Weekend brain food VII

Some articles to pick the brains before Monday blue comes... + quick update on portfolio

Endnotes on 2020: Crypto and Beyond

by Vitalik Buterin (writing from Singapore Dec 2020)


"People are motivated not just by earning as much money as possible in the work and extracting enjoyment from their money in their family lives; even at work we are motivated by social status, honor, altruism, reciprocity, a feeling of contribution, different social conceptions of what is good and valuable, and much more."


There’s a New Vision for Crypto, and It’s Wildly Different From Bitcoin


"The second possibility is that new modes of social coordination emerge . You might think NFTs seem kind of dumb. (Disclosure: I think NFTs are kind of dumb.) But obviously a lot of people think differently. People continue to pay real money for the right to claim ownership of some piece of digital content. It definitely seems kind of faddish, but there are more experiments in the space being done all the time. And even if it’s not NFTs per se, it’s possible that a new type of easily programmable money network might spawn modes of activity that we’re just not used to."

"And eventually as this space matures, returns should become less correlated and more distinct, as different approaches win out over others."



What role could NFTs play in e-commerce


"By enabling parties to exchange with minimized arbitration by intermediaries, there are significant cost reduction ramifications for both the seller and the buyer. This is incredibly important, because in the traditional form of centralized e-commerce, the intermediaries are practically held hostage by the seller, meaning that the buyer has far less power in any given dispute. To that end, you are also placing the onus on conflict resolution on both the buyer and the seller, as both have something to lose should a transaction not go ahead as planned."



Digital Asset Valuation: Top 7 Metrics for Valuing Bitcoin, Altcoins, and Cryptocurrencies


"Traditional company valuation models such as Discounted Cash Flow (DCF) or the Dividend Discount Model (DDM) cannot be applied to digital assets as they are an inherently different asset class than stocks. Hence, new valuation models needed to be created to provide investors with frameworks for the fundamental analysis of coins and tokens.

Some of the most popular digital asset valuation include:

-The Store of Value (SoV) Thesis

-Token Velocity

-Metcalfe’s Law

-The Network Value to Transaction (NVT) Ratio

-The INET Model

-Daily Active Addresses

-Crypto Networks as Small Emerging Economies"


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Updates

My crypto portfolio suffered a major "earthquake" (have to kick myself a bit for the averaging down and playing too much with my Defi wallet), although the stablecoin portion is earning some crazy interests. You can check out Blockfi and Celsius if you not into Defi space, or take a quick look at Quickswap and Curve if you want some great stablecoin yields on Defi polygon.

SG stocks and bonds with low volatility are still the main pillars in supporting my overall portfolio, although dividends are just meh. Totally no FD now, and Singlife will go next month.

I have stopped trading US stocks this month(which seemed to run a little out of steam) and switched to selling options. It is a low-risk, slow-moving kind of trade strategy (no trigger of much brain cells nor emotional maneuvers) and so far I am happy with it.  


Source: https://www.istockphoto.com


Let's hope that Covid will go back to zero local spread (so that stonks won't sink) and cryptos won't go into deep winter (on hopium max!).


Click here to read more of my brain food series.



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Comments

  1. Where does the money for paying crazy interests come from?

    ReplyDelete
    Replies
    1. Hi Uncle8888,

      The money comes from lending interest, the liquidity pool fee and MATIC liquidity mining rewards.

      https://medium.com/stakingbits/guide-to-yield-farming-with-aave-on-polygon-matic-network-a03bd2154275

      Delete
    2. My yields are between 10-20%.
      There are crazier ones which I didn't play with - https://learn.zapper.fi/articles/how-to-earn-with-stablecoins-on-convex-finance

      Delete
    3. There's also this "money lego" concept to get multiple yields...
      eg. put up crypto collaterals in Aave (1) to borrow stablecoins(2), deposit the stablecoins back to Aave, use the Aave "receipt" received to provide liquidity in Curve (3), stake Curve "receipt" (4)

      *1-4 are the checkpoints that can earn variable yields.

      Delete
    4. Sound like pre AFC shares financing. First buy A share . Pledge A to finance company for loan. Use loan buy B share and pledge B share for loan to buy C share. Huat liao if all going well.

      Delete
    5. Yeah... So if A share collapse then all will explode and roll back.

      (If sth like that happens, you will see everybody stop blogging Defi. Cos we will suck thumbs and crawl back to tradfi.)

      Delete

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