Cover photo

degens as bankers

$degen is the economical layer of farcaster. this draft is a proposal to transform that into something more concrete, practical, and that would open up the window for a new economy to unfold.

we are all degentlemens

the idea that i'm presenting to the community through this blog post arose in my awareness as a consequence of shipping this cast:

this was a reply to @undefined, which is one of the most impactful builders of farcaster at this moment in time. i've had the privilege to be subscribed to his hypersub during the last month, and i've leveled up as a developer human being in ways that make me smile.

Part 1: The Problem

I have 15k $degen available to tip today (93 usd at today's prices), daily. At least till the end of this season.

People have millions of $degen in their wallets and need something to do with them, besides having those coins gathering dust bleeding in there.

Part 2: The Solution

The $degen that you want to stake is liquid.

You can transform it into base eth and then into usdc and go and get a beer if you want, today. But you believe in the project, you want to store your economical value on $degen. At least for the middle term.

So you use it as a store of wealth, and keep it as $degen.

The one that i have for tipping is not. What i do with it acts as a bond, and represents an amount of $degen that will be claimed in the future.

So I -usually- can't buy things on the market, because of its extreme volatility.

How much $degen in 10 days do i pay you for 10 usd today?

Any person that has been part of the rollercoaster for some time knows that this is an impossible question. It doesn't even make sense to think about it.

A cosmic rollercoaster scene where a diverse mix of people, including those who are fat, disabled, and have unique features, are all wearing purple top hats. They are riding the rollercoaster which is entering a swirling void in a psychedelic space. The rollercoaster track is colorful and winding through the cosmos, with stars and galaxies around. The characters' expressions are excited and amazed, fitting the adventurous and surreal atmosphere.

But, if you think this through, this is a huge opportunity for us to create a mechanism for you to stake your degen for it to become my liquidity.

I could commit to pay my tips during the next 7 days, subscribe to @undefined's hypersub then (or the other way around), with all of this backed by some sort of mechanism ($degen bank) that we need to figure out as a community (if we had a prediction mechanism for the tip allo that i will have throughout a given season, this would be easy to calculate. therefore, this system would be more predictable).

and that's it. yes, in some way this would transform the tipping meta.

but aren't we in need of a new story?

what if that new story is a new way of conducting the economy through farcaster?

through the arc, together

This is just the starting point of an idea, but one that feels impactful.

Because it transforms the social experience that we are having around $degen into one that feels like a bank.

And, wether you like it or not, people trust banks.

And, of course, a business plan can be crafted around this.

If I need 10k $degen in liquid, and i want to transform a tip into that, i'm willing to tip you $11k $degen for that. or 12k.

so you get a nice compensation for your staking until the end of the season (when you will be able to claim that, or receive it from this trustworthy farcaster account institution -that received those tips and stored the ledger of them- throughout the season).

and i get the liquidity that i need in order to do what i want to do.

and we do things on top of the farcaster protocol that haven't been done before.

we break the rules.

we learn.

and we all win together.

thoughts? how would you craft this system?

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