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Good evening frens,
Let's talk pink ducks...
Let's talk pink ducks...
In this thread, I am going to back waaaaay up and assume you nothing about DeFi or the @unitprotocol project.
...because, let's face it, few understand and this is all very, very early
...because, let's face it, few understand and this is all very, very early
The name of the game in DeFi (or decentralized finance) is to replace the old financial system (banking, brokerage, degen gambling) with apps that can be used by anywhere in the world with minimal cruft and regulation.
The @unitprotocol project operates in two large, let's call them segments:
1) lending (~$7 trillion per year)
2) dollar-denominated payments (~$80 trillion all in)
The current market capitalization of $COL, according to CoinGecko is ~ $20m https://www.coingecko.com/en/coins/unit-protocol
1) lending (~$7 trillion per year)
2) dollar-denominated payments (~$80 trillion all in)
The current market capitalization of $COL, according to CoinGecko is ~ $20m https://www.coingecko.com/en/coins/unit-protocol
If I read their whitepaper correctly, the project is doing two things:
1. Launching a lending platform on the Ethereum blockchain that does not require banks; and
2. Creating a new stablecoin (USDP) in which loans are made
1. Launching a lending platform on the Ethereum blockchain that does not require banks; and
2. Creating a new stablecoin (USDP) in which loans are made
Why are stablecoins important?
Any why are there so many of them?
Any why are there so many of them?
Use Case 1:
Well, if you are daytrading crypto and the market tanks.
All your shitcoins tend to go down at once.
You want to keep your money in crypto, but without the volatility.
Enter the stablecoin, which is pegged to the USD.
Well, if you are daytrading crypto and the market tanks.
All your shitcoins tend to go down at once.
You want to keep your money in crypto, but without the volatility.
Enter the stablecoin, which is pegged to the USD.
Use Case 2:
You are a company and want to send $2k to someone overseas.
You could use Western Union or a bank wire.
Or you could do this using a stablecoin transaction for pennies on the dollar in fees
You are a company and want to send $2k to someone overseas.
You could use Western Union or a bank wire.
Or you could do this using a stablecoin transaction for pennies on the dollar in fees
There are already a bunch of stablecoins out there:
Tether / UDT (Hong Kong)
Circle / USDC (US)
DAI (US)
Notice a trend?
These are all big companies with a home base...
Tether / UDT (Hong Kong)
Circle / USDC (US)
DAI (US)
Notice a trend?
These are all big companies with a home base...
Why does this matter?
Perhaps you've seen this in the crypto news? https://www.coindesk.com/us-lawmakers-introduce-bill-that-would-require-stablecoin-issuers-to-obtain-bank-charters
Perhaps you've seen this in the crypto news? https://www.coindesk.com/us-lawmakers-introduce-bill-that-would-require-stablecoin-issuers-to-obtain-bank-charters
The US government is not too keen on random companies "issuing" crypto dollars.
If you are issuing a stablecoin, you may soon be getting a visit from these guys
If you are issuing a stablecoin, you may soon be getting a visit from these guys
They are the first stablecoin issuer to be completely stateless.
The frogs on twitter will compare $COL to lending apps like AAVE and Compound.
But they're ALSO taking aim at the huge stablecoin issuers...
But they're ALSO taking aim at the huge stablecoin issuers...
Other bonuses:
You will be able to post many different shitcoins as collateral- not just the top few.
...this will eat market share from other lenders.
And its totally offshore footprint will give it cred with crypto nerds who hate banks
You will be able to post many different shitcoins as collateral- not just the top few.
...this will eat market share from other lenders.
And its totally offshore footprint will give it cred with crypto nerds who hate banks
Ok...
Let's talk valuation:
How big could a company get that replaces part of the USD-denominated lending system?
Let's talk valuation:
How big could a company get that replaces part of the USD-denominated lending system?
Wells Fargo, $WFC is America's 3rd largest bank.
It's market cap is $200b.
@unitprotocol market cap is $20m
It's market cap is $200b.
@unitprotocol market cap is $20m
... and that's before the built-in token buyback and burn that was just announced: https://unitprotocol.medium.com/quackonomy-update-93bf13ef389d
This directs 70% of the fees generated in year 1 to buying back and burning even more of the tokens.
The duck will eat itself.
The duck will eat itself.
If you'll notice, this thesis doesn't mention aNdRe, sUsHi, dEriSwAp, or any other embedded optionality in the project. ...
There are rumors.
We have our suspicions
But the thesis doesn't need any of these catalysts
We have our suspicions
But the thesis doesn't need any of these catalysts
This thread also leaves aside the meme-o-nomics which are strong
TLDR?
You can become a $COL millionaire today for about $1k.
If you ape in, you will be backing the first truly stateless $USD stablecoin
... and get a call option on the future of lending for free
You can become a $COL millionaire today for about $1k.
If you ape in, you will be backing the first truly stateless $USD stablecoin
... and get a call option on the future of lending for free
The MVP is working and the team (from some light stalking of their chats) seems to be filled with heads-down #BUIDL ers
Not financial advice...
DYOR...
But when you see the now you will know why many are excited.
DYOR...
But when you see the now you will know why many are excited.
