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A long thread on @Bancor $BNT
No time to fix spelling, grammar, my beautiful images, or washy/repetitive explanations. use your brain to fill in the holes.
how I fill out employment forms:
Occupation: Charity worker.
No time to fix spelling, grammar, my beautiful images, or washy/repetitive explanations. use your brain to fill in the holes.
how I fill out employment forms:
Occupation: Charity worker.
2) The beginning are a bunch of pictures you can use these for reference. memorize them.
skip a few slides or browse these first few. good for mental picture.
how big defi is
skip a few slides or browse these first few. good for mental picture.
how big defi is
3)dex trade volumes parabolic
5) total value in sushiswap
6) total value in uniswap
7) total value in bancor
8) sushiswap daily trade volume
9) uniswap daily trade volume
10) bancor network daily trade volume
11)
Sushiswap has grown from 250m to 1.75b TVL. Approx 7x increase. 90 day.
Bancor has grown from 20m to 170m TVL. Approx 8x increase. 90 day.
Uniswap TVL fell from 3 billion to 1.5 billion and climbed back.
Sushiswap has grown from 250m to 1.75b TVL. Approx 7x increase. 90 day.
Bancor has grown from 20m to 170m TVL. Approx 8x increase. 90 day.
Uniswap TVL fell from 3 billion to 1.5 billion and climbed back.
12)Sushiswap volumes have grown, from just $10m average per day to now 200-300m+ with recent week at over 500m each day. 20-30x
Bancor volumes grew from ~500k on average to ~$5 million, with a recent days ~10m each day. 10-20x
Uniswap volumes went 3-4x even with diminished TVL
Bancor volumes grew from ~500k on average to ~$5 million, with a recent days ~10m each day. 10-20x
Uniswap volumes went 3-4x even with diminished TVL
13)
What does this mean?
It means having small TVL is really bad.
You can't get trading volume.
As TVL increases trading volumes increase.
What does this mean?
It means having small TVL is really bad.
You can't get trading volume.
As TVL increases trading volumes increase.
14)
Sushi volumes are increasing 2x more than bancor though.
It also means once you hit the "sweet spot" the TVL brings diminishing returns. Uni was able to pump out insane volumes even with less TVL, because having 1b~ is "enough" to give competitive pricing.
Sushi volumes are increasing 2x more than bancor though.
It also means once you hit the "sweet spot" the TVL brings diminishing returns. Uni was able to pump out insane volumes even with less TVL, because having 1b~ is "enough" to give competitive pricing.
15)
Why did Sushi grow so much faster than Bancor?
Liquidity on the lower end of the spectrum should bring with it more trading volumes and diminishing as it grows.
The answer is something that most "defi analysts" have not yet solved.
Why did Sushi grow so much faster than Bancor?
Liquidity on the lower end of the spectrum should bring with it more trading volumes and diminishing as it grows.
The answer is something that most "defi analysts" have not yet solved.
16)
The meme is "More TVL brings higher trading volumes"
The hidden secret is "Lower trading fees bring trading volumes up, which brings in TVL because more fees earned, and free marketing from aggregators" but this cycle has to be jump started with a "base" level of liquidity
The meme is "More TVL brings higher trading volumes"
The hidden secret is "Lower trading fees bring trading volumes up, which brings in TVL because more fees earned, and free marketing from aggregators" but this cycle has to be jump started with a "base" level of liquidity
17)
My guess is that this "base level" of liquidity is somewhere around $200-400 million that $Sushi had based on the graph in the november period.
The magic isn't just this base level of liquidity.
The magic for trading volumes, is literally, the fee. yes. THE FEE.
My guess is that this "base level" of liquidity is somewhere around $200-400 million that $Sushi had based on the graph in the november period.
The magic isn't just this base level of liquidity.
The magic for trading volumes, is literally, the fee. yes. THE FEE.
18)
As soon as Sushiswap hit the base liquidity level, volumes exploded.
Uniswap and Sushiswap both share the same trade fee of 0.3%
Alamababa @SBF_Alameda realized this and yoloed into sushi in fall 2020 and made 10x to current price. He was rewarded handsomely.
As soon as Sushiswap hit the base liquidity level, volumes exploded.
Uniswap and Sushiswap both share the same trade fee of 0.3%
Alamababa @SBF_Alameda realized this and yoloed into sushi in fall 2020 and made 10x to current price. He was rewarded handsomely.
19)
Moving on and why Bancor set to take the crown.
here is a picture of the Bancor interface.
https://app.bancor.network/
Moving on and why Bancor set to take the crown.
here is a picture of the Bancor interface.
https://app.bancor.network/
20)
All swaps on bancor require 2 steps. if you want to swap eth to link, its 0.1% and 0.5% fee. eth-bnt then bnt to link. for a fee of 0.6%
Eth-Link in Sushi and Uni is only a 0.3% fee.
It's no wonder Bancor is getting such small trade volumes.
All swaps on bancor require 2 steps. if you want to swap eth to link, its 0.1% and 0.5% fee. eth-bnt then bnt to link. for a fee of 0.6%
Eth-Link in Sushi and Uni is only a 0.3% fee.
It's no wonder Bancor is getting such small trade volumes.
21)
Don't fucking meme $BNT though. It GUARANTEES all trades have two hops to finality.
Have you seen the russian wizards at @1inchExchange?
Some of their shit has literally 15 hops. what. the. fuck. this will only get worse as liquidity fragments across defi.
Don't fucking meme $BNT though. It GUARANTEES all trades have two hops to finality.
Have you seen the russian wizards at @1inchExchange?
Some of their shit has literally 15 hops. what. the. fuck. this will only get worse as liquidity fragments across defi.
22)
Think of pricing on these AMM dexes as a curve.
The less liquidity you have, the steeper your curve is.
This curve is dependent "per pool."
For this example (thread), understand we assume that uni has higher liquidity on average.
Think of pricing on these AMM dexes as a curve.
The less liquidity you have, the steeper your curve is.
This curve is dependent "per pool."
For this example (thread), understand we assume that uni has higher liquidity on average.
23)
So lets get into why 1inch, dex ag, paraswap, and other aggregators are useful.
imagine if you buy this many tokens, on uni, or on sushi.
this is the price you pay using 1 of them. either just uni, or just sushi.
So lets get into why 1inch, dex ag, paraswap, and other aggregators are useful.
imagine if you buy this many tokens, on uni, or on sushi.
this is the price you pay using 1 of them. either just uni, or just sushi.
24)
now look at what happens when we use aggregators.
we split the order between both.
We buy from both curves. nice? genius.
***24 is max tweets at a time. next 24 coming.
do not reply. yet. ***
now look at what happens when we use aggregators.
we split the order between both.
We buy from both curves. nice? genius.
***24 is max tweets at a time. next 24 coming.
do not reply. yet. ***
25)
So now lets talk about Bancor.
Bancor has now arrived at the "magic zone" with $200m in liquidity. but why isnt it getting any trades?
because the fucking trade chart looks like this!
big yikes.
So now lets talk about Bancor.
Bancor has now arrived at the "magic zone" with $200m in liquidity. but why isnt it getting any trades?
because the fucking trade chart looks like this!
big yikes.
26)
You could have 10 billion in liquidity in bancor and it would never get any volumes until the uniswap or sushi slippage for an order would be greater than 0.3% plus the 0.3% trade fee.
in the case of an eth-link swap on UNI it takes a trade of 88 eth to reach 0.3% slippage
You could have 10 billion in liquidity in bancor and it would never get any volumes until the uniswap or sushi slippage for an order would be greater than 0.3% plus the 0.3% trade fee.
in the case of an eth-link swap on UNI it takes a trade of 88 eth to reach 0.3% slippage
27)
This means if a trader used an aggregator of Uni + Bancor.
ALL trades BELOW 88 eth would go 100% to uniswap.
Trades above 88 eth would go:
88 to uniswap + then split remainder between Bancor + uni based on liquidity curve.
This means if a trader used an aggregator of Uni + Bancor.
ALL trades BELOW 88 eth would go 100% to uniswap.
Trades above 88 eth would go:
88 to uniswap + then split remainder between Bancor + uni based on liquidity curve.
28)
But remember uni and bancor are not the only two dex There are 100 dex
You have to buy ALL that with trade fee + slippage, below 0.6% before any liquidity is pulled from bancor.
What the fuck! It's 1 thousand eth order on 1inch before any trade routes to bancor eth-link pool.
But remember uni and bancor are not the only two dex There are 100 dex
You have to buy ALL that with trade fee + slippage, below 0.6% before any liquidity is pulled from bancor.
What the fuck! It's 1 thousand eth order on 1inch before any trade routes to bancor eth-link pool.
29)
Verify it yourself.Create a swap of eth to link. Start entering numbers of eth, until you see Bancor show up in the router. It varies between 800-1400 eth.
Theres a god damn reason that bancor has no trader volumes. It's called trade fee.
Verify it yourself.Create a swap of eth to link. Start entering numbers of eth, until you see Bancor show up in the router. It varies between 800-1400 eth.
Theres a god damn reason that bancor has no trader volumes. It's called trade fee.
30)
Liquidity is _NOT_ everything.
Bancor is unique in that it has two swaps for all trades. Eth to Bnt, then Bnt to token desired.
Liquidity is _NOT_ everything.
Bancor is unique in that it has two swaps for all trades. Eth to Bnt, then Bnt to token desired.
31)
The "swap fee" for Bancor is 0.1% for Eth-BNT , and then X for BNT- token.
So swap fee is 0.1% + X
Every pool on Bancor with a swap fee (X) greater than 0.2% suffers from the ridiculousness of this example.
The "swap fee" for Bancor is 0.1% for Eth-BNT , and then X for BNT- token.
So swap fee is 0.1% + X
Every pool on Bancor with a swap fee (X) greater than 0.2% suffers from the ridiculousness of this example.
32)
So how the fuck is Bancor getting volume?
1. We know for a fact it isn't 1000+ eth orders.
2. Apes that use http://Bancor.Network directly without shopping for best price on an aggregator also exist, but few (I hope)
So how the fuck is Bancor getting volume?
1. We know for a fact it isn't 1000+ eth orders.
2. Apes that use http://Bancor.Network directly without shopping for best price on an aggregator also exist, but few (I hope)
33)
3. When the price volatility of Eth-Link pool moves more than 0.6% arbitragers will step in and collect the arbitrage. It is safe to say, these arbitragers are the ONLY volume that exists on Bancor (99%+ by my estimates)
3. When the price volatility of Eth-Link pool moves more than 0.6% arbitragers will step in and collect the arbitrage. It is safe to say, these arbitragers are the ONLY volume that exists on Bancor (99%+ by my estimates)
34)
Bancor pools are only getting volume when prices are volatile for the day.
Check for yourself on flat days. No trade volumes.
Bancor pools are only getting volume when prices are volatile for the day.
Check for yourself on flat days. No trade volumes.
35)
Now lets take a look at the size of the pools.
23m Bancor-Link
69m Uniswap Eth-link
Now lets take a look at the size of the pools.
23m Bancor-Link
69m Uniswap Eth-link
36)
You are probably thinking at this point:
Holy shit. Bancor is a piece of fucking dog shit.
And you are right.
We made it to 2021 and the dev team still hasn't done anything about it.
Now watch the fucking magic.
You are probably thinking at this point:
Holy shit. Bancor is a piece of fucking dog shit.
And you are right.
We made it to 2021 and the dev team still hasn't done anything about it.
Now watch the fucking magic.
37)
With fee reduced on ALL pools to 0.15% (eth-bnt at 0.1%) swap fees are now 0.25%.
With lower liquidity compared to the other dex, bancor gets a MONOPOLY on ALL trades it's pool has 0.05% or lower slippage for the tx
Why? 0.25% fee + 0.05% slippage=uniswap or sushiswap fee
With fee reduced on ALL pools to 0.15% (eth-bnt at 0.1%) swap fees are now 0.25%.
With lower liquidity compared to the other dex, bancor gets a MONOPOLY on ALL trades it's pool has 0.05% or lower slippage for the tx
Why? 0.25% fee + 0.05% slippage=uniswap or sushiswap fee
38)
This means all orders from 0-3.5 eth will be routed to bancor. assuming fee is dropped to 0.25% in total, but it could move to 0.2% and monopolize even more (up to 8.5 eth trades).
This means all orders from 0-3.5 eth will be routed to bancor. assuming fee is dropped to 0.25% in total, but it could move to 0.2% and monopolize even more (up to 8.5 eth trades).
39)
Instead of only making fees when dex routers swapped 1000+ eth order size, bancor now has a MONOPOLY on ALL orders between 0 - 3.5 eth (or 8.5 if 0.2% fee)
Instead of only making fees when dex routers swapped 1000+ eth order size, bancor now has a MONOPOLY on ALL orders between 0 - 3.5 eth (or 8.5 if 0.2% fee)
40)
Orders above 3.5 eth size ( 10 example) will look like this:
3.5 eth to Bancor
6.5 (split between dex)
Orders above 3.5 eth size ( 10 example) will look like this:
3.5 eth to Bancor
6.5 (split between dex)
41)
What do u think ape/degens are on uniswap?orders of 1-20k is my guess.
Majority of volume are low level ape retards.
Bancor has gotten 0 of these traders.
uniswap and sushiswap has gotten them all.
What do u think ape/degens are on uniswap?orders of 1-20k is my guess.
Majority of volume are low level ape retards.
Bancor has gotten 0 of these traders.
uniswap and sushiswap has gotten them all.
42)
Even people that want to make huge purchases are not making 1000 eth orders. They scatter it out and make several small ones. Even better.More volume will go to bancor when it has the monopoly.
Even people that want to make huge purchases are not making 1000 eth orders. They scatter it out and make several small ones. Even better.More volume will go to bancor when it has the monopoly.
43)
So with the fee reduction, Bancor will not only instantly monopolize smaller size orders, but now it will earn its fair share on other orders too
Orders... below 1k eth
Bancor isnt even trying to come in and play nice guy anymore.Hes coming in and saying. fuck YOU! pay ME!
So with the fee reduction, Bancor will not only instantly monopolize smaller size orders, but now it will earn its fair share on other orders too
Orders... below 1k eth
Bancor isnt even trying to come in and play nice guy anymore.Hes coming in and saying. fuck YOU! pay ME!
44)
Every single trade on 1inch or aggregator will route a portion of their trade through bancor.
100% of all trades. Yes 100% of them. Imagine the marketing.
Bancor in every single fucking swap on aggregators. Every single one! Any size.
Every single trade on 1inch or aggregator will route a portion of their trade through bancor.
100% of all trades. Yes 100% of them. Imagine the marketing.
Bancor in every single fucking swap on aggregators. Every single one! Any size.
45)
With 1 etherscan transaction to reduce fees, Bancor becomes a top dex on the levels of sushiswap and uniswap with volumes traded.
This gives potential of 10-50x increase in marketcap.
But but but. sushiswap and uniswap will lower their fees to copy.
Exactly.
With 1 etherscan transaction to reduce fees, Bancor becomes a top dex on the levels of sushiswap and uniswap with volumes traded.
This gives potential of 10-50x increase in marketcap.
But but but. sushiswap and uniswap will lower their fees to copy.
Exactly.
46)
Every single dex will begin a race to lower fees.
At some point, the fees will bottom out and "smart" platforms will all be at the equal "bottom" fee rate, or they will all collude to charge a same but higher fee (0.3% seems to be this collusion price atm)
Every single dex will begin a race to lower fees.
At some point, the fees will bottom out and "smart" platforms will all be at the equal "bottom" fee rate, or they will all collude to charge a same but higher fee (0.3% seems to be this collusion price atm)
47)
However, competitors will emerge and slash below, as bancor is about to do. Party pooper!
Bancor has been DISADVANTAGED for its entire existence because fees were HIGHER than competitors
This is why token has underperformed, trade volumes liquidity have also underperformed
However, competitors will emerge and slash below, as bancor is about to do. Party pooper!
Bancor has been DISADVANTAGED for its entire existence because fees were HIGHER than competitors
This is why token has underperformed, trade volumes liquidity have also underperformed
48)
Let me propose my trading thesis:
Traders use logic + reasoning and shop for best price. This leads them to use aggregators. They are indifferent to which platform (uni/sushi/bancor) gets used. Price is price. Price is all that matters.
**few more tweets. nearly done.**
Let me propose my trading thesis:
Traders use logic + reasoning and shop for best price. This leads them to use aggregators. They are indifferent to which platform (uni/sushi/bancor) gets used. Price is price. Price is all that matters.
**few more tweets. nearly done.**
49)
Sum the marketcaps of the top competent liquidity pool tokens, divide by marketcap, and every project should be roughly the same. Market sees the value of liquidity pool services at roughly 7.1b currently.
Sum the marketcaps of the top competent liquidity pool tokens, divide by marketcap, and every project should be roughly the same. Market sees the value of liquidity pool services at roughly 7.1b currently.
50)
If all platforms are offering the same swap fee, their values should equate, minus a few differences ( at end).
Uni 6b
sushi 1b
bancor 0.1b
sum 7.1b /3 = 2.4b marketcap for each.
If all platforms are offering the same swap fee, their values should equate, minus a few differences ( at end).
Uni 6b
sushi 1b
bancor 0.1b
sum 7.1b /3 = 2.4b marketcap for each.
51)
Look at sushi. It vampired liquidity + trade volumes, and marketcap is trending upward toward the value of uni, why? because trade fees are the same.
The trade volumes _WILL_ converge over time.
Look at sushi. It vampired liquidity + trade volumes, and marketcap is trending upward toward the value of uni, why? because trade fees are the same.
The trade volumes _WILL_ converge over time.
52)
The trade:
Short $uni, long $sushi, long $bnt
Ape trade:
all in $bnt
Now what distinguishes the different tokens (uni/sushi/bancor)?
This will make the difference between the 2.4b marketcaps: How the token accrues value.
The trade:
Short $uni, long $sushi, long $bnt
Ape trade:
all in $bnt
Now what distinguishes the different tokens (uni/sushi/bancor)?
This will make the difference between the 2.4b marketcaps: How the token accrues value.
53)
Leaders of all projects are "pretty" competent. Although the autists leading $uni sold half their tokens for $10m to grimy and disgusting vulture VCs. Then waited a week and turned those investments into a few billion with a token launch.
Leaders of all projects are "pretty" competent. Although the autists leading $uni sold half their tokens for $10m to grimy and disgusting vulture VCs. Then waited a week and turned those investments into a few billion with a token launch.
54)
Hayden aut...adams, did you really need to someone to tell you that it was time to launch a token? Billions worth of advice I reckon. Well done. you should be a billionaire. 𝕨𝕙𝕒𝕥 𝕚𝕗?
im convinced all eth devs need to take a few econ courses @DegenSpartan would agree
Hayden aut...adams, did you really need to someone to tell you that it was time to launch a token? Billions worth of advice I reckon. Well done. you should be a billionaire. 𝕨𝕙𝕒𝕥 𝕚𝕗?
im convinced all eth devs need to take a few econ courses @DegenSpartan would agree
55)
Back from the diversion... yes, bancor and sushi have decent value accrual mechanisms. As for uni, well. I just told you about the uni dev team. So uhh, we'll have to see what happens to the $uni value mechanism.
Or uh.. maybe they are
Occupation: charity workers
too.
Back from the diversion... yes, bancor and sushi have decent value accrual mechanisms. As for uni, well. I just told you about the uni dev team. So uhh, we'll have to see what happens to the $uni value mechanism.
Or uh.. maybe they are
Occupation: charity workers
too.
56)
Sushi has bentobox and some other boolshit going on. Price is now too "fair" for me to investigate. who wants a comfy 2-2.5x?
$Sushi was a great purchase in the fall of 2020 (Thanks for the DM sam i yam )
Sushi has bentobox and some other boolshit going on. Price is now too "fair" for me to investigate. who wants a comfy 2-2.5x?
$Sushi was a great purchase in the fall of 2020 (Thanks for the DM sam i yam )
57)
Why bancor?
You can provide single sided liquidity on Bancor. Nowhere else can you do that.
It's no longer "but you need shitcoin BNT." You don't! Bancor is advantaged here.
Bancor also has a guarantee of NO IMPERMANENT LOSS. No other platform has that.
Why bancor?
You can provide single sided liquidity on Bancor. Nowhere else can you do that.
It's no longer "but you need shitcoin BNT." You don't! Bancor is advantaged here.
Bancor also has a guarantee of NO IMPERMANENT LOSS. No other platform has that.
58)
Feel free to value up/down from the token accrual, single sided, and no impermanent loss analysis.
I dont give a fuck what you can come up with.
$100m BNT marketcap is criminally underpriced.
Hit the fucking bid.
You don't want to ask yourself: 𝕨𝕙𝕒𝕥 𝕚𝕗?
Feel free to value up/down from the token accrual, single sided, and no impermanent loss analysis.
I dont give a fuck what you can come up with.
$100m BNT marketcap is criminally underpriced.
Hit the fucking bid.
You don't want to ask yourself: 𝕨𝕙𝕒𝕥 𝕚𝕗?
59)
Time to implement BIP4
@bancor @natehindman when fee reduction? tomorrow? ok great, I'll take a lump sum consulting fee.
https://gov.bancor.network/t/a-prospective-bip4-standardize-trading-fees-in-order-to-increase-trading-volume/101
See you at the
ጠዐዐክ የልዪፕሃ. $BNT
Time to implement BIP4
@bancor @natehindman when fee reduction? tomorrow? ok great, I'll take a lump sum consulting fee.
https://gov.bancor.network/t/a-prospective-bip4-standardize-trading-fees-in-order-to-increase-trading-volume/101
See you at the
ጠዐዐክ የልዪፕሃ. $BNT
