GhostTrader
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GhostTrader

GTR — Bucking the Trend

Being a trailblazer is not always easy. Real innovation rarely garners positive attention, and seems to encourage bad comparisons based on superficial similarities. Even in such a vibrant, innovative sector as the digital asset space, the age-old tendency to follow the pack pervades.

A Major Dirty Truth About Decentralized Finance

The sad truth of the matter is that most projects in this space will fail. This holds true particularly for copycat projects. We have the history of the industry as evidence to that fact. Because most projects rely on promises, never developing a core utility or a fundamental value proposition, most projects never develop a means of sustaining themselves once the bloom is off the rose and the initial swell of interest ebbs to a trickle. The market predictably turns to the next newest, shiniest project, and everyone hopes to find greener pastures elsewhere.

When a project does not have an underlying fundamental utility or does not address or solve a real problem, the market eventually wises up and recognizes those projects for what they are — vaporware. Building one’s proverbial castle on a foundation of sand is no way to establish a real path for the future.

Many very smart people are frightened or turned off to the entire sector, making it more difficult to promote broader, more generalized adoption. While we in the space know that defi is the future of finance, it does us no favors when suspect or useless projects dominate the news. This minefield of intrinsic risk compels many people to eschew the entire space altogether.

All Aboard the Yield Train

In the digital asset space, projects tend to copy one another. One of the major new developments in this space was the advent of easy yield. That new wrinkle in the sector changed everything, and opened the door for a much broader and varied decentralized finance ecosystem. It also allowed less fundamentally sound projects to garner a following without actually providing real utility.

Put mildly, yield has become an intrinsic component of the decentralized finance sector generally. The list of projects generating yield abounds. In this industry, even large, more mature projects provide yield to holders in some form or fashion. Layer-1 protocols all have yield projects associated with them or have a way of providing yield to their long-term holders.

Either through liquidity pools, yield nodes, or some other permutation or option, they provide their holders a means of realizing passive income from their holdings. In the case of larger projects like Cardano, Solana, Ethereum, et al., yield generation does not factor as the, or even a, primary function of those projects. So for purposes of our discussion here, we will disregard those projects due to their sheer size and significantly broader adoption and genuine utility.

But Wait, It Gets Worse

For the subsector of explicitly passive-income-based projects, the problem becomes more magnified. These projects exist explicitly to provide maximum yield to their holders, even if that yield fails to reflect actual generated economic value. Too often, those yields rely on some unsustainable mechanism that is itself contingent upon some variable that these projects cannot control.

Not to open up old wounds, but this has been a problem for a while in this space, culminating in the recent Celsius collapse. As we now know, size certainly did not save it from a rather ignominious demise.

While the initial projected yield of a new project may look great up front in terms of the percentages, there are always associated stipulations that inevitably introduce risk to the contributor in some other way. Either there is a limit or lock on free access to your principal for an extended period of time, or the yields get predicated on something as unreliable and unpredictable as bot trading. Or it could be any number of other novel defi prestidigitations, or combination thereof.

With such a focus on generating and optimizing only for yield, with no real broader plan for generating value, the result usually manifests as an extremely risky option. These teams promise ridiculously inflated and unsustainable yields, but have no way of creating the value necessary to fulfill such a promise. They eventually wither and die or collapse and implode. The result is a predictable one, as those projects tend to follow a rather short life cycle. And there is a simple explanation as to why. With no fundamental utility beyond spinning off vaporware yield to holders, there can usually be no direction to go but down.

Such projects end up relying heavily on the greater fools, making outlandish promises of future yield opportunities. These one-trick ponies cannot generate value for themselves, cannot improve as a useful project, and sooner or later the benefits of the gimmick upon which they rely begin to flag. Eventually, they fail — some much sooner than others. Whether they ultimately prove to be Ponzis or frauds, or just cannot remain sustainable, they eventually fail.

The Truth

The simple truth of the matter is this. There are no shortcuts to success. Value cannot be conjured from the aether through some digital engineering alchemy. Good projects recognize the truth of the matter. Utility drives value. Value drives the Community. The Community drives success. The relationship is as simple as it is critical to understand. Unfortunately, simplicity too often gets drowned out by the cacophony of moonboys and hucksters.

GTR Is Just Warming Up

GTR intend to do things differently. Our core utility has a track record of sustainability and success. The team is building a project for the long run. The first 48 months are just the on-ramping process, while we remain busy building the bridge. Over that period of time, our team will continue to focus on meeting our performance goals, as well as new expansion waypoints that the team will share as we move forward.

As stewards of our space, the team takes seriously our responsibility for providing education and frank communication with our community and beyond. The task of improving the space falls to all of us, and the GTR team takes this responsibility very seriously.

Education and Success

As time passes, we intend to provide a more thorough explanation of any and all things relating to the defi and fintech space, and how the wider developments in the market affect our project. We hope that our humble submissions will function somewhat like educational material, aimed directly at helping to elevate the collective level of knowledge and understanding of the entire digital asset community.

Over the next few weeks, we will begin delving into the specifics of the yield project sector, and onto related topics as time and opportunity allow. We will refrain from identifying specific projects, but we will begin to unpack some of common structural approaches these projects employ. This will also provide our team the opportunity to educate the community through direct comparison.

By diving into how these other projects stack up against GTR, we have the opportunity to fully explain how and why our project is different, how it brings real utility to the space, and — in our humble opinion — far outpaces any and all currently active yield-maximization projects. We hope you will join us as we begin our journey to better understand the industry.

Join Us

Please be sure to stay tuned to our social media outlets moving forward for updates and news of the Ghost Trader project. We invite you to check out our official Ghost Trader website, join us either on Telegram or Discord, follow us on Twitter and LinkedIn, and be sure to check out the podcast found here.

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