Puffer finance using intel SGX, Token market fit, Consumer apps undervalued, Intent-based systems, tokenize everything…
What I wrote this week…
What I read this week…
Puffer finance using Intel SGX Trusted Execution Environments (TEEs) to reduce the slashing event on Eth staked and restaked on its platform. This also allows them to reduce the required to 1ETH way lower, there reward distribution ensures consistent returns for stakers, regardless of individual validator performance.
Tokens serve as something of a prediction market on the crowd’s collective interest in a project moving in a particular direction.
The massive expansion of AI token valuations in the last 6 months is clear evidence of this.
Normally when startups go out to raise, it’s because they have a particular set of goals, which requires new funding. This allows for a feedback loop for founders (if people hate your new plans, they won’t invest).
Tokens stand in direct competition to venture capital — they’re substitute products.
Consumer apps are undervalued compared to infra.
Increased fragmentation means developers are building new ecosystems and applications for consumers to use. Scaling issues mean that more and more people are engaging with experiences onchain.
They are signs of more developers building applications and more consumers using them.
Intent-based bridges are better than message-based bridges. Across is cheaper and faster than other bridges.
Intent-based systems let you abstract everything chain, Defi apps this is the endgame to provide the best user experience. Chain Abstraction is just the start. Intents can be an action on the chain.
Enso is the on-chain intent engine, providing great front-end developer experience. Seems to be good at Defi routing, other intent-based applications can leverage Enso.
2 of the main risks in USDe are the 25% value diversion of stETH from ETH and the Funding rate for ETH/USD short position becoming negative, both these haven’t happened in the past 3 years.
The idea of 'tokenizing everything' isn’t far off. The time to token for a trend or an event has rapidly shrunk.
What would the world look like where everything has a price tag?
The gap between CEX and DEX Volume will close with the improved UX with gas fees, account and chain abstraction, and email wallets.
A simple framework to think about potential valuation for ETH (& BTC) this cycle:
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$10 trillion market cap for crypto
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BTC 40% at peak (43% last cycle)
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ETH 45% of BTC market cap at peak (50% last cycle)
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= ETH Marketcap at cycle peak = $1.8 trillion
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= $14,984 (3.9x) Price/ETH at cycle peak
Winning consumer apps that own the end user could eventually threaten the protocols.
Begin EVM compatible is really important has a new chain, so that you get >90% web3 developer on boarded. Currently, if devs want to build performance apps their only choice is non-EVM chains, I think there is a demand for performant EVM chains.
See you next week!