jakiro
Author: Crypto Wetuo; Source: X, @thecryptoskanda
After BMNR and MSTR fell below mNAV 1 one after another, basically everyone would say “The DAT scam is over” when talking about DAT.
From a native perspective of the currency circle, DAT is not valid.: This is equivalent to letting others buy coins for you with your own money, not to mention that there are ETFs for several coins.If you buy DAT now, you can say that you are paying for the personal brands of Tom Lee and Michael Saylor – donating money to these two speakers for traditional finance.
But is it really useless at all?Probably not.
1. Use the interest income from holding coins to replenish DAT performance
Many DATs have considered or are already doing this..Mainly by using the tokens held as collateral, such as Solana’s DAT; there are also discussions on generating revenue through lending agreements, such as several ETH-based ones.On average, interest rates are generally within the range of 3-6%.
Among them, the one with the greatest gaming potential is $ATH’s $AGPU (formerly called POAI).Because ATH is known as an enterprise-level computing power pool, the AI computing power rental is $166M per year, which is equivalent to the national treasury revenue of $33M per year.
If it is true (relying on disclosure by a listed compliance company?), and there is a way to allocate even a part of it through the logic of currency holding income, there is huge room for price repair for a small shell with a stock price of only $20M and an mNAV of only 0.3 (yes, even if the $ATH price is already like this)
As for why not use this money to directly repurchase $ATH?
You put yourself into the role of the project team: after it is impossible to make more progress in listing the currency to open up more liquidity, how can you maximize the cash in hand?
Originally, $ATH did not have any commitment that the revenue part needs to be distributed to currency holders, so it chose to directly repurchase the tokens. Apart from helping retail investors to unwind, there was no practical benefit.If you can maximize cash out from the spot market, there will be no point in doing DAT in the first place (aka let traditional finance take over).
But transferring this part of revenue to DAT is different. DAT originally represents the interests of the large $ATH group. Through revenue transfer, it is very easy to open up buying space in US stocks. There is no more unlocking pressure like $ATH. Instead, it can use the repair of mNAV to give $ATH a stabilizing signal, minimizing the pressure of the current double kill.
I believe that the gaming situation like ATH will only be the beginning. In the future, the direct investment/ecological income of more projects with DAT will be directly transferred to DAT, bypassing the tokens.
2. Arbitrage trade
Although most of the time, quantitative funds are obliterating the directionality of the market and making it more chaotic.But how can such liquidity not be considered liquidity?
DAT itself is the same as encapsulated ETH or stable currency. As long as it is “encapsulated”, there will be a price difference with the underlying asset, and arbitrage can be made with the price difference.
Going back to the ATH example just now, when mNAV is 0.3, it is theoretically possible to conduct exchange rate transactions.
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Go long AGPU
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Empty equivalent $ATH
Whether it is the rise in AGPU that causes mNAV to rise, or the subsequent plummeting of ATH, it is not a loss.
Or, there is a scenario of cross-chain on-chain and off-chain arbitrage.
That is, assuming that the mNAV of AGPU should return to the 0.8-1.2x range in the long term (MSTR is 0.94-1.12), then:
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US stocks: Buy $AGPU assuming $50,000, equivalent to an exposure of 403 ATH
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Currency side: Short $ATH 10x
Adjust positions according to NAV conditions (such as ATH plummeting), and the target is for mNAV to return to 0.6.
Of course, the above arbitrage trade is only theoretical.Because of the very obvious question:
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It involves T+1 for traditional US stocks.
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The liquidity of this ticket itself is very poor.
In addition, this is just an example of ATH. There are also many DATs that need to be reversed (such as SOL’s FWDI). If you short US stocks and have multiple tokens, it is difficult to borrow a position to open a short position.
But does this kind of arbitrage opportunity with asymmetric liquidity seem like a problem that can be solved by placing large-scale orders and adding synthetic positions to the so-called “lawless place” on the chain?
(You know what I’m trying to say with the H letter here) Like, so fucking similar.
This is the meaning of the existence of DAT, to provide more games for the currency circle and let the currency circle stir up traditional liquidity in its own way, rather than simply doing RWA for the traditional market.
