You could forget that @yieldbasis raise was not even a week ago with all the excitement going on in the BSC ecosystem.
When it launches people will look for similar projects.
I'd like to highlight @GammaSwapLabs $GS which is trading way below where it should be imo.đ§”
Before getting into how the two projects are similar, these metrics stand out:
@yieldbasis is currently worth 800M FDV while @GammaSwapLabs is just 50M FDV despite having very similar TVLs (31M & 22M respectively)
What is Gammaswap?
GammaSwap is a protocol that allows users to borrow liquidity from AMMs.
You can think of it like Aave for LPs.
Users can short Impermanent Loss (profit from Impermanent Gain) in AMMs in the form of a straddle, long or short.
Hedging IL in this way is not an easy task.
So, the team released "Yield Tokens" which automate IL hedging for users by providing liquidity in CLAMMs like Uniswap V3 and using full range CFMM pools to borrow from & hedge.
How does this compare to @yieldbasis ?
It uses crvUSD loans to create 2x leverage in a virtual AMM that constantly rebalances to maintain the same 2x leverage.
According to backtesting, this has been very profitable but we have yet to see it live in production.
Comparing the two projects, there are some key differences:
-YB uses loans from crvUSD to hedge exposure which hedges delta only. GS borrows from an AMM which is the exact opposite exposure of an LP (better hedge)
- YB can borrow using the LP position as collateral for crvUSD which means they donât have to source lenders
- GS does not require an oracle and can provide IL hedged exposure for any token. Yield basis needs an oracle to prevent price manipulations of the LP.
-GS isnât actually a DEX. Instead itâs a lending layer for AMMs and is going to expand their list of integrations to include Aerodrome. This means they donât have to compete for liquidity and can coincentivize with other protocols. Yield basis, on the other hand, is its own AMM.
The two projects are not really competitors, both can be successful in their own right but @GammaSwapLabs has been out and building their product now nonstop since launch and gets much less attention than they should for the work that they have done
Last thing to point out is @yieldbasis valuation is from hype, contributor names in the same and the belief in the founder of Curve to build out a new Dex primitive (Curve beta).
That said, its still 16x valued over the FDV on $GS
As mentioned in the past, I invested in $GS
2.69K
15
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