A long-form list of off-the-top thoughts regarding
@MorphexBMX:
-zero VC or OTC deals/funding
-zero unlocks
-zero emissions
-distributes 100% of revenue to BMX ecosystem
-3 product platforms generating real revenue
-created wBLT, a transformative liquidity asset
-deep native liquidity: wBLT-BMX
-custom and integrated routing with aggregators to route through BLT with mint/redeem functions enabled (powerful ability to generate volume/revenue for the protocol and for pool2 LPs on spot markets--go look at wBLT-USDC volume on Aerodrome)
We've built and are building:
Multiple retail facing products that all drive revenue to wBLT, offsetting the inherent risk present in providing perpetual market making liquidity providers (PMMLP)--which, is that when traders profit, PMMLP pay them. When traders lose, traders pay PMMLP.
That's the risk for any PMMLP across any platform, same for GMX with GLP, same for hedgers on Symmio, etc.
So what helps to offset this risk?
-fees
-open interest
That's generally it. On average, traders are net losers, so between these losses, fees, and open-interest, PMMLPs generally are net positive in the long run, but not by much.
How we solved for this problem in multiple ways:
First, we created multiple revenue streams beyond just fees and open interest, which drive revenue to PMMLP. These new revenue streams do not expose PMMLP to additional risks, because they do not provide liquidity to the traders on our other product platforms! PMMLP benefit from BMX Freestyle (intent-based perps) and Based MediaX (nft exchange), without any additional risk!
Secondly, we created wBLT, which is a:
-wrapped
-yield generating (it continues to earn PMMLP yield)
-autocompounding
-composable (transferrable, moveable, actionable)
-index of bluechip and base bluechip assets, which is generally broken down as: 50% stables, 43% btc & etc, and 7% AERO/WELL/MOG
This means, as a PMMLP you're earning additional revenue that you otherwise would not be earning on other platforms to help offset trader profit risks IN ADDITION TO being able to take your PMMLP and dual-utilize it across DeFi such as borrowing stables against it (using wBLT as collateral) OR pairing your wBLT into a pool2 LP such as wBLT-USDC and earning wBLT-USDC rewards ON TOP OF the autocompounding wBLT yield.
It's incredible, really. The added value is on both sides, being able to earn revenue from multiple products to offset trader profit risks AND also being able to use that same liquidity productively as collateral or within pool2, to earn additional rewards or borrow stables against it for any other use case with those stables to earn additional revenue.
We created the greatest capitally efficient liquidity asset while reducing the severity of inherent risks.
wBLT-(any asset) is a dominating pool2 pair because it is productively using the underlying bluechip assets within wBLT while also utilizing them within the pool2 wBLT-(any asset) pair.
Compare that to a ETH-(any asset) pair, where the liquid ETH is just sitting idle in this pool2 LP not being productive in another way, while also having 100% price risk exposure to ETH, whereas wBLT's single-asset exposure is far reduced for any one underlying asset, in this example ETH makes up 38% of wBLT so the single-asset price impact risk exposure to ETH is reduced. If ETH tanks, wBLT price is impacted only 38% instead of 100%, so in a scenario where you have:
ETH-CUTECAT
wBLT-CUTECAT
and ETH drops 20% in price, the impact to CUTECAT is 10% price loss just inherently in ETH losing 20% value, without any sell pressure considered. That is because ETH makes up 50% of LP, so it's price loss is divided by two to determine the price impact on CUTECAT
in the same situation, if ETH dropped 20% in price, wBLT only would drop 8% in price, because ETH only makes up 38% of wBLT. Then, the impact to CUTECAT is only 4% instead of 10%! On top of that, because wBLT continues to earn yield from BMX Classic, BMX Freestyle, and Based MediaX revenues being distributed directly into the underlying BLT liquidity pool, in addition to trader losses increasing the value of the underlying wBLT assets, this mechanism helps to offset the single-asset risk exposure, too!
it's a lot to comprehend and map out in your mind, but
@MorphexBMX has built something truly authentic, native, and extremely capital efficient while also reducing risk exposures significantly.
And we did it bootstrapped, because we believe in what we are building.
When you take time to understand what we have built and are building towards, and you map all of this out in your mind, you quickly understand why we went an entire year without using BMX native incentives--to demonstrate that our model works without ANY NATIVE INCENTIVES.
This is why governance ended all BMX emissions early, real revenue supported liquidity so well there was no need to inflate token supply.
We built real products, that generate real revenue.
We built the first of it's kind, liquidity asset: wBLT
We built a protocol design and model that is consistent with DeFi principles, prioritizes security, is decentralized without any access to user funds, took ZERO VC money and with zero token unlocks, and distributes 100% of protocol revenue.
And it's still, just day one.. January will be delivery after delivery with product additions coming to Based MediaX, a new homepage UI, Based MediaX's own X account with branding, to name a few.
I want to end with this...
I've been building in this space for a long time now and personally, I have never felt more supported than I have on
@base and
@modenetwork, thus the
@SuperchainEco @Optimism.
Base and Mode "get it" when it comes to BMX and wBLT.
And I can't wait to lean in and continue to build on both chains this next year.
LFB