If we have $100k, where would we invest it and why? ### 1. Stable Alpha We want to achieve attractive [[TradFi]] like or better returns in the [[DeFi MOC]] world. This means searching for companies and investments that provide reasonable amount of uspisdes for similar volatility / risk profiles to the normal world. [[Lending & Borrowing]] 1. [[Compound]] 2. [[Aave]] 3. [[ADALend]] [[Gaming]] 1. [[Axie Infinity]] [[Assets]] 1. [[NFTs (Non-Fungible Tokens)]] 3. [[CBDCs (Central Bank Digital Currency)]] ### 2. Scalability DeFi - Until recently, Ethereum has been a monolithic blockchain and relied on itself alone for its **security, execution,** and **data availability**. - The **high fees** are only a symptom of the larger blockchain scalability problem - It is the biggest limitation of current blockchains, but there are more limitations such as **long finality times, susceptibility to front-running, cross-chain interoperability** Appications - Lending & Borrowing Platforms are currently exploring scalability solutions with [[Polygon]], which will enable low-cost transactions and high throughput using its [[Layer 2]] system ### 3. Diversified Hedge / Application Exposure Just like TradFi, a hedge can be achieved by diversifying your investment accross various tokens and platforms. [[Risk averse scenario]]: [[High risk - reward scenario]]: # Estimated Performance / Upside - The DeFi Education Fund is an example of one organization attempting to educate policymakers on the benefits of the DeFi ecosystem and to help achieve a regulatory framework for it ---- [[Investment Thesis Structure]]