Research Summary
The report discusses the creation of the Metis Ecosystem Development Fund (Metis EDF) by MetisDAO. The fund, worth 4.6 million METIS, aims to stimulate development and attract liquidity, activity, and adoption in the Metis ecosystem. The report also highlights the top five protocols that could benefit from the EDF, including Hermes, Hummus, Netswap, Tethys Finance, and Revenant.
Key Takeaways
Metis Ecosystem Development Fund
- Creation of Metis EDF: MetisDAO has established a 4.6 million METIS fund, the Metis Ecosystem Development Fund (Metis EDF), to stimulate development and attract liquidity, activity, and adoption in the Metis ecosystem.
- EDF’s Primary Goals: The EDF’s main objectives include funding grants for new project deployment, supporting product development for existing dApps, providing builder mining rewards, and supporting audits to maximize security.
Decentralized Sequencer
- Launch of Decentralized Sequencer: As part of their 2024 roadmap, Metis will be the first Optimistic Rollup to launch a decentralized sequencer, starting on January 3rd. This move is expected to boost Metis’ token value proposition.
Protocols Benefiting from EDF
- Top Beneficiaries: The report identifies the top five protocols that could benefit from the EDF. These include Hermes, Hummus, Netswap, Tethys Finance, and Revenant.
EDF’s Impact on Metis’ Value
- Value Increase: The creation of the EDF has led to a significant increase in Metis’ value. When announced, the 4.6m $METIS EDF fund was worth $125m. Thanks to the “EDF effect,” the fund is now worth over $420m.
Metis’ Future Prospects
- Future Expectations: The report suggests that the EDF narrative, coupled with Metis being one of the first Layer 2 with a decentralized sequencer, could mean that attention will be focused on Metis at least for the first couple months of the year.
Actionable Insights
- Monitor Metis Ecosystem: Given the creation of the Metis EDF and the launch of the decentralized sequencer, it would be prudent to keep a close eye on the Metis ecosystem and its developments.
- Assess Impact on Protocols: The impact of the EDF on the top five protocols identified in the report (Hermes, Hummus, Netswap, Tethys Finance, and Revenant) should be assessed to understand the potential benefits and risks associated with these protocols.
- Track Metis’ Value: The significant increase in Metis’ value following the creation of the EDF suggests that tracking Metis’ value could provide insights into the effectiveness of such initiatives.
