Conversation

1/ Let's talk about ETFs🧵

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2/ Earlier, I noted that the launches of

@mirror_protocol

and

@anchor_protocol

completes the MVP launch sequence of

stablecoins. You can now pay, invest, and save using Terra stablecoins. But we are far from done.

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3/ In traditional finance, ETFs are huge. Passive investing via ETFs dwarf active investing in single stocks - trillions and trillions of dollars. Single stocks are signals, ETFs are narratives.

4:03 AM · Mar 29, 2021Twitter Web App

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4/ ETFs are far more relevant in crypto than in TradFi. While single DeFi assets are 99% likely to fail, there is little doubt that DeFi as a movement is going to be transformative. Investors want to bet on movements.

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5/ But more importantly, TradFi ETFs are broken - they can only: 1) Be issued and managed by permissioned license holders 2) Rebalance on rigid parameters (Market cap) every quarter DeFi fixes this.

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6/ What if we could have an algorithmically managed ETF, where rebalancing is dictated via permissionless incentives? That is, when asset composition needs to change, the community has arb incentives to trade agains the ETF? Wall street becomes obsolete.

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7/ Algorithms have a richer design space. - Social / user activity used to rebalance - Wider asset selection (crypto, derivatives, mAssets) - Cliff triggers (100% $RUNE when $RUNE goes above 10 dollars) - Yield + assets (aUST included in basket) And anyone can do this

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8/ Assets up for grabs from day 0 in the Terra ecosystem - Bridged cryptos - Stocks / ETFs / Commodities (Mirror) - Yield products (Anchor) - FX (Terra stablecoins) - Soon (tm) Derivatives (

)

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9/ Working hard, coming soon 🎄

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Danny Iskandar is doing #crypto now

@dannyiskandar27

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Do, do

ETF, the bomb to $LUNA kingdom

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Outsized demand for a crypto exposure ETF now for i.e. top 50 or top 100 CMC assets. Everyone wants to bet on the space but don't want to try to pick individual winners. Would be massive beyond any other.