September 17th, 2022

Liquidity mining programs to bootstrap adoption were popularized through 2020 with great success and contributed to shed light into the potential of Decentralized Finance.

It was a cost-efficient way to incentivize liquidity providers & users and it has extensively being used across the board to the point that almost every protocol out there has used it or continues to do so.

Main problem this model presents is that inflationary assets tend to trend lower overtime due to the constant sell pressure and magical internet coins are not an exception to the rule.

As such, investors have a preference for yields being paid in majors (BTC/ETH/stables) than protocol native tokens that allows them to estimate with a bigger degree of certainty the return of their strategies.

July 9th, 2022

At this point, I believe it exists a fair consensus within the crypto community about tokens needing to evolve from pure governance tokens to value accrual ones, this can be done through several different models using protocol revenue:

  • Buy the protocol token from the market & distribute among stakers (i.e. xSUSHI)
  • Buy the protocol token from the market & burn it to reduce supply (i.e. BOTTO)
  • Buy the protocol token from the market & keep it in the treasury (i.e. YFI)
  • Redistribute part of the money generated by the protocol to token holders in major tokens (i.e. GMX)

First three methods mainly increase the share of each holder in the project and provide a constant buy pressure on the token while the 4th provides the holder with cashflows so each holder can choose whether to reinvest or diversify in other assets.

Today, I would like to take a look at all the protocols that have implemented the 4th method (cashflow protocols) as I believe they are the ultimate evolution of the model & having a bigger share of the project might not be powerful enough in itself if there is not some kind of future value accruing to holders.

March 27th, 2022

A very common and legit question by those recently red pilled in the GMX ecosystem is what is the best way to position themselves to capture the maximum upside.

This is why I believe it is a good time to dig into that issue. This article aims to:

  1. Outline my personal investing framework in the GMX world
  2. Lay out the different methods to grow your stack
  3. Crunch some numbers to gain insight about current & future cashflows

Nothing less, nothing more.