/biz/ - Business & Finance

>>26455928
you provide the liquidity for this to be possible = more bao. the more people use it, the higher the price and the more bao you get. plus "BAO gets burned with each fee and creation of synthetics meaning the amount of BAO in circulation will decline over time." the more functional and adopted BAO becomes the price will rise and the supply will go down.
also:
"Bao will also be used as collateral where users will require:
25% of collateral limit to be held in bao for making synthetic assets.
Have margin, leverage and option limit capped at max of 5x bao balance."
the BAO itself is required for this system to work, and directly increases its demand.
ive made $172 in 3 days from farming BAO and the price going up, from my $400(ea) USD-ETH liquidity pair (and gained $4 instead of any impermanent loss). ill be switching to the BAO-ETH when pic related happens.

>>26456034
"Systems like Synthetix require that the bulk of the collateral is managed in their networks token. While this proves lucrative it also has two critical flaws:
It makes those assets idle meaning they can't be used for other purposes (such as pool liquidity in other providers)
It overly centralizes risk to a single asset infrastructure and creates double-risk exposure."
>>26456130
distributed over 3 years to prevent crashing. if you get in now and farm enough you could be looking at a decent amount of money to take out daily.
"Capturing even 1% of the global asset trade would mean a marketcap of $6.17 trillion (17.5x the marketcap of Bitcoin)"
>"the current plan is for BAO to produce a maximum of roughly 1.5T tokens over 5 years."
is a $1 BAO price really that unreasonable? defi blows up and it captures 0.50% of the global asset trade thats still $2 a token.