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Today we bring you a feature length edition, leading you through a deep dive that will have your hooves digging up dust like the bull on the Lambo logo.

F-Assets go live on Songbird after public beta testing through April, it is time to dissect the F-Asset system, the earning opportunities and what impact they will have on SGB.

We present this to you without hopium or shill, we aren’t shouting $589 or BTC to $500K, these numbers are facts and it’s up to you to decide how bullish you are…

Get the kettle on and set aside some you time as we look at:

• The scarcity of SGB and how many F-Assets need to be minted for a supply shock.

• Why you will want to mint F-Assets and what profit opportunities are in the F-asset system.

• What price impact F-Assets could have on the SGB token.

Ready? 

LFG….

Scarcity & Supply Shock.

You may have seen our Xweet the other day.

The numbers show that a tiny percentage of each F-Asset would need to be minted to consume the entire market cap of SGB.

However, when we do these calculations there is always a niggling feeling that we aren’t factoring in dormant SGB on exchanges, or dormant wallets that received the airdrops and never wrapped or delegated to an FTSO.

So, for this feature edition, we decided to recalculate.

The best way we can determine if a wallet is actively participating on the network is to look at wrapped SGB, as the easiest passive rewards come from wrapping and delegating, so we’ll use the WSGB market cap for any further calculations on participation.

With just over 8 Billion WSGB in circulation and todays SGB price of $0.011 we can calculate a market cap of $88,126,338 in WSGB tokens that are actively participating on the network.

When only factoring WSGB the scarcity numbers are minuscule:

✅ Prove Scarcity

Why Mint F-Assets & Profit Opportunities.

Why Mint F-Assets?

The first and most obvious reason for individual investors is to learn the minting process and test the waters. 

Once you have minted some F-Assets you will likely be familiar with various DeFi use cases such as DEX swaps and liquidity pools.

Unique roles in the F-Asset system are Liquidators and Challengers. These roles protect the system and therefore will offer meaningful rewards.

Liquidators

Liquidators pump F-Assets back into the system whenever an agent is under collateralised. They are compensated and rewarded in SGB.

Challengers

A challenger keeps watch over agents and reports suspicious transactions. Again compensated in SGB.

Arbitrage Traders will Also Drive Demand For Minting F-Assets

F-Assets offer constant arbitrage opportunities.

Usually arbitrage traders watch the markets for price anomalies.

A basic arbitrage trade would be to observe various exchanges until there’s a price difference in an asset, say XRP. 

The trader buys the cheap XRP on exchange X, transfers it to exchange Y to sell it for the higher price. This trade is profitable and realigns the price of XRP between the two exchanges.

F-Asset tokens are not pegged to the underlaying asset they are minted from, they are individual tokens.

FXRP can have a different price to XRP…

FBTC can have a different price to BTC…

And so on for each F-Asset…

This creates a constant arbitrage opportunity, eg;

If XRP is priced at $0.50 and FXRP is priced at $0.55, an arbitrage trader buys XRP and mints FXRP gaining a profit of $0.05 per token (minus fees).

This continues until the price of XRP and FXRP are approximately equal and there are no more profits to be gained.

The opposing trade opportunity will occur too, whenever XRP has a higher price than FXRP, FXRP can be redeemed into XRP and sold for a profit.

These opportunities will be present across all F-Assets, 24/7, generating constant trading volume.

Constant trading volume delivering constant fees to anyone participating in collateral pools…

Reader pauses and looks up thoughtfully as they process the passive income that their SGB will earn in collateral pools. Constant streams of FXRP, FBTC, FFIL, FLTC, FDOGE, FXLM trickling into their wallet….

Quick Recap…

Liquidators = Gain profit by pulling agents out of under collateralised risk.

Challengers = Gain profit by reporting illegal transactions.

Arbitrage = Gain profit by aligning prices.

✅ Prove Demand

At this point we can all agree that SGB is as scarce as unicorn dung and that the F-Asset system is going to be a constantly active profit generator.

The final and most exciting element of this CEN edition is to look at how this all impacts the SGB token price.

But first, let’s honour our gentleman’s agreement…

This research comes to you free of charge, if you find value in our work you can doth your hat and shake our hand by clicking the ad below 👇 (no purchase or sign up necessary)…

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Price Impact On $SGB.

In a recent edition we asked chatGPT to calculate the SGB price should 1% of each asset’s market cap be minted into F-Assets (reduced to 0.5% for BTC), it delivered a price of $38.34.

As explained earlier, we need to crunch the numbers again using the WSGB market cap in order to reflect only participating tokens.

Here are the results if 0.001% of assets were minted:

Just over $13 million in value locked in F-Assets achieves an SGB token price of $0.22.

To put this in perspective, the Enosys project currently holds $26 million in value locked.

Here are the results if 0.01% of assets were minted:

Here are the results if 0.1% of assets were minted:

Here are the results if 1% of assets were minted (Just for fun! 🤪):

✅ Show Price Impact

Can’t be right…

In summary, we have shown you facts and figures of scarcity, demand and price impact on SGB.

These are facts, not hyperbole… 

No shilling or wishful thinking… 

Just straight forward math that you can research yourself.

We tried writing some counter arguments, just to play devils advocate, we tried to disprove the idea that Songbird could be a sleeping giant about to erupt with activity. But the counter arguments failed repeatedly…

We will reveal and debate the results on Xwittter @CENflr later this week.

Hope you enjoyed reading this one as much as we enjoyed putting it together. 👊