jakiro
Author: Spencer Applebam, co -founder of Multicoin Capital; Tushar Jain, Multicoin Capital
On September 11, 2024, Multicoin Capital released a 25 -page research report analysis of the valuation model and price target of DFrit, and said that it has accumulated a large number of Drift positions in its mobile funds and risk funds.Multicoin Capital’s valuation of Drift is $ 3.58, which is more than 7 times higher than its current market price.
Below is the main point of DFrit research report, 0xjs@下 下 下 compile.
Multicoin has accumulated a large number of Drift positions in our mobile funds and risk funds. Drift is the original currency of Drift, derivatives derivative exchanges on Solana.We have established this position through a private and open market in the past few years.
Here are the execution of our 25 -page Drift report.There are complete reports and analysis in our “complete report”, including our valuation model and price goals.
summary
We have long discussed Open Finance, and we define it as a distributed ledger for all value units (including but not limited to stocks, bonds, real estate, and currency).The market is more efficient, so that everyone on the earth can participate.Open finance, as well as extended decentralized finance (DEFI), is one of our three major cryptocurrencies themes.The biggest opportunity for open finance is to establish an agreement that allows anyone anywhere in the world to have the ability to trade any assets.
The real global market does not need to license the financial market will have a great market expansion (the market has not fully realized how big this market can develop).We expect billions of people in developing countries to seek derivatives DEX first as the main means to enter the global financial market.DEX ensures that any exchange operator or regulatory agency for political motivation cannot unilaterally change the rules of the exchange.
We believe,Due to the powerful network effect of liquidity, the derivative DEX market will become the market for winners.We also predict that they will centralize the market share of existing enterprises because they have the ability to cut costs and pass the cost saved to traders; DEX does not require huge customer support teams, localized, general deposits/withdrawals and custody custodySystems, etc.In order to grow into a global default trading venue, the team made the correct trade -off as soon as possible, and it is very important to start the flywheel through attracting liquidity providers and recipients.We think that Drift is right, and the results will bring better and better.
Drift is a general DEFI derivative platform. It is supported by a liquidity layer. Any derivatives can be traded or cross -margin on it in a fully open, non -hosting, and no license.We expect the super -localized third -party front end to appear on the Drift liquidity layer around the world.These applications for customers will compete in terms of user acquisition, legal currency entry/gold pricing, and user experience in specific regions -all these do not need to build smart contracts or aggregate liquidity.
Drift is committed to providing more high -quality platforms for traders and builders.The main novelty of DRIFT is that it supports support from three types of liquidity supply: 1) Dynamic AMM (DAMM), 2) decentralized central price limit order book (DLOB) and 3) Instant (JIT)EssenceThe combination of these liquidity sources should create a closer price difference, more reliable liquidity and faster trading time.
In addition, Drift has developed into a mortgage platform, and any Defi derivatives can be constructed on this platform.This enables traders to seamlessly mortgage their cryptocurrencies, foreign exchange, forecasting markets, and commodities with a single global margin account.These traders can match the transaction with anyone in the world.
We believe that Drift is ahead of large -scale derivatives CEX in terms of functionAnd these CEXs are the main promoters of the current perpetual contract transaction volume.We expect they will continue to iterate core sustainable contract products and continue to expand market share over time.The reason why we hold this belief is because they have a correct structure, which can build a competitive DEX, which can expand to meet the global transaction volume
Multicoin’s investment concept of Drift
Our execution of DRIFT’s investment concept is as follows:
1. We think,The most successful derivative DEX needs to be based on L1, which is issued on the chainEssenceWe believe that the application chain derivative DEX will not win, because they will never be as efficient as the Central Exchange (CEX), nor can they combine with other programs and assets on the general chain.They cannot benefit from the ecosystem flywheel existing on the universal L1.
2. Drift has a unique exchange structure, which can achieve three types of liquidity supply: dynamic AMM (DAMM), decentralized central price limit order book (DLOB) and instant (JIT).We have previously written a trade -offs about derivative DEX design space and believe that Drift has chosen proper trade -off.
3. The core indicators of DRIFT (derivatives, stocks, and total trading volume) increased by about 50 times year -on -year, and the market share in the field of derivatives DEX increased by about 10 times during this period.
4. The DRIFT team is unremitting and continuously launch new products and new features.In addition to derivatives DEX, they are also building a high -efficiency DEFI platform, which is not limited to synthetic transactions.We believe that DRIFT can become DEFI “super applications” because it can cross -sell transaction products to users.
5.The adoption rate of Solana is growing rapidlyWe witnessed the long -term growth trend of all Solana Defi applications.Drift will not be able to benefit from the significant growth of the ecosystem proportional, because we believe that it is the best derivative DEX on Solana.
6.The Drift team was fortunate to focus 100% of energy on the product, not infrastructure.This is only possible when SOLANA expands, and the Drift team does not need to invest in any energy or thinking.Use Solana to allow the DRIFT team to focus on integrated and combined stack products, rather than the complexity and bridge of the modular environment.With the continuous improvement of Solana network (for example, the introduction of Firedancer and Agave clients and other network upgrades), the experience and infrastructure layer that Drift depends on the development personnel experience and infrastructure layer will become better without any engineering team or any other contributor to any engineering project.Efforts (note: This is the ideal expression of modularized ideas in the software system. The system should be improved naturally over time, and developers do not need to think or take action at all).
We believe that as users and liquidity continue to migrate to Drift and Solana, the Drift agreement is expected to further develop.In addition, we believe that people in developing countries around the world want to be able to synthesize and access each asset, and DEFI derivatives are their most innovative and inclusive products.
According to usDrift research reportThe valuation framework and market assumptions overviewed,IThe valuation of DRIFT is $ 3.58, which is more than 7 times higher than its current market price.
