How to invest in DeFi: A first principles approach
Using a data-driven framework to evaluate Crypto projects
Evaluating Web3 projects in DeFi, especially if they are early is challenging. Having invested in ~30 projects, I realized that while a lot of the core fundamentals of traditional framework remain intact - a lot more additional data-driven analysis is needed for each project type.
In this post, we will go through:
Traditional/Web2 investment framework
Evaluating a Crypto project (data-driven checklist for Web3 projects)
Case Study 1: Unit economics of a DEX
Case Study 2: Comparative metrics for DeFi tokens
Case Study 3: L1/L2 ecosystem comps
Case Study 4: DeFi business models
Cryptechie💱 is a reader-supported publication. To receive new posts and support my work, consider becoming a subscriber.