The case for Tezos DeFi - fair valuation of dapps

I don't know if you are familiar with tezos blockchain, largest ICO of 2017. Its USP are POS, forkless, has performed 8 major updates in the last 3 years, on chain governance.

The use of the blockchain with dapps really started in April this year, the number of contract calls is increasing fast (can break ATH this month).

Its now around 30% of ETH transactions

https://preview.redd.it/h4a0oj68x4081.png?width=918&format=png&auto=webp&s=34f7936d984d2d027f34178606474718ab55b79a

The top dapps are hicetnunc.art/ or objkt.com/(2 NFT places), you can find the dapps by use on dappradar.com/rankings/protocol/tezos

Tezos is really looking to be a blockchain to be used rather than a L1 token to hold. It is also used by the european central bank experiments, voting platform in some cities, STO (security token offering), NFTs so could be the backend of mainstream adoption IMO.

The post is specifically about Tezos DeFi

It's being built as we speak but we can already identify projects on mainnet like

  • app.youves.com/ or kolibri.finance/ similar to makerDAO (input collateral & borrow a algo stablecoin),
  • app.crunchy.network/ that is DeFi as a service, everyone can add a farm paying CRUNCH token, also a launchpad
  • The DEXs: 5 of them quipuswap.com/, plentydefi.com/, or spicyswap.xyz/#/app are the most famous ones

Now whats interesting in the analysis, I have compared the Fully Diluted Market Cap of the top DEX of each chain and normalised it by the L1 FDMC (since the more money in a blockchain token, the more money invested in the ecosystem too)

I will be using coinmarketcap data for this

  • UNISWAP (25B) and ETH (556B) -> ratio 4.5%
  • CAKE (4.5B) and ETH (103B) -> ratio 4.4%
  • JOE (1.3B) and AVAX (63B) -> ratio 2.1%
  • SRM (72B) and SOL (121B) -> ratio 60% ?!
  • SPIRIT (272m) and FTM (8.5B) -> ratio 3%
  • QUICK (400m) and MATIC (17.4B) -> ratio 2.3%

Now let's look at tezos…. (no data on CMC since the quipuswap API is not fully operational yet)

  • QUIPU (28m) and TEZOS (5.3B) -> ratio 0.49%
  • PLENTY (46m) and TEZOS (5.3B) -> ratio 0.87% See the huge difference with the other chains! And Plenty offers >100 APR% for single staking

If you have insights on why only tezos DeFi would behave this way compared to other chains, let me know please! Maybe because of the lack of visibility due to CMC not listing the tokens yet?

submitted by /u/greeneye44
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