I guess I expect the edge to manifest in the form of being able to look at simple, high-upside, good ideas being implemented by smart people, correctly distinguish them from uninspired hacks, and then being able to take effective action on your beliefs. (Good ideas like Bitcoin or Ethereum themselves, or like CFMMs.)
As a random example, if you go look at harvest.finance right now, you can see that there’s a huge APY on investing in Uniswap liquidity pools associated with tokenized versions of public company stock, like AAPL. These tokens are designed by a new project called Mirror which I know nothing about. Do they work? Is the project credible? Is there demand for this product?
It’s possible that if you spent a few hours looking into it, you could put a decent confidence interval on the probability it will succeed or crater, and if it’s likely to succeed, you can make a lot of EV on these pools.
In the long term, if Ethereum (or some replacement) can continue scaling up, there’s just going to be more and more stuff that is begging to be reimplemented as interoperable tokenized contracts, and it’s all going to have to go from zero to sixty. If someone makes the Ethereum version of, like, Ebay, or Twitter, and you can recognize that it’s any good and invest in it, that’s a big edge.
Do they work? Is the project credible? Is there demand for this product?
If you do interact with it you should also ask yourself, do you violate security laws if you interact with it? The SEC has a lot of rules and might see trading tokens that mirror stocks as being subject to regulations for stock trading.
I guess I expect the edge to manifest in the form of being able to look at simple, high-upside, good ideas being implemented by smart people, correctly distinguish them from uninspired hacks, and then being able to take effective action on your beliefs. (Good ideas like Bitcoin or Ethereum themselves, or like CFMMs.)
As a random example, if you go look at harvest.finance right now, you can see that there’s a huge APY on investing in Uniswap liquidity pools associated with tokenized versions of public company stock, like AAPL. These tokens are designed by a new project called Mirror which I know nothing about. Do they work? Is the project credible? Is there demand for this product?
It’s possible that if you spent a few hours looking into it, you could put a decent confidence interval on the probability it will succeed or crater, and if it’s likely to succeed, you can make a lot of EV on these pools.
In the long term, if Ethereum (or some replacement) can continue scaling up, there’s just going to be more and more stuff that is begging to be reimplemented as interoperable tokenized contracts, and it’s all going to have to go from zero to sixty. If someone makes the Ethereum version of, like, Ebay, or Twitter, and you can recognize that it’s any good and invest in it, that’s a big edge.
If you do interact with it you should also ask yourself, do you violate security laws if you interact with it? The SEC has a lot of rules and might see trading tokens that mirror stocks as being subject to regulations for stock trading.