Background
Long-story-short: all those Olympus DAO forks not much different from bad-old degen farms. Both use inflationary tokens, first they attract users with high yields promises, then they rely on incoming buy pressure to maintain those high yields – otherwise the APR will drop and everyone will leave; the successful ones will survive longer but their destiny is just the same, it’s just a matter of time. Now *they try to find a way out of this circle.
*I’m not talking of course about scams, which is also part of the DeFi culture.
The fall
Nothing new to most of you till now – with no actual use case for the native token, when demand will decline the price will follow, the bottom-pyramid investors will cry due to their lost and high expectations which were built after listening to the early investors success stories; the early investors whom still there have earned enough and have much to lose so they’ll sell first with high volumes, the whales will follow, the last ones as always are the poor bottom-pyramid people that will feel been cheated so they’ll create a fud on social networks that finally will accelerate the process and drag a bank run for everyone saving their tiny left bag. The devs will try to stretch the end more, by airdrop and void promises, however the death is inevitable.
The rise or a pathetic last try?
So those project owners/DAO try to find a solution out of this circle. Why they didn’t think of it on the first place? Cause it wasn’t interesting. They postponed thinking of it only till the phase when they’ll have an established project with thrive community and live treasure that is now minimized on a daily basis.
Now what happens when you try to invent a utility for something that wasn’t planned to have other utility? People just come up with weird suggestions and try to hitchhike over existing hypes.
– Wonderland TIME token will be used as a Metaverse currency? https://youtu.be/foapnF2A7kI
– Jade Protocol asking their community what the hell should they do now? The vast majority (95%) voted to reduce APR to sustainable levels, after Jade owner admitted it can’t go on like this and the APR was high only at the beginning in order to attract users. https://twitter.com/JadeProtocol/status/1470831504225980417?s=20
My Proposal
Why not thinking inside the box for a change? (directed mainly to Daniele)
You’ve got a whole ecosystem with Abracadabra, Popsicle Finance & Wonderland which rolls up billions of dollars – use it!
You’ve already offer wMEMO as collateral for lending MIM, what a demand! Every pool $200M replenish is emptied within minutes… Why stopping there??
You can use TIME as a farm rewards booster for Popsicle Finance / Abracadabra. You can use TIME (Memo, whatever!) to farm in your own ecosystem (currently it’s possible only on other projects only). You can use TIME for DEX purposes (why are you sending people to Trader Joe, even after this? Well maybe acquiring Sushi was a move on this direction…), for Bridging, offer higher yields for lockup periods, for dozens of proven use-cases & techniques which have already been proven as yield sustaining on DeFi over time.
If/until something will come up
Meantime the wise investors & developers understand it. So the routine degen-farming dance continues to play – every few days (hours?) a new Olympus fork is popped up with ridiculous high APY, users rotate projects every few days, social networking pump & dumps scams and rug pulls, over appreciated launches – all the familiar degen facilities. Back to DeFi square one.
Bottom line
There’s no DeFi 2.0, yet. Maybe there never will.
