Newsletter 12/26 — Down the RabbitHole
Merry belated Christmas. Exciting things happening this week in our first newsletter, today we discuss RabbitHole, Algorithmic Stablecoins, AAVE integrating Curve, and the 1inch Airdrop.
Down the RabbitHole
Earn money for using someone’s financial product. In Defi this isn’t a new concept, but Rabbithole is offering a new spin on this concept. The world of Defi is changing rapidly and it’s hard to keep up with new products being released every week. RabbitHole incentivizes users to use the new products by offering payment in the products tokens. You learn how to use the product and get paid to do it. Learn more here.
As the ownership economy continues to grow, protocol communities are continuing to grow and become more involved. However, in order to keep growing the ownership economy, with new protocols being introduced, RabbitHole found a unique way to incentivize retail investors to not just be investors to actively participate in in new defi projects, learn how they work, and see the new value the protocol is adding to the ownership economy.
RabbitHole is an exciting new project that pushes forward the concept of ownership economies. In order for this protocol to be a success, Rabbithole must work to maintain product credibility in what it incentivizes people to invest in. As we enter the next big bull run, akin to 2017, many of these interesting protocols and projects will likely fall apart. It will be RabbitHole’s job to make sure that they’re incentivizing their users to play games in the protocols that will likely have long-lasting returns.
Rise of Algorithmic Stablecoins
The race is on between a few different algorithmic stablecoins to decide which design works best, or if any will ultimately be suitable to become a fixture of the DeFi ecosystem. While these sorts of coins have been around for at least a few months, they have picked up a lot of hype recently. An algorithmic stablecoin is one which does not rely on backing from other assets or simple rebasing to keep its peg. Examples include Empty Set Dollar (ESD), Dynamic Set Dollar (DSD), and the Dollar Protocol (USDx). These are some of the main competitors, but there are many more.
ESD is one example of such a project, it borrows some elements from rebasing coins such as AMPL, but has a more methodical approach than the ‘mindlessly print till we hit the peg’ approach of a lot of previous rebase coins. Instead, the system is set up with ‘coupons’ that users may burn their ESD for at low prices, and that are redeemable in profit from new minting as the price approaches or goes over $1.
Time will tell if these sorts of stables become widely adopted, but some look more promising than others at the moment. Some are close to their goal price at the time of writing, while others such DSD are currently wildly off peg. I’d love to see some of these projects work out, if they’re successful it would allow for much firmer decentralization than some of the current stable options as most don’t rely on much outside of their own protocols.
Curve is on AAVE
The Curve DAO token (CRV), the governance token for the decentralized stablecoin exchange, was approved in a landslide to be included in the lending protocol AAVE today after a proposal was initiated and approved in AAVE governance. It is now queued to be implemented, and will be available for lending sometime tomorrow.
1inch.exchange Releases Governance Tokens
1inch.exchange, the popular defi aggregator, released their governance token. 30% of total supply is being allocated towards community members over the next 4 years. 1inch is innovating tokenomics with the release of instance governance, to improve slower governance processes that are defi protocols struggle with. Click here to track the activity of 1inch tokens
