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Cobo Labs: Ethereum will capture the explosive growth of the NFT industry

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Shenyu answers hot questions from crypto enthusiasts about NFT, metasverse and Cobo DeFi fund product differentiation.

Divine Fish: The Meta-universe will be a Major Change in Human Civilization

Source: Cobo Labs

Introduction: Previously, Cobo and Pulsation jointly held the first art life in the metauniverse world, inviting god Fish to swim Cryptovoxels with everyone, which aroused heated discussion in the industry. At the invitation of Cobo VIP users, God Fish appeared again in Cobo & NBSP. VIP internal sharing meeting.

In this internal Cobo sharing session, Shenyu answered hot questions from crypto enthusiasts about NFT, metasexes and Cobo DeFi fund product differentiation. The following is a condensed version of the discussion by Cobo Labs.

Under the hot concept of NFT and metasexes, ETH will capture the explosive growth point of the whole industry

In this communication session, Shenyu once again mentioned the correlation between NFT and the metasurverse and ETH. Shenyu says there is now a general consensus among participants that "NFT is the underlying asset of the metasomes".

The current consensus is that there are two types of NFT, one based on ETH and the other on other chains. However, the recognition of NFT on other chains is not high, which means that if NFT is the underlying asset of the meta-universe and a large number of NFT are issued on ETH, the carrying logic and underlying layer of the meta-universe will develop on ETH or ETH side chain in the future, so ETH will capture the growth point of the whole industry explosion. Although both NFT and the metasverse are in a very early state.

In the past month, NFT has brought a significant increase to ETH, there are many hot NFT projects, just ETH has upgraded IP-1559, in the process of snatch NFT and release, destroyed a large number of ETH fees, has greatly surpassed the head DeFi protocol, in this case, Actually let ETH capture NFT value.

However, NFT is still in the very early stage. At this stage, NFT has very good liquidity when the market is good, and very poor liquidity when the market is bad, and very few intra-day transactions. For long-term development of NFT, the liquidity problem must be solved.

At present we see the trend of NFT fragmentation, NFT collateral lending combined with DeFi, and synthetic casting of NFT into an ERC20 Token in such a way, from this perspective, the future is promising. After all, the metasomes are big and could represent a major civilizational shift in human society. It is possible that the way people communicate, collaborate and experience life in the future will take place in the meta-universe.

Core questions and differentiation solutions for Cobo DeFi Fund

How do Cobo DeFi fund's three products respond to volatility pullback and product differentiation?

Background: The Cobo DeFi fund product launched by Cobo for overseas institutions and operated by Shenyu has been cold launched for pre-sale for one week, which is favored by institutional customers. Institutional users can freely match products according to risk and profit expectations.

According to Shenyu, the DeFi fund products of Cobo are divided into three categories: the first category is low-risk product Whale, the second category is medium-high risk product Sword Fish, and the third category is high-risk product Bloodfish.

Whales are low-risk product, basic does not use leverage also won't appear retreat phenomenon, under the extreme market, also is only days retracement level, the stable currency may have short-term one percent or a few parts per thousand of volatility, especially extreme systemic risk may be a stable currency, but in extreme cases platform will be in the middle intervention, so as to ensure stability of earnings.

Swordfish is a medium-risk product, which has some LP market making and some volatile losses in extreme volatility, but Cobo has an automated system for risk hedging. This also explains why Swordfish's products need to be fully hosted, rather than managed by users.

Personal management does not have the timeliness to hedge risks, and Cobo's automated system is able to complete stops under certain trigger conditions. Normally, if you can quickly stop the cost of about a few thousand; However, if there is an extreme situation on the chain, the Gas Fee is high and the slip point is huge, there may be a fluctuation of several percent.

This product may use some leverage to enhance returns, which is a common method in DeFi. In extreme situations, leverage may face risks. However, as the platform is in charge of management and has some leverage management tools to actively participate in reducing leverage, there may be some Gas consumption and some slippage. So this product basically has a few percent or a few thousand percent pullback.

Bloodthirsty fish is a high risk and high return product, and the corresponding withdrawal will be exaggerated. Currently, the ideal state of withdrawal is controlled at 50%, but this has not happened so far. Because its yield rate is very high, it may gain several percent per hour. As long as the system can run smoothly for a few hours and there is no such extreme situation, there will basically be no great loss. Even if there is an extreme situation, the system will respond quickly and stop the loss quickly.

Therefore, under normal circumstances, the first type of whale products, without considering the risk of stable currency, or through a way to hedge, can basically do no intraday retracement, or within a week retracement, there may be some sliding points in the entry and exit; The second product, swordfish, is basically about 500 or thousands of retractions, and the third bloodfish, the most pessimistic case is 30-50% retractions.

For swordfish and bloodthirsty fish these two products, Shenyu also gave their own investment cycle recommendations. "The term of swordfish and Bloodfish is 3 months, DeFi products emerge endlessly, there are dozens of projects in the research list of Cobo, now there are still many hot spots, the new public chain is also gradually launching, and some cross-chain agreements are gradually coming online. DeFi hotspots in the second half of the year can also be seen at present, there will be a variety of opportunities. So for this kind of product in high risk, as long as deep in this area, the opportunity is always some, in fact, in the long term, 30-50% of yield level still can keep for a long time, of course, for the blood thirsty fish products of this kind of high-risk high-yield, annualised thousands or even tens of thousands of, can keep the time not so long, need special Case and opportunity. The life cycle for a single mine is shorter, maybe a few days, but it's a long-term mine, it just needs to be found and replaced."

Are you ready to retire at 30?

This industry is so fun, there are interesting hot spots happening every day, just like NFT. Maybe an idea 5 days ago suddenly changed the form of NFT in the past few months, bringing a lot of upgrading in thinking. This is an industry with rapid iteration and growth, which attracts me and fascinates me. It also forces me to keep learning and get in touch with various knowledge. Personally, I have enriched my experience.

In fact, the whole process of life is a process of seeking various experiences, and the experiences of the next half of life may be realized in the meta-universe, which is based on blockchain infrastructure, so I think this industry is very interesting.

When I said I would retire at the age of 30, I thought the industry would have developed for more than 10 years, and it would be in a very good state. Now more than 10 years have passed, I am still deeply attracted by this industry, and I still stay up at night every day to explore and research the new things that happen every day.

Personally, I prefer new things. The product development and iteration speed of the Internet industry and hardware industry is far less rapid than that of our industry, which cannot give us dopamine and the opportunity to grow all the time. Basically, as long as the industry is still growing and developing rapidly, it will not retire in the short term.

About Cobo Labs

Cobo Labs is the largest cryptocurrency custodian platform in Asia Pacific and the cryptocurrency research laboratory of Cobo, the most popular financial asset management service provider among institutions.

We focus on innovative projects, cutting-edge cryptographic digital technology, global market compliance trends, market fundamentals and volatility factors; It aims to help market participants and cryptocurrency enthusiasts lower the cognitive barriers to entry.

Core content creators include:

- God fish & have spent (Mauritius World Bank)& NBSP; Cobo Co-founder & NBSP; CEO, F2Pool & have spent cofounder

- Jiang Changhao & have spent Cobo Co-founder, former & NBSP; Facebook Senior Scientist

- Lily Zhuo Cobo COO, formerly known & NBSP; 400 $100 million Fund General Legal compliance counsel

- Alex Zuo (left chang bai), Cobo Information technology & have spent The VP, former & have spent TokenInsight Co-founder, the industry's largest & NBSP; FOF led

We also hope that lifelong iterative learners with a research spirit and scientific methodology in the cryptocurrency field can join us to export thoughtful insights and research perspectives to the industry.