Exploring the Future of Canto: A Deep Dive with Taiki
Video Overview: In this video, Taiki discusses the trajectory of Canto, currently trading at 41 cents, and its potential in the DeFi space. For more insights, watch the full video.
Notable Quotes:
- “Crypto applications just aren’t good enough when the risk-free rate is at 5%.”
- “For DeFi to survive either in a low rate or high rate environment we have to import trad-fi yields from off-chain to on-chain.”
- “Maker is the only permissionless way for the public markets to get access to the very profitable state of the short market.”
- “If people just hold UST bills, naturally their USD balance is going to go up.”
- “I’m actually shocked by this. Like, I’ve been in pain so long that, like, I just forgot what this felt like.”
Discussion Highlights:
- DeFi projects need to compete with traditional finance yields to attract on-chain money.
- MakerDAO’s success in buying back its token using profits from UST bills.
- The importance of importing real-world asset yields to DeFi to create a wealth effect and potentially end the DeFi bear market.
- Challenges in valuing L1s and L2s in the crypto space.
- The potential of Canto as the “people’s chain” due to its fair launch and lack of VC backing.
- The role of real-world asset-backed stablecoins (RDABs) in the future of DeFi.
Controversial or Unique Ideas:
- The idea that DeFi can thrive in both low and high-interest rate environments by integrating traditional finance yields is significant as it challenges the notion that DeFi is only attractive when traditional yields are low.
- MakerDAO’s strategy of owning UST bills and buying back its token is highlighted as a successful model of generating on-chain wealth.
- The concept of Canto becoming the “people’s chain” is unique due to its community-centric approach and lack of institutional backing.
- Proposing that stablecoins will become “too big to fail” as they accumulate more US Treasuries, suggesting a future where crypto becomes anti-fragile.
Podcast Hosts:
- Taiki
Canto’s Current Trajectory and Future Prospects
Alright, so Taiki just dropped some knowledge bombs about Canto, and I gotta say, it’s some pretty compelling shit. Canto’s sitting at 41 cents, and Taiki’s got a whole thesis on where this thing is headed. He’s been deep in the DeFi trenches for over three years, and he’s not just some blind optimist; he’s looking for projects that can actually make a dent in the space.
Now, here’s the kicker: most crypto applications are straight-up trash when you compare them to a risk-free rate of 5%. Taiki’s not pulling any punches here—he’s saying that if you can get a safe yield elsewhere, why the hell would you mess with private keys and the risk of getting rugged? The solution, according to him, is to bring traditional finance yields onto the blockchain, which could potentially kickstart a DeFi bull market and end the bear market misery.
He’s been bullish on Maker for a while, despite the haters. Maker’s making bank, buying back their tokens with the cash they’re raking in from owning a shit-ton of UST bills. This continuous flow of money could be a game-changer for the ecosystem.
But let’s talk about Canto. Valuing these L1s is like trying to nail Jell-O to a wall, but Taiki’s looking at the big picture. Canto’s trying to be the go-to for real-world assets (RWAs), and it’s got a fair launch vibe that could make it the people’s chain. The team’s got a stash of tokens, but hey, nothing’s perfect in crypto.
Now, let’s not sugarcoat it—the Q1 pump was a shitshow, led by influencer pump and dumps. But Taiki’s not about that life. He’s looking at Canto’s pivot to RDAs, and if they can pull it off, it could be a solid trade. He’s not on the payroll; he’s just a guy looking for opportunities and sharing his findings for free.
And here’s where it gets juicy: the RDA business model. Think USDC and USDT, where you give them cash, they buy T-bills, and you get jack squat in yield. Maker, on the other hand, is giving the public a slice of that sweet, short market profit pie. Canto wants in on that action too, partnering with legit companies to issue RDAs on their chain.
The carry trade could be a big deal for Canto. Borrowing their stablecoin, Note, at a rate lower than T-bills and looping that trade could be lucrative, though it’s not without its challenges. But the real potential lies in listing corporate credit that pays a decent yield natively, like some Vanguard corporate credit ETF action.
As for the TVL, Taiki’s hoping to see it hit new highs, but he’s not delusional. It’s going to take more than hype; Canto needs to execute. And while there’s some NFT updates on the horizon, Taiki’s not holding his breath. His focus is on RWAs, and he’s betting that’s where the real growth will be.
Finally, Taiki’s not just some armchair analyst; he’s putting out research reports on this stuff, all for free. He’s playing the contrarian card, looking for underappreciated sectors where he can be right and make bank. And he’s inviting you to join him on this wild ride, with a side of self-deprecating humor about his addiction to making these videos.
