We don't think it's overhyped. Honestly our launch has been the opposite of hype, just buckling down and trying to build something cool. A decentralized and open market synthetic price on Bitcoin Dominance, sounds pretty cool to us. Hope you come around, happy to chat! Big fans!
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Thanks Sam, I mean, we're big fans of ourselves :) It's something that is really cool and possibly creating a new asset class... possibly. I do think it creates a new type of synthetic and possibly derivatives, if we build it right and do the right ecosystem. Feedback welcomed!
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The marketing is eh and the product is very questionable. The rug that I’m standing on is starting to move.........
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lol, we're trying to build something to last, as you'll see from our partnerships xbtc.fi we're taking this seriously. It's a very different value proposition to rebasing and tokens in general. It's a way to bring off chain data to on-chain economics in a new way.
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so I think the fundamental problem is that doing a rebase doesn't change the economic fundamentals -- it's just a stock split, so holders shouldn't win or lose to them in general, they're just neutral
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AFAIK nothing in the protocol ties the market cap of xBTC to bitcoin dominance beyond the name
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1/ I mean the traditional derivatives market is notionally worth 600T, and the real value is 12T, the thought that they are tied to real value is comical. They are just a bet with a buyer and seller, and some of them are illiquid if they don't have that. We provide an open market
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bet for people to make quickly and easily, putting a decentralized spot price on BMCD. Also through liquidity pools you can create partial collateralization just like SNX. SNX forces their spot price through their walled garden, we let the market make our spot price.
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not disagreeing with any of that in particular -- just that I don't think you predictably make/lose money if you buy xBTC and then BTC dominance goes down/up.
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like I think it fails a much simpler check that decentralization etc.
I don't think it rewards the holder for BTC dominance moves.
1/ Depends on how you play the rebase, when BMCD falls it does trend the coin towards more positive rebases, which introduces economic incentives. Add in the open market demand for a way to quickly and easily trade BMCD. How are people valuing simply and quickly trading that.
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As we see from traditional derivatives and options people value making quick trades that don't contain the full value of there trade very highly. They want quick and easy numbers to trade on complex concepts (i.e. BMCD).
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