Apollo Moonshots: A New Era of Cryptography is Looming. Also, the launch of Strips Finance
Australia’s leading cryptocurrency investment firm Apollo Capital shares the fund’s weekly take on what’s happening in the fast-paced and volatile cryptocurrency space.
It is the dawn of a new era of cryptography, where much of our daily life will become increasingly tokenized to be stored and traded on a blockchain, predicts Marc Woodward, investment partner of Apollo Capital. .
The American-born Sydneysider and longtime venture capitalist wrote an ultra-bullish essay for Apollo Capital, writing that “the crypto-based future is already here.”
Woodward compared the emergence of crypto to the emergence of big tech companies 10 years ago.
“The eventual and inevitable ubiquity of software and the Web seems blindingly obvious in hindsight, but it was not well understood or distributed at the time,” he wrote.
Crypto combines the disruptive forces of software with the speed of capital “to create a powerful, global, and unlicensed 24/7 free digital marketplace whose goal is adoption, efficiency and exchange.” , Woodward says.
Money is becoming programmable, and the definition and types of money are changing, Woodward says.
“Ten years from now, the rise of crypto will seem obvious and inevitable … as will the dominance of software and the web today,” he writes.
This is not the focal point of his essay, which is worth reading in its entirety, but in terms of price, Woodward says it’s not hard to imagine the total market cap of the crypto grows 3-10 times over the next decade.
Last moonshot: Strips Finance
Meanwhile, decentralized financing projects are becoming more and more sophisticated.
Apollo Capital received an allocation in Strips Finance, as part of the $ 8.5 million interest rate swap fundraising platform. Multicoin Capital, Sequoia Capital India, Fabric Ventures and Morningstar Capital also participated.
0 / We recently conducted a tour in @StripsFinance
We have given a lot of thought to the evolution of the DeFi derivative markets, and we believe the time has come for Interest Rate Derivatives (IRs).
Concretely: perpetual contracts! Https: //t.co/nqOP8CzsJa
– ksam.sol (@KyleSamani) October 6, 2021
â€œSo basically in DeFi right now the market is really mature in terms of interest rates,â€ says Apollo analyst David Angliss.
“Interest rate products everywhere now – Aave, Compound, Maker â€¦ That’s about US $ 90 billion in outstanding loans.
But unlike traditional finance, almost all of these crypto loan products have variable rates, one of the reasons big institutional players like banks don’t dip their toes into DeFi.
â€œThere are a lot of different events that can make variable rates go up or down, like a big liquidity provider withdrawing liquidity,â€ says Angliss.
“So it’s a bit of an obstacle to get in, with that risk.”
The strips will allow users to speculate and hedge on interest rates, by locking in a loan or borrowing APY via an interest rate derivatives exchange.
It will also allow DeFi users to ‘supercharge’ crop yields with 10x leverage.
The project plans to start the Ethereum scaling solution Arbitrator next month and has a token sale this week on Polkastaker, which Angliss calls the best platform for parts offerings.
Its name is taken from the acronym STRIPS, Separate Trading of Registered Interest and Principal of Securities. A stripped bond is a bond whose principal and coupon payments have been â€œstrippedâ€ into two separate components.
â€œThe point we want to make is that there is a large market for fixed interest rates, as there are currently $ 90 billion in loans outstanding in DeFi’s three largest money markets. â€¦ And these are all variable interest rates. “
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