Strategy Vault + Solidly like Voting Emission?

Camelot new launchpad, ape or not? read this

2lambroz.eth

Mar 29, 2023

Strategy Vault + Solidly like Voting Emission?

newoderDAO 's latest incubation

camelotDEX 's next launchpad

sector_fi

Lambro unverified twitter account's thought on it

TLDR

@sector_fi is a strategy vault with single /aggregator vaults $SECT n $veSECT for governance, boosted emission & fee sharing

In this thread

1️⃣ What is sector's strategies

2️⃣ My Concern about tokenomics

3️⃣ Launch Detail

4️⃣ My valuation & how i play it

1️⃣ What is sector's strategies

🔹What is Sector finance

They have Single or Aggregator vaults with risk scores.

They Aggregate by the main token and Chain invovle in the strategy

- $USDC ( @optimismFND )

- $USDC ( arbitrum )

- $ETH ( @optimismFND )

- $ETH ( arbitrum )

"Da Vinci USDC Vault" on OP as example

is a mix of

USDC/ETH on @TarotFinance LP

USDC on @StargateFinance lending

If you don't like the aggregated strategy u can click into single strategy instead.

E.g if u don't want ETH/USDC exposure u can just enter the

USDC: LND stargate single vault

🔹What is Sector finance's risk scores

basically the points on how risky is it.

Da Vinci Vaults = Safer vaults

Medici Vaults = Higher risk vaults

2️⃣ My Concern about tokenomics

🔹Boosted emission

🔹Protocol fee sharing

🔹Whitelist access to new vaults

Sector Finance @sector_fi

We’ve developed a value accrual system for our native token $SECT that combines the best of value-locked and real-yield tokenomics to create the right incentives for the sustainable growth of the Sector Finance ecosystem. Report & 🧵 medium.com/@Sector_Fi/sec…

medium.com$SECT Value AccrualWe have carefully crafted a value accrual system for our native token, $SECT, and our governance token, vote-escrowed $SECT (“$veSECT”)…

🔹Boosted emission

Will this be a voting for emission n earn emission token?

$CRV has proven this model works, but personally i think this is because it's underlaying its a swap with big volume n fees to support its price.

i have great respect & hopium for @neworderDAO

If not i will think $sect might end up being a farm token

Really love more detail on this on gitbook or medium post

https://medium.com/@Sector_Fi/sect-value-accrual-40750df37c74

🔹Protocol fee sharing

Low fee compare to other strategy vaults

10% perormance fee in compare to @AlpacaFinance 's 19% fee is quite little.

https://sector-finance.gitbook.io/sector-finance/welcome/faq

3️⃣ Launch Detail

🔹Tokenomics

45% Ecosystem
20% Treasury
17.5% Team &Advisors
"vests over 24 months with a 10% cliff in 6months"
10% Public Launch 66% unlock with 33% in veToken staked
7.5% Incubator
"vests over 24 months with a 10% cliff in 6months"

🔹Launch detail

Launch Model: Fair launch Auction
Max Total Commitment: 4.0M $USDC
Whitelist: Wed 29 March 1:00 PM EST
Public: Thursday 30 March 1:00 PM EST (48hours)
Allocation: 10,000,000 $SECT (10% of total supply)
Vesting: ⅓ in veTokens staked for 3 months

4️⃣ My valuation & how i play it

TLDR

🤔Utility, Hard Market Demand
🤔Valuation
✅Initial mcap
✅Speculation
✅Investors profile
🤔Tokenomics

🤔Utility, Hard Market Demand

No strong traction in their strategy
No strategy interest me so far
Maybe when the voting emission starts i will be more interested.
i heard @GearboxProtocol will launch something on sector, interesting?@mugglesect alpha?

🤔Valuation, ✅Initial mcap

i assume max commitment for auction so 40m valuation

so 0.04 per token

initial mcap:

Treasury : 20,000,000

public 2/3 unstaked : 6,666,666

26,666,666 * 0.04 = 1.06m

quite small mcap, might be a good short term play?

🔹Valuation References

@AlpacaFinance 46mcap, 57fdv TVL200m

Not much direct comparison, there are a few leverage yield farm or vault type of protocols. but all has some additional feature into it.

But in general given its a fee driven protocol it will highly depend on its TVL n fee it is collecting from.

Also this is the first VE voting base yield aggregator i know, some PvP element of yield farming might change the mcap in short period of time.

🤔But 40m fdv is high

✅Speculation ✅Investors profile

Raising DeFi yield since market going up
neworderDAO product
camelotDex launchpad product
arbitrum is still hot

🤔Tokenomics

i worry about yield aggregator or strategy vault as underlaying does not have enough hard buy pressure to support voting emission incentives.

Summary

i like @neworderDAO products also the market is picking up a bit. My degen moonboy side its telling me its a 1m mcap with some PvP farming games that can be interesting.

The logical safu investor side is telling me there woud be enough hard buy pressure.

right now im not bullshit or bearish on this. it is a 50/50 gamble.

i prob pass on this sale but keep an eye on different farming incentives on it to farm some $SECT token

Learn more about my "Multi Investor Personality theory" here