My thesis is we're going to see an Arbitrum Season.
This means that positioning in the ecosystem is the smart move, and the R/R could be specially interesting in the right small caps.
SO, let me tell you about $BFR and why it reminds me of $Gmx in its early days 🧵
What is it?
You can check this thread that pretty much covers what it is and how it works.
twitter.com/LouisCooper_/status/1583473224037212161?s=20&t=NnBmTfiWRpy7fpAm5WitGg
Very recently, and just like $Gmx they transitioned from BSC to Arbitrum.
It means they were building way before they went online on Arbitrum.
Their first medium post is from May 2021.
2.5m Market cap with only 7% circ. supply according to CG.
However apparently that's not correct and their current circ. supply is around 26% and market cap 9m.
The good thing is less risk of getting diluted. The bad is we're not as early as we thought.
I noticed they are a long term oriented team that hasn't been discouraged by the bear market and just kept building.
You can check their medium and see consistent progress and engagement with the community.
This is a must for any project that's worth investing.
They follow the defi high standard of Arbitrum.
It means it's a project that generate real revenue through fees, and distribute the fees among their users and holders of the $Bfr token.
Staking mechanics are forked from $Gmx.
It makes sense, why change something that's currently the best model in the market and has allowed $Gmx to grow organically?
so by staking $Bfr you get a share of the revenue (40%), plus multiplier points and escrowed $Bfr.
Transparency is another high standard they've held.
They make public not their ideas and progress but also problems they face. Recently they decided to switch from Blp ($Gmx Glp equivalent) to POL (protocol-owned liquidity) due to volatility and pool fluctuations.
They made it so you can check the fees and pool liquidity in real time. You can track it yourself.
twitter.com/Buffer_Finance/status/1587510944846036992?s=20&t=f1JnyDg4Xov3AnE3B-r_2A
The project is still in Beta and the last 5 days it made over 46k in fees.
It means it has a lot of upside potential in terms of revenue growth.
Currently the focus is on growing the POL to attract more users and larger bets.
twitter.com/Buffer_Finance/status/1587510239053717504?s=20&t=f1JnyDg4Xov3AnE3B-r_2A
Conclusion:
I see a engaged dev team with clear values of transparency, ambition and long term view, a noticeable growing community in a very promising ecosystem.
It's is a risky play, but if you have proper risk management the R/R makes a lot of sense with $BFR
Estak
@CryptoEstak
Navigating the cryptoverse while it's still early. Writing my thoughts one at a time.