.

What? I tell the Ethereum network that I want to make a transaction. i.e. buying 100 ETH on #Uniswap. This action will take some time to confirm.

#smartcontracts #ethereumblockchain During this period, it goes into this pool called Mempool. There, everyone can see that "hey, Lisa is going to buy 100 ETH. It is not executed yet."
Feb 22, 2021 7 tweets 3 min read
How @HegicOptions works

In general think of it as something similar to Uniswap. In Uniswap your pool will be something like let's say ETH and USDC for example.

#HEGIC #Options #DeFi #Crypto #blockchain #economics In HEGIC you just have one asset let's say ETH. You add liquidity into the pool and what we want to do is to get all these little smaller guys with some capital put them all together.
Aug 23, 2020 9 tweets 3 min read
A long episode this week on What is @AmpleforthOrg and the Economics* Design of .

*because it's the analysis of the entire economics, not just the token design mechanism 👇🏼 The first episode of S2. Season 1 was all the fundamentals of token economics and economics design. Now is where the serious and fun things begin.

Grab your headlights. We're going deep.