Leverage Is the Most Volatile Asset Class

i would not advise anybody to a, to take leverage if youare not experienced and watching this like a hawk on a daily basis. It'sa, it's the most volatile asset class. Yeand if i know you guys, like i think i do, there will be some leverage involved as well. We are never going to take more than 50 % a loan against our collateral. Getting liquidated is the last thing any of a r l ps would want.

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This episode is a conversation about investing in the DeFi space with my previous podcast guest Jason Hitchcock and his partners of Four Moons Capital, Adam and Boz. They talk about how they all got together to form Four Moons and came to partner with Kingsley Capital to create a 100-million-dollar fund to be invested in DeFi. Throughout the conversation, we chat about some of their favorite tokens, projects, and ecosystems and how early it is in the space.

We talk about how they all keep up in the industry and decide what to pay attention to. Each team member has their own approach, but generally, the community you belong to can help inform you as well as following “thought leaders” on Twitter and Discord. Jason says he focuses on what will make money and tries to sort whether people are right about opportunities or if they are being duped. Adam shares a theme he’s adopted from the space, “We’re all gonna make it,” and says everyone is working to help grow the pie.

In the second half of the conversation, we talk about block explorers as the next Googles of the world, we explore the analogy of where crypto is at in comparison to where internet was in the 90s, and we talk about OpenSea as the Amazon of crypto and whether it will be disrupted or not. We also explore some thoughts on the metaverse and its opportunities. I then ask about some predictions for their fund in 10 years and am told they expect the fund to have several billion in proof stake tokens and that they’ll be able to take on other subadvisor arrangements with other types of treasuries.

To wrap up, we talk about some steps people can take if they want to learn more or get started in DeFi. Jason talks about building a portfolio to earn yield, which can then be sold to start building up a dream portfolio, or it can be compounded back into your strategy to earn more yield. Adam points out the common characteristic of successful crypto investors is resourcefulness and that it is a do-it-yourself industry. Boz suggests learning while earning; he says a first step is starting to yield on a stable coin, then learning through podcasts, Discords, Twitter, etc., and then the next phase is going from stable coin to a web3 interface and staking.

Links:

Sushi Swap

Kingsly Capital

Danny Ryan on Twitter