Why it might be finally time to start paying attention to @NexusProtocol instead of focusing on its price action.
A๐งต(1/13)
A๐งต(1/13)
1. For those who have no idea what @NexusProtocol, you can keep yourself up to date with what they are over here!
2. Nexus has gotten a little bit of a bad reputation because of the price action of $PSI, its governance token.
(pic from coinhall.org)
(pic from coinhall.org)
3. In my opinion, the 2 main reasons resulting in the price action above are:
1. large amount of $PSI emission rewards for providing liquidity -> farm and dump
2. lack of significant revenue sources for $PSI governance stakers ->low APR -> no incentives to stake $PSI
1. large amount of $PSI emission rewards for providing liquidity -> farm and dump
2. lack of significant revenue sources for $PSI governance stakers ->low APR -> no incentives to stake $PSI
4. At the moment, the only source of revenue for $PSI governance stakers are fees collected from the $nAsset Vaults. However, all these is about to change.
5. Firstly, Nexus has already implemented their plan of acquiring Protocol-Owned Liquidity. This will allow them to reduce the LP emissions as they do not have to depend on retail users to ensure sufficient liquidity in their LPs.
forum.nexusprotocol.app
forum.nexusprotocol.app
6. Secondly, Nexus will be launching highly innovative products in the near future. Needless to say, these will be products that will be highly utilized. You just need to read about them to understand why.
7. Similar to the $nAsset Vaults, Nexus will collect fees for the utilization these strategies and direct it back to the governance stakers!
Increased utilization of Nexus's products -> more fees generated -> more buybacks of $PSI distributed to governance stakers ->higher APR.
Increased utilization of Nexus's products -> more fees generated -> more buybacks of $PSI distributed to governance stakers ->higher APR.
8. We have seen how that has done wonders for @prism_protocol's $xPRISM APR.
9. When Nexus eventually rolls out its new products, there will be massive value accrual to $PSI itself when staked in Governance. In my opinion, this actually makes it very attractive to start a position right now (Not financial advice, DYOR)
10. Also, $PSI was able to maintain its value since Jan 2022 with just ONE product ($nAsset Vault) accounting for its revenue generation. When the other products mentioned in their roadmap gets released... Few...
Don't be the fudder that constantly downplay Terra Alts based on its price action, just to miss out on significant gains. As long as the protocol have strong fundamentals, is always innovating and improving itself, it will eventually have a breakthrough!
@NexusProtocol has demonstrated its strong ability to revamp base on their flaws and to create highly innovative strategies not yet seen on Terra. I personally will not want to fade on them.
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