Crypto Liquid Ventures
5 Results
INTRODUCTION One of the major complaints about crypto is that the user experience (UX) is unintuitive and clunky. Moving funds from bank accounts to non-custodial wallets is a cumbersome multi-step process. Once funds have arrived on-chain, trading on decentralized exchanges (DEX) has its issues with giving token approvals and manually trading tokens at the market price. On-chain limit orders or stop-losses have previously been nonexistent for DEX traders, making it...
WHAT IS LYBRA FINANCE? Lybra Finance is a lending protocol built on Ethereum that utilizes liquid staking derivatives to allow users to borrow against their staked ETH. When depositors supply staked ETH, they can mint eUSD, Lybra’s interest bearing stablecoin, at zero cost, improving capital efficiency and providing interest income. INVESTMENT THESIS The investment thesis of Lybra is predicated on two main points:Lybra's Product-Market FitGrowth of Ethereum Staking _LYBRA PRODUCT-MARKET...
INVESTMENT THESIS Of all the financial instruments in TradFi, interest rate derivatives have arguably one of the largest total addressable markets. To illustrate, interest rate derivatives occupied over ~$500T in notional value in H2 ‘22, according to BIS. This market is generally supported by participants who want to speculate on or hedge yields on a myriad of asset classes, including foreign exchange, equities, commodities, and credit. This class of instruments...
INVESTMENT THESIS While Level initially gained prominence by becoming the _first GMX fork on BNB Smart Chain_, it has since grown to differentiate itself from other perpetual decentralized exchanges, or ‘perp DEXes,’ via multiple proprietary improvements from TradFi and DeFi. For a recap on, perp DEXes, check out our piece here. The first improvement implemented by Level Finance is tranched risk management for liquidity providers. Drawing inspiration from Mortgaged-Backed Securities...
INVESTMENT THESIS Given the rise in U.S. treasury yields (5.00% - 5.25% at the time of writing) and the suction of liquidity that ensued from risk assets, perhaps the most useful metric to gauge product-market fit at this stage of the bear market is Total Value Locked (TVL). Essentially, the consideration that is front and center in the minds of savvy investors is, ‘Would this investment or strategy yield better...
