Weekly Analyst Thoughts
Defi recently welcomed a new development to its space: Curve Pool. Curve Pool brings together stablecoins and wrapped tokens and offers liquidity pools for investors to contribute to.
Below is a snapshot of their website and the potential returns (APY) investors can earn by joining their pools. Notice that Synthetix token (SNX) offers multiple rewards in SNX for providing liquidity to its stablecoin (sUSD) and its synthetic bitcoin (sBTC).
Synthetix app Mintr, pictured below, promotes opportunities to earn SNX with Curve pool.
In summary, if you are holding SNX, REN or other stablecoins, but not using Curve pool to provide liquidity and earn interest on your holdings, then money is being left on the table. If this post sparks your interest in Curve pool, consider the sBTC pool (pool 6) because it gives investors exposure to multiple tokens as they could earn SNX, REN, BAL and CRV.
By Jacob Stelter
Cointelegraph recently reported the proposed launch of a $25 Million ‘tokenized’ movie venture fund led by iconic American actor Wesley Snipes. This is the first blockchain project launched by Snipes, who is best known for his roles in Demolition Man, The Blade Trilogy, Passenger 57 and other lauded high-budget action films. The development fund focuses on projects produced directly by Snipes and his production studio, Maandi House, so we classify this as a rare yet appropriate use of celebrity endorsement.
This is not the first venture fund to be tokenized. Boston-based CosimoX holds the bragging rights for the first tokenized venture fund.
Tokenization reduces the administrative costs associated with on-boarding many small individual investors. It also streamlines the distribution of fund proceeds. Tokenized funds can appeal to large groups of people that share a specific common trait (in this example fans of Mr. Snipes), but may not be sufficiently affluent to stroke the six-figure checks traditionally associated with movie venture funds.
Once tokenized on a blockchain, unlimited number of investors can participate in the funding of the world’s next great action movie….
Wait there is more: Tokenized funds, depending on the regulations of the country in which they are domiciled, can offer investors immediately open secondary markets – creating a nice liquidity feature for investors where one previously did not exist.
At Sarson Funds, we predict that tokenization of investment funds will continue to grow in popularity, because of the cost-savings and investor base expanding benefits offered to fund sponsors.
Sadly, US-based operators (and investors) stand poised to lose out on the growth of the Tokenization industry as funds like Mr. Snipes’ select countries like Liechtenstein for their progressive blockchain regulations.