RSOV is an interesting approach to tracking capital flows, which gives you a view into where money is going, why it's moving, and how that impacts asset prices But I can't say I'm in love with the methodology or see how it squares with valuation. I assume some of my reasoning is incorrect, there's not a lot out there, but happy to hear more On methodology: RSOV = staking flows + defi flows, which ignores holding the asset as a store of value. Staking and using defi both change the risk profile of the asset, so why should they be counted while the risk-free way of holding the asset is omitted? As I understand it, the intent is to track the money-like properties of the asset, but payments require the unstaked asset. I also don’t think it makes a lot of sense to use the price at the point in time of the flow. As i understand it, the framework tracks the value of deposits and withdrawals based on the price at the time of the action. This creates a mismatch that is tough to reconcile. - If I staked my assets when the price was $1000 and then unstake after the price rose to $4000, then this will be treated as a net negative $3000 flow in RSOV framework, which I don’t really follow the logic on. This implies the calculation could go negative, and it's unclear what a negative RSOV means. - It's hard to follow the other way around, if you stake at $4000 and unstake at $1000, then rsov accumulated net positive value… meaning what? The price went down so I unstaked and sold, why should RSOV hold residual value? On RSOV as a valuation framework: Flows are useful to understand price action, market conditions, and sentiment, but they do not create or destroy intrinsic value. It's not clear to me what the gap between RSOV and market cap actually means, or why it's an indication the asset is undervalued. I struggle to see how measuring deposits into defi solves for valuation, without answering for the circularity. ETH is valuable, so it is useful in DeFi - not the other way around. Tokenized COIN being integrated with aave doesn’t make it more valuable. Also I don’t think REV being denominated in native assets really means much. If I could buy a MacBook in AAPL, it doesn’t mean that apple stock should be valued as money.