calilyliu

NFTs are defi

Tokenizing assets:

Increases distribution
Reduces administration

- Validators make money from transaction count (and the most from tx that can command priority fees)
- Apps make money from transaction volume (usually)
- Issuers make money from AuM

Each part of the ecosystem profits from a different aspect of economic activity. Taken as a whole, over the long term, each one of these stakeholders needs to be making money to grow a healthy ecosystem.

Defi to date is overly fixated on TVL as the north star metric.

But TVL only tracks AuM, which directly enriches issuers ... not the validators or apps that have created defi to date.

TVL is a necessary yet incomplete metric.

Defi isn't just an application vertical in crypto, it is the core purpose of a blockchain.

Beyond bitcoin, blockchains provide decentralized financial markets infrastructure.

Blockchains are defi. Defi is blockchain.

Blockchain is about financialization - but not just of finance.

DAO = financialization of communities
NFTs = financialization of jpg
Web3 gaming = financialization of in game items
DePIN = use of financial incentive to bootstrap new human and physical networks

These are new markets made possible by programmable blockchains

Bitcoin good, blockchain good