be simple, think as a foodcoin

By PowerLul | CryptoLul | 9 Nov 2020


The experiment: be simple, think as a foodcoin

Less is more. Wide audience may prefer a “foodcoin” description rather than complex in-depth content.

The Foodcoin value proposition

People don’t like complexity. It is true for almost every creative industry: the venture industry, cinematography, music, blockchain, and Defi as well. I heard an expression one day

You can offer people whatever you want, but they will still prefer cheeseburger and a strawberry milkshake.

I can’t remember where it came from, but look around — it looks like it’s true.

An average (not advanced) Defi user understands only the “farm” word, which means to “stake” something and to earn free money. Even if the “stake” concept isn’t applied to liquidity mining at all (as nobody “stakes” or placed the “skin in the game” deposit to ensure honest behavior for some kind of job). People like farming and nobody can blame them for it. But c’mon guys? Did you ever look a step forward?

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That’s why foodcoins gained a huge audience and TVL in a quite short time period. In some cases it took less than a week or even a day (remember YAM?). The huge “farm” button (which people understand quite well) coupled with a bullish Defi market did their job.

People often say “foodcoin” in a very disrespectful manner. But look back — it’s brilliant community building and liquidity attracting cases.

Of course, we understand that the majority of them were based on low-quality tech or are just copycat projects. But what was a strong point — simplicity for the end-user. And not only for them — well-known Defi investment funds farmed Sushi, Kimchi, and other foodcoins.

How did we know a lot of [censored] info?🤔

We simply read the LobsterDAO chat😎

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Why do solid guys farm these coins?
1. They are people as everybody else and want to get easy profits on a growing market
2. They understand crowd psychology and predict that there will be a huge demand from retail users they can use to cash out

Despite anonymous teams, partly unaudited code and overall ponziness and craziness foodcoins attracted money from all types of liquidity providers, including serious guys with IB background.

Now the market has changed. They almost no more crazy profitable farms anymore and some guys even started to use Curve to farm at least something in low-risk mode (spoiler: there still is ~490% APY for LPs offered at CVP-ETH Uniswap pair). But, people didn’t change. They still are interested in two things: token price and farming opportunities. We don’t say that the entire community is degens, but human nature cannot be changed.

We define the “Foodcoin approach” as a clearly understandable value proposition for the end-user

People like short and simple explanations, demonstrating value propositions for them. Not tech behind, not cool concepts but simply — what they can get from this project.

Examples:
Curve. Farm using your stablecoins, near zero risks.
Uniswap (UNI-rewarded pairs). Use your portfolio assets, for example WBTC/ETH which gives you extra APR if you sell UNI, or gives you a governance share in the protocol. Overall, offsetting possible Impermanent Loss.

Every complex project has to be described using the “foodcoin approach” to be easily understandable by a wide audience. Easy, solid, complete. This is why we launched the experience yesterday on Twitter.

The “Foodcoin description” experiment

Analyzing all the stuff mentioned in this article we decided to run an experiment and get the best description possible from the community.

Several questions are provided and people need to ask them in a simple manner. The goal is to motivate people to understand the project and squeeze out the meaning from it in simple words.

For example: “CVP acquires a part of 7 major Defi protocols as it controls a share of their voting power. It is easily farmable via liquidity provision with a good APY”.

Follow my Twitter: https://twitter.com/PowerLul

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