Bankless SotN #1 - BULLISH; DeFi tokens, Internet-era growth, Fee v Issuance Debate
Jun 17, 2020
The hosts dive into the bullish landscape of DeFi tokens, presenting them as the next big narrative in crypto. They draw exciting parallels between the explosive growth of Ethereum's 100 million addresses and the early internet boom. A lively debate unfolds over Bitcoin's role in the ecosystem, and the hosts unpack the evolution of governance tokens like COMP, emphasizing their potential in asset valuation. Finally, they examine the impact of inflation on economics, positioning cryptocurrencies as innovative alternatives in today's financial landscape.
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DeFi Tokens vs. ICOs
- DeFi tokens like Compound (COMP) differ from 2017 ICOs because they have real cash flows.
- This suggests the birth of a new, transparent, on-chain capital asset class.
COMP Farming
- Explore how COMP token distribution boosts returns for liquidity providers.
- Use online calculators to estimate potential annual percentage yield (APY) from supplying assets.
DeFi Growth Hacks
- DeFi protocols use token distribution as a growth hack, incentivizing liquidity.
- This mechanism counters centralized crypto banks and boosts the entire DeFi ecosystem.