The post that will take you by the hand through the lovely treasure trove that is the Bear Market and all the FUD it contains!
What is the FUD around these parts lately?
Well, the cryptoverse never fails to deliver pessimistic remarks of those who are influenced by all of the negative thoughts losing money imprinted on you.
This is especially true if you're going through a Bear Market.
Well then, as Winston Churchill said, "If you're going through hell, keep going"!
Let's take a look at some arguments that will help you "keep going" to emerge on FOMO grounds.
pCNV Dilutes Us to Oblivion:
Let's start by approaching an argument that is still being thrown around in our Discord:
- pCNV's launch is going to dilute everyone!
While it is true that 50% of pCNV allocated will be unlocked on day one, this will not have a significant effect on CNV dilution.
This is due to the fact that all pCNV will only amount to 10% of the current total supply of CNV when fully vested and converted to CNV and not all pCNV will be allocated on day one.
How does this work though? Here are two examples, right from our recent pCNV article:
The total supply of CNV on 6th July 2022 is 297,310.
Remember that the combined total of pCNV will only amount to 10% of the total supply at this moment. That would leave us with a total of 29,731 CNV if everyone was to convert simultaneously.
1 pCNV = 29,731 / 33,000,000 = TOO SMOL TO EVEN CONSIDER CONVERTING
The terminal CNV supply is 333,000,000.
At terminal supply, the value of all pCNV is equivalent to 33,000,000 (10% of total supply).
1 pCNV = 33,300,000 / 33,300,000 = 1 CNV
So as you can see, even if every co-op and community member were to convert their pCNV to CNV on day one, it would not significantly dilute CNV.
Price Always Down, Never Up, GG NO RE, Devs Do Something:
Every day I see the price, but the price doesn't go up. Can devs/marketing do something?
We see this question pop up from time to time. It seems as though the people who ask such questions really want to know:
FUD Translator: “When mass influx of people to pump my bag?”.
We don’t have a direct answer for this as we can’t predict the future. All we can do is work our asses off to move things forward.
Concave has always been about steady, healthy progress and we feel this reflects in our marketing approach.
PEEPO is another initiative we are rolling out to help bolster our community. Soon users will be able to trade their spoons for real monetary rewards which will be a huge asset to our outreach efforts.
With all that being said: don’t forget that we are a builders co-op! That means our doors and arms are open wide for anyone who wants to join us and help. Just this past month we have added two members of the community to our marketing team in trial positions.
FUD Question of the Day:
Are you spending too much on the co-op and wasting the treasury!?
When looking at Concave, you can’t forget to study it with your business glasses on. Most businesses don't hit the ground making profits from day one. It takes time and effort to become profitable.
As Confucius or one of his mates once said:
"You gotta spend money to make money." - Confucius, probably
It would also help to clarify what the original BBT seed round was intended for. The seed funding we gathered provided us with a runway of funds to get the Concave Co-Op up and running.
Products needed to be coded, teams formed, processes ironed out, communities built, articles written, graphics crafted, and policies painstakingly and meticulously combed over to ensure perfect tokenomics.
Jesus Louisus, that’s a lot of work.
Thank god skilled devs and professionals are cheap and easy to come by…You can see why the run tends to be a brisk walk in the beginning.
Up until now a portion of our treasury was put to work to help pay the costs of the co-op (as part of the runway).
We’re happy to announce that as of this month, due to the various MVPs and initiatives that we have launched (e.g., MaaS), we’re already tackling the cusp of having positive inflow directly into the treasury (instead of treasury outflow due to operational costs).
Concave has, of course, more initiatives set to release soon that we are confident will tip us well over into the black.
From that point forward, all our efforts will directly translate to profits, which will be distributed to stakers in the form of dividends. All this despite the bear market! Not bad eh?
What exactly are Concaves USPs?
Well, here's a very simplified rundown of what we can disclose SO FAR:
- CTA strategy (centralized exchange)
- Delta neutral strategies: Being tested and further developed cross chain.
Concave has and will continue to develop innovative USPs that generate revenue for the treasury. At present we have released three core products that are deployed and actively generating revenue into the treasury, with one soon to follow.
- Smart Bonding
- Liquid Staking
- Gemswap - Concave’s own AMM
- NFT Marketplace (coming soon)
As if that wasn’t enough, we are also testing and developing our delta-neutral strategies and preparing to initiate our own investment management platform. My days, how could you sleep on Concave!?
You can read more about this topic in our Treasury Flywheel article (to be published soon!).
Why is APY so Low?
We hate to be the bearers of bad news, but the market is currently… not so good.
Yes, it is so bad that it has even managed to wrap its dirty tendrils around the CNV price. Don’t worry though, this has not deterred us from continuing to build.
In order to keep the CNV supply sustainable, our APY is dependent on protocol revenue. As this grows so does the APY.
For all our 360 stakers out there - despite the poor market conditions, you’re still seeing 150% APY in our native token. Nothing to sneeze at while we work on more revenue streams right?
Umm, wen dividends?
Our hammers are always swinging away, working on new revenue-generating products for the protocol and we have already released three innovative products of which we are extremely proud.
Despite the poor market conditions, we have managed to keep our treasury fat and healthy while still paying our hard-working contributors to continue building towards earning you all some tasty dividends.
As mentioned above, we are very close to breakeven and thus profits. As dividends are calculated based on the protocol’s profits, we expect it won’t be long till we can send you beautiful people some well-earned dividends.
As mentioned above, due to the various efforts by the talented team at Concave, we will soon be generating a net positive cash inflow that will directly be added to Concave Treasury. And a portion of this will be distributed as dividends. While we can’t give an exact date on when will see the first dividends, all signs point to soon™.
You’re a weird-looking DAO…
Concave is not a DAO.
Our goal from the beginning has been to create an agile builders co-op, moving with the tides while creating innovative products.
Every part of Concave has been designed to pivot as quickly as the floundering crypto market.
This simply would not be possible with a DAO structure, as it is too cumbersome and slow to act. We are also NOT an ohm fork and have painstakingly written every piece of code from scratch. written our bonding and staking contracts from scratch.
To learn more about our philosophy please take a peek at one of our members’ fantastic blog posts here.
Is Concave Doing Buybacks to Prevent Price Going Down?
As a policy, we do not support using treasury funds to perform buybacks.
Also, passcode is: WAGMI MINER!
This may change in the future taking certain price thresholds into account, however.
To balance this, we have implemented treasury profit distribution, aka Dividends.
In a rational market, we believe this will act in a similar way, supporting a minimum price for CNV.
If one CNV earns you X amount of dividends per quarter, then logically the CNV token should not go below this price.
Is permissionless bonding still a worthwhile product?
The beginning of defi saw a great need for liquidity.
The problem quickly arose that keeping a hold on this liquidity was a costly beast, as one needed to incentivize the liquidity providers to stick around.
What would happen when the incentives dried up? Cya liquidity.
Olympus had a revolutionary new take on the game (which had flaws we don't): What if protocols owned their own liquidity by selling bonds? Genius!
The next problem showed itself over time, however:
Stakers were being heavily diluted by bonders.
Not to mention the fact one needed to fork the Olympus code, which while no great engineering feat in itself was still a barrier to entry.
Defi is still going strong despite the crumbling financial world around us.
The fact of the matter still remains. Come bull, come bear, Defi protocols will always need liquidity.
That is why we have created smart bonding, a way to bond without wrecking your stakers.
Imagine a world where a protocol can set up its own smart bonding as easily as creating a pool on Uniswap. Yeah, this is the world we want to live in and we think it's going to be a damn good one! That's why we built it.
Will the seed investors dump on us when they are fully vested?
Ah, seed investors.
Damned if you do, damned if you don’t so they say.
Whether you like them or not, seed investors play a pivotal role in the bootstrapping of new projects.
To try and combat this, we approached our seed funding somewhat differently.
We didn’t simply put up the bat signal to bring in as much mercenary cash as we possibly could.
We approached known ethical investors, friends, builders, partners, and community members from other solid projects.
People that we believed to be in the crypto space for the right reasons. We knew that having a smaller amount of capital with the right people behind it would be worth far more in the long run.
Long-term stability is our number one goal at Concave and we base all of our actions on this principle.
Does this mean none of our seed investors will dump?
No, of course not.
We can’t nor do we want to control their actions.
They provided us with a great service that allowed us to build Concave and we are eternally thankful to them for this.
We are confident that the majority of our investors will stay with us for the long run and take profits sustainably.
And there you have it!
I know hope you guys look at these questions a little bit more optimistic, as you know we not only considered them but have the answers for them.
Also, if you have any doubts, don't forget to bother me, Rukka, at the Discord Server - I'll help you in any way I can.
That's all for today, and see you guys next article - subscribe to be sure you don't miss it!