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Greyhound Racing in crypto

What is driving crypto right now?

I consider pride to be the most important condition for gambling. While people are trying to put a leash on the superhuman mechanism of global balance, they are starting to believe in their ability to grasp its laws and control it. The belief in this mechanism itself is the product of pride. Further people are led by signs that they feel by themselves, or by a leader, who has proven his ability to control this mechanism, or by a mob, which is always stronger than one human.

Crypto exchanges become one of the altars of this dead God. People are expecting recompenses for their sacrifices, and they know that they should take risks for that. The greater the sacrifice, the greater the recompense. The greater the risk, the greater the reward.

When choosing tokens to purchase, people are guided by their feelings, which are always real. Feelings are caused by the name (brand), logo, history (chart), price number, reputation in the community. These feelings are more real than some team or seed investors or fully diluted valuation, use cases, profitability. Economics is not important for sacrifice at all; there will always be excuses for the desire to take risks.

As a result the crypto market turns into a global totalizator: betting on tickers as on greyhound races. And we are seeing a rally of memecoins, dead networks, useless projects, outright Ponzi schemes.

Of course Iā€™m not talking about all crypto. Healthy core always stays, but bad projects are receiving much more attention than expected. Perhaps a betting bubble is the best way to raise funding and attention possible.

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Parrot

The Parrot Protocol is a DeFi network built on Solana that will include the stablecoin PAI, a non-custodial lending market, and a margin trading vAMM. These are all use cases designed to solve one single problem: making value locked in DeFi systems accessible.

Today billions of dollars of value are locked in hundreds of DeFi systems, and converted into different yield generating tokens, such as the Uniswap LP tokens, or the AAVE interest bearing tokens. There arenā€™t many use cases available for these LP tokens. The value locked in DeFi as LP tokens are inaccessible, because their risks are opaque, and their units of account unsuitable for human consumption.

The Parrot Protocol is setting out to make value locked in LP tokens accessible, by creating a liquidity & lending network collateralized by these LP tokens. The Secret Parrot Master Plan (just between you and me):

  • Create the PAI stablecoin, backed by LP tokens as collaterals. This creates a common unit of account to make it easy for holders of different types of LP tokens to transact with each other.
  • Create the Parrot Lending market, taking LP tokens as collaterals. This allows LP holders to access their locked value by borrowing against lender liquidity.
  • Create a margin trading product (virtual AMM) using PAI as the common unit of account. This allows the Parrot community to collect fees, and feed the family.