Investmenthub� - Investment (2) - Nairaland
Nairaland Forum / Nairaland / General / Investment / Investmenthub� (1756 Views)
| Re: Investmenthub� by Edglad(m): 9:17pm On Apr 04, 2022 |
Build up your investments until you’re unbreakable. |
| Re: Investmenthub� by Edglad(m): 9:22pm On Apr 04, 2022 |
ABOUT Safuu provides a decentralized financial asset that rewards users with a sustainable fixed compound interest model through the use of its unique SAP protocol. Safuu delivers the industry’s highest fixed APY, paid every 15 minutes, and a simple buy-hold-earn system that grows your $SAFUU portfolio in your wallet at a lightning-fast pace.. video on the telegram channel
|
| Re: Investmenthub� by Edglad(m): 9:36pm On Apr 04, 2022 |
What is Tokenomics in Crypto This is one subject every crypto student must learn and understand in the crypto space |
| Re: Investmenthub� by Edglad(m): 9:37pm On Apr 04, 2022 |
Tokenomics” has become a popular term in the last few years to describe the math and incentives governing crypto assets. It includes everything about the mechanics of how the asset works, as well as the psychological or behavioral forces that could affect its value long term. Projects with well-designed tokenomics are much more likely to succeed in the long term because they’ve done a good job of incentivizing buying and holding their token. Projects with poor tokenomics are doomed to failure, as people rapidly sell the tokens at the first sign of trouble. If you’re considering whether or not to buy a crypto asset, understanding the tokenomics is one of the most useful first steps you can take to make a good decision. So as someone who’s been writing about DeFi for nearly a year now, and who designed the tokenomics for a popular crypto videogame, here’s what I look at when I’m evaluating the tokenomics of a new project.
|
| Re: Investmenthub� by Edglad(m): 9:40pm On Apr 04, 2022 |
Crypto 101: A Beginners Guide to Bitcoin, Blockchain and Cryptocurrency Book by Chris Ani Get this book it will really help you
|
| Re: Investmenthub� by Edglad(m): 10:15pm On Apr 04, 2022 |
#tokenomics It All Comes Down to Supply and Demand As in normal economics, the two forces we are most interested in are Supply and Demand. Understanding how those are baked into the tokenomics give us a good sense of how desirable a given token or cryptocurrency should be. Supply: Emissions, Inflation, and Distribution Let’s start on the supply side since it’s a little easier to understand. The main thing you’re trying to figure out is: #tokenomics Based on supply alone, should I expect this token to hold or increase its value? Or will that value be inflated away? On the supply side, a token will increase in value if fewer of those tokens exist—we call that deflation. A token will decrease in value if more of them exist—that’s inflation. When you’re evaluating the supply side you don’t have to worry about things like whether the token has any utility, or whether it will generate income for its holders. You’re really just thinking about the supply and how it will change over time. The questions you want to ask are: 1 How many of these tokens exist right now? 2 How many will ever exist? 3 How quickly are new ones being released? Bitcoin was created with a simple supply curve that is emitted over about 140 years.
|
| Re: Investmenthub� by Edglad(m): 10:17pm On Apr 04, 2022 |
#tokenomics There will only ever be 21,000,000 bitcoin, and they’re released at a rate that gets cut in half every four years or so. Roughly 19,000,000 already exist, so there are only 2,000,000 more to be released over the next 120 years. That means 90% of the supply is already in circulation, and here will only be 10.5% more bitcoin 100 years from now, so you shouldn’t expect any serious inflationary pressure bringing down the value of the coin. What about Ethereum? The circulating supply is around 118,000,000, and there’s no cap on how many Ether can exist. But Ethereum’s net emissions were recently adjusted via a burn mechanism so that it would reach a stable supply, or potentially even be deflationary, resulting in somewhere between 100-120m tokens total. Given that, we shouldn’t expect much inflationary pressure on Ether either. It could even be deflationary. |
| Re: Investmenthub� by Edglad(m): 10:17pm On Apr 04, 2022 |
#tokenomics Dogecoin has no supply cap either, and it is currently inflating at around 5% per year. So of the three, we should expect inflationary tokenomics to erode the value of Doge more than Bitcoin or Ethereum. The last thing you want to consider with supply is allocation. Do a few investors hold a ton of the tokens which are going to be unlocked soon? Did the protocol give most of its tokens to the community? How fair does the distribution seem? If a bunch of investors have 25% of the supply and those tokens will unlock in a month, you might hesitate before buying in. What about some DeFi tokens? Yearn, one of the first DeFi protocols I wrote about, has a fixed supply of 36,666 YFI. There are no emissions and no inflation, so you shouldn’t expect the value of 1 YFI to decrease from inflationary pressure. |
| Re: Investmenthub� by Edglad(m): 10:18pm On Apr 04, 2022 |
#tokenomics Meanwhile, Olympus, a protocol I wrote about more recently, has an insanely inflationary printing schedule with huge amounts of new OHM tokens being printed every day. So theoretically you should expect holding OHM to be a bad bet. But as we’ll see shortly, Supply alone is not enough to understand whether holding a token is worthwhile. Those are the main considerations for Supply. Now demand is where things get more interesting. |
| Re: Investmenthub� by Edglad(m): 10:19pm On Apr 04, 2022 |
#tokenomics Demand: ROI, Memes, and Game Theory I could go into my backyard, break a few rocks, and then say they’re the only rocks I’m ever going to break and put up for sale. I have a fixed supply of 10 rocks. 0 inflation rate. So they should be worth millions, right? Well, no, because no one wants my broken rocks. At this simple level, there’s nothing inherently different between my rocks and Bitcoin. Having a fixed supply alone does not make something valuable. People also need to believe it has value, and that it will have value in the future. If you want to know whether a token will have demand-side value in the future, you’ll want to look at return on investment (ROI), memes, and game theory. Let’s start with ROI since it’s the easiest. |
| Re: Investmenthub� by Edglad(m): 10:20pm On Apr 04, 2022 |
#tokenomics Return on Investment ROI in this case is not how much you think the token price will go up. It’s how much income or cash flow the token is able to generate for you simply by holding it. For example, if you hold Ether you can stake it to help secure the network once Proof of Stake launches. In return for Staking your ETH, you get paid in more ETH, at a rate of about 5%. Some tokens allow you to tap into the earnings of the protocol they represent. If you hold SUSHI, you can stake it to earn a share of the Sushi protocol revenues, currently for about a 10.5% APR. Another form of ROI comes from “rebasing,” similar to a stock split where by holding a token and staking it, you continue to get more of that token as the protocol inflates its supply. This is how Olympus works and is why their heavy inflation rate is not necessarily a bad thing since you can retain the share of the protocol that you own. |
| Re: Investmenthub� by Edglad(m): 10:20pm On Apr 04, 2022 |
#tokenomics Game Theory Game Theory asks you to consider what additional elements in the tokenomics design might help increase the demand for the token. This is where tokenomics can get particularly complex, and is the main area I’ll focus on in the followup “102” version of this post. But one common version of good tokenomic game theory is lockups. The protocol creates an incentive for locking your tokens in a contract, usually in the form of greater rewards. |
| Re: Investmenthub� by Edglad(m): 10:21pm On Apr 04, 2022 |
#tokenomics Tokenomics in Practice: Evaluating a Project Now that you know the main questions to ask, let’s go through the process of evaluating a project. We’ll start with one of my favorites Convex Finance is a platform that sits on top of Curve (above) and helps you earn a higher yield by aggregating many investors together. It lets you earn most of the higher yield you would get on Curve if you had locked up thousands of CRV tokens for 4 years, without having to do the locking yourself. By hopping into their docs, we can start to answer the questions I laid out in this article. Supply Convex has a fixed max supply of 100m which will be released overtime at a decreasing rate, depending on CRV deposits.
|
| Re: Investmenthub� by Edglad(m): 10:31pm On Apr 04, 2022 |
#tokenomics Tokenomics in Practice: Evaluating a Project Now that you know the main questions to ask, let’s go through the process of evaluating a project. We’ll start with one of my favorites Convex Finance is a platform that sits on top of Curve (above) and helps you earn a higher yield by aggregating many investors together. It lets you earn most of the higher yield you would get on Curve if you had locked up thousands of CRV tokens for 4 years, without having to do the locking yourself. By hopping into their docs, we can start to answer the questions I laid out in this article. Supply Convex has a fixed max supply of 100m which will be released overtime at a decreasing rate, depending on CRV deposits.
|
| Re: Investmenthub� by Edglad(m): 10:32pm On Apr 04, 2022 |
Supply Convex has a fixed max supply of 100m which will be released overtime at a decreasing rate, depending on CRV deposits. According to CoinGecko 78.5m of those 100m have already been created, meaning the current supply will inflate by another ~33%. Of those tokens, the vast majority are going to the people using Convex. So this is a very fair token distribution, only a comparatively small amount is being retained for the team and investors. For comparison So there’s a fixed supply, the remaining supply is being released at a decreasing rate, most of the tokens are going to the community, and there’s a max 33% dilution from here. Things look pretty good on the supply side
|
| Re: Investmenthub� by Edglad(m): 10:34pm On Apr 04, 2022 |
#tokenomics Evaluating on Your Own This should give you a good initial foundation to evaluate any new project you come across. By reading the docs or whitepaper, you should get a good sense of how the supply is going to be managed, and what forces will drive demand for the token or cryptocurrency. And the question to keep in the back of your mind isn’t necessarily “will this appreciate against the dollar?” but “Will this appreciate against (BTC, ETH, SOL, whatever you prefer)”. Most crypto assets are highly correlated and move together, and if you’re holding anything besides the big foundational coins, it should be based on some belief that its tokenomics and incentives will result in it outperforming the base currencies it's built on. In the next part of this series on Tokenomics, I'll get more into the various Game Theory strategies protocols employ to drive demand for their tokens.
|
| Re: Investmenthub� by Edglad(m): 11:41pm On Apr 04, 2022 |
Always remember: Your time is scarce, but money is not. They print this stuff from thin air, And you aren’t getting younger. Invest and free your time. |
| Re: Investmenthub� by Edglad(m): 4:54pm On Apr 05, 2022 |
0% interest rate – as a borrower, there’s no need to worry about constantly accruing debt 110% MCR – a low Minimum Collateral Ratio means more efficient usage of your deposited PLS Governance free – all operations are algorithmic and fully automated, and protocol parameters are set at time of deployment Directly redeemable – the protocol allows you to exchange 1 USDL stablecoin for USD $1 worth of PLS at any time Fully decentralized – the contracts have no admin keys and can be accessible via other front ends, making it censorship resistant
|
| Re: Investmenthub� by Edglad(m): 2:34pm On Apr 18, 2022 |
"I want to make money in crypto but I have no idea where to start" If you find yourself saying this Then this is for you This thread will handhold you across your crypto journey from making your first dollar to collecting yield on 6 figures + |
| Re: Investmenthub� by Edglad(m): 2:36pm On Apr 18, 2022 |
Edglad: For beginners with no experience using DeFI or GameFi, I usually recommend taking $500 and lighting it on fire for tuition. What do I mean? To understand how the infrastructure works on perps, dexes, options, games and lending, you need to get your hands dirty. When I first started I took $500 and started taking out loans on AAVE, played perps on GMX, rented crabs on CRA, walked around Decentaland, bought puts on Dopex, bridged to FTM, AVAX, etc. The investor who knows the user experience and journey across all use cases and chains will be able to discern if a project is innovative or if the product is crap. |
| Re: Investmenthub� by Edglad(m): 2:37pm On Apr 18, 2022 |
Edglad: Next I would start interacting with communities of projects I find interesting to feel out the strength of the community, or if it feels scammy. Looking thru token terminal, and dune analytics to get an overview of a project. When influencers talk ab projects, they overdo technical stuff about composability, scaling trilemma, etc. If you can break down what it means in laymans terms and why someone will use the project or chain, then you at least know what you are getting yourself into. |
| Re: Investmenthub� by Edglad(m): 2:38pm On Apr 18, 2022 |
Edglad: There are a lot of ways to make money in crypto, but the key buckets come down to: 1-liquidity farming (LP yield farming) - which in simple terms means you are getting fees + incentives as a "market maker" for a certain token pair. LP farming comes with a couple risks. (1) is just straight up exploit/contract risk (the project is hacked and your investment goes to zero). . (2) is impermanent loss risk. Which is just a fancy way of saying you may lose tokens on one side of the trading pair if said token goes up too much. Play with a impermanent loss calculator to better understand this. In a nutshell, it just means you are losing upside |
| Re: Investmenthub� by Edglad(m): 2:39pm On Apr 18, 2022 |
Edglad: (3) if the LP farm is heavily incentivized with tokens in your LP, then the supply and demand structure of the token over a longer time horizon is likely poor, and will get pressured over time. So when you drool over a 200% APR, the token you are both providing liquidity for And its native token rewards are going to lose value over time. |
| Re: Investmenthub� by Edglad(m): 2:40pm On Apr 18, 2022 |
Edglad: 2 - the next way to make money is farming stables. You can do this on Anchor, Rari, GLP (kind of) and Convex, among others. You are taking protocol risk on each of these, so NEVER view it as a risk free return. Additionally there is stablecoin de-peg risk Meaning that the stable could depeg if the mechanics are unsustainable (ie $1 goes to 80c). The yields you can get on some of these farms are high enough (mid teens) to compensate for some of the risk, but you also need to appropriately size risk. Like UST for example (not my view, but some others). You can make moves like borrowing UST against USDC -> farming UST, and dumping rewards back into USDC. In this way, if UST depegs, you are "making money" bc ur loan value is collapsing. |
| Re: Investmenthub� by Edglad(m): 2:42pm On Apr 18, 2022 |
Edglad: 3 - appreciation. This is your standard swap on a dex into xyz token hoping it goes up, which I've covered frameworks on how to find them, and time them into catalysts. 4- games. You can yourself play games, or create bots or hire people to play games for you to create yield. On CRA for example, if you have ~$1,500, you can buy 1 crab and rent it out for ~400% APRs. |
| Re: Investmenthub� by Edglad(m): 2:43pm On Apr 18, 2022 |
Ok Guys, these are the ways to make money, how would you structure a portfolio? I get this question, and its hard to answer. It comes down to how much capital you have, and how much risk you are willing to take. If ur starting at $5k, I wouldn't recommend stable farms As the yield is too low to make a difference. If ur starting with something more like $50k, you want to be using all of the strategies. So a mock portfolio would be something like: -$30k in stable farms -$10k in LPs of projects that you like long term -$10k in GameFi yield strategies -$10k in straight spot dex holdings. And then manage your allocations based on where we are in the speculation cycle (ie right now euphoria is coming back). |
| Re: Investmenthub� by Edglad(m): 2:44pm On Apr 18, 2022 |
Edglad: Running a diversified portfolio like this is giving you base yield, LP yield, game yield, and potential appreciation from your spot holdings. And the diversification will keep you from getting wiped out. While being diversified like this will make it hard to 30x your portfolio in a few months (which is extremely hard anyway). You can keep growing it, and compounding over time, with less risk. This is why I typically tell people to go easy on the concentration, especially if you have a day job, and can't stay up to date on all the various protocols |
| Re: Investmenthub� by Edglad(m): 2:45pm On Apr 18, 2022 |
Edglad: Everyone has their own way of moving the allocations around, but I think its smart to take stable rewards and put them into spot holdings you like. Take LP rewards and put some towards spot, some towards the stable. Game yields need to be diversified away from the game, etc. Diversification doesn't make you rich, but keeps you rich. So once you start having something closer to 6 figures. You will be giving up potential gains by not going "all-in" but you also don't have the risk of getting wiped out to zero - which I've heard horror stories of. |
| Re: Investmenthub� by Edglad(m): 2:46pm On Apr 18, 2022 |
Edglad: For example, had friends make $2m on SafeMoon, but keep riding it thinking it will go to $10m and then it falls 90%. Hopefully this gives you some flavor on portfolio construction, the ways to make money, etc. If you have questions, feel free to ask me - i'm an open book! |
| Re: Investmenthub� by Edglad(m): 3:10pm On Apr 18, 2022 |
For people that either (1) are skeptical about subbing to the email list (which is completely free) or (2) subbed but didn't get issue #1, I've pasted it below for everyone to see. Won't be doing this with future issues but wanted to get this one out there for all to see.
|
| Re: Investmenthub� by Edglad(m): 3:11pm On Apr 18, 2022 |
Edglad:
|
| Re: Investmenthub� by Edglad(m): 3:11pm On Apr 18, 2022 |
[quote author=Edglad post=112058856][/quote]
|
Get On Board Today And Make Great Returns !!! / How To Become A Bet9ja Agent Today / Unique 5 Bedroom Duplex Architectural Building Design
(Go Up)
| Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 80 |