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The Double-Edged Sword of Curve Finance: Incentives, Risks, and the Road Ahead

Fehmi Fennia
August 14, 2023

Context The DeFi ecosystem was recently thrown into chaos when Curve Finance, a major player in the space, faced a staggering multi-million dollar security breach. The exploit, which occurred on July 30, 2023, saw approximately $70 million drained from several liquidity pools, shaking confidence in the decentralized sector. This theft was attributed to a vulnerability…

Continue Reading The Double-Edged Sword of Curve Finance: Incentives, Risks, and the Road Ahead

The Economics of Play to Earn (P2E) Markets

Economics Design
June 9, 2023

A Comprehensive Framework for Designing Robust and Sustainable Play-to-Earn (P2E) Economies Introduction Economics forms the backbone of any market, whether it be a decentralised finance (DeFi) economy, play-to-earn (P2E) ecosystem, or even a country. The success of these systems relies heavily on getting the economics right. Building a robust and balanced economic system requires careful…

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Designing Sustainable Economic Models for Web3 Game Economies

Economics Design
June 2, 2023

Unleashing the Power of Web3: Designing Sustainable Economic Models for Game Economies Introduction Web3 technologies have revolutionised the gaming industry, introducing new economic models and opportunities for game developers and players alike. Web3, often referred to as the next generation of the internet, envisions a more decentralised, transparent, and inclusive digital world. It harnesses the…

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Economics, Design, and Engineering for Robust DLT Ecosystems

Economics Design
May 23, 2023

In this research paper, we discuss the importance of integrating economic, design, and engineering principles for the development of successful distributed ledger technology (DLT) ecosystems. Several key factors highlighted that influence the success of a DLT ecosystem includes the network’s governance structure, which should be designed to promote Decentralization Transparency Accountability Additionally, a “proof-of-value” mechanism proposes to reward…

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Understanding Volatility in Crypto: A Comprehensive Guide

Economics Design
May 19, 2023

Introduction What we have been noticing The world of cryptocurrency or crypto has seen tremendous growth in recent years, with people flocking to invest in the market in the hopes of making a fortune. However, the extreme fluctuations in crypto valuations have resulted in both gainers and losers, regardless of which crypto they invested in.…

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Progression and Free-To-Play

Economics Design
May 16, 2023

Author: Lorenzo P. Martin Disclaimer: This is not financial advice. Introduction Blockchain gaming took off in 2021 thanks to the rise of Sky Mavis’ Axie Infinity. The game allowed people all over the world, especially those from developing regions, to earn an income from basically playing a game. And though the 2021 version of that…

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How Web3 Blockchain Gaming Formalized Informal Web2 Gaming Trade Mechanisms

Economics Design
May 12, 2023

Author: Lorenzo P. Martin Disclaimer: This is not financial advice. Introduction The article looks at how earning through playing a video game has been around since the late 1990’s through informal trade external to the game. Value is generated within these digital economies and opportunity costs help facilitate the value trade between two agents. Blockchain…

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Building an NFT Economy: Mistakes to Avoid and Best Practices to Follow

Economics Design
May 11, 2023

Introduction What we’ve been noticing The rise of non-fungible tokens (NFTs) has opened up new avenues for artists, musicians, and creators to monetize their digital works. However, the growing popularity of NFTs has also led to a flood of new entrants into the market, resulting in a crowded and often confusing landscape. To stand out…

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Reserve Utility Token Model

Economics Design
May 1, 2023

Get the full PDF report Reserve Utility Token Model Author: Kiefer Zang Disclaimer: This is not legal advice. A lawyer should be consulted prior to implementing any version of this model.  Intro  An extremely common motivation for creating a token is to raise funds, however it is becoming increasingly difficult to design a token that…

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The Economics of NFT Flipping: How Digital Art Collectors are Making a Fortune

Economics Design
April 28, 2023

Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Introduction What we’ve been noticing In recent years, non-fungible tokens (NFTs) have emerged as a groundbreaking form of digital asset ownership, revolutionising the way we think about art, digital collectibles, and even virtual real estate. NFTs…

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Exploring the Boundaries of AI in Tokenomics: Can Chat GPT Fully Replace Token Economists?

Economics Design
April 25, 2023

Can AI Replace Token Economists? The Limitations of AI What we have been noticing In recent years, the rise of artificial intelligence (AI) such as Chat GPT has revolutionised numerous industries, and the world of token economics is no exception. As digital tokens continue to gain popularity, the use of AI in designing and managing…

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Exploring the Intersection of Economics and the Emerging World of Web 3 Gaming

Economics Design
April 21, 2023

Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Introduction What we have been noticing The world of gaming has undergone a significant transformation in recent years, thanks to the emergence of Web 3 and blockchain technology. One of the most notable changes has been…

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The Rise of Play-to-Earn Gaming: Exploring the Economics Behind the Business Model

Economics Design
April 14, 2023

Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Introduction What we’ve been noticing Gaming has undergone a major transformation in recent years, with the rise of Play-to-Earn (P2E) gaming economies. This concept involves players earning in-game assets such as cryptocurrency or NFT that can…

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NFTs and Gaming: The good, the bad, and the profitable

Economics Design
April 7, 2023

Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Introduction What we’ve been noticing Non-fungible tokens (NFTs) have become a buzzword in the gaming industry, promising to revolutionise in-game economies. NFTs are unique digital assets that are stored on a blockchain, making them verifiable, scarce,…

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Behavioural Economics: How it can make or break your token

Economics Design
March 31, 2023

  Introduction What we’ve been noticing The success of a token depends on its ability to incentivize desirable behaviour and discourage undesirable behaviour within a blockchain ecosystem. To achieve this, token economics must be designed with a deep understanding of how people make decisions and respond to incentives. This is where behavioural economics comes in.…

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A decentralised lending protocol – MakerDAO

Economics Design
March 28, 2023

Introduction Quick background what is MakerDAO MakerDAO is a lending platform, that powers a decentralised stablecoin DAI. DAI is soft-pegged to the USD. The protocol works by allowing anyone to take out loans in DAI using other cryptocurrencies as collateral. These loans are overcollateralised, meaning that borrower needs to deposit more cryptocurrency (eg. ETH) in…

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The rise of Cryptocurrency: Why it’s here to stay

Economics Design
March 24, 2023

Introduction What we’ve been noticing As the world becomes increasingly digital, the financial industry is also undergoing a significant transformation. Cryptocurrency or crypto, which was once viewed as a fringe concept, has now emerged as a serious contender in the world of finance. With its decentralised nature, advanced security features, and potential to promote financial…

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Client Overview: Sparkadia

Economics Design
March 22, 2023

Sparkadia is an ecosystem of AAA games, tied together by a social hub and interconnected economy. The economy includes on and off-chain currencies, battlepasses, land, cosmetics, and more. Client Need Identify types of tokens and off-chain currencies needed, along with their utility, faucets, and sinks Plan distribution methods and utility for land, cosmetic, and other…

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Client Overview: Shrapnel

Economics Design
March 22, 2023

Shrapnel is a AAA first-person shooter game where players’ gear lives on-chain and can be gained or lost in-game. The project also has an in-depth UGC creation and curation system. The team has top tier backgrounds, with members hailing from Xbox, HBO, EA, and more. Shrapnel has already won the Most Anticipated Game award at…

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Client Overview: Midnight

Economics Design
March 22, 2023

Midnight is a data protection-based blockchain that safeguards sensitive commercial and personal data, protecting fundamental freedoms of association, commerce, and expression for developers, companies, and individuals. Midnight enables developers to quickly build and deploy data protection-first DApps using many programming languages, starting with Typescript, whilst companies will be able to share mission-critical information without the…

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Client Overview: Co:Create

Economics Design
March 22, 2023

Co:Create is a Web3 infrastructure protocol that enables innovative brands to unlock the power of their community. Offers a one-stop shop with all needed resources for pushing NFT projects further with simple community activation tools built on web3. Client Need Design a sustainable economy that can accommodate layered structure of their ecosystem Identifying token utility…

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A new breed of DeFi lending – Morpho

Economics Design
March 21, 2023

Introduction Classic DeFi lending protocols operate as a liquidity pool that aggregates deposits and that liquidity further can be borrowed. Now that’s where the interest rate spread challenge comes in, as interest rate proceeds are shared across all depositors in a particular pool – the lower is the utilization of the deposit by borrowers (amount…

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Stablecoins: beyond mean of payment – Sperax case

Economics Design
March 14, 2023

Introduction $1 bill in your pocket does not generate any yield… Recently I have listened to CBER Webinar, where Gordon Liao from Circle talked about Stablecoins. One of the questions raised has been “Why stablecoins do not share with holders yield earned on collateral placements?”. Reasonable answer that stablecoins primary use case is facilitating payments…

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Beyond the Hype: Alternative Revenue Models for Non-Fungible Tokens

Economics Design
March 10, 2023

Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Introduction What we’ve been noticing The world of digital assets has undergone a massive transformation with the introduction of non-fungible tokens (NFTs). NFTs are unique digital assets that use blockchain technology to verify their authenticity and…

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The Future of Scalability: A Guide to ZK Roll Ups

Economics Design
March 3, 2023

Introduction What we’ve been noticing ZK Rollups have seen significant growth in popularity and adoption in recent years, particularly in the decentralised finance (DeFi) space. ZK Rollups were first introduced in 2018 when a GitHub repository with the name “roll_up” was uploaded by the alias Barry Whitehat. They offer improved performance in terms of transaction…

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Using Tokens to Design Rewarding Digital Economies

Economics Design
February 24, 2023

Introduction What we’ve been noticing As technology continues to advance, we are seeing the emergence of brand-new digital economies that are powered by blockchain and tokenisation. These digital economies can take many forms, from decentralised finance (DeFi) protocols to gaming platforms and social networks, with over 17,000 DeFi protocols and applications to date. At the…

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Unlocking the Potential of Web3: Understanding and Managing Economic Risks

Economics Design
February 17, 2023

Introduction What we have been noticing Web3.0, or simply Web3 refers to the next generation of decentralised and distributed systems, powered by blockchain technology. While the Web3 ecosystem has tremendous potential, there are also a number of economic risks associated with this emerging technology. Understanding these risks is critical to achieving economic stability in Web3.…

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Why People Are Losing Their Investments in DeFi and Crypto

Economics Design
February 9, 2023

Introduction What we’ve been noticing Decentralised finance (DeFi) and cryptocurrency or crypto have become increasingly popular in recent years, with billions of dollars being invested in these emerging technologies. The global decentralised finance market is expected to be worth USD 11.78 billion in 2021 and is forecast to grow at a compound annual growth rate…

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The Expanding Axie Infinity Metaverse

Economics Design
February 3, 2023

An analysis of Sky Mavis’ “Axie Core” policy shift and how it impacts Axie Infinity’s growing number of gaming experiences. Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Executive Summary Sky Mavis announced Axie Core, a shift in policy by going back to its…

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Single-Token vs Dual-Token Economy in GameFi

Economics Design
January 27, 2023

Comparing the Effectiveness of Token Economy System Welcome, premium subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alphas are confidential. Enjoy your reading. Introduction What we have…

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The Evolution of the Internet: What is the Metaverse?

Economics Design
January 13, 2023

Introduction What we’ve been noticing Recently, the term Metaverse has been gaining a lot of popularity. Although it’s not a new concept, interest in it soared when Facebook entered the market and rebranded themselves to Meta, creating hype in the crypto space. This hype has led the price of meta-related cryptocurrencies to soar and increased…

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DeFi Explained: A Beginner’s Guide to Understanding and Getting Started

Economics Design
December 23, 2022

Introduction What we’ve been noticing A new wave of revolutionary open financial systems is disrupting the industry and changing the way we do business. Decentralised Finance (DeFi) is an emerging financial technology that can fundamentally change our existing financial system. DeFi is not just the latest trend, but a fundamental shift in how we access…

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Essential NFT Tools to Improve Your Decision-Making Process

Economics Design
December 16, 2022

Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Introduction What we’ve been noticing An NFT or Non-Fungible Token is a digital asset based on blockchain technology and it can be represented by any type of art, music, in-game items, videos, and more. NFTs might…

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Ins and Outs of FTX/Alameda Debacle

Economics Design
December 9, 2022

Brief Context The behemoth FTX, one of the largest Centralized Exchanges in the world, with $9.5 billion of trading volume per day and roughly 10% of the global perpetuals market share was featured in every news headline in the past two weeks – and not for the best reasons. On November 2nd, Coindesk reported the…

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Entropia Universe – Economic Learnings for Web3 Games

Economics Design
November 21, 2022

Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Introduction What we’ve been noticing As a real money game, Entropia Universe provides an interesting example of how virtual economies can take shape and provide insights for those building Web3 game economies. The game was launched…

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Insights from Second Life for Metaverse Economies

Economics Design
November 14, 2022

Introduction What we’ve been noticing Launched back in 2003, Second Life is an early example of a complex metaverse and digging into its history provides useful insights for those building the next generation of metaverses. Despite predating Bitcoin, it has a currency, the Linden Dollar, that is tradable back and forth for US dollars. It…

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Axie Infinity Mechanism Design: Before and After

Economics Design
November 7, 2022

An analysis of the difference in mechanisms designs between two versions of Axie Infinity’s main game. Welcome, premium subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alphas…

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Ponzi Economics in the Blockchain World

Economics Design
October 31, 2022

Key topics this article will cover: What is Ponzinomics and how does it work? Which games have suffered the most from Ponzinomics and how was that exemplified? Our thoughts on Ponzinomics over the last year or two Detriments of the “Get-Rich-Quick” Mentality How economically sustainable are in-game NFTs if games do not typically have long…

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The Importance of Innovative Token Designs in the Blockchain Space

Economics Design
October 14, 2022

Some Context: What’s token design?  Token design refers to the rules of how tokens act within an ecosystem. This can include whether there’s a single versus a dual token model. The type of token distribution used in a game determines who receives tokens. If staking is an included feature of that protocol, if there’s a…

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Economics Design Launches Online Course with Certification in GameFi and Metaverse for Web3

Economics Design
October 14, 2022

Economics Design Launches Online Course with Certification in GameFi and Metaverse for Web3 [14 October 2022] – Economics Design’s Academy expands its online curriculum with a new certificate Web3 course on “The Economics of GameFi and Metaverse Design”. The new course, which debuted on 10 October 2022, will teach the fundamentals of designing a game’s…

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Deterring Metaverse Speculators & Increasing Liquidity

Economics Design
October 7, 2022

Proposing a Bid-Based Land Value Tax Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. We’ve got exciting news to share – We’re launching a new e-course on the “Economics of GameFi and Metaverse Design”, aimed to give you the perfect foundation for designing a…

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Top Global Companies joins Translucia to Build US$3 Billion Interconnected Metaverses

Economics Design
October 4, 2022

4 October 2022, Bangkok – Translucia, a subsidiary of T&B Media Global (Thailand), is forging ahead by adding four world-leading partners to its initial three collaborators to complete the Translucia ecosystem with metaverse elements to create a virtual world worth US$3 billion.Dr. Jwanwat Ahriyavraromp, Founder and CEO of T&B Media Global and Founder of Translucia,…

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The Role of Governments in Gaming Economies

Lorenzo Martin
September 30, 2022

How blockchain gaming developers function as government entities in gaming economies Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Executive Summary What we’ve been noticing: The report looks at the similarities between the role of government institutions in GDP calculation, and game developers in…

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Tools At The Developer’s Disposal: What Game Devs Can Learn From Government Policies

Economics Design
September 23, 2022

How blockchain gaming developers can leverage government policies for gaming economies Welcome to all our free subscribers. What will be shared today are free alpha from our Economics Design’s researchers. Executive Summary What we’ve been noticing: This report looks at the different tools available to government agencies and the central bank that can influence the…

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🎮What is GunStar? I Market Design, Mechanism Design and Token Design Explained🎮

Lorenzo Martin
August 23, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Short note: Hi everyone. We’re excited to share that we’ll…

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Foreign Direct Investment In Blockchain Gaming Economies

Economics Design
July 29, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Explaining Foreign Direct Investments Foreign Direct Investment (FDI) is a…

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Vesting Schedules and Sustainability in Blockchain Gaming

Economics Design
July 26, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Arguably one of the more important sections of a blockchain…

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🎮What is Spider Tanks? I Market Design, Mechanism Design and Token Design Explained🎮

Economics Design
July 22, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Introduction Spider Tanks is just one of many games that…

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What can GameFi learn from the gov to control inflation

Lisa JY Tan
July 19, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. TLDR: When injecting fresh liquidity, you could trigger an inflationary…

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🎮What is Karmaverse? I Market Design, Mechanism Design and Token Design Explained🎮

Economics Design
July 14, 2022

Karmaverse Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Introduction Karmaverse is a metaverse with multiple gaming experiences inside, each…

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TOKEN ECONOMY: IDIOSYNCRATIC RISKS? NEVER HEARD OF THAT…

Economics Design
July 12, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. An Article by Oleksandr Ulytskyi, Associate Consultant at Economics Design…

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🎮What is Influence? I Market Design, Mechanism Design and Token Design Explained🎮

Lisa JY Tan
July 8, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Disclaimer: This is not financial advice Introduction It is a…

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🎮What is MetaFighter? I Market Design, Mechanism Design and Token Design Explained🎮

Economics Design
July 1, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Overview It is a retro arcade style fighting game integrated…

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Price slippage as a financial risk in AMM based DEX

Economics Design
June 28, 2022

Economics Design Disclaimer: This is not financial advice Introduction The term price slippage is nothing new. It has similar definitions in both traditional finance and defi, referring to the percentage difference between expected and actual price of a transaction when it is executed. In general, price slippage poses a relatively greater risk in decentralised transactions…

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🎮What is Parallel? I Market Design, Mechanism Design and Token Design Explained🎮

Economics Design
June 23, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Introduction Parallel is a sci-fi trading card game (TCG) built…

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Consumption and Investments in Web3 Gaming Economies

Economics Design
June 21, 2022

An initial GDP comparison between gaming protocols and countries Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Disclaimer: This is…

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🎮What is Sipher? I Market Design, Mechanism Design and Token Design Explained 🎮

Economics Design
June 17, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Disclaimer: This is not financial advice Introduction MOBA/TPS blockchain game…

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What is Ookeenga? I Market Design, Mechanism Design and Token Design Explained

Economics Design
June 10, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Introduction Ookeenga is a real-time strategy, card collection, tower defense…

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Assurance of Token Economies

Economics Design
June 7, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Why do blockchain projects feel responsible for getting smart contracts…

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🎮What is Nifty League? I Market Design, Mechanism Design and Token Design Explained🎮

Economics Design
June 3, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Disclaimer: This is not financial advice Introduction Nifty league is…

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Introduction to DeFi Liquidity risk

Economics Design
June 2, 2022

Economics Design One major category of risk exposures for the defi industry is liquidity risk. In traditional finance, liquidity risk often refers to the uncertainty in a business’s ability to cash out assets. In defi, we define the term liquidity risk differently as risks associated with the primary market. The liquidity risk can be seen…

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🎮What is DeFi Land?🎮

Economics Design
May 27, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Disclaimer: This is not financial advice Catch the episode on…

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🎮Gates of Ethernity🎮

Economics Design
May 20, 2022

The crypto version of Pokemon Go? Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Disclaimer: This is not financial advice…

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How Web3 Blockchain Gaming Formalized Informal Web2 Gaming Trade Mechanisms

Economics Design
May 17, 2022

Economics Design Disclaimer: This is not financial advice Introduction The article looks at how earning through playing a video game has been around since the late 1990’s through informal trade external to the game. Value is generated within these digital economies and opportunity costs help facilitate the value trade between two agents. Blockchain gaming has…

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Blockchain From An Economics Perspective

Economics Design
May 16, 2022

Economics Design Disclaimer: This is not financial advice Introduction There are a lot of people talking about blockchain from a technology perspective or a financial perspective and that’s good but today we want to talk about it from an economics perspective. Capital and Labour If you look at economics today, the two ways you earn…

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Using the Gini Coefficient to analyse MKR transactions

Economics Design
May 6, 2022

Economics Design Disclaimer: This is not financial advice An important source to look at when studying a DeFi protocol is its transaction data. By looking for trends in various factors like transaction volume, number of transactions and size of each transaction, we can formulate a clearer picture of the behaviours of token holders, especially regarding…

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Use of coefficient of variation in financial risk analysis

Economics Design
May 5, 2022

Economics Design While standard deviation provides important information about how data varies over its mean, it is rather difficult to use standard deviation to conduct cross comparisons between different types of tokens. In the previous analysis of financial risk exposures faced by stablecoins, one of the important sources of risk we have identified is the…

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dHEDGE: The Decentralized Hedge Fund

Economics Design
April 29, 2022

Economics Design Catch the episode on YouTube Disclaimer: This is not financial advice Introduction Today, we will take a look at a DeFi project called dHedge. It is an infrastructure that connects investors to fund managers. In the traditional world, access to certain financial products and investment tools were limited to high net worth individuals…

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Financial risk rating system for stablecoins

Economics Design
April 27, 2022

Economics Design Financial risk exposures for stablecoins arise from multiple sources including asset collateral, external governance and the ability of token in maintaining at its pegged price. Given the complexity of these issues and the different characteristics of each type of stablecoins, it is often difficult to compare the level of financial risk exposures between…

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How Crypto Economics and Token Economics are Different

Economics Design
April 21, 2022

Economics Design Disclaimer: This is not financial advice. Introduction Crypto Economics and Token economics both talk about validation of messages but they do this validation in very different ways. Crypto Economics includes messages of the past, the incentives of the present, and the future expectations. Token Economics is a subset of crypto economics. It is…

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How does ETH Prices affect MKR? A market correlation study

Economics Design
April 20, 2022

Analysis Disclaimer: This is not financial advice. An important metric to look at when studying a token’s price is its correlation with other tokens. As an empirical metric, correlation may not be the best tool in predicting price trends or growth, but it gives valuable information about how prices of tokens have changed relative to…

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What is Crypto Economics and What is Token Economics?

Economics Design
April 15, 2022

Economics Design This is not financial advice. Catch the episode on YouTube Typically, we understand economics as a study of the product, consumption and distribution of resources. Tapping into a new technological infrastructure, we do not stray too far from this basic principle. In fact, we are now given the tool to redefine the “resources”.…

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Financial risk analysis using price deviations metrics

Economics Design
April 12, 2022

A new metric for stablecoins This is not financial advice. One of the significant problems we face when analysing final risk of stablecoins is the different ways they operate, which makes it difficult to conduct comparisons across different types of stablecoins in the market. We cannot deduce if a stablecoin with on-chain collateral is better…

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Literature review on risk classification for protocols

Economics Design
April 11, 2022

There have been many works done on the risk faced by owners and investors of defi tokens, but much less from the prospective of protocols themselves. In this literature review, we will briefly discuss on 8 types of risks exposure for protocols, and classify them under systematic and idiosyncratic risk. The definition of systematic and…

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Traditional games vs Blockchain games

Economics Design
March 17, 2022

Economics Design Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. This is not financial advice. Catch the episode on YouTube…

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ELI5 ZK-Rollups

Economics Design
February 28, 2022

ELI5 Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Introduction In this article we take a look at a layer…

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The Economics of P2E Gaming Economy Ft. Star Atlas

Economics Design
February 22, 2022

Star Atlas Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. This is not financial advice. Catch the episode on our…

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Layer 2 Scaling Solutions on Polygon

Economics Design
February 10, 2022

ZK Rollups This is not financial advice. Catch the episode on YouTube What is Polygon? Polygon leverage Ethereum’s virtual machine to create transactions at a cheaper rate and at a faster pace. Because of the limited block space that Ethereum has and the number of transactions that people want to do, the biggest challenges that…

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Financial risk from reserves of off-chain reserve stablecoins

Economics Design
February 8, 2022

Analytical Report Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. One significant source of financial risk of stablecoins comes from…

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Personas Considerations: Economics of Play to Earn Gaming Economy

Economics Design
February 6, 2022

Economics Design X Lemniscap Report Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers.Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. TLDR below. This is not financial advice. This…

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DeFi vs Crypto: What’s the Difference?

Economics Design
January 23, 2022

The Layers Of Blockchain This is not financial advice.Catch the episode on YouTube Introduction DeFi is still a little bit complicated and we want to explain the entire technological stack so that it gives you a snapshot of everything. What we’re trying to do with decentralized technologies is to build a whole new infrastructure of…

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Introduction to financial risk for stablecoins

Economics Design
January 18, 2022

Economics Design When we discuss risks in crypto, we look at both risks from the perspective of token owners and risks from the protocol. By knowing their major sources of risk exposures, we can have a better picture of what the protocol will possibly be like in the long term, and a more thorough understanding…

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Difference In Economics Model Today

Economics Design
January 13, 2022

Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. TLDR below. This is not financial advice. Catch the episode on YouTube…

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Financial risk of DEX, using examples of UNI, CAKE, SUSHI

Economics Design
December 29, 2021

Analytical Report One of the key areas of risk exposures we need to consider when analysing risk level faced by a protocol is the financial risk. Under our analytical framework, financial risk is a subcategory of unsystematic risk that can be predicted and controlled by the protocol under some extent. It is relevant to the…

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Adverse Selection In Crypto | Valkyrie Protocol

Economics Design
December 20, 2021

Valkyrie Protocol Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers.Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. TLDR below. This is not financial advice. Catch the episode on…

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DeFi 2.0 Meets Tokenomics 2.0 | Economics Of Value Creation

Economics Design
December 14, 2021

Vesper Finance Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. TLDR below. This is not financial advice. Catch the episode…

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Two Types Of Concentrated Liquidity

Economics Design
December 11, 2021

Concentrated Liquidity. Welcome, Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alphas are confidential. Enjoy your reading. TLDR below. This is not financial advice. General Conclusion Both Curve…

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Tokenisation Of Big Data – Ocean Protocol

Economics Design
December 5, 2021

Ocean Protocol Welcome, premium subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. TLDR below. This is not financial advice. Catch the…

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Quantative analysis of BUMPER Finance

Economics Design
December 4, 2021

BUMPER FINANCE Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alphas are confidential. Enjoy your reading. TLDR below. This is not financial advice. Disclaimer: We helped…

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Economics Of Trader Joe – DEX On Avalanche

Economics Design
November 29, 2021

  TLDR below. This is not financial advice. Catch the episode on YouTube Introduction Trader Joe is a spot DEX at its core. It is an AMM decentralised exchange platform on the Avalanche blockchain. Other than the DEX it has some other financial products like Farming, Staking, and Lending. It is very easy to use and you…

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Economics of ENS

Economics Design
November 25, 2021

ENS. Welcome, premium subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alphas are confidential. Enjoy your reading. TLDR below. This is not financial advice. General Conclusion Blockchains…

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Crypto Renaissance – How We Are Building The Future Of Finance

Economics Design
November 19, 2021

Welcome, subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. Announcement: We are hosting a live Discord chat tomorrow (21st Nov, Sunday)…

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Universal Bitcoin Income – Bitcoin As Stored Energy

Economics Design
November 11, 2021

A Bull Case For Bitcoin TLDR below. This is not financial advice. Catch the episode on YouTube Introduction The growth of GDP historically and the availability of energy historically are pretty much one to one. Universal basic income is the idea that everyone gets some amount of money to be used and spent in whatever…

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What Is DeFi 2.0: An Intro

Economics Design
November 2, 2021

DeFi 2.0 TLDR below. This is not financial advice. General Conclusion Recently the keyword “DeFi 2.0” has emerged as a phenomenon along with the rapid growth of several tokens such as Olympus DAO, Klim DAO, Abracadabra, Popsicle Finance, etc. So what is DeFi 2.0? How is it different? Why say DeFi 2.0 has the ability…

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Antimatter, Does It Matter? | DeFi Simplicity

Economics Design
October 30, 2021

Perpetual Options and Non-Fungible Finance Welcome, premium subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. TLDR below. This is not financial…

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What Is IBC: Inter Blockchain Communication?

Economics Design
October 27, 2021

Inter Blockchain Communication. Welcome to all our free subscribers. What will be shared today and the days ahead are free alpha from our Economics Design’s researchers. TLDR below. This is not financial advice. General Conclusion If you are active in the Cosmos Network, one of the first terms you will come across is IBC (Inter…

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Crypto Trader Joe: DEX on Avalanche

Economics Design
October 20, 2021

TraderJoe. TLDR below. This is not financial advice. General Conclusion From a brand new AMM project with no initial funding, Trader Joe has gradually established himself as one of Avalanche’s top AMMs. Today’s article about Trader Joe and $JOE will give you all the information about: What is Trader Joe? Trader Joe’s Highlights. Information about…

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Economics Of Public Goods

Economics Design
October 17, 2021

TLDR below. This is not financial advice.In general, you can think of goods as two main categories: private goods and public or common goods. What are common goods? Public Goods: There is a little bit more of a barrier here as you need to fit certain criteria to join this space like a country club where…

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What Is Graph Token

Economics Design
October 6, 2021

The Graph. Welcome, premium subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alphas are confidential. Enjoy your reading. TLDR below. This is not financial advice. General Conclusion…

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Comparing Five Crypto Portfolio Management Protocols

Economics Design
September 29, 2021

Portfolio Management Protocol. Welcome, premium subscribers! Thank you for subscribing. What will be shared today and the days ahead are alpha from our Economics Design’s researchers. Please keep these mails secret and do not share them with any one because these alpha are confidential. Enjoy your reading. TLDR below. This is not financial advice. General…

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Comparing L1 Storage Blockchain

Economics Design
September 21, 2021

Storage Blockchain. TLDR below. This is not financial advice. General Conclusion Blockchain is growing and getting a lot of mainstream attention. As a result, more and more applications using blockchain technology to replace old technologies are appearing. Many are used to execute transactions (Bitcoin, Ethereum, Polygon, etc.), but another another usage is emerging — decentralised…

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