Just wanted to share my thoughts on the future of the $WSB token and its resulting ETPs as I see it. Most of this is construed from the existing Lite paper (https://assets.website-files.com/607fc95ee715351da7304b6b/6083f10c9520fac300b6b310_Wallstreetbets_Litepaper.pdf) and from what I’ve heard in AMAs, interviews, and Telegram messages. I know many of you already know this, but wanted to reiterate for those who may be considering “paper-handing” the token or, since this is a public forum, convince those who may be on the fence.
For those who may not have seen it - the first ETP is currently being voted on by token holders and will be released very soon: ETP 1 Final Summary Pre On-Chain Vote.
This first ETP only contains Cryptocurrency tokens but is balanced across 20 different tokens, giving you exposure in multiple tokens/crypto technologies and as I personally argue for, diversification: Why Invest in the first ETP?.
It is clear there will be several more types of ETPs to be voted on by us $WSB token holders. To summarize some from the Lite paper, ideas others have had, and some my own:
YOLO (ex: GME, AMC, BB)
- **Wrinkle-Brained Diversification (“SAFU”) ** (Some safe stocks, some commodities, some cryptocurrencies, some forex pairs, etc. - this can be a way to simplify diversification of your capital, into one simple ETP) - I’m not sure how possible this one is on a technical level, but I love the idea and hope the team at least looks into it.
Single-Asset (single-asset stocks such as GME, AMC, BB, etc.). This might allow those who have a majority of their investment capital in Crypto to easily swap some of their funds to take advantage of trends as they are happening without needing to take their capital outside of the Crypto space (and thus have to deal with the slow bank processing times). This would also highly benefit those who may not live in the United States but want to trade some of these more popular stocks.
The list can really go on and on, since we should be able to collaborate on these forums and come up with new ETPs if there’s enough interest for it, once the process is fully up and running. I’d love to get your thoughts on what types of ETPs you’d like to see in responses below.
For $WSB token holders (or “hodlers”), don’t forget about the benefits of the $WSB tokens. Participation and the privilege of voting in the ETPs is fun and all, but I believe the strongest selling point is in the power to vote on how the treasury will be used. Personally, the potential for future passive income is something I am very much excited for. I discuss this in further detail here: The Potential for Long-term Passive Income?.
I forgot to include what I believe is one of the other BIG selling points for the ETPs: they can be purchased using Stablecoin.
Because of this, the barrier of entry for investing in some cryptocurrency projects should theoretically be lowered. For example:
- You can buy Stablecoin (ex: USDC) from a centralized exchange like Coinbase (easy to do)
- Go to etp.wsbdapp.com to buy your favorite ETP.
This avoids having to deal with buying BNB, using it for gas, dealing with wallets, decentralized exchanges (like PancakeSwap), etc.
DISCLAIMER: I’ve only seen what everyone else has seen and has been publicly released on how the process works. I am making some assumptions.
Would be even better if everything could be done in 1 place. Buy stablecoin and ETP in one place. The easier the better. Or even on an exchange buy ETP with fiat.
Right now will the ETP only be purchased with WSB?
If thats the case, I think the WSB token is more valuable, however, if the ETPs can be purchased with a stablecoin, it seems to reason the WSB token in the short term would be less valuable and perhaps farming volume would diminish.
Of course this could be fixed with higher yields for convicted and knowledgable investors but that really would make me question the value of the WSB itself…
Great discussion point here, Thanks FloppyDrive.
No, if you look at the Lite paper there’s a graphic that shows that the ETPs will be purchased using stablecoin.
You may be right about the value of the $WSB tokens. Then again, ETP releases and further marking will drive attention to the token, likely increasing it’s price, so we’ll have to see how it plays out. Either way, it doesn’t matter to me as I’m in this for the long haul.
Thank you, I will review that.
Agreed - it would be excellent if the relevant stablecoin(s) could be purchased via the Dapp.
I’m sure that’s something the devs could do!
@MeowMeow @wsb_g @BTCVIX
While I agree with the insights that FloppyDrive and others have shared in this thread, I must confess I was a bit disappointed a few weeks back to learn that (at least for now) the $WSB token cannot be used for participation in the ETP. I understand the reason for this from a technical perspective (mainnet Ethereum vs. BSC).
While I agree the long-term utility will still exist via the ability to propose and vote on ETP allocations, the demand for $WSB would be much higher much sooner (near-term) if $WSB were also used for participation in the ETP.
It was suggested on an earlier Telegram broadcast that the team may be looking at ways the $WSB token could be used for the ETP in the future. I for one would certainly love to see a proposal wherein:
- ETP participation could occur either via purchase of a separate stablecoin; and/or
- Purchase and staking of a $WSB token which will also enable the investor then to have voting rights.
One approach would be a more passive investor (stablecoin) and the other approach would enable a more active investor (WSB and/or combination of the two).
This would also drive up the demand and value of the limited supply of $WSB tokens.
TLDR: Would be dope if we have options to be able to participate in ETP using WSB tokens and/or stablecoins.
Can $WSB tokens be wrapped into ERC-20 tokens on the Ethereum chain?
Since BSC is a fork of Ethereum I would assume from a technical perspective that it is possible although I am not a blockchain expert. I’m sure it would/will require a fair amount of dev work and integrations.
The one issue/concern right now is making sure that those with the wrapped asset could also participate in the voting/governance – I am not the tech lead on this but I know solutions like this are being worked on though
Yes, other tokens have achieved something similar. SafeMoon now have their token on the ETH network, which is pegged to the BSC token price. Would be interested to look into.