This story played out in 2020 with Flamingo Finance.
When Neo's DeFi platform launched (with incentive program), there was $1.6b in TVL, and today, there is 0.23% of that TVL on the platform.
The question: how to we create better long-term capital incentives for liquidity?
Who gives a shit?
Almost all TVL that isn’t on @solana or @ethereum is mercenary capital.
Once we all acknowledge this is a stupid game, the sooner we can stop playing it.
Berachain did the impossible by getting over $4b in TVL and the market didn’t care. That was the canary in the coal mine.
Goodhart’s Law is right again.
Velocity of money, stablecoin TVL, organic WAU, and organic borrow APY on the chains largest money market are the metrics we should care about.
All these games we play are to mask the lack of adoption. We must adapt or perish.
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