been digging deeper into https://t.co/YWbwiVy7fe / $MONEY and imo the easiest way to understand it is as a degen credit layer for tokenized stocks
Robinhood brought assets like SPY onchain, Own lets you actually make that exposure productive
instead of selling your SPY when you need liq, you deposit it into Own and mint eUSD against it. min collateral ratio is 150%, so youre basically unlocking dollars against your SPY exposure w/o selling it
and thats an important diff vs something like Aave. on Aave youre borrowing stablecoins supplied by other users, on Own youre minting eUSD directly against your own SPY collateral
so basically:
SPY -> collateral -> eUSD liquidity
then $MONEY is what connects the product into the flywheel
$MONEY trades against SPY on Pons V2 and the trading fees are collected in SPY. those fees are split 30/70
30% -> buys + burns $MONEY
70% -> goes into the buffer used to pay SPY rewards to eUSD stakers
but if you want to maximize your share of those rewards, you need to stake $MONEY.
and imo thats the important part
more eUSD users -> more demand to buy + stake MONEY for the boost -> more MONEY trading -> more SPY fees -> more MONEY bought + burned + more SPY rewards for stakers
so the flywheel actually runs through the token itself
and the rewards are paid in SPY instead of newly printed MONEY, so its not the usual defi setup where you stake the token and just get paid in more inflationary token
SPY creates the collateral, eUSD creates the dollar liq, MONEY increases your share of the yield and MONEY trading creates the fees that fund both the burns + SPY rewards
imo thats the cleanest way to understand it
you keep your SPY exposure, unlock dollars against it, and if you want to maximize the yield on that eUSD you need to buy + stake MONEY
that creates more MONEY trading, which creates more fees, which burns MONEY and funds the SPY rewards that made ppl want the boost in the first place
thats the flywheel
Shout out @Aliaian he delivers free alpha daily for example $BSTONK was called around 250k market capital, asks for nothing in return so I wanted to give him his flowers
Tranche 5 settled: $781.74 to 3,893 entries.
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@Aliaian The non-ETH/USDC pairing mechanic is the real alpha here. Pairing speculative tokens directly against tokenized equities creates an immediate reflexive sink for RWA wrappers the second Coinbase turns on liquidity. Front-running the routing infrastructure is based