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Mechanism Capital Profile
Mechanism Capital

@MechanismCap

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Joined June 2020
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@MechanismCap
Mechanism Capital
3 years
1/ We've recently established a position in Arweave ($AR) A thread on some of our research, and an update on the current state of @ArweaveTeam
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@MechanismCap
Mechanism Capital
3 years
Frax is often thought of as an algorithmic stablecoin with a dynamic collateralization mechanism. In this deep dive, @alec_korman explains why Frax is so much more than that: a modular, next-generation on-chain money market and a cash flow machine
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@MechanismCap
Mechanism Capital
3 years
We will support you
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@MechanismCap
Mechanism Capital
3 years
2021 Predictions
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@MechanismCap
Mechanism Capital
2 years
We are proud to be supporting @BreederDAO , a critical component of the P2E economy @BreederDAO is essentially the Lockheed Martin of the metaverse - manufacturing items, heroes, assets needed for players and guilds to battle it out This project is seriously cool as shit
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@MechanismCap
Mechanism Capital
4 years
1/ We are excited to announce that @mechanismcapital is leading @nansen_ai โ€˜s seed round. If youโ€™re a fellow on-chain alpha hunter, you know that Nansen offers a suite of indispensable tools for analyzing token/wallet flows and address labels
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@MechanismCap
Mechanism Capital
2 years
We've released our selected investments page
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@MechanismCap
Mechanism Capital
3 years
7/ The NFT standard on Solana, @metaplex , utilizes Arweave as a default for metadata storage. So we expect NFT activity on Solana to directly drive increased Arweave network activity
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@MechanismCap
Mechanism Capital
3 years
2/ Amid all of the noise from the past few months, a decentralized data storage protocol has quietly established itself as essential cryptoeconomic infrastructure for: -Web3 Apps -NFTs -PSTs -State Storage
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@MechanismCap
Mechanism Capital
3 years
4/ Arweaveโ€™s application layer, the permaweb, hosts web3 apps like @ArDriveApp , @KoiiNetwork , @vertoexchange , and @KYVENetwork , and has a strong value prop for archival storage, research publications, and verifiable news reporting Image from @Delphi_Digital Arweave Report
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@MechanismCap
Mechanism Capital
3 years
3/ Arweave commands a premium for permanence, and doesnโ€™t try to outprice centralized services like AWS Instead, users pay upfront for permanent storage based on a forecast of future storage costs The network is maintained by a system of continuous economic incentives.
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@MechanismCap
Mechanism Capital
3 years
6/ Opensea, Mintbase, and etc have embraced Arweave for this reason If you know where your metadata lives, you can have confidence in the long term value of your NFT. ()
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@MechanismCap
Mechanism Capital
3 years
5/ NFTs Recently, a powerful use case has exploded: NFT storage. NFTs typically point to data hosted off-chain. If this data is lost or censored, then the NFT may be rendered useless. Arweave has a huge advantage over other decentralized storage networks in this respect
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@MechanismCap
Mechanism Capital
3 years
8/ PSTs Arweave has introduced a novel token system with Profit Sharing Tokens. Devs building with SmartWeave may add a mechanism to their apps that charges a small fee to users who transact on their platform. These fees are distributed to PST holders
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@MechanismCap
Mechanism Capital
3 years
Arweave research led by @alec_korman
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@MechanismCap
Mechanism Capital
3 years
14/ Network Growth Total Weave size has grown 922% (1.04 TB โ†’ 10.63 TB) over the past year, and daily/weekly/monthly txs have all surged beyond previous ATHs during this summer
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@MechanismCap
Mechanism Capital
3 years
12/ State Storage Arweave has emerged as the de facto backup for other blockchains. For example, Solana has a record of its state on Arweave through SOLAR bridge. The most ambitious project building on this idea is Kyve.
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@MechanismCap
Mechanism Capital
3 years
9/ As a consequence, devs and community members not only have a way to earn an ongoing revenue stream from their apps, but they can also monetize future earnings. PSTs have prompted the development of hundreds of applications and Profit Sharing Communities on Arweave.
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@MechanismCap
Mechanism Capital
1 year
We are committed to supporting Binance's Web3 Industry Recovery Initiative Wallet Address for our initial commitment:
@binance
Binance
1 year
Introducing the Web3 Industry Recovery Initiative! #Binance and a number of key industry partners have joined together to commit $1B+ to provide financial support to the most promising and highest-quality companies that need it most. Let's support industry growth together.
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@MechanismCap
Mechanism Capital
3 years
13/ Kyve leverages Arweave to create a decentralized archival network which reconstitutes data streams (like a sequence of blocks) as permanent resources. Kyve will increase the resiliency of other blockchains and the cryptoeconomy as a whole.
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@MechanismCap
Mechanism Capital
3 years
10/ These include: Verto (VRT) - an exchange for PSTs which makes the Arweave ecosystem more dynamic. Openbits (OPENBITS) - an earnings platform for devs of open source packages. (XYZ) - a platform for managing and creating Profit Sharing Communities.
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@MechanismCap
Mechanism Capital
3 years
11/ Verto has recently upgraded their platform to include custom asset pages, allowing protocols to build UIs that best serve their communities. This critical financial infrastructure will help facilitate economic activity on the network.
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@MechanismCap
Mechanism Capital
3 years
16/ For a more general sense of Arweave developer growth, itโ€™s worth noting that the amount of participants in Arweaveโ€™s Open Web Incubator/Fellowship/Foundry has also rapidly increased this year, growing from 247 in 2019 โ†’ 146 in 2020 โ†’ 627 in 2021
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@MechanismCap
Mechanism Capital
3 years
15/ The spikes in network tx volume this summer were driven by activities like NFT minting and the archiving of banned Hong Kong media source Apple Daily. The recent tx volume ATH from this past week was due to a popular Solana NFT releases
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@MechanismCap
Mechanism Capital
3 years
17/ AR is used to pay for storage and serves as the networkโ€™s UoA. AR is also the primary trading pair for PSTs. As the cryptoeconomy increasingly relies on Arweave for permanent data storage, and as PSTs generate more economic activity within Awreave, AR will accrue value.
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@MechanismCap
Mechanism Capital
3 years
18/ Verba volant, scripta manent โ‡’ Arweave gives information on cryptonetworks the capacity to remain
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@MechanismCap
Mechanism Capital
4 years
9/ We are excited to continue supporting @Asvanevik and team as they build upon their wallet and token tracking services to expand the frontier of on-chain analytics for all of us, Casual, Medium, and Heavy DEX Traders alike
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@MechanismCap
Mechanism Capital
4 years
2/ @Asvanevik and the Nansen team ship at blinding pace, labeling addresses, adding new tokens, and upgrading tracking metrics with no delay As a result, Nansen users have been able to digest transaction flows and on-chain metrics with incredible dexterity
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@MechanismCap
Mechanism Capital
4 years
8/ As public blockchains continue to grow, we envision Nansen to be on the forefront of surfacing data for all participants, investors, exchanges and companies as it expands its product suite, surfacing data for new networks like ETH Layer 2s as they come online
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@MechanismCap
Mechanism Capital
4 years
6/ From the custom dashboards for YFI and Axie Infinity to the aptly-named Token God Mode, is a go-to resource when evaluation trading or investment decisions in liquid assets
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@MechanismCap
Mechanism Capital
4 years
3/ One basic but helpful heuristic for investing is whether you actually use, or would use, a given product. Another even more obvious benchmark โ€“ but, unfortunately, one that is often overlooked โ€“ is whether the product is beneficial to the ecosystem as a whole
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@MechanismCap
Mechanism Capital
4 years
4/ Nansen fits squarely into both of these categories. - It is easy to use (we use it multiple times per day) - It democratizes data that would otherwise be easily accessible only to the largest players - It allows investors of all sizes to make better-informed capital decisions
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@MechanismCap
Mechanism Capital
4 years
7/ In addition to informing investor decision-making, Nansen offers project teams useful tools such as custom-tailored dashboards to track revenues, deposits over time, network participants, and more other crucial metrics.
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@MechanismCap
Mechanism Capital
4 years
5/ Of course, there is no shortage of token tracking products floating around. But none of them compete with Nansenโ€™s seamless UX, its wealth of intuitively-organized data, and the teamโ€™s relentless iteration and improvement
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