When the value of MakerDAO returned, the price exceeded $1,900, and the total valuation reached $1.7 billion, I wrote this essay with feelings. (Hereinafter MakerDAO is collectively referred to as MKR).
I am also one of the members who ridicule MKR. MKR has been ridiculed as a ten-thousand-year-old turtle in the past three years. It is indeed a stable currency in terms of price. Except for the 18-year deep bear market, holding MKR and USDT is a hedge operation. , In the rest of the time, MKR underperformed the market.
As the originator of DeFi and the most basic infrastructure, when DeFi was still a little sparkling in 18 years, it was MKR that supported DeFi’s sky, and 90% of trading activities were derived from MKR. MKR is the DeFi parent in 18 years.
At the same time, the fundamentals of MKR are so good that many leading institutions and professional investors are very optimistic. According to reason, MKR should have risen long ago, but the price has been stagnant.
In the DeFi boom in the summer of 2020, I have also bought MKR. After Coinbase announced the listing of MKR, the price once rose from $300 to $500, and briefly fell back to $400, and a position was opened. The idea is also very simple. Be short-term and bet that Coinbase will continue to pull.
The bet was right, and it rose to nearly 800 dollars later, but it was far below my expectations. After all, the previous performance of SNX and LEND was calculated by 100 times, and MKR will not only rise by 1 times and then collapse. But the maker was really unbelievable. The price of $800 was the peak of the price at the time. In the next few months, it slowly dropped to $500, but it was the craziest months for DeFi. During the same period, the DeFi currencies have increased by 3-5 times.
As a result, I turned black towards MKR Road, and ridiculed it as a ten thousand-year-old turtle. It can be said to be hate because of love.
From the perspective of fundamental data, MKR’s data is too beautiful. TVL has consistently ranked in the top five. Currently, it tops the list with a TVL of US$4.6 billion, and the circulation of DAI has exceeded US$1.4 billion.
MKR is equivalent to the infrastructure for ETH credit expansion. If ETH is M0, then MKR is M1. In the bull market cycle, by staking ETH to cast DAI, and continuously adding leverage to the ETH system, the following positive cycle is generated: ETH is used to cast DAI, ETH rises, the mortgage rate decreases, and more DAI is cast.
Spartan is regarded as the first black maker among foreign big Vs. He became famous because of SNX World War I. In addition to him, there are many foreign KOL black MKR black manufacturers who are always happy. At the same time, foreigners also exported a set of “ASSY VS CUM” theories, meaning that community-driven DeFi projects will eventually defeat institutional projects supported by Silicon Valley VC.
Perhaps in a certain period, such as the previous few months, the theory of “ASSY VS CUM” was effective, but from the current performance of DeFi on the entire track, CUM has also risen very well.
Therefore, this time the return of the value of the maker, let me rethink one thing is that I must have my own independent thinking ability. Whether it is ASSY or other theories, in the final analysis it is just a concept that others have instilled in you. It just means that this concept is recognized by most people and the mainstream, and its exquisite storytelling, easy to accept and self-justified Characteristics, so you will think that this type of concept is correct, and you will believe in it. But in the end, it is just one of many stories we tell. But he has his story, and you can also have your persistence.
There are many people who insist on MKR, and now they have finally gained something. Shouduyunkai see Yueming, MKR finally lived up to his insistence.
Before the MKR skyrocketing, Polychain sold tens of thousands of MKR. It is said that it has increased the ESD position, but it is just a rumor, and there is no evidence on the chain that they really intervened in ESD. But the sale of the maker is true. After thinking about it this way, I was extremely frightened. The price started to rise after the institutions could not bear to sell their chips. In other words, no matter how good the fundamentals of a project, it takes a certain amount of time to wash the plate to change hands. The heavier the people in the car, the longer it takes to wash the dishes, and the more tormented the waiting. The last thing is patience, faith, time cost and endurance of funds.
In short, I am very pleased with the return of the value of the maker. This is really a victory for long-termism and value investing.
In today’s Amber, who pursues short-term utilitarianism and speculation, the manufacturer can be regarded as an example, and long-termists will eventually be rewarded.
After all, it is not too utilitarian to invest in encryption. If you want to make big money, you still have to insist on some long-termism and value investment that everyone is not ashamed of.
Look at the 30,000 MKR in the A16Z wallet, you can understand this.
