1/ Let's talk about ETFs🧵
35
297
774
Conversation
2/ Earlier, I noted that the launches of and completes the MVP launch sequence of stablecoins.
You can now pay, invest, and save using Terra stablecoins.
But we are far from done.
1
9
187
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
8
161
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.
Replying to
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.
2
9
146
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.
5
29
243
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 ()
14
56
315
9/ Working hard, coming soon 🎄
20
14
335
An issue with ETF's is farmeable tokens. The price of these tokens often seems inflated, because you can farm and generate more, sort of like a pro-rata agreement. I wouldn't want to buy a DeFi etf that included tokens currently getting farmed, unless the etf was farming too.
Being able to build crypto ETFs on the fly similar to the way you’re able to build pseudo-ETFs in @M1_Finance would be a dream.
Show additional replies, including those that may contain offensive content
Show