Revelo Intel
Revelo Intel

@ReveloIntel

20 Tweets 2 reads Nov 06, 2022
How can SocialFi improve onchain trading???
In @WOOnetwork's latest twitter space, @MustStopMurad & peach @33b345 of @STFX_IO explain how @STFX_IO combines decentralized management and vaults, creating a social marketplace for trading.
Read our notes below 👇 🪐
@WOOnetwork
•0-fees exchange trading for spot & perp.
•WooFI (DeFi portion) is multichain. 1/
@STFX_IO (Single Trade Finance Exchange)
•DeFi & SocialFi (Social Finance) protocol that utilizes social trading as its core feature. 2/
Social Trading goals
•Crypto Twitter is already a social trading place w/ everyone tries to figure out what others are doing, current trends, showing off success, etc.
•Trying to build a platform to do all that. 3/
•Currently there is an intersection of 2 trends: Decentralized Management & Vaults. 4/
Decentralized management:
•Hasn’t taken off so far.
•DeFi users are short-term thinking, risk seeking & impatient.
•Instead of multi-year vehicles, @STFX_IO provides vaults (joinable trading positions) that are short term (days-weeks). 5/
Vaults:
•Since mid 2021, vaults have been trending (yield farming, leveraged farming, simple options) but all are chosen by the teams.
•Most have been focused on yield generation. 6/
•@STFX_IO focused on short-term directional trades w/ perps as it has the highest liquidity.
•Every vault represents a unique idea & everyone has access to making & joining one. 7/
•Providing data of vault managers’ performance to the community without requiring manager’s KYC, onchain transactions will be proof of their success. 8/
•Allow low networth traders to leverage capital to prove their skills & incubate reputation; basically a decentralized prop shop. 9/
On current exchanges
•Exchanges w/ fees have affiliate marketing.
•Trader’s being good or bad is irrelevant, just wants more people to use their ref links & performance is secondary to volume. 10/
•People w/ the most followers tend to give false hope just to attract volume.
•@STFX_IO is attempting to reward good traders instead. 11/
Value proposition
•Social layer on top of decentralized exchanges.
•Rankings, leaderboards, tournaments.
•Marketplace between managers & investors.
•Convert reputation into free leverage (people will join your vaults due to reputation). 12/
•New traders increases profitability by joining others.
•Improves trading knowledge by watching ideas.
•Includes filters to allow new investors to find suitable vaults. 13/
@STFX_IO Roadmap
•Liquidity is the main thing considered, which is why it starts w/ $BTC & $ETH on @GMX_IO, & will be scaled up.
•More financial products to be included like pair trades.
•Integrate half a dozen more DEX & perp DEXs. 14/
Impacts of @STFX_IO
•Some private trading groups may not be as relevant anymore due to having a public leaderboard to follow.
•TradFi thinks Defi is risky. Social trading lessens the fear w/ the social aspect & may draw more TradFi people into Defi. 15/
How to attract users
•People already treat trading as a game (eg stock trading & recent meme stocks)
•@STFX_IO provides game-like features (leaderboards).
•Information by experienced traders provided in the vault information. 16/
•For the non-traders, 80% of profits will be given to token stakers & will attract yield seekers.
•Ongoing trading competition w/ $100k prize in total to top managers & investors. 17/
Found this thread useful?
Follow @ReveloIntel, retweet the 1st tweet & subscribe to our free newsletter to receive daily digestible content just like this 👇
revelointel.substack.com 18/
Listen to the original @WOOnetwork x @STFX_IO twitter space ft. @MustStopMurad, @33b345, @winter_BBA, @WR_Crypto, @BenYorke, & @Ja_Brann 👇 19/

Loading suggestions...