Read Canto's economic model and operating mechanism in one article

火星财经

特邀专栏作者

2023-02-06 10:00

This article is about 1292 words, reading the full article takes about 2 minutes

How does Canto work? Is it a Ponzi scheme?

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How does Canto work? Is it a Ponzi scheme?

Original Compilation: Kate, Marsbit

$CANTO has been getting a lot of attention lately, but I haven't seen a single thread that does it all.

So I decided to explore their ecosystem to help you guys understand what @CantoPublic is, how it works, is it a Ponzi scheme?

Everything you need to know about $CANTO.

The first thing I noticed was that their website has a hacker vibe, which might attract degens, but might turn off tradfi prying eyes.

Technically, Canto is fully compatible with EVM, so it is easy to fork solidity dapps to Canto, and Canto is twice as fast as Ethereum (6 seconds vs 12 seconds block time).

Canto started out as a fork of $EVMOS using the Tendermint consensus and EVM execution layer (but using metamask) via the Cosmos SDK.

They are a DEFI-centric L1, similar to @seinetwork and @0xcarbon, because they have built-in DeFi modules, so it is easier for developers to build DeFi applications on it.

They are unique in that there is no official foundation, no pre-sale, no equity vesting, and no venture capitalists.

This makes them a fully decentralized chain.

But they often host hackathons online, and they're all community-led, which sounds like fun.

Canto believes that core primitives should exist as Free Public Infrastructure (FPI):

Free DEXs (like Uniswap)

Free lending marketplace (like AAVE)

Decentralized currencies (such as DAI)

Canto wants users to use these core primitives for free, just like free parking.

Interestingly, its DEX cannot be upgraded, will remain ungoverned, and will never charge fees.

LPs also don't earn fees, so I think LPs are purely earning inflationary $CANTO rewards.

Canto Lending Market (CLM) is managed by Canto stakeholders who want to provide the best service for developers and DeFi users.

Currently depositing into Canto LPs gives you crazy 3 digit APR! But they can't be used as collateral to borrow assets, and they can't be borrowed, so it's kind of like a Ponzi scheme.

$NOTE is a decentralized currency, pegged to $1, that uses the interest charged to stabilize prices to fund public goods.

The interest rate adjustment system also prioritizes stability over revenue maximization, and the interest paid by the borrower is given to the lender, not the agreement.

I see a lot of misconceptions about $NOTE, so tldr:

1) NOTE is an over-collateralized stablecoin, not an algorithmic stablecoin

2) NOTE minted only for NOTE/USDC/USDT collateral

3) NOTE Currently cannot be minted against any unstable LPs

You can bridge assets to Canto via http://synapseprotocol.com or http://bridge.blockscape.network to start your journey!

Make sure you have some WETH in your wallet, as well as ETH for gas and bridge fees. USDC / USDT Token can also be bridged to Canto.

On Canto, you need 0.5 $Canto to generate a public key. If you need it, please follow and private message me (FCFS)!

After entering Canto, you can go to http://app.slingshot.finance/swap/CANTO to start buying memecoins, such as CMOON (JOJO ANYONE?), or even CINU (Canto inu). They also have NFTs!

How do developers make money if the infrastructure is free?

They build cool dapps on top of it! Using Contract Guaranteed Revenue (CSR lol), a part of the gas fee spent on the smart contract can be charged in the CSR NFT specified by the smart contract developer, and exchanged for $CANTO as revenue.

Digging deeper into the numbers, things look a little fishy.

Canto has a market capitalization of $270 million, or $0.64 per share. There are over 80,000 wallets on Canto.

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