Podcast Summary
This podcast episode delves into the world of decentralized finance (DeFi), focusing on the performance and potential of Prisma Finance and its stablecoin, MK USD. The hosts also discuss the high gas fees on Curve, the challenges faced by Liquidy, and the impressive recovery strategies of Convex. They touch on the recent Curve hack and its restitution plan, the survival of the D5 Wars website, and the future of crypto exchanges like Coinbase. The episode concludes with a discussion on the importance of self-custody in the crypto industry.
Key Takeaways
Prisma Finance’s Performance and Potential
- Prisma’s Success: Prisma Finance has been successful in handling its tokenomics, with successful launches and airdrops. The growth of its stablecoin, MK USD, has been notable. Prisma has also fared better in terms of collateralization ratios compared to other tokens.
- Prisma’s Incentives: Prisma has a built-in incentives or bribes Marketplace for voting lock or V lock holders. The incentive distribution schedule for Prisma shows a gradual decrease in emissions over the next three years.
- Prisma’s Future: Prisma has made smart moves and is working on preventing the same issues with liquidity and collateralization as other tokens. The Prisma team has the ability to make changes to the protocol, such as raising interest rates on P USD from 1% to 2%.
Curve’s High Gas Fees and Restitution Plan
- Curve’s Gas Fees: The hosts mention the high gas fees on Curve and how it has become expensive to use.
- Curve’s Restitution Plan: The hosts express their satisfaction with Curve’s recovery plan for those affected by the Curve pools hack in July. The plan includes rebalancing LP balances based on the current prices of Curve and ETH, and LPs will receive missed rewards from CRV tokens.
Convex’s Recovery Strategies
- Convex’s Lessons: Convex learned lessons from V CRV and refined their incentive programs to bring the peg back in line, which is impressive. The CVX Prisma convex token is expected to stay within a percentage or two of the peg once it’s released.
- Convex’s Governance Power: Convex has significant governance power over Curve, with about half of the voting power. Prisma and Protocol FX are smaller protocols with strong potential and majority ownership by Convex.
Coinbase’s Future
- Coinbase’s Decline: The hosts discuss a post by HFA Research that highlights the decline of Coinbase, which is down 80% from its highs. However, they note that Coinbase’s profitability is slowly growing, despite the bear market, thanks to increased transaction revenue from raising fees on retail traders.
- Coinbase’s Potential: The hosts express optimism about Coinbase’s long-term potential and suggest it may be the only US crypto company that will still be around in the next decade. They highlight Coinbase’s expansion into various services and products, positioning themselves as an incumbent in the US and globally.
Importance of Self-Custody in Crypto
- Self-Custody: The hosts emphasize the importance of self-custody in the crypto industry and suggest doing a tutorial on setting up a safe multisig to enhance security.
Sentiment Analysis
- Bullish: The hosts express a bullish sentiment towards Prisma Finance, noting its successful handling of tokenomics, growth of its stablecoin, and better collateralization ratios. They also express optimism about Coinbase’s long-term potential despite its current decline.
- Bearish: A bearish sentiment is expressed towards the high gas fees on Curve and the challenges faced by Liquidy. The hosts also express concern about the decline of Coinbase and the challenges of running a US-based exchange due to regulatory costs and legal fees.
- Neutral: The hosts maintain a neutral stance on the restitution plan of Curve following the recent hack, appreciating the recovery efforts but not expressing explicit optimism or pessimism. They also maintain a neutral sentiment towards Convex, acknowledging its impressive recovery strategies but not expressing a clear bullish or bearish sentiment.
