Announcing, the greatest potato there ever was! — Rossco’s life update 2021.
Through my journey into learning as much as I humanly can about how money and finance truly works, I have found it is no different to any other industry at its core.
It’s like walking into a farmers market and a bunch of people telling you how their potatoes are better than the next person’s potatoes.
Like all markets on planet earth the culture of just making the next shiny or most beneficial product that people will fomo into seems to be the timeless trend.
That said, I’ve been working on something and now I’m going to contradict myself and tell you how great it is, because I think its truly fucking great.
What really drives my attention is human behaviours when it comes to how they make or break it with their personal finances.
I’ve observed two key groups. People who can follow rules and people who can’t help but to rise up against them.
I sit somewhere in a midpoint personally.
Personal example, I can maintain a healthy diet if I keep my pantry and fridge healthy. If my pantry has chips in it, come 9pm at night, no matter how many rules I give myself, I will find myself swimming in a packet of chips if they are on offer.
Mmmmmmm chips….
So for me, remove the risk by cleaning up the environment aka don’t keep packet of chips in the pantry.
Simples.
In personal finances, there is a foundational equivalent I believe.
And to date we have seen term deposits, savings only accounts, annuities and other piggy bank type products that stopped people from dipping into their profits or stash just because it was accessible.
I have seen an incredible amount of people squander great fortunes because they could just reach in the proverbial cookie jar and redistribute funds on dumb shit.
This isn’t true across the board, but I would dare say it’s the greater majority of people I have observed at least.
So I think it’s time to release a DeFi product that doesn’t have the mechanism for someone to dip into their profits or cookie jar if they do instead choose to lock them away, safely.
Should everyone do this, hells no. If you have immense will power and don’t make dumb shit purchases or investment decisions then you probably stand to make more money with your iron will in other ways.
If you have any level of self control issues, then this might take away the temptation and put you on the home straight to some long term interesting places.
One last thing before I share what this thing is. It is only now possible due to a new technology know as DeFi — Decentralized Finance.
DeFi allows everyday people to do fancy financial functions that were previously reserved only for the financial elite. This includes, but is not limited to lending, borrowing, liquidity providing, market making and much, much more.
If Wall Street could do it, it can likely now be done with DeFi.
So here it is, the glorious product we’ve been waiting for!
Perpetual Vaults
Money goes into a piggy bank and only an income stream comes out.
Perpetual Vaults have two core parts that require understanding to make sense of their unique value:
- What is a vault?
- How is it perpetual?
What is a vault?
Pools of capital that automagically generate yield based on returns available in DeFi.
Vaults consist of multiple DeFi revenue streams that are generated in a “trustless” way, meaning that trust isn’t required due to how the thing works.
Let me give you just one example of the type of trustless DeFi strategies that will be utilised in these vaults.
Lending and borrowing.
Since the beginning of civilised humans, there have been trustless lending and borrowing institutions all over the world. You likely know them as Pawnshops or Pawnbrokers.
They lend out money every day of the week to people who bring in things of value, at a fee.
For example, let’s say Ted has a valuable guitar worth a few grand, but Ted needs some cash to do a thing. Ted doesn’t want to sell his prized possession, but he knows he can use it to get a loan against to free up some cash.
Ted’s guitar is totally safe as long as Ted pays back the loan plus any interest agreed upon. And the pawnbroker is safe because he has an asset in the guitar that he can sell if Ted doesn’t pay back the loan, meaning the borrower does not have to trust the lender, trustless!
Now take that example and put yourself in the shoes of the borrower or pawnbroker you can lend Ted money in DeFi and he will put up his crypto-assets like Bitcoin as security for the loan.
All done in magic smart contracts and already billions of dollars a day are oozing through this incredible new freedom technology.
Sooooo what is a Vault?
It is a bunch of trustless strategies just like this one, where income can be derived from the capital deposited automagically without you having to understand all the things.
How is it perpetual?
When a user deposits their chosen currency into these vaults they can never withdraw it, meaning that deposit will perpetually work in the Perpetual Vault to provide users with ongoing returns.
Wait up, this Perpetual Vault will never give you back your money???
True and not true.
When someone deposits into a Perpetual Vault they will receive a PVT or Perpetual Vault Token/s as receipt of their deposit and this PVT can be transferred or sold to other parties.
Why would they want to buy that PVT thing? Cause if you are the holder of that token you are the person who is receiving the income stream.
You can sell the stream, just not the initial capital.
This is an age old idea by the way, Annuities totally do something similar already.
Funny story about that, I had no idea what an annuity was until I invented the whole idea of a Perpetual Vaults and then told a few people who said, “oh yeh that’s like an annuity”, that gave me a good ole chuckle.
Anywho, this is what I’m working on at the moment and I really just wanted to share an update on where my attention is at.
Also thought it was my civic duty to prime good people that there is a new kind of product that can greatly support you, dropping real soon.
In the meantime if you want to know more, you can check out a bunch of these links that describe the product in different ways. It might help it land even more for you just how big this idea is.
Or you can check out the SyncDAO website here.
Plus we’re doing some final presales for SyncDAO at the moment if you want in on that shoot me a message.
Finally.
I want to thank everyone who has supported me over the last few years while I figured out all these DeFi things.
Annnnd I especially want to thank all the potato chips i’ve consumed for all the lessons too.
Onwards and perpetually upwards!
Rossco :) xo
