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SBF
@SBF_FTX
Replying to
@SBF_FTX
6) That means that giving away all the yield farming coins can generate at most that amount of valuation, and that amount of transaction costs. So how much is it in fact generating?
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SBF
@SBF_FTX
7) Well a few of the valuations make no sense, and I don't really know who's buying them. If you remove those, things actually aren't that crazy. YFI is at $1b, some of COMP/BAL/SNX/LEND comes from this, and then a collection of tokens around a few hundred million.
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SBF
@SBF_FTX
8) OK, and how about the transaction costs? Well people are spending about $100m per month on gas. In addition people are locking up about $10b of capital; if you use 20%/year as the baseline Crypto cost, that's another $1b or so of expenses.
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SBF
@SBF_FTX
9) So put it all together and you get.... ....well, you know, $6b or so. I'm gonna be honest, I wasn't expecting that, at all.
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SBF
@SBF_FTX
10) Now I ignored some coins from the calculation, intentionally; and I ignored the opportunity cost of peoples' time. But, like, ok, so I'm still surprised. I thought food tokens were obviously a bubble. Now I'm not so sure.
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SBF
@SBF_FTX
12)
@iearnfinance
is a weird case -- right now it's mostly just about farming, but it's also the king of farming, the meta-farming coin, and so it kinda makes sense that it should get a decent piece of that pie.
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SBF
@SBF_FTX
13) So, TL;DR: obviously food tokens are a ridiculous bubble, it was clear to me from the beginning. But also maybe it's not and maybe I was wrong about that?
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SBF
@SBF_FTX
14) Obviously some will still crash, and some will founder, and some will fuck up magnificently, but if even a few get to where they're trying to go, that could make up for the rest.
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