Hi, I’m a Economics PhD who’s been working in tech his whole career. I’ve recently really gotten into DeFi lately — I think it’s a fascinating space and it’s definitely the future of finance.
I think all defi projects derive value from three fundamental things: hype, community, and fundamental value.
There are some great concepts out there — but also alot of rubbish. It’s hard to detect as well– usually there’s a highly technical whitepaper that I assume most people won’t read. I’m guessing some people here will have be burned by this stuff.
Was wondering whether people would be interested in a service where the whitepapers are broken down into understandable chunks? From there it should be clear which ideas are legitimately good and which ones are cash grabs cloaked with mathematical mumbo-jumbo.
19 thoughts on “Whitepaper Screening — Finding Projects with Fundamental Value”
You must be new here <sad joke face>
I have very similar outlook on fundamental values and its technical underlying. What is hard thou, is that the community is very lacking in this department. There is a lot of shilling and “where good apy?” questions. This is very big liability when it comes to gathering research data. This sub is a prime example of this.
I have my own checklist of what makes a good project, as well a list of common red flags. I would be very happy, if there was an objective review of technicals from any white papers. So yes, I am interested with both process and its results.
You need some attraction first. People love results. You could analyze papers, compare projects and put 100$ in every innovative project. After some months, post results on different subs and listen to what people say to you. Not financial advice.
Edit: spelling mistakes
That sounds fucking fantastic, but that’s a lot of work and how would you monetize it? Would you just do it as a YouTube? – I feel like creating some kind of a summary document but then going through it and a YouTube video would be amazing
Could you give us an example in practice?
That would be an easy job for you, many white papers are copy-paste pf each other.
I would be looking forward to it.. Especially being newbies…
Isn’t Messari a good resource to evaluate projects?
DeFi is currently becoming one of the most popular topics in the crypto space. It is an acronym for decentralized finance. People who think of DeFi usually think of digital assets and different financial smart contracts. In addition to that, the term decentralized finance also stands for various protocols and decentralized applications, all of which are mainly built on the ethereum network. In a nutshell, DeFi stands for financial software, which is built on top of the blockchain. It is a system that offers different ways to develop and build financial tools and services, while being decentralized and able to be modified when needed.
Hype drives, fundamentals have nothing to do with it.
One approach to consider is the Coin Fair Value website. I like the price/fair value sort and the fair value growth rate to screen possibilities.
The issue is that like attracts like and the DeFi crowd gets in, gets out while the hype is hot before fundamentals matter
Apparently, the crypto world seems congested, But no matter how much Alts we have, utility and central focus of the project is important. Some platforms just go straight to launch coin and then start looking for utility after, just to get buys, this business as usual is a failure from start. I was impressed with BITAY exchange, they launched thier exchange, apps and almost all thier deliverables are been launched, they focused on products and development first, as it is going now, when BITAY coin launches, the exchange might be the best exchange ever excited with the features and functionality embedded in it. Bitay has changed the narrative and they are coming stronger with BTY coin, NFT, game, Bitay Visa Card and much more on its ecosystem.. despite the congestion of alts coins, there are still gems to look forward to guys, all needed is to study and filter.
That would be used by people for sure. I do similar stuff with Blockchain code. I break it down and do writeups on Twitter.
You can start a blog or tweet out stuff but you need a following to actually make money off of that
The problem is how do you define fundamental value?
* Traditional fundamental value in stock, the intrinsic value?
* Level of decentralisation, or a sacrifice of decentralisation for increased utility? (Application to Defi) but also applies to centralisation happening in mining and ownership.
* decentralisation of consensus mechanism.
* level of privacy?
* consensus & blockchain fundamentals?
* transaction through put?
* roadmap? a project starts with some centralised aspects, but has plans to move towards decentralisation, how do you weight that.
* a lot more…
You probably want to come up with a feature matrix and weight the values on each row. However the weights for each will depend on the customer for the blockhain/project/defi etc. It’s not as simple as a stock.
>I think all defi projects derive value from three fundamental things: hype, community, and fundamental value.
What about liquidity and volume? or is that a subset of community, or fundamental value?
You should check defi projects with unique features which can give users the best experience and long term profit. Unicred is one of my DeFi thing this year which also focusing with Dynamic LTVs ,meaning more chances to earn higher LTVs and better returns
If you want any assistance, I make websites, graphics and apps. I’d be happy to partner up, $0, Sweat equity style
We’re waiting for the result of such research as this!
If it want quality, read about hive investments https://medium.com/@hiveinvestments
I’m saving you guys sometime looking for the links.
Juno Network is a great project with extremely awesome future.