Tweet threads we talked about in this episode
In this week’s episode we had on DeFi Cheetah, who we happened across on Twitter a few weeks back when he wrote some awesome threads on Frax. One thing we liked about Cheetah was that he knows his stuff. As a former TradFi guy, he understands financial products, what the risks are, and how to describe them.
The thread that brought us to DeFi Cheetah was this great description why Frax should have some protection against regulators if ever Circle would come after the treasury. As the majority of all funds held by Frax are used in the Curve AMO, if Circle was ordered to freeze Frax’s USDC, everyone, including innocent people, would be affected. This makes Frax more resilient and also is where we get the phrase “Frax is backed by DeFi.”
Another great thread that we loved was about how Curve will eventually beat out Uniswap due to its tokenomics. Curve by design creates a non-competitive marketplace due to veCRV locks. Since LPs can get a boost, they tend to keep all their liquidity in one place on Curve. Additionally, Curve fully embraces bribes, which only increases liquidity. So while CRV emissions are a cost, the fees and bribes pre-pay it. Last, LP management on Curve is easy, while on Uniswap it continues to move towards professionalization. But retail LP is what made DeFi in the first place. Long Live Curve.
If you aren’t already following DeFi Cheetah, make sure to add him to your list of big brain threadoors who are always pushing the narrative in DeFi. We love to see his support for the Frax ecosystem and will definitely be watching his threads closely.