What even IS fixed income?
What even IS fixed income?
What if I told you it's a lockbox full of the best stuff in it?
Let's rummage through 👇🧵
A lockbox keeps things safe (your principal is protected!)
It guarantees you can come back and retrieve your prized possession at some point in the future (the maturity date!)
What kinds of things can you do with it? Lots
The simple, boring case: you set aside some cash, then come back to get it later
People may want to trade the key to that box: that's a Principal Token!
What else can we do with this lockbox?
We can make something liquid that otherwise isn't
Say you have a strategy that's hard to value like a knock-in knock-out exotic FX option (hi cega_fi)...
put it in the lockbox... and trade the key!
could this work with RWAs? tbd 🤔
Have you heard of liquidity mining? It used to be big
But mercenary capital ruthlessly dumps tokens (hi Sam)
How can we place them in stronger hands? 💪
Don't let them sell! Put the rewards in the lockbox!
Works best with non-tradeable tokens (hi GearboxProtocol)
So remember: Fixed income is a lockbox.
When in doubt, put it in the box!
What would you put in it?
And what would you ✨ get out of it? ✨
PS all images courtesy of the midjourney bot (v4!) in the Element_DAO discord
our little imagination station 🥰
peep the prompts and the first editions
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