Daniel Cheung Profile picture
Tech / DeFi Investor. Public Markets & Seed Investor = Always Hunting For Secular Growth Opportunities. Not Investment Advice (This Ain't Charity).
Jerome Ku Profile picture Pierre Profile picture 2 added to My Authors
14 Sep
I am only getting more excited everyday as we approach @terra_money Columbus 5 upgrade.

Let me summarize quickly the 4 main reasons why I am so bullish on $LUNA as a result.

Read to the end for my ELI2 key takeaway.

Here it is: 🧵
1.Seigniorage Burns (Burn all LUNA from UST mints) - A large portion of this wasn't being burned prev. and instead being directed to a community pool.

Therefore, post Col-5 $LUNA circ. supply could see a sizeable drop as a result which exerts strong upward price pressure.
2.Terra will be IBC enabled and UST becomes the defacto stablecoin of Cosmos ecosystem.

UST demand will significantly ramp as a result => more $LUNA being burnt => price appreciation.
Read 6 tweets
10 Sep
Came across a very interesting project recently that reminded me of @OlympusDAO back when it was $30mm mkt cap.

Chart looks prime, now is the $TIME anon.

This is an easy 3x at the minimum from here.

Some quick thoughts 👇
As you all know, making a non-pegged stable coin project come to fruition is difficult.

@OlympusDAO was able to succeed because it was able to attract a strong community early on where everyone believed in (3,3) Zeus was also a god figure which helped.
Wonderland is an experimental fork of Olympus on AVAX with more aggressive treasury mgmt.

The project is founded by @danielesesta (giga brain) from Abracadabra & Popsicle.

To bootstrap the project, Wonderland will donate 30% of rebase fees to Olympus as a sacrifice to the gods
Read 8 tweets
2 Sep
The L1 incentive war happening in crypto reminds me of the landgrab situation taking place with US online sports betting.

For the first time, we are seeing strong activity take place outside of ETH leaving some to question who the LT winner will be.

Here are my thoughts👇
Here are the parallels between the current smart contract wars and US OSB mkt:

1) Massive TAM with large greenfield

2) Market structure where share accrues to top 3 players

3) Both in landgrab situation where competitors are burning tons of $$ to win share
Below is a chart of price action for $DKNG (Draftkings), an American daily fantasy sports contest and sports betting operator.

The DKNG story will likely somewhat resemble what will happen for the fundamentals of ETH as these contract wars progress.

Allow me to explain.
Read 15 tweets
20 Aug
I believe the market is currently failing to fundamentally price $RUNE.

@THORChain should be viewed as an asset with L1 like potential, and there exists a massive upward re-rating oppt. should the market realize this.

$RUNE is a 40% position for me.

Here’s why I am excited 🧵
Before we begin, here is one of the best papers published on @THORChain to give you a brief reminder of what they do:

messari.io/article/thorch…
It is obvious at this point that Layer 1s have been attracting a ton of flows recently with most up >150% over the last few weeks.

I am a massive fan of investing in L1 like assets given their favorable asymmetric R/R profiles.

Read 10 tweets
18 Aug
$PENDLE just announced some massive changes to the protocol, which I expect to drive material fundamental growth for the protocol over the coming months.

Interest rate derivatives is an untapped market in DeFi and there is continuous innovation happening here.

👇 to learn more.
The recent updates further expand the use cases for @pendle_fi and also introduces a meaningful change to token economics for $PENDLE.

The two updates are:

1) Introduction of yield tokenization for SLP shares

2)(Pe,P) rewards program
Read 11 tweets
18 Aug
Have been getting some DMs lately on when I plan to sell my $SOL position so thought I'd do a quick thread so everyone can benefit.

TLDR: I think there is still at least 4x to go from here, which is meaningful.

👇 to learn why
At the highest level, valuation of an asset comes down to two things:

1) Fundamentals, usually addressed via some "Core" KPI such as TVL, $ Txs settled etc...

2) "Willingness To Pay" factor, which is more art than science and is influenced by comps, market cycle & other things
The way you make the most money as a fundamental investor is by getting a multiple expansion on the markets WTP factor.

However, this is much more art than science and is often what determines who is "talented".
Read 15 tweets
16 Aug
$SOL will be one of the fastest horses in the next leg of the bull run.

The Solana ecosystem continues to build momentum with development activity booming and TVL soaring past ATHs.

Even at current val. it still offers one of the best R/R in crypto.

$SOL summer is coming🧵
The value proposition of Solana boils down into a simple pitch:

The fastest and cheapest smart contract platform in crypto.

But that alone isn’t interesting enough for Solana to stand out.
The key value proposition vs its major competitors (ETH, DOT, ATOM) is that it does not pursue scalability through sharding.

It instead maintains a single shared state enabling synchronous composability for every application on Solana.
Read 21 tweets
12 Jul
COMP will likely vastly outperform ETH & DeFi over the next 6 months given:

1) Compound Treasury - more liquidity, better borrowing rates, more adoption

2) Compound Chain - more chains, more collateral, larger TAM

Institutional adoption is here & COMP is at the center of it 🧵
' @compoundfinance is an ETH-based project that is focused on establishing various money markets on Ethereum.

The protocol aggregates a bunch of assets into a single pool so that suppliers & borrowers can interact directly with the protocol as opposed to with a third party.
This is a superior model for collateralized lending vs. how it is currently done traditionally by banks given:

1) It eliminates the need for matchmaking

2) Terms are set algorithmically, which removes the need for negotiating terms and increases trust

3) Better transparency
Read 18 tweets
21 May
Here is a compilation of all the major threads I have done in the past on "Principles of Investing" & "Fundamental Analysis of Crypto-currencies".

I like to take concentrated long term bets and only invest in the highest quality names.

Fundamentals > Hype

Compilation below 👇 Image
My initial thoughts / thesis on @THORChain, the number 1 cross-chain DEX:

My initial thoughts / thesis on @cosmos, a highly undervalued L1 project with an exploding ecosystem:

Read 15 tweets
18 May
$PENDLE is the most undervalued low cap gem in DeFi (~$20mm mkt cap).

Pendle will introduce yield derivatives to the crypto economy as well as a novel AMM specialized for trading time decaying assets.

Behold a brand-new narrative and the next major evolution of DeFi.

1/
Pendle will be the first protocol that will enable the trading of tokenized yields on Ethereum.

For users, Pendle will allow them to tokenize their yields and sell it for upfront cash.

For traders, Pendle will provide the most capital efficient way to speculate on yields.
Pendle enables holders of yield generating assets (e.g. lending deposits) to break out their deposits into an ownership token (OT) and a future-yield token (XYT).

OT represents a claim on the underlying asset.

XYT represents a claim on future yields up to a certain date.
Read 14 tweets
27 Apr
$YFI's quarterly report and new dashboard showcase some impressive numbers and only further solidify what a sleeping giant @iearnfinance is.

I see $YFI market cap at easily over >6bn (4x from here) in the next few months and here is how I get there.

1/
Assumptions:

1) $YFI is able to grow yVault revenue month/month at below historical avg of 80% (likely conservative given $YFI constantly rolling new strategies)

2) Maintain $500k in treasury farming revenue and assume no growth in monthly revenue there

3) Trade at 40x Rev
Another interesting thing to point out is the fact how resilient TVL was despite massive correction in crypto over last week.

Perhaps users are a lot stickier than anticipated and this paves the way for exponential growth given $YFI has a base to continuously grow off of.
Read 4 tweets
16 Apr
Cosmos is home to a booming $100bn+ ecosystem that includes Binance, Terra, and THORChain.

Many overlook Cosmos due to misconceptions that value doesn't accrue to $ATOM.

However, upcoming upgrades change this story and $ATOM will be at the center of the Cosmos ecosystem.

1/
First a quick overview of Cosmos.

Cosmos consists of various independent blockchains that follow a hub and spoke topology.

Hubs = Router of information for zones.

Zones = Application specific blockchains.

They communicate through an interoperability standard called IBC.
Cosmos provides a development kit (Cosmos SDK) for developers so that they can build application specific blockchains (zones).

Blockchains built with the Cosmos SDK have the ability to customize their chains to optimize for their use cases (ie Thorchain = cross-chain liquidity).
Read 15 tweets
27 Mar
$OHM has the highest potential of the non-pegged stablecoins to 5x within a month.

It trades at a significant discount to peers despite having a similar multi-billion $ TAM, intelligent token design, and backing from elite investors.

Behold the path to Mount Olympus.

👇 Image
Ethereum is dollarizing with traditional stablecoins accounting for ~60% of daily txns.

This reliance on the dollar is concerning and introduces regulatory risk that borders systemic.

$OHM aims to restore Ethereum's monetary independence and the potential TAM is easily>$50bn.
Just like how central banks manage their currencies using reserve assets (i.e USD, Gold, etc), Olympus DAO manages $OHM using reserve assets.

$OHM ultimately will stabilize against a basket of assets making up its treasury. Image
Read 15 tweets
3 Mar
Thought I would share some valuable investing knowledge I have accumulated from experience in Tradfi so we are all equipped to make $$$ this run.

1/ Image
1. Markets remain irrational for longer than you think, so don't be scared to press your winners (i.e. when people think we have topped, the real move is often yet to come).

The market as a whole can continue to get overvalued often for a long time and vice versa.
2. I'm seeing too many people place too much emphasis on certain ratios for DeFi projects such as P/E or FD/TVL.

What you need to consider is the full context — the film version as opposed to pictures.
Read 7 tweets
20 Feb
It's clear to me that we are headed to a multi-chain world.

At the center of this world is the demand to move value between blockchains.

$RUNE is not only the best way to express this thesis, it is the purest way of expressing it, which provides it a scarcity premium.

1/
@thorchain_org is an independent blockchain built using the Cosmos SDK.

It is not only optimized for cross-chain liquidity, it also offers extremely strong value capture for $RUNE, which accrues value deterministically based on liquidity.

THORChain’s economic model is not fantasy.

It has been validated by @gauntletnetwork and has been tested in the wild for months on ChaosNet.

The value of $RUNE must always be worth 3x the value of external assets in THORChain’s liquidity pools.

Read 12 tweets