This is copied from another post for another Chain. Credit must go there. But this is perfectly fits for Fantom. This idea is about how to make Fantom great again with DeFi. Need your feedback. It’s lengthy but worth it.
Blockchains number one use case is Finance. Everything else including Gaming, apps, NFTs, web3 Socials goes to the chain that have strong DeFi value. That’s what made ETH number one platform.
Though Fantom is the superior chain in terms of tech & community, Current state of Fantom DeFi is not good as it used to be. As per defillama, total DeFi TVL is $64Bn & Fantom share is $400Mn. Not even 1% share despite the chain running from 2018 while many new chains & L2s have strong DeFi.
So how to revert this? First, DeFi has a very weak link. Entire field is denominated in USD stables(algo or otherwise). When USD dies or is inflated or loss its value, it takes the whole crypto along with it. Global trade is moving from dollar to multi-currency.
Enters Gold. Trade between China, Saudi, Brazil & Russia are agreed to use their local currency instead of USD. Agreed to settle the trade deficit in physical gold. Most central banks are loading up the gold. Even now it’s possible to trade in gold between any countries.
Gold Standard: Gold is Global money, world reserve, lindy, decentralized, highly distributed, permissionless, low inflated, store of value & medium of exchange for 1000s of years. Gold has been used between Government to government, biz to biz & individual to individual.
Still gold has disadvantages with: storing large amounts safely, programmable, moving large amounts, privacy, censorship resistance, using it productively etc. This can be solved by on-chain algorithmic digital gold. But there is already crypto gold like Pax Gold, Tether Gold etc. These are similar to USDT & USDC. Centralised & censorable. We need something like DAI or better. With no single point of failure. Individuals and countries should store and use it without thinking twice.
A Gold pegged token which can be minted like DAI, by collateralize FTM(No other assets including ETH and BTC, only FTM). And incentive deep liquidity in DEXes for ftmGold/FTM pair. And list the ftmGold in most CEXes.
Market the ftmGold to normies, whales, Funds, Corps, Govts, banks & CEXes that it’s the most robust & advanced money ever created. Same old gold but in new form.
Great if Fantom Foundation converts some of their treasure into ftmGold to show skin in the game.
Demand for ftmGold will increase the demand for FTM. Higher the FTM price, less FTM to collateralize for gold mints.
Sell the FTM for ftmGold in DEX if FTM overpriced. In the time of de-dollarization world, it’s perfect time to launch it to create demand for superior Gold.
Gold market cap is ~$13Tn, compared to that, USD supply is half of that. 2.3% of USD supply is on-chain in the form of stables. Global ETF Gold mcap is around $300Bn. Even if 2% of gold supply is captured by ftmGold, that is around $260Bn worth of gold or 400 tons of gold.
Even if $2Bn worth of ftmGold bought by market, FTM price goes up by 200-400%. FTM price is not an issue for end users who want ftmGold, Because he mostly brings USDT to buy FTM to convert that into ftmGold.
1 Ounce of gold is going to be the same in USDT. But internally more activities are going to happen in Fantom. Users buy FTM using USDT or BTC in CEX, use that FTM to buy or mint ftmGold.
Idle ftmGold sits on-chain can be used for productivity, which is killer. Loan against low volatile gold is way better for users than high volatile ETH. Can be used for payments as almost everyone on the earth accepts gold. DeFi positive feedback loops kick in.
For a $200Bn ftmGold mcap, FTM price might reach $200 - $300 which puts it in the top 3. Once TVL and Mcap swells, we can see devs and businesses start to discover the technical ability of Fantom.
Bring the narrative around ETH/USD vs FTM/Gold. Narrative around rapid inflation and de-dollarization. ftmGold as better collateral for DeFi. Better hedge against BTC. Global payments. Set the narrative that stables are villains of web3/crypto and ftmGold / FTM is the savior.
ftmGold should be in core, so that it can be upgraded in every version if needed. Should not have any Single point of failure including 3rd party oracle like chainlink.
The situation around the globe favours gold. The wait is over. Enjoy a 4 digit FTM price.
Market ftmGold to every crypto stakeholder.
Build DeFi around ftmGold.
Make Fantom top 5 chains.
Get ready for post USD global financial system.
Enjoy 3 digit FTM price, or 100x from here.
Kill the ETH/USD with FTM/Gold