Terra will be remembered as the apotheosis of the 2020 crypto bull market. It started from humble beginnings as an experimental stablecoin. But in the span of a single year, Terra went from one of the best performing assets of this cycle to the most spectacular collapse a major cryptoasset…

I’m proud to announce the launch of Dragonfly Fund III, a $650M venture fund. It’s our largest one yet. We’ve grown, and with this newest fund we’ll be backing the most disruptive founders, protocol builders, and hackers of this generation. We used to talk about how the revolution was coming…

The “Cypherpunk’s Manifesto” begins, “Privacy is necessary for an open society in the electronic age.” But privacy coins — cryptocurrencies with strong privacy features — have failed to take off. Monero and zcash are both worth less today than what they were worth in 2018. In comparison, ETH is worth…

Will we live in a multi-chain world, or will there be “one chain to rule them all”? It depends on your mental model of what blockchains are. People usually describe L1 blockchains as networks, e.g. the Ethereum network, the Solana network. This implies that blockchains are endlessly extensible like the…

As Dragonfly Capital continues to expand, we are delighted to bring on Rune Christensen as a venture partner. Rune is the founder of MakerDAO, the protocol behind the world’s largest decentralized stablecoin, and today the largest decentralized finance protocol today by TVL (almost $20B). Rune hails from Copenhagen, and is…

Of all the stablecoins I’ve analyzed, FRAX is the hardest to categorize. Most stablecoins are either overcollateralized, not collateralized at all, or their collateral level is solely dependent on the volatility of crypto. FRAX is unique; it is the most central bank-like of algorithmic stablecoins I have seen. If you…

The biggest story in Ethereum over the last 6 months has been the explosion in transaction demand. Transaction fees have crossed all-time highs, and many everyday users are now priced out of using Ethereum. But worry not. A savior has emerged. Of course, I’m…

Automated market makers (AMMs) have catalyzed the explosion of DeFi over the past year. Uniswap handles over a billion dollars in transaction volume a day, cementing itself as one of the 10 largest spot exchanges in the world. Sushiswap and Curve are not far behind, each trading hundreds of millions…

Stablecoin usage has exploded in the last year. And yet, fewer and fewer people seem to understand how these stablecoins actually work. For some reason, stablecoin creators are obsessed with making these designs seem impenetrably complex. Almost every white paper is mired in equations and newly invented jargon, as though…