SILK Earn - Driving a new wave of adoption

Shade Protocol
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As we are all brutally aware we are in an alt coin bear, aka hell. How do we get out of it while we wait for the market to turn and more primitives to launch in September? We need to drive additional demand to the protocol and my solution is pivoting “SILK EARN” into an actual product that people want.

SILK, imo, is the most innovative product the Shade team has launched. However, a $3mn market cap for SILK certainly doesn’t do the product justice. So how do we drive demand to SILK and therefore Shade?

The good? … The product has already been launched in “Silk Earn”
The bad? … Silk Earn has ~555 Silk deposited in it (i.e. nobody uses it)

So to start. Lets look at why no one uses it today.

  1. There has been no marketing around Silk Earn
  2. The expected APY is unknown given you only make money on liquidations.
  3. There are higher yield opportunities across both Shade and the broader cosmos.

So the question then becomes, how do we drive incremental demand for Shade Protocol. To me, you do this by creating Shade’s version of Anchor Protocol (i.e., SILK EARN). A high-yield stable coin that is both 100% backed by actual revenues while also being inflation and privacy resistant.

Now where do the fees come from? SILK EARN would continue generating fees from Shade Lend Liquidiations but we’d transfer x% of fees that are currently going towards POL or Shade buybacks into Silk Earn.

What if the yield on Silk Earn got to ~10% (just throwing a number out there). People would be chomping at the bit in a bear to buy a high-yield stable coin that is both privacy and inflation resistant. All the sudden the sky becomes the limit. Why can’t SILK EARN be a new and vastly improved Anchor Protocol? I don’t see a reason.

The Caviler

3 Likes
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So much untapped potential with Silk Earn. For sure.

Would be incredible to have historical yield data attached to Earn to offer users a measuring stick of what they might expect for a return.

And if we are just pulling numbers out of the air - I do like your 10%. That would be a competitive very return in this market - esp. when considering Silk’s unique properties paired with it.

2 Likes