Investing in DeFi - how?

DeFi is growing but how to get exposure on it?

Investing in DeFi isn’t the same as becoming DeFi user. The best would be getting exposure to projects that are growing much faster than cryptocurrency prices.

Maker ( investable )

You can buy ERC20 tokens directly, Maker has reasonable value capture system - right now Maker is charging people 16.5% p.a governance fee which is used for buyback & burn MKR tokens. Competition is growing and people are creating synthetic DAI via Compound so over time ability to charge high fees may be reduced.

Compound ( not investable )

Compound already raised VC seed money. Indirect investment would be possible after Coinbase IPO

Synthetix ( investable )

Follow Degen for more info https://twitter.com/DegenSpartan/

InstaDapp ( not investable )

dYdX ( not investable )

VC funded, no token

Uniswap ( not investable )

VC backed by paradigm

https://www.theblockcrypto.com/2019/04/23/paradigm-backs-decentralized-exchange-protocol-uniswap/

Nuo Network ( not investable )

VC backed by Consensys

Dharma ( not investable )

VC and YC backed, no token

Lightning Network & WBTC

Just buy bitcoin instead : )
Bancor ( investable )

Kyber ( investable )

Nexus Mutual ( investable )

VC funded by KR1

https://medium.com/@KR1/how-to-buy-kr1-shares-on-londons-nex-exchange-5b7d2f5ac8c4

Set Protocol ( not investable )

VC funded, no token

Augur - investable ( ERC20 token )

Melon - investable ( ERC20 )

Veil

Shut down after 6 months: https://www.theblockcrypto.com/tag/veil/

xDAI ( investable )

Investable via POA network

Amoveo ( investable )

https://defix.fund

Summary of investable projects ( that you can actually invest in them, not meaning that they are all great investments )

  • Maker

  • Amoveo

  • Gnosos

  • Numerai

  • Maker

  • ZRX

  • Synthetix

  • POA network ( xDAI )

  • Melon

  • Augur

  • Nexus Mutual

In Q4 2019 Exante may offer such fund: https://exante.eu/

Summary: It’s hard to be crypto VC as projects that you can invest are frequently just bad investments. Good projects with traction on other hand have very high valuations: if project X operating on Y network would do 100x returns it would mean that network Y value will increase as well but with lower risk.

Famously Coinbase seed round was actually worse investment vs just buying bitcoin ( and bitcoin was liquid almost since inception and listing on exchanges )

Coinbase is still waiting for it’s IPO