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Aggregation + who wins
Best alpha (Yearn, Pickle) - incentivizes the best strategies
Best UIs (Zapper, Debank) - stickiest + functionality
Index/Robo (Set Protocol, Idle, APY, Rari, Harvest, Delphi) = attracts retail
Active (Melon, dHedge) - attracts top managers
Best alpha (Yearn, Pickle) - incentivizes the best strategiesBest UIs (Zapper, Debank) - stickiest + functionality Index/Robo (Set Protocol, Idle, APY, Rari, Harvest, Delphi) = attracts retail Active (Melon, dHedge) - attracts top managers
Next question is how does this look once they're all using each other:
- UI's will plug into the best alpha projects. Former gets the user relationship, latter gets a nice cut and TVL
- Index + robo will plug into best alpha to juice returns (adding a nice cut and TVL)
- UI's will plug into the best alpha projects. Former gets the user relationship, latter gets a nice cut and TVL
- Index + robo will plug into best alpha to juice returns (adding a nice cut and TVL)
- The active funds will take advantage of discrepancies/ARB throughout the aggregators, but also by arbing what the aggregators are investing in.
This is also complicated by the fact that a winning protocol (i.e. attracts the most TVL or users) may not have the best value capture
The good thing is if you win users/TVL you can "generally" fix the token econ later as long as its not destroyed from the get-go
The good thing is if you win users/TVL you can "generally" fix the token econ later as long as its not destroyed from the get-go
This is also complicated by forking (UI, strategies, code, etc) but from what we've seen this is "much" easier said than done since you're not bringing the community (or TVL) with you which operates at light speed to improve foster the protocol. This can't be understated.
Another complication is what happens when active (YFI, Pickle etc) get so large they can't beat the market. Essentially they become the index provider.
Net, they prob attract more TVL than the pure-play index providers from crypto natives since they're here for the alpha "now"
Net, they prob attract more TVL than the pure-play index providers from crypto natives since they're here for the alpha "now"
Another point, centralized vs decentralized plays
The trad masses don't care about decentralization, and 6% sounds great (beats 0% or negative)- so maybe they use @BlockFi.
Is another X%+ worth the learning curve by using decentralized BlockFi? Prob not for the masses
The trad masses don't care about decentralization, and 6% sounds great (beats 0% or negative)- so maybe they use @BlockFi.
Is another X%+ worth the learning curve by using decentralized BlockFi? Prob not for the masses
Also what happens in a cross-chain yield farming 
I'd argue @thorchain_org has excellent value cap mechanisms regardless of which segment uses their protocol to swap assets cross-chain in the hunt for yield.
The more time-sensitive/larger the trades, the better for Thorchain
I'd argue @thorchain_org has excellent value cap mechanisms regardless of which segment uses their protocol to swap assets cross-chain in the hunt for yield.
The more time-sensitive/larger the trades, the better for Thorchain
While it's easier to compare projects in binary terms the reality is there will be multiple winners per segment
@iearnfinance @picklefinance @zapper_fi @DeBankDeFi @SetProtocol @idlefinance @apyfinance @RariCapital @harvest_finance @akropolisio @melonprotocol @dHedgeOrg etc
@iearnfinance @picklefinance @zapper_fi @DeBankDeFi @SetProtocol @idlefinance @apyfinance @RariCapital @harvest_finance @akropolisio @melonprotocol @dHedgeOrg etc
Have more thoughts but this thread got too long!
Disclosure: We are investors in some of the projects mentioned. View our transparency page for more information - http://DelphiDigital.io
Disclosure: We are investors in some of the projects mentioned. View our transparency page for more information - http://DelphiDigital.io
Another thought - literally, everything here is built on Ethereum.
Granted, L1's with new design spaces are only recently live or limited-live.
Regardless, DeFi and YF will live on other chains. Then cross-chain YF will be born
Granted, L1's with new design spaces are only recently live or limited-live.
Regardless, DeFi and YF will live on other chains. Then cross-chain YF will be born
Plz don’t slide in my thread with maxi anything. ETH is winning but other chains will prob shine too (less likely but possible)
Static viewpoints can’t compete with the explosive innovation that can occur on new design spaces.
Everything evolves, so should our views
Static viewpoints can’t compete with the explosive innovation that can occur on new design spaces.
Everything evolves, so should our views
Missed one - incentives to attract top talent. This is most important for the alpha plays
- Yearn/pickle - cut of fees, issuance and clout (“my strategy was selected by the YFI community!”)
Incentives require a much longer discussion though
- Yearn/pickle - cut of fees, issuance and clout (“my strategy was selected by the YFI community!”)
Incentives require a much longer discussion though
