Narrative and the Golden Eggs

Summary: Which narratives hold potential and why? At what stage are they? Notable projects within these narratives? Which index/dashboards are used to monitor unusual shifts in a narrative? All will be covered in this DataFi research. Four significant narratives highlighted in this article are RWA, NFT lending, LSD-Fi, L2-L3-Ln.

Introduction

To accompany investors on the finding for "golden eggs," DataFi presents a straightforward yet intriguing study on NARRATIVES - stories that carry trends and money.

Because it's difficult to precisely predict when a narrative will BOOM, DataFi will provide readers with the following information instead:

  1. Which narratives hold potential which is significant and why do they hold potential? Are they in the early or later stages?
  2. Notable projects within these narratives and the reasons behind their significance.
  3. Index/dashboards to monitor unusual shifts which will support your timing.

In this article, DataFi selects four key narratives: L2-L3-Layer-n; NFT-lending; RWA; and LSD-Fi. A summary of reasons for these selections includes:

>> NFT-lending

NFT Lending was ranked in the top 10 of “TVL Market Share Changes of Categories in Defi - Q1 of 2023,” with relatively low TVL. Particularly, true valuable assets are only digitized when approved by the government, requiring robust and reputable operational mechanisms to integrate RWA models later. Could NFT Lending be a transitional step before RWA?

>> RWA

The collapse of Terra (UST) and Celsius highlighted the lending sector's challenges, making Defi in overall have not fulfilled its declaration - “creating an entirely comprehensive financial system”. Based on our research, RWA might hold the primary answer to a more effective future of lending in Defi. Due to its significant responsibility, thoroughly understanding RWA is an essential step.

>> LSD-Fi

LSD-Fi is a narrative previously researched by DataFi in CDOC.14 report. Although there aren't many prominent tokens at the start of 2023, the first "egg" hatched successfully with a 1200% ROI, Pendle. This suggests LSD-Fi might harbor considerable potential despite its current small scale.

>> L2-L3-Ln

Noteworthy events like Arbitrum L3 module, Optimism Superchain, Binance's MVB VI, Rollup-as-a-service projects, Base L2 from Coinbase using Optimism stack, Shapella Upgrade’s block space scheme for L2 proof (blob market) have already shown the potential of their strength and the future phenomenon.

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