Notes on Fantom Unchained ep. 36
Fantom Unchained episode 36 is here. π
When markets are crazy listen to some rational people.
Thank you @FTMAlerts , @0xBebis_ , @crypto_klay , @justinmsilver , @cryptohamm !
As always I took some notes. π
Disclaimer: I made these notes for myself and I decided to share them. I make them because it helps me to really focus on what's being said. I noted what I found interesting. Not everything might be here. Nothing here is a financial advice.
Intro
- Level of toxicity grows on CT.
- Negative GDP for Q1, recession, VIX is high, DXY is high.
- Things will get more turbulent.
- Time to start to look at projects that are fundamentally sound.
- We could be sitting on these prices for a long time.
- Keep the phrase Runway in your head. Who has the most Runway? Who will make it through should this last for a year or even two years?
- @FantomFDN has at least 10 years of run way and 40 employees. Very well positioned - network and development will continue.
UST and LUNA takeaways.
- Bebis "wrote $LUNA off" a long time ago.
- When leaders of large projects are over confident and that overconfidence isn't matched with a ton of investment in risk management = run in the other direction.
- They have runway but how can they recover from this reputationally?
- It's hard to safely contract something that is very overvalued.
- $LUNA was very close to being successful in the right way: half algo stable, half collateralization.
- $LUNA has nobody to bail them out. VCs can't invent money out of thin air.
- Retail needs protection not only because they can get hurt but because they act against a protocol's best interest. Regulation.
- There was a billion USD sitting on Anchor. They had $350m in liquidity sitting in the 3-pool. If someone comes for you and you got 35% of liquidity vs what's on your biggest protocol printing $UST at 20%.
How does this even get overlooked?
- Panicked rush. They were rushing this. Didn't do proper analysis, didn't take data driven approach.
- Underestimating the bad will out there.
- Mechanisms will get designed to protect against what happened last time. Not to enforce sustainability.
- Projects will go pedal to the metal and will try to grow as fast as possible anyway.
- The only similarity between $LUNA and $FTM is that they are the Layer 1 smart contract network. That's it.
- What took $LUNA down does not exist on $FTM.
- $FUSD has never been pegged and it poses no systemic risk on $FTM network as of right now.
- $FUSD is collateralized by staked $FTM. The only thing that collateralizes it.
Offtopic
- @Coinbase warns that if you leave your crypto on their exchange, you don't own it. Bankruptcy of CB = you lose money. The same is going to be for every exchange. You are seen as unsecured creditor.
- This should promote DeFi.
$FTM Network Congestion
- The network works, spend more money on gas.
- There is a limited throughput. If there is a profit to be made that's grater whatever it costs you to pay for the transaction then a bot or a person will do that. If there are a lot of people who are willing to pay more for gas, then the transactions will take a while.
- Doublesharp says that Snapsync is mainly for Validators to get set up faster but it might also help process transactions more quickly.
- More gas will be allocated per block, more processing of transactions.
- 51% of attack is a PoW thing. You can attack PoS in similar ways (33% attack) but it's probably not gonna happen for $FTM. You need to acquire significant amounts of $FTM. Price impact makes it even more difficult to do.
- If you're buying $FTM that you may or may not be able to exit, you're taking a significant financial risk.
$TOMB Lost Its Peg
- @Felix_Exchange was built with the intention of using $TOMB pairs. - $TOMB is 77% off.
- How this affects the ecosystem?
- Had the $TOMB pairs come into effect and there been large liquidity on Felix it would have been disastrous.
- When $TOMB is under pegged to $FTM the supply contracts and you basically have to sell $TBONDS for $TOMB. How many people want to buy $TBONDS all the way up to peg? That's what needs to happen.
- The community has to be willing to play the game with you. People were banking on Harry to be a backstop. At some point it's not going to be a fun place to be. The bonding is 100% dependent on people willing to play your game.
- If Harry came out saying that they no longer will be concerned about $TOMB being pegged to $FTM and let the market decide, Austin might even consider buying $TOMB. - Two token systems are bullshit. / @0xBebis_ /
Drop In Price Of $FTM
- Market conditions and sell pressure directly. Extremely aggravated by liquidations happening on chain.
- The good news is - we are done.
Should we ban platforms like Scream, Geist and Granary to stop these liquidations?
- Nobody has the ability to ban. Lending is an important part of DeFi ecosystem. We want these platforms.
- It does make the markets more efficient. You can't have an economy without a lending market.
How can FTM create new demand drivers outside DeFi?
- Polygon partnered up with Facebook.
- Instagram added NFTs for Solana, Polygon and Ethereum and one other.
- $FTM has a vibrant NFT community but needs to have a B2B presence. Polygon NFT market is way smaller.
- $FTM doesn't have the focus on business development.
- Enterprise partnerships and things that are publicly so notable that people at their kitchen table are talking about them.
- TikTok is a major platform that hasn't been touched. An opportunity.
Deus V3 Update
- Listen to the latest 45 min of @lafachief explaining DEUS and their future plans. Link here.
- They've created a new AMM (new type of rebalancing price mechanics). They are focued on creating another "Luna" but in the right way.
- Creating a stablecoin market that is next level between $FUSD and $DAI.
- They will implement lending and borrowing in the AMM.
- Bonding systam for DEUS as a whole.
- API that reads messages on-chain and transfers to the broker the necessary info for the on-chain synthetic stocks.
Offtopic
- The builders are the network.
- Some builders have good runway.
- The builders that planned well will be making acquisitions of those who don't have runway.
Beethoven, Tarot launching on Optimism
- Incentives.
- Risk diversification strategy. Not fully dependent on one chain.
- $OATH is testing on another chain as well. Likely to follow on Optimism as well.
- Bebis says their treasury is about $9m at the moment.
- All we are going to do now is laying the ground work for when things get back to normal.
- Many teams are collaborating in the background.
Bebis, do you feel that for things youβve built on $FTM there is now a requirement to go multi-chain?
- With Reaper the strategists have done every strategy that is secure and profitable to do.
- How to approach new users?
- There are severely diminishing returns on how we can expand Reaper.
- How are we going to engineer a path to success?
- How can we ensure that we are creating a software that market wants and needs right now?
- Some of that is cross chain.
- Focus needs to be on Business development. To be prepared when retail comes back.
I highly recommend watching the full episode:
Link to the Twitter thread: