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How To Value DeFi Tokens & Find GEMS!! ๐Ÿ’Ž



๐Ÿ”ฅ TOP Crypto TIPS In My E-newsletter ๐Ÿ‘‰
๐Ÿ›’ Test Out My Merch Retailer ๐Ÿ‘‰
๐Ÿ† Signal Up To Bittrex ๐Ÿ‘‰
๐Ÿ“ฒ Coin Bureau Insider Channel ๐Ÿ‘‰
๐Ÿฆ Comply with Our Twitter ๐Ÿ‘‰
๐Ÿ“บ My deep dive on Celcius ๐Ÿ‘‰
๐Ÿ“บ All it is advisable learn about Yearn Finance ๐Ÿ‘‰
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– TIMESTAMPS –
0:00 Intro
2:13 How do you worth a protocol?
6:24 Worth creation and seize
10:24 Lack of DeFi moats
13:04 Bittrex shoutout
14:00 Aggressive benefits
18:57 Way forward for DeFi?
21:18 Remaining ideas

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โ›“๏ธ ๐Ÿ”— Helpful Hyperlinks ๐Ÿ”— โ›“๏ธ

โ–บ DeFiPulse:
โ–บ SushiSwap takes $830M from uniswap:
โ–บ DeFi wars? Uniswapโ€™s UNI token:
โ–บ Customers rush again to Sushiswap:
โ–บ Swerve Finance VS Curve:
โ–บ Harvest Finance exploited for $24 million:

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๐Ÿ’ฐ How Do you Worth A DeFi Protocol? ๐Ÿ’ฐ

Itโ€™s simple proper? Simply go onto Coinmarketcap and you’ll see the market cap for the undertaking? Maintain your horses, cowboy! Itโ€™s not so easy.

Uniswap solely very not too long ago issued a token and was Uniswap value $0 earlier than this? I believe not!

Even right this moment, DeFi protocols like DYDX shouldn’t have a token. This all makes market cap a extremely problematic valuation metric.

One other generally used metric is True Worth Locked. Thatโ€™s a elaborate method of claiming the stability sheet of a protocol. Nonetheless, the worth is hardly locked and might movement from one protocol to a different within the blink of a watch.

Take SushiSwap for instance; earlier this 12 months it forked from Uniswap and took $830 million in TVL with it.

๐Ÿ“ˆ Worth Creation and Seize ๐Ÿ“ˆ

The important thing query right here is worth creation for who? To know that, we have to know the important thing stakeholders in a DFi protocol. These are:

โ–บ Liquidity suppliers
โ–บ Customers
โ–บ Builders
โ–บ Token holders

Faucet into my ideas on how worth is created for all these stakeholders in my vid!

๐Ÿฐ Lack of DeFi Financial Moats ๐Ÿฐ

Briefly, an financial moat is solely a definite benefit that an organization has over their opponents. This permits a enterprise to guard or enhance market share and profitably.

With DeFi, these moats are tough to construct, seeing that worth will be withdrawn immediately from a protocol and might rapidly movement to a different.

Additionally, most crypto tasks are open-sourced which doesnโ€™t lend itself nicely to conventional moats like economies of scale, patents and regulatory licenses.

๐Ÿ’ช Aggressive benefits for DeFi protocols ๐Ÿ’ช

Listed here are the important thing DeFi protocol moats I personally have my eye on:

โ–บ Integrations
โ–บ Energy of group
โ–บ Nice UI/UX
โ–บ Monitor file for safety
โ–บ The assets on the undertakingโ€™s disposal
โ–บ The group

I increase on all these factors in my video. So, you should definitely watch it if you wish to obtain my ideas on this.

๐Ÿ”ฎ Way forward for DeFi stability sheet monetization? ๐Ÿ”ฎ

In the case of worth seize in enterprise, every part is kind of straight-forward. The corporate that monetizes their stability sheet the perfect often wins.

The difficulty is that the majority DeFi protocols havenโ€™t precisely monetized these stability sheets very nicely simply but. Right hereโ€™s how that might all change:

โ–บ Long run Vs quick time period liquidity: proper now there isn’t a differentiation between the 2 and meaning liquidity suppliers can hop from one protocol to a different. This prevents true worth seize. That may all be modified by rewarding long-term liquidity provision and this may result in actual TVL.
โ–บ Right this moment, a load of crypto merely sits in good contracts and does nothing. These are belongings on a DeFi protocolโ€˜s stability sheet that could possibly be monetized. A method of doing that may be by utilizing rehypothecation.

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๐Ÿ“œ Disclaimer ๐Ÿ“œ

The data contained herein is for informational functions solely. Nothing herein shall be construed to be monetary authorized or tax recommendation. The content material of this video is solely the opinions of the speaker who isn’t a licensed monetary advisor or registered funding advisor. Buying and selling cryptocurrencies poses appreciable threat of loss. The speaker doesn’t assure any explicit consequence.

#defi #crypto #blockchain #ETH #UNI #YFI

Source: Coin Bureau

47 Responses

  1. take a look at @treedefi's new whitepaper, amazing project, 1/3 of fees go to reforestation and eco-friendly projects, project also counts on future sale of CARBON CREDITS. extremely low marketCAp

  2. ha wowww. Guy I love you and love your work, but you take sponsored content, it actually has a good offer because I can't afford gas fees, I was about transfer my ETH into my Bittrex account as you were speaking, and then you say, "sorry my U.S. viewers, can't get involved…" really bro? that's some messseddd up stuff right there

  3. I love all your works! You are at the top of Youtube!

    Please, make a new review about Duck Liquidity pool from duckdao.io. Seems their new $DUCK token token will blow up the whole market. High rewards and one side burn created totally new profitable platform

  4. Even though Harvest Finance had an important loss, we have to admit that the platform is in a pretty good shape, as demonstrate also the token that is stable arround 100 euros

  5. Very positive work! Youโ€™ve made my day, dude

    Did you see the new duckdao.io farms? New deflationary farming 2.0 system can attract a lot of users…and I like they want to make it for long-term passive income. It is interesting!

  6. Bro I'm a noob and I'm lost in all the info. What's a good. Portfolio. How do I find value in a coin. Where or how do you do research?
    If you can answer those questions you'd be a boss.
    I'll subscribe now anyway lol

  7. Long video without a real answer. I'd say that DeFi protocols should be measured in terms of volume and fees they produce, similar to stocks and bonds. I.e. UNI holders could vote in the future to distribute collected fees on holders. That'd be REAL value.

  8. 2:18 Sounds like you're no fan of something like the DPI defi index fund token? As I understand it's based solely on market cap (with a ruleset to filter some projects out despite market cap)

    Or is it good enough that the basket is rebalanced regularly?

  9. Hi Guy! Interesting video as always! ๐Ÿ˜Š
    Funny that you should mention rehypothecation.
    Deus Finance (https://deus.finance/ ) are launching their vault offering very soon which, as you alluded to, would be a first in the Defi space. They have a scheme involving time related tokens which looks very promising ๐Ÿ˜€

  10. Decrease the slippage and increase your revenue while providing liquidity on any liquidity pool on Uniswap – use @PeanutTrade $NUX

  11. Have you seen the Unifi Defi (UNIFI) token? Looks good, don't mention CDF which is like "stimulus" for holders. Check this out, many bonuses and added tokens to CDF buckets, returns will be insane if the price will go up!!!

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