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If there’s a better analysis on DeFi protocols I haven’t seen it
@0x_Lucas brings the
today
Don’t buy LEND, KNC, SNX, MKR, ZRX—none of it—before understanding this post
I'm serious
Read:
https://bankless.substack.com/p/how-to-value-crypto-capital-assets
Thread summary below:
@0x_Lucas brings the
todayDon’t buy LEND, KNC, SNX, MKR, ZRX—none of it—before understanding this post
I'm serious
Read:
https://bankless.substack.com/p/how-to-value-crypto-capital-assets
Thread summary below:
1/ On-chain cash flows means the birth of a new asset class.
The crypto capital asset.
Unlike traditional capital assets (real-estate, stocks) these can be valued using transparent on-chain cash flows.
@0x_Lucas looks at protocol earnings over the past year:
The crypto capital asset.
Unlike traditional capital assets (real-estate, stocks) these can be valued using transparent on-chain cash flows.
@0x_Lucas looks at protocol earnings over the past year:
2/ Big shifts from quarter to quarter!
MKR far less dominant
SNX way up, then down after quashing front-running
KNC growing steadily
LEND (Aave) making headway
DYDX crushing it
If Uniswap had a token it'd place 5th
Here's what April looked like:
MKR far less dominant
SNX way up, then down after quashing front-running
KNC growing steadily
LEND (Aave) making headway
DYDX crushing it
If Uniswap had a token it'd place 5th
Here's what April looked like:
3/ Like traditional capital assets we can look at PE ratios to see how protocols are valued relative to cash they generate
@Bancor, @AaveAave, & @KyberNetwork have the lowest PE ratios
While @AugurProject & @0xProject have the highest
(lower implies more attractive valuation)
@Bancor, @AaveAave, & @KyberNetwork have the lowest PE ratios
While @AugurProject & @0xProject have the highest
(lower implies more attractive valuation)
4/ DeFi tokens up +43% on average YTD
There've been some breakout price performers YTD too
Aave + Kyber (+213%!)
While Maker and Snythetix lost ground
The big question: is there a correlation between token price and annualized earnings?
There've been some breakout price performers YTD too
Aave + Kyber (+213%!)
While Maker and Snythetix lost ground
The big question: is there a correlation between token price and annualized earnings?
5/ Yes!
And this was my favorite part of the piece
Look at how DeFi Tokens relative to changes in earnings
Looks like increases in annualized earnings for Kyber and Aave translated to a positive trend in token performance!
Are we starting to understand this asset class?
And this was my favorite part of the piece
Look at how DeFi Tokens relative to changes in earnings
Looks like increases in annualized earnings for Kyber and Aave translated to a positive trend in token performance!
Are we starting to understand this asset class?
6/ Just the full article
It'll help you understanding DeFi tokens before 99% of VCs, before 99.9% of Wall Street, & before 99.999% of the general population.
This is the birth of a new asset class and you’re front-running the opportunity.
Read: https://bankless.substack.com/p/how-to-value-crypto-capital-assets
It'll help you understanding DeFi tokens before 99% of VCs, before 99.9% of Wall Street, & before 99.999% of the general population.
This is the birth of a new asset class and you’re front-running the opportunity.
Read: https://bankless.substack.com/p/how-to-value-crypto-capital-assets
