/biz/ - Business & Finance

Goes up for the next week for so.

>>20283543
and then what?

>>20283526
It's a decentralised finance money market.

Money markets are financial markets that benefit cash flow for corporations and ROI for investors. There are two sides of the market, those with excess assets that need liquidity, and those with excess liquidity that want interest.

Imagine a company that owns a fleet of aircraft. Aircraft are a huge strain on the balance sheet because they just sit there being an expense cost. Meanwhile that company's competitors are launching new exciting products and services. To stay competitive, the corporate needs to unlock the funds tied up in its aircraft assets, so it takes it to a money market. The corporate takes a cash loan against the aircraft to increase their liquidity position and they use the funds to invest and grow their business. They pay interest on the liquidity and eventually they'll clear the loan and get back their asset.

On the other side, imagine a company that has excess liquidity. It's just sitting in the bank, exposing them to FX and counterparty risk whilst earning a very poor level of interest. Instead, they could take that liquidity and place it onto a money market. Their liquidity can be used to fund loans in a fairly low risk but consistent and favourable interest rate. The person taking the loan has had to stake collateral (the aircraft) so even if they default on the loan, the funds can be recovered.

Money markets are a rich man's game and are not open to people like you and I. We do not have the funds to sit at the table and so we are stuck earning poor man's interest.

Now introduce defi and the DMM DAO liquidity pool. Now everyone, not matter how small, can stake their USDC, DAI, USDT, or ETH into the market's liquidity pool and immediately benefit from the interest earned by the market who are providing liquidity to individuals and corporations. The loans are collateral back, have set maturity dates, and have consistent interest. Now anyone can earn 6.25% on any sum of funds.

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>>20284320
Investors dump $ into 'mTokens' on defimoneymarket.com. In return they are guaranteed a 6.5% APY yield. The interest is backed by short term title lien loans. Currently these are vehicle loans, but aviation has been confirmed to be in progress.

If you own DMG tokens you receive a share of the excess revenue generated by the assets. You also gain governance or voting rights in the project, access to staking, ect. That's the short af version.

You should really check out the website, and in particular look at the founders and their projects. Also take a look at the investors. Think about the current defi ecosystem and how this fits into it and it's a fucking no brainer.

>>20284343
cool but what use is the DMG token?

>>20284343
Right now DMM DAO's DMM Foundation are responsible for listing assets and servicing the assets, but in the future, in the spirit of decentralisation, the DAO will operate closer and closer to a true defi money market, where asset holders can come and get liquidity and liquidity holders can come and get safe, stable, and favourable interest.

When you stake DAI, USDC, USDT, or ETH, you get "mAssets" (mDAI, mUSDC, mUSDT, or mETH) which are redeemable at point of sale for their equivalent at a 6.25% profit.

The DMG token is the DMM DAO's Governance token which is a separate function with a separate, appealing, investment strategy. The Governance token provides voting rights for the direction of the DAO, so it is appealing to large investors who wish to benefit from the direction the DMM platform could take. The main appeal however is the revenue. mAsset holders earn a stable 6.25% interest, but the money market itself earns in excess of this, typically 10-12%. The excess revenue earned in interest to the loans is shared by the DMG holders.

Right now the Assets Under Management (AUM) is roughly $6 million (as it has been since before the public sale). The loans earn 10-12% interest, so roughly $600,000 per year. The mAsset holders earn 6.25% = a share of $375,000, leaving $225,000 to be shared amongst DMG holders. Now that might seem small, but here's where it gets interesting. As more people join the lending pool, the AUM grows. Let's say in the future there are $100M AUM earning $10M/y. The number of mAssets increases accordingly and the holders of mAssets continue to earn 6.25% = a share of $6,250,000. Meanwhile the amount of DMG has not increased, so the same small pool of holders now earn a share of the remaining $3,750,000 ($66 per DMG).

The team are consider mAsset DMG farming so the supply of DMG will increase a small amount but this will be comparatively small so the above numbers would be near enough still relevant.

why is the circ supply only 33mil out of 250mil?

>>20284453
Stop anon I can only be so erect

All I know is I dumped for ampl 2 weeks ago and never looked back

>>20284598
Need more buyers to keep Ponzi scheme afloat? Can't 'muh rebase' without more suckers?

>>20284343
Right now DMM DAO's DMM Foundation are responsible for listing assets and servicing the assets, but in the future, in the spirit of decentralisation, the DAO will operate closer and closer to a true defi money market, where asset holders can come and get liquidity and liquidity holders can come and get safe, stable, and favourable interest.

When you stake DAI, USDC, USDT, or ETH, you get "mAssets" (mDAI, mUSDC, mUSDT, or mETH) which are redeemable at point of sale for their equivalent at a 6.25% profit.

The DMG token is the DMM DAO's Governance token which is a separate function with a separate, appealing, investment strategy. The Governance token provides voting rights for the direction of the DAO, so it is appealing to large investors who wish to benefit from the direction the DMM platform could take. The main appeal however is the revenue. mAsset holders earn a stable 6.25% interest, but the money market itself earns in excess of this, typically 10-12%. The excess revenue earned in interest to the loans is shared by the DMG holders.

Right now the Assets Under Management (AUM) is roughly $6 million (as it has been since before the public sale). The loans earn 10-12% interest, so roughly $600,000 per year. The mAsset holders earn 6.25% = a share of $375,000, leaving $225,000 to be shared amongst DMG holders. Now that might seem small, but here's where it gets interesting. As more people join the lending pool, the AUM grows. Let's say in the future there are $100M AUM earning $10M/y. The number of mAssets increases accordingly and the holders of mAssets continue to earn 6.25% = a share of $6,250,000. Meanwhile the amount of DMG has not increased, so the same small pool of holders now earn a share of the remaining $3,750,000.

The team are considering mAsset DMG farming so the supply of DMG will increase a small amount but this will be comparatively small so the above numbers would be near enough still relevant.

>>20283526
Literally just used cars on the blockchain

this shit sounds shaddy as fuck. why would any company take out a high interest loan if any bank loans them for way less

how can all of this work when interest rates are zero

>>20284687
Used airplane loans is the new fud we are going with. Please check the discord and try to stay on message sir.

>>20284701
>Buy amplescam
>Shaddy

>>20284701
It is the same with existing money markets, which are huge successful markets that are required to sustain healthy economies. Consider reading more about money markets: https://en.wikipedia.org/wiki/Money_market

>>20284713
>>20284701
>>20284687
unbelievably retarded. hello coordinated discord fudders

>>20284713
What discord?

>>20284372
Dyor

>>20284805
>https://en.wikipedia.org/wiki/Money_market
>Developed money markets help commercial banks to become self-sufficient. In an emergency, when commercial banks have scarcity of funds, they need not approach the central bank and borrow at a higher interest rate. They can instead meet their requirements by recalling their old short-run loans from the money market.

>>20285286
they're essentially being money lenders via using assets on the blockchain, and in turn is giving the people supplying liquidity a 6.5% return on there liquidity stake which is higher than most banks and in turn allowing people to get loans.

>>20284370
i don't understand why we can't get interest from the DMG token? I have a shit ton of token and earn money from them

>>20284687
If you're being serious you have no idea how any of this works. They're not used car loans. They collateralized loans on chain. It's called DeFi. People can now collateralize their planes too. They're not "used plane loans". They're just loans with collateral backing them.

>>20285335
i get that, but WHY is anyone taking out a loan at 6.25% or higher? central bank interest rate is 0% all over the world.

my thought is that it is being used by people who dont want to sell their crypto and only for one reason, to gamble on shitcoins.

AND thats exactly what we are seeing on, the whole reason for this semi alt season is the already invested assets are leveraged through DEFI.

>>20285918
because people are financially inept. You do realize a good portion of the population actually has credit card debt right? That should tell you enough.

>>20285918
most car laons are an easy 6.5%+ in australia

>>20284502
because eventually the jews will need their buy in. same as chainlink. if you know, you glow

>>20285918
>central bank interest rate is 0% all over the world.
for banks retard.....its true that certain banks are able to borrow at a 0% interest rate right now....but you sure as fuck can't.