FOMO’ while the kids are out playing?
The fee structure also plays a crucial role here—with GMX distributing 30% of fees to GMX holders and a whopping 70% to GLP holders, the annual percentage yields range around 10% for GMX and an eye-catching 20% for GLP. While these numbers sound sexy, liquidity providers, beware of the dark side—losing value due to market fluctuations and impairment loss can quickly turn those dazzling yields into a mirage.
LooksRare: The Little Fish in a Big Pond
Remember the NFTs making waves? Well, LooksRare has been washy-washy, and not in a good way. The LOOKS token was also in Arthur’s sights due to the platform’s earnings. But here’s the kicker: in a world dominated by OpenSea—boasting daily active users between 35,000 and 50,000 while LooksRare struggles to maintain a range of 350 to 500—LooksRare might feel like a small fry in an ocean of big tunas!
Moreover, OpenSea doesn’t have any token rewards, which makes it more straightforward, while LooksRare’s wash trading practices have made investors raise an eyebrow. It’s like the toddler at the toy box; the more they play, the more they disrupt! What’s the point, you ask? Well, those attempting to gain more LOOKS tokens through wash trading flood the market and can dilute the price. Yikes!
The Battle of the Fees: LooksRare vs. OpenSea
Now, let’s get to the nitty-gritty of the fees. Over the last 90 days, OpenSea flexed its muscles with a peak of $2.5 million in daily fees, while LooksRare barely kissed the $200,000 mark. If that’s not an unbalanced scale, I don’t know what is!
However, it could be a game-changer with the recently announced UniSwap NFT aggregator, allowing users to buy LooksRare NFTs without actually visiting the site. This could tip the scales, or at least give LooksRare a fighting chance.
The Final Verdict: Is Arthur Onto Something?
Diving deep into these protocols offers us a clear view of the landscape. For Arthur’s lofty aspirations to materialize, both GMX and LooksRare would need to step up their game significantly. While the potential for returns exists, could those high yields become a pipe dream amid inflation and price volatility?
In conclusion, while Arthur Hayes throws his chips on GMX and LOOKS, it looks like the road ahead may not be as straightforward as a walk in the park. Only time will tell if his assumptions will pay off or if he learned a little lesson in risk management.
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