Popcorn intends to host an evening at Static for cocktails, tapas, and music during Solana Breakpoint on November 9th, 2021. Join leaders in Solana’s DeFi and effective altruism community to discuss how we can do good with Defi!
Breakpoint is the first conference organized by the Solana Foundation, bringing together industry leaders, builders, and innovators from around the globe. Given the L1’s proven efficiency as a PoS chain, future EVM Compatibility, and rapid ecosystem evolution, Solana is an attractive smart contract chain for Popcorn to explore not only in terms of bridging and building asset strategies, but deploying governance and funds for Popcorn beneficiaries. Hosting an event during Solana Breakpoint is thus an excellent opportunity to introduce Popcorn and explore future partnerships in the Solana ecosystem.
The event is strategic for several reasons is it allows Popcorn to:
- Evangelize to the Solana ecosystem
- Explore future partnerships and integrations
- Rally Popcorn community
Thoughts I had when flying back to Berlin back in June:
Solana is arguably the “best” chain atm, with close to 1,000 validators, validators being the nodes responsible for validating all transactions on the network, at a tiny cost of $0.00025/tx (tx = transaction), within 0.4 seconds on average. Take a look at the below chart and compare to the rest of the chains. Mind the red outline of Cardano, as a Cardano maximalist sent me this.
*The reason why Solana is so fast right now, arguably, is because 15% of the validators are controlled by internal stakeholders, and thus are responsible for confirming a significant percentage of blocks and pushing thru transactions. *
One aspect of this you should not concern yourself is the the spectrum of decentralization which has an inevitable philosophical effect on chain agnostics, a distraction from what’s more relevant and imo important for the future of finance. Sufficient decentralization is the name of the game, but a valid question would be “what is sufficient decentralization?”Somewhere nowhere near traditional finance is a valid answer.
Now node operators are required to have a certain # of SOL staked to secure the network, confirm blocks, and thus collect staking rewards, essentially interest for securing the network by locking Solana in a PoS system. Remember, this whole game is based on incentives. Why does any of this matter? Buy SOL, stake SOL, run a node? Because you get more SOL, a token with over $1B, probably $10B, in trading volume atm.
What if you created a mirror of this market allowing you to keep the underlying collateral, SOL, and issue a 1:1 derivative that can trade within the same market with the goal of reaching the same level of liquidity as traditional SOL market. What you would need to do is stake your SOL in this new mechanism, allowing you to not only to issue the derivative, but earn interest on your SOL split between all stakers.
And on top of that, incorporate a governance token that is automatically distributed staking fees for participating in the determination of the networks technical and social evolution.
This is what LIDO is doing. Any my thesis this is the market cannot accurately predict the future market cap, which theoretically is a function of the % rewards on SOL and the Lido governance token. If Solana continues to climb to reach ETH FDV, a $100B market cap is not out of the question.
Building an automated asset strategy that incorporates staked Solana with some rudimentary techniques will not only be a valuable asset to the Solana ecosystem, but if it attracts enough TVL (total volume locked), fees charged for transacting with the contract can become highly lucrative if you’re doing a competitive 2/20 model. This would also be a huge plus for the Solana ecosystem overall, which is not really my agenda, but you can interpret that however in terms of personal financial advice.
- Yes, let’s do it!
- Not a good idea