Economics Design

This month is on NFT. We chatted about the economics of NFT, and the economics of NFT flipping last week. A few days ago, an art piece was sold at $69 million by Beeple (https://onlineonly.christies.com/s/first-open-beeple/beeple-b-1981-1/112924)! Of which, $9m is in fees. My mistake, that $9m is to Christie and not the network's transaction. In any case, transaction fees are still a problem. Not...

This month is on #NFT. The hottest thing in NFT is how one can flip the NFT for insane profits. So today, we have Kiefer Zang, founder of NFT Flipping. Instead of talking about NFT flipping, we will focus on the economics of NFT flipping, the supply, demand and economics of why this is making sense. Enjoy!    Get the book at book.economicsdesign.com  Kiefer Zang from  www.nftfl...

NFT is the hype recently, powered by "non-crypto" influential individuals like Mark Cuban, Chamath Palihapitiya and Gary Vaynerchuk talking about it.    You might be thinking, "uhhhh virtual assets and digital assets exist. Why should I care about NFT?". Well, with the advent of blockchain (new technology), we take the existing assets (digital and virtual assets) and improve upon them! &...

Opyn is an open decentralised insurance platform built on Ethereum that allows users to protect themselves from certain risks they face in DeFi. Opyn is built with the Convexity Protocol, a protocol that allows DeFi users to create call and put options. Anyone can buy options ($oTokens) to protect themselves against DeFi risk. Users can also deposit collateral into a vault to mint and sell $oToken...

Opyn is an open decentralised insurance platform built on Ethereum that allows users to protect themselves from certain risks they face in DeFi. Opyn is built with the Convexity Protocol, a protocol that allows DeFi users to create call and put options. Anyone can buy options ($oTokens) to protect themselves against DeFi risk. Users can also deposit collateral into a vault to mint and sell $oToken...

Responding to the twitter poll, you guys want more finance and #DeFi explanations. So instead of assuming you know how to use #option strategies to help with risk management, let's do it in this video.    No overwhelm. Just simple basic strategies for now.   We cover 3 strategies today:   1. Covered call — think of it as being LP on HEGIC's platform   2. Married put —...

Back to our theme of February, we are covering a new protocol, #Potion.    Potion is a decentralised protocol for creating price volatility insurance contracts that run on the Ethereum Blockchain. The protocol allows users to protect against discounts on any asset: $BTC, $MKR, $LINK, $ETH, $MKR, $BAT.   User can create their own contract with custom Number of Contract, Strike Price...

Financial derivatives are an important component of the financial markets, as they enable risk management. The decentralised derivatives market is expected to grow exponentially with DeFi's growth and, as a result, a widespread and robust financial infrastructure is required.   Opium is a financial protocol for decentralised financial derivative products. Opium Protocol is completely based on...

In traditional finance, one of the most important pieces of derivative products can be mentioned is options. Continuing on with our #DeFi options series, we will be sharing about #HEGIC, the top #options protocol by market cap.   A simple option is a contract that allows a holder to exercise a call or put option at a predetermined price in the future with the main purpose of minimising the ri...

DeFi and CeFi options are different. Especially since tokens are involved. Tokens are not involved equally; #HEGIC uses it for staking and governance, #OPIUM uses it as an ERC721 tradable options contract, #OPYN uses it as a collateral for underlying assets. The models and mechanisms are vastly different.    Today, we will cover the general model of how tokens are created, the value bein...

What are options?   Options are an agreement. Remember when you were young and you told your best friend "if we are both single by 40 years old, let's marry each other." It is an agreement to execute at that time.   Similarly, you have that for financial products. Instead of marrying, you buy or sell financial products at a specific price.    Why use options?   There are a...

In 2021, we will switch it up. Instead of videos in bits and all over the place, we will create a monthly theme. This helps to divide the content out into sizable chunks and digest the information much better. Too much info in 1.5h is a bad thing! In January and February, the theme is options. Specifically, DeFi options. In this episode, we kickstart 2021 with an episode on volatility. Volatility...

DEX, AMM and bonding curve. Again, on this topic. I swear there is a lot of other innovation in the space too, but this week, I want to share something interesting with DEXes and their mathematical mechanism. You can guess that because we're having another whiteboard session! This week is a collaboration with block.science. And we will dive into Sifchain, a cross-chain DEX using Kosmos SDK that in...

In this episode, we show the TRUE power of tokenisation.  How? Interest  earned from derivatives market and tokenise that mechanism.    The DeFi space is getting more complicated with the derivatives market  and bringing in elements of Repo into DeFi. Whilst this is really  extremely exciting, one problem is that it gets more complicated to  understand.  &nb...

As much as I want to say DeFi and crypto is easy to enter, it is not  easy to fully grasp and understand it.  First you need to understand  technology. Then to understand math, finance and economics.    This podcast is to help you bridge the learning gaps. A subscriber (shout out to Magnus) mentioned that a general ELI5 episode would be good  to run through the few co...

What are social tokens? What are community tokens?  This episode, we  speak with Alex Masmejean to dive into the topic.     Social tokens can be split into 2 categories: community tokens  (signalling reputation) and personal tokens (investing in a person).     Topics we cover:  Bonding curve*: 7:23  Coordination vs speculation management via T...

I started looking at Bancor years ago, because it had the same name as the world currency John M. Keynes had in mind. Their math fascinated me, and that's how I got started with the AMM rabbit hole! The Bancor V1 token economics analysis report ( https://www.economicsdesign.com/portfolio/bancor/ ) is about how Bancor works and what the token does. Bancor has been working on a few improvements, fro...

You've listened to the episode on BarnBridge, how it works and suggestions to  be made.     Here's the full interview with Tyler Ward, as he explains what they are doing,  what they can do in the future and how the tokens in Barnbridge works.    Enjoy! The summary version with the product economics is the previous episode before this.  Want more in-dept...

BarnBridge is a new defi product in the market. Unlike the existing defi  products, BarnBridge goes to a new level of mixing the various existing  protocols.     This is unlike the usual episodes we cover. Usually, it's very economics  design focused. This time, it's more of financial design focus. This is  still relevant to economics, in terms of financial econo...

Today, we continue part 2 of the economics of insurance. This episode is  a deep dive into Nexus Mutual, $NXM. I'm not saying that DeFi is all  about bonding curve....... but I'm 100% going to talk about bonding  curve.     **Note: This bonding curve is DIFFERENT from the AMM bonding curve!      Watch the previous video if you have not done because...

Crypto/DeFi is more than just the economics, mechanisms and code driving it. One of the other cool things is the innovation in business logic, systems and products. Being in the digital space opens up more opportunities to mitigate inefficiencies and create ways to increase value-add. Today, we are joined by Victor Lee, the CEO of Bitcurate. In this episode, we will dive into flash loans and credi...

The insurance business is one of the oldest in the world. Today, it's  worth over US$5 trillion.  Online insurance is only capturing US$31  billion. And in crypto, it's even smaller. That spells opportunities x1.     The insurance industry is so inefficient. That spells opportunities x2.    In this video, we dive into the economics of insurance. This helps u...

DEXes are eating up the trading volume of centralised exchange. We covered many areas of DEX, from understanding the mechanism behind to understanding the various math formulas. In the comments, people were asking how to calculate impermanent loss and the risks available. So in this video, we cover 3 main things: What is the general formula for AMM What is the risk of trading within AMM (aka when...

The plan for this week is to do a deep dive for Sushiswap. But friday happened and the weekend happened. A lot of gains is swiped out in the S&P financial market and defi financial market. And since the video on "Why DeFi is more than just a Ponzi Scam" has gotten quite a bit of traction, I figured it's good to talk more about Ponzinomics. For Sushiswap, the video will still be produced, with...

We've talked about bonding curves so many times. You'd think I've  exhausted the content. HAH! Not a chance.    Today, we have with us Jeff Emmett from the Common Stacks team, sharing  with us about augmented bonding curves, generalised bonding curves and  various "behind the scene" concepts of bonding curves.    Absolutely follow him on twitter at https://twitte...