Frog University … In other words F.U.
The idea behind Frog University is that fear and investing should not reside in the same place. This is the fear of the unknown. Humans are always fearful of what they don’t understand. They constantly seek comfort in order to avoid the overcoming of fears. We know as a species we overcame fear through education and discovery. Once we face our demons we realize how small they actually are.
When we invest, it is a risk, always. However, without risk there is no reward in life. We celebrate those in humanity who climb Everest - not those that simply walk up the stairs. The trip up Everest doesn’t happen overnight, it is work, training, and commitment - F.U. is your chance to work, train, and commit to your financial freedom.
Welcome to the DeFi Educational System!
“I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain.”
- Frank Herbert, Dune
In DeFi we are dealing with capital markets. Not very many utilities, but a new way of creating decentralized value for all people. In order to understand DeFi and Cryptocurrency, you must first understand CeFi and regular currency. There are some fundamental principles that the economic minds creating DeFi protocols leave out of their AMA’s and I believe this first principle section alone will reduce FUD, decrease emotional trades, and help better understand the ebbs and flows of currency.
We will discuss the history of money, use some snippets from The Bitcoin Standard (not a bitcoin maxi, but this book has 6 or 7 chapters on the evolution of currency). This should simplify money, how it works, and better prepare people for price actions and decisions made to make protocols “Deflationary.”
Now that we have a grip on money, how these economic levers interact and what we should be thinking when values rise and fall. Let’s have a better understanding of where we are putting that money.
This section will not give you the skills and knowledge to develop your own L1 or L2, but it will shine a light on some of the basic functions, but more importantly the theories that make the Blockchain so powerful.
Right now our systems or institutions are built on trust. This trust, because individuals are skeptical of each other, is administered by “Third Party Administrators (TPAs).” This is your politician, your bank, or the payment processor at the root of a transaction. They verify each party has what they say they do, and does what they say they will do. This middle man service costs consumers trillions and the TPA’s are not always operating in your best interest. Blockchain is trust-less, the protocol verifies and processes no longer requiring the corruptible, hackable, and self-interested TPA.
Now the blockchain has already started evolving from Bitcoin digital currency only, to Ethereum smart contracts, and now to various cheaper and faster L2’s opening up the ability for Decentralized Finance to grow.
Similar to Currency and Cryptocurrency, you have to understand where we came from to understand where we are going. So we will discuss CeFi - Central Bank, Treasury, and the Federal Reserve.
With this the magic of compounded interest and how it can change your life. How DeFi is using Game Theory and compounded interest in an attempt to distribute financial freedom to the masses.
Before we discuss, as is the pattern at F.U., DeFi investing - we need to understand investing basics. The terminology, history, and using some bubbles les, trades, and recessions to discuss how to grow and hedge regardless of the market conditions.
This school is not providing investment advice, just investment information. We WILL NOT tell you what to think, but rather we want to teach you how to think. So you can be the best investor version of yourself. You see revolutions usually are pinned onto the back of one person, but it is a collective of people who have one mind, one heart, and are in one accord that create change. As long as we have a “0-Sum-Game mentality” where if you win I lose, we will never be able to combine forces and push these protocols to a place of victory.
Not how to invest, but how to think about investing.
DeFi Investing Basics
This will include the mechanics of popular protocols. How staking, wrapping, collateral, leverage, liquidity, liquidity pools, etc… How these systems function and how you should think about them.
Again, we are not here to tell you put X% of your money in this and Y% of your money in that. We are here to give you the foundation, for you to build your portfolio on top of.
You have to choose your allocation, risky versus safe, how much per month, what can you afford to lose and remain alive. These are the questions that need answer.
Once you develop a system - you stick with it, and make “MICRO” adjustments, not huge FOMO driven swings.
In summary, the goal of F.U. is to equip all new, existing, and old frogs with the first principled thinking so they can develop a strategy. We want remove fear and give confidence so your decisions are not completely emotional or completely analytical, but that they are well informed and they are the best decision you could make with the information at hand.
When you play poker the odds are not as straight forward as you think. You have Pot Odds, how much $ do you win for how much $ that you put in. This combined with the Effective odds of the percentage chance you get the card you believe you need to have the best hand. Now we have to put our opponents on a hand based on their behavior and tells. Lastly, the implied odds - how much will this win mean to my opponent. Will it give them notoriety. Poker players all have a different order and weight to these odds to decide to check, call, fold, or raise.
You have to do the same - How risky is this, how much do I gain from it, if I made the right choice in the moment but someone outdraws me on the river, will I be ok? Once you graduate and become a frog , you have to then play the game and make adjustments but - professional DeFi investor is now in your future.
Tokenomics & Incentives
First, in order to ensure participation by the community I believe we incentivize the completion of the modules. As to how much this incentive should be, I believe this is a vote with a lot of input by the treasury manager.
The idea is that an informed, educated, and confident investor will be less prone to FUD or overreacting to market conditions. The overall health should improve, and could bring in lower economic status individuals by getting them started in the system - this “free money” would be easier to leave staked. Opening up the protocol to a broader audience.
Additionally, all frog nation members involved in the creation, management, and monitoring of university should take small distribution per student completing the coursework. Percentage, and participation can be discussed/voted on.