1/ AI x Blockchain is a new frontier.

We're currently in the market of modular and restaking, which absorbed and merged the spirit of DeFi summer.

Let's talk about what is currently happening in the AI x Blockchain space, which will be a dominating narrative imminently
🧵👇 2/ But first, let's evaluate the inverse statement and focus not on what AI can do for blockchain, but what blockchain can do for AI.

Currently, the AI space is centralizing more and more.

https://twitter.com/ricburton/status/1746430336416809199

1/
I am no longer a believer in generalized modular rollups or top down generalized rollups.

I believe rollups should be app specific. This allows node networks to hyper optimize for the calculations the application needs. If you're generating zk circuits, this applies more. 2/
In the app specific approach, data and computation needs are significantly reduced since there are only certain transactions and computations needed, maybe they can be rolled into 20 types total.

This makes syncing and storage requirements significantly more efficient

1/ When I first said we'd raise 32 M, one of our investors spit out his coffee.

It was logical, we executed & scaled out a strong team. We wanted to be ready for the 🐻.

At the time, we raised the highest DeFi round to date, causing a rise in vals.

Now we have a 5yr+ runway. 2/ And we get to put our full focus on building, shipping, educating and recruiting top talent.

We get to build real bonds with other teams that are doing the same in the space and the noise will now subside.

In the last bear, some of the coolest innovations were built.

1/
We have just scratched the surface on fixed and variable rates…

I’m excited to share the roadmap at @element_fi for the next 9 months, which we believe will make fixed and variable rates a core DeFi primitive.

mirror.xyz/0x3fcAf7DDf64E… 2/
Propagating fixed rates as collateral in the space brings more activity across all of DeFi.

We see a direction where using Element enhances your yield on any position. It may make more sense to use Element for your variable yield instead of going directly to the yield source

1/
I coded a simulation showing 3-7x multiplied exposure to fixed rate principal APRs.

🔒 They're fixed, so returns are known upfront
💧 They allow for mitigating liquidation risk
📖 They're great as collateral

Let's analyze the data and output graphs. 2/ But first, the quick & dirty disclaimer:
- This is a research project. I’m a data nerd. Please run the data & play for yourself
- It's open for review & there could be mistakes. Submit a GH issue!
- This is not an investment or trading strategy

Repo: github.com/villanuevawill…

1/ Hypothesis: NFTs will be an integral part of DeFi and DAOs from this point forward,

which is why we've launched the Elfiverse.

https://twitter.com/element_fi/status/1507414676832866307

2/ How the Elfiverse is used as part of the Element ecosystem will be up to the community. For inspiration, I'll share ideas:

1/ Why I don't believe in the yield token markets we had on Element, and why we removed them today. 2/ First, a quick review. Element splits yield positions into two new primitives, the principal deposited and the yield earned. Both are redeemable after 6 months.

Is collateral borrowing the best way to get exposure to stablecoin yields? Or is there a better solution?

In bull or bear, market dynamics are different. Let's analyze, but first we'll introduce a new collateral-free method of borrowing, De-Collateralize.
bit.ly/3iIngm1 This is a way to get exposure to stablecoin yields if you are holding mostly non-stable tokens such as ETH, or a way to get exposure to non-stablecoin yields if you are sitting on a large pool of stablecoins in your portfolio.