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It was only a year ago when @AaveAave launched
Now they're the #14 most valuable crypto asset
They also have a $5B+ balance sheet
And approaching $1B in debt outstanding
That's some insane growth
So let's check in on their road to billions
https://newsletter.banklesshq.com/p/aave-road-to-billions
Now they're the #14 most valuable crypto asset
They also have a $5B+ balance sheet
And approaching $1B in debt outstanding
That's some insane growth
So let's check in on their road to billions
https://newsletter.banklesshq.com/p/aave-road-to-billions
First up: Establish a clear path to value accrual
The Aavenomics upgrade pivoted the token from a simple burn model to a staking model
$AAVE became the collateral of last resort if Aave ever incurs a deficit
Just stake AAVE and earn rewards in return for your service
The Aavenomics upgrade pivoted the token from a simple burn model to a staking model
$AAVE became the collateral of last resort if Aave ever incurs a deficit
Just stake AAVE and earn rewards in return for your service
With the token dialed in, all that's left are fundamentals
Outstanding debt has risen to over $800M - a key stat for interest rate protocols. Why?
Higher the demand to borrow -> better rates for suppliers -> greater incentive to provide liquidity
Yup...feedback loop engaged
Outstanding debt has risen to over $800M - a key stat for interest rate protocols. Why?
Higher the demand to borrow -> better rates for suppliers -> greater incentive to provide liquidity
Yup...feedback loop engaged
Aave's balance sheet (i.e. TVL) has gone completely vertical too
A year ago $8.7M
Today it touched $5B
That's a 57,371% growth in a year for those keeping track at home
And all of this is organic. No yield farming incentives needed
Insane
A year ago $8.7M
Today it touched $5B
That's a 57,371% growth in a year for those keeping track at home
And all of this is organic. No yield farming incentives needed
Insane
Revenue for V1 also saw a notable rise
Remember, revenue for interest rate protocols = the amount of interest generated per day to suppliers
Good thing V1 is still pumping out $250K per day
Wonder what V2 will do once it's in full gear...
Remember, revenue for interest rate protocols = the amount of interest generated per day to suppliers
Good thing V1 is still pumping out $250K per day
Wonder what V2 will do once it's in full gear...
Next: P/S Ratio
With a P/S of 54, that means the market is willing to pay $54 for every $1 in interest generated today
When Aave first reached $1B mcap, it was ~155
Meaning under this measurement, you're actually getting a better deal on $AAVE today than ever before
With a P/S of 54, that means the market is willing to pay $54 for every $1 in interest generated today
When Aave first reached $1B mcap, it was ~155
Meaning under this measurement, you're actually getting a better deal on $AAVE today than ever before
Aave has also become one of the fastest horses in #DeFi
The tally since Q4?
$AAVE: +581%
$ETH: +380%
$DPI: +294%
If you're holding AAVE, you're doing better than most of the market
Good for you
The tally since Q4?
$AAVE: +581%
$ETH: +380%
$DPI: +294%
If you're holding AAVE, you're doing better than most of the market
Good for you
So what's next?
Here's what you should keep an eye out for:
- Potential for liquidity mining incentives
- Credit Delegation with V2
- Bitwise 10 listing
- Grayscale filing for an AAVE trust
All of these could be catalysts for new growth
Here's what you should keep an eye out for:
- Potential for liquidity mining incentives
- Credit Delegation with V2
- Bitwise 10 listing
- Grayscale filing for an AAVE trust
All of these could be catalysts for new growth
There's no shortage of ways to cut it: Aave is crushing it
They've not only survived a brutal bear market following their ICO, but pivoted into massive success
The sky's the limit now
Read more on @AaveAave's road to bilions on @BanklessHQ
https://newsletter.banklesshq.com/p/aave-road-to-billions
They've not only survived a brutal bear market following their ICO, but pivoted into massive success
The sky's the limit now
Read more on @AaveAave's road to bilions on @BanklessHQ
https://newsletter.banklesshq.com/p/aave-road-to-billions
