Economics Design

What are social tokens? What are community tokens? 

This episode, we  speak with Alex Masmejean to dive into the topic.    

Social tokens can be split into 2 categories: community tokens  (signalling reputation) and personal tokens (investing in a person).    

Topics we cover: 

*NOTE: The bonding curve mentioned by Alex for uniswap is misleading. The uniswap model is not exactly linear.    

I started looking at Bancor years ago, because it had the same name as the world currency John M. Keynes had in mind. Their math fascinated me, and that's how I got started with the AMM rabbit hole! The Bancor V1 token economics analysis report (https://www.economicsdesign.com/portfolio/bancor/) is about how Bancor works and what the token does.

Bancor has been working on a few improvements, from price slippage issues to impermanent loss. V2 of Bancor was about dynamic weight, which is something really fascinating. But let's focus on their latest update, V2.1.

V2.1 follows the static 50-50 weight as V1, aka the Uniswap style. The new introduction is the insurance for impermanent loss. So you will have ZERO impermanent loss. You get subsidised for any losses sustained. How does that work? Let's find out in this episode.

We will also cover the supply of $BNT based on the various actions in the ecosystem and how that indirectly affects the price of $BNT.

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You've listened to the episode on BarnBridge, how it works and suggestions to  be made.    

Here's the full interview with Tyler Ward, as he explains what they are doing,  what they can do in the future and how the tokens in Barnbridge works.    Enjoy!

The summary version with the product economics is the previous episode before this. 

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BarnBridge is a new defi product in the market. Unlike the existing defi  products, BarnBridge goes to a new level of mixing the various existing  protocols.    

This is unlike the usual episodes we cover. Usually, it's very economics  design focused. This time, it's more of financial design focus. This is  still relevant to economics, in terms of financial economics.    

 In this episode, we dive straight to:    

- 4 tokens in BarnBridge and comparing them  

- Governance structure in #BarnBridge

 - Comparing them with existing protocols like $YFI, $AAVE, $SNX  

- Understanding the products in BarnBridge 

- Sharing 3 suggestions for improvements     

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Today, we continue part 2 of the economics of insurance. This episode is  a deep dive into Nexus Mutual, $NXM. I'm not saying that DeFi is all  about bonding curve....... but I'm 100% going to talk about bonding  curve.    

**Note: This bonding curve is DIFFERENT from the AMM bonding curve!     

Watch the previous video if you have not done because this is part 2: https://www.youtube.com/watch?v=i97PVvQrcnc     

This episode, we cover the general workings of Nexus Mutual and how they  used token to align incentives of the various agents: risk assessors,  claim assessors and insurance cover buyers.    

More importantly, we also dive into the math of Nexus Mutual and answer  the questions about the monetary policy of $NXM. The why and how things  are affected in the curve.    

In general, we follow the economics design framework, looking at Market  Design, Mechanism Design and Token Design aspects of the token. Enjoy!    

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Crypto/DeFi is more than just the economics, mechanisms and code driving it. One of the other cool things is the innovation in business logic, systems and products. Being in the digital space opens up more opportunities to mitigate inefficiencies and create ways to increase value-add.

Today, we are joined by Victor Lee, the CEO of Bitcurate. In this episode, we will dive into flash loans and credit delegation, new innovations by Aave, made possible with the composability of DeFi dapps. Stacking one protocol on top of another, such innovative products can bring some real value-add to the system!

Topics we covered

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The insurance business is one of the oldest in the world. Today, it's  worth over US$5 trillion. 

Online insurance is only capturing US$31  billion. And in crypto, it's even smaller. That spells opportunities x1.    

The insurance industry is so inefficient. That spells opportunities x2.   

In this video, we dive into the economics of insurance. This helps us to  better understand Nexus Mutual, when we do a deep dive in the next  video!   In the economics of insurance, we cover the Economics of Signalling,  Economics of Moral Hazards, Principle-Agent Relationship and Law of  Large Numbers.   

Quick navigation: 

1. Inefficiencies in insurance: 02:55 

2. Economics of Insurance: 12:04 

3. Risks in DeFi/Crypto: 32:21 

4. Risk Sharing Model of DeFi: 48:54 

5. (High level) Economics of Nexus Mutual: 54:51   

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DEXes are eating up the trading volume of centralised exchange. We covered many areas of DEX, from understanding the mechanism behind to understanding the various math formulas. In the comments, people were asking how to calculate impermanent loss and the risks available.

So in this video, we cover 3 main things:

Apologies for the late upload. I'm a few days behind. Just being slightly busy right now. But I'll promise to continue uploading videos, content and explaining the math so it helps you to make informed decisions.

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The plan for this week is to do a deep dive for Sushiswap. But friday happened and the weekend happened. A lot of gains is swiped out in the S&P financial market and defi financial market. And since the video on "Why DeFi is more than just a Ponzi Scam" has gotten quite a bit of traction, I figured it's good to talk more about Ponzinomics.

For Sushiswap, the video will still be produced, with my hypothesis and analysis of the future of $SUSHI. It will be available to premium subscribers on Patreon, so do subscribe to our patreon to support these content!

In this episode, we chat about what is ponzi in defi, what ponzinomics really is about, the 10 ponzinomics mechanisms, 2 case studies of scams and how you can protect yourself from ponzinomics scams!

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We've talked about bonding curves so many times. You'd think I've  exhausted the content. HAH! Not a chance.   

Today, we have with us Jeff Emmett from the Common Stacks team, sharing  with us about augmented bonding curves, generalised bonding curves and  various "behind the scene" concepts of bonding curves.   

Absolutely follow him on twitter at https://twitter.com/jeffemmett.   

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