TN caught up with Degen.VC’s co-founder and Northern-Irishman (and Irish Olympian actually) Fraser Brown to discuss what is coming
What is Degen.VC?
My co-founder Paul Scott and I believe that if the “crowd” – the global masses of small retail buyers – can be engaged appropriately then they can finance literally anything in a matter of minutes and be “first in” on opportunities that currently only “big finance” gets. This was seen in the ICO craze which was disastrous because of how inappropriately the crowd’s goodwill was abused, and more recently we have witnessed Wall Street Bet’s short squeeze on GameStop costing hedge funds millions. The small guy can win. But, this fact is not something that VCs want to entertain nor promote. It is, however, fundamentally what Degen.VC aims to achieve.
What is an Alphadrop?
In brief, it is sending new project’s tokens to our community. But there is some nuance to the model. To receive tokens you need to own the DGVC (Degen.VC) token and have pooled it with ETH on the Uniswap decentralized exchange for LP (liquidity pool) tokens. Holders of LP tokens receive the airdrop of new project tokens. We call this the #alphadrop.
What is Rock3T (3t.finance) and why was it a success?
I think that to answer this properly we first need to unpack DeFi and Bitcoin a little bit.
DeFi or Decentralised Finance is financial tooling that resides on blockchain and, thus, that no-one controls. The biggest backbone is currently the Ethereum blockchain, and Uniswap is the biggest example; it is a decentralised exchange that is now seeing $1 billion of trade per month. Uniswap is software that was deployed onto the Ethereum blockchain. It cannot be stopped or controlled in any way. DeFi saw a boom recently in what was called “staking”.
This is where people were rewarded for locking tokens on a smart contract with more tokens. Many people made gains – mostly short-term – with this innovation. It is a draconian tool and largely popular because you don’t need to be a PhD economist to understand it. Staking demonstrated that powerful economic levers are possible on blockchain with smart contracts.
Bitcoin’s blistering run from $3000 in March to $40,000 has largely been credited to institutional finance and even corporate money getting involved. These guys have “done the math” and have convinced themselves and their shareholders that Bitcoin is one place to store money. Even the likes of Cramer on NBC promotes an allocation to Bitcoin these days. It and crypto with it – especially thanks to adoption by Paypal, Revolut and even pornhub! – are increasingly mainstream. Bitcoin is about math.
It is basically likely that the price will rise due to the certainty of its behaviour. In a world where many currencies are unstable Bitcoin is an opportunity for citizens to opt out of their sovereign financial system into a decentralised one. As such it could take away the efficacy of governments printing money which is simultaneously a wonderful and terrible thought.
Rock3t set out to achieve similar properties to Bitcoin but without all the mining palaver which is basically not needed for a token native to the Ethereum blockchain which by default utilizes Ethereum’s security. Rock3t’s current implementation achieves three things:
1. When people send ETH to it it combines these with R3T tokens on Uniswap for LP tokens which are then locked for a period.
2. When people send ETH to it it also market buys R3T tokens to replenish its supply and create buy pressure
3. When people withdraw their LP tokens (after a lock period) it locks forever some LP tokens creating a perpetual liquidity sink.
The interesting thing about these three characteristics of Rock3t is that they all vary depending on algorithms. In other words, each depends on something: buy pressure depends on the amount of R3T tokens in the Uniswap pool; lock period depends on system health (ETH^2/R3T); and perpetual LP locking depends on R3Ts ETH price. There are full details of the model and its math in this article
The token was airdropped (free) to our community last week and trades with an average price of $2 currently. The code was also already forked with some modifications by a project called nitrous.finance and we then adopted this project and brought it to our community. But that is a story for another time. Last week was hectic.
Tell us about HARDCORE. What is the opportunity?
HARDCORE is spot the ball on blockchain – you can win an exotic car by staking HARDCORE tokens. HARDCORE tokens will be airdropped to our community this Thursday. That means that anyone can buy and pool DGVC tokens on Uniswap to get an allocation of this “alphadrop”. I can’t really put it in any plainer terms. There is no barrier whatsoever. Anyone anywhere in the world with any amount can do this. This is Degen.VC
https://t.co/zZA4fLVtVo How it started ? / How it’s going ?. A thread. TL/DR: Over $1 million worth of tokens were airdropped to the DGVC LP in the past week. Next #alphadrop takes place this Thursday – for alpha see point “3”. https://t.co/Xy74I523ok
— Fraser Brown (@fraserbrown_org) February 7, 2021