Stratos Technologies

Stratos Technologies
Apr 19 · 24 min read

Primer: Cryptocurrency and Decentralized Finance

Source: CoinMarketCap (as of 4/19/21)

THIS IS NOT INVESTMENT ADVICE

Part I:

Part II:

Part III:

Part I: Overview of DeFi

Foundational Elements

Risks and Drawbacks

Part II: Ecosystem Overview

Currencies

Chains

Examples: bitcoin, Ethereum, Polkadot

Chain type: Store of Value

Example: bitcoin (fully diluted market cap $900 billion)

Chain type: Virtual Machine

Example: Ethereum (fully diluted market cap $200 billion)

The Next Dimension of Virtual Machines — Polkadot

Protocols

Examples: UniSwap, Compound, Goldfinch

Uniswap — Analogy: NYSE broker-dealers

Fully diluted market cap: $21 billion

Compound — Analogy: Money-market

Fully diluted market cap: $4.5 billion

Goldfinch — Analogy: Money-market

Fully diluted market cap: TBD (pre-launch)

Tying it all together

Part III: Investment Strategy

THIS IS NOT INVESTMENT ADVICE

Investment Framework

Coins — Winner: Bitcoin (BTC)

Chains — Winner: Ethereum (ETH)

Accordingly, the Stratos Technologies DeFi strategy has two investment components within the same vehicle that reinforce each other — early-stage equity capital for DeFi projects and multipurpose capital to provide liquidity to those projects as they scale and launch.

Early Stage Equity Capital

Multipurpose Liquidity Capital

Execution

Allocation between Buy-and-Hold and Active strategies:

Parting Thoughts

Stratos Technologies

Expert research empowering informative investment in the decentralized finance (DeFi) ecosystem.

Stratos Technologies

Founded in 2016, Stratos Technologies is a venture capital firm with expertise in financing, operating, and advising technology businesses. Since inception, the firm has executed over $300M in credit & equity transactions in high-growth, technology businesses around the globe.

Stratos Technologies

Written by

Rennick Palley, Founder and Chief Investment Officer of Stratos Technologies — stratoslp.com

Stratos Technologies

Founded in 2016, Stratos Technologies is a venture capital firm with expertise in financing, operating, and advising technology businesses. Since inception, the firm has executed over $300M in credit & equity transactions in high-growth, technology businesses around the globe.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store