There’s been an explosion of new DeFi projects and businesses this year but few ways to evaluate or compare them. I am introducing a new framework that I built using my experience at Tiger Management, Kingdon Capital, and even my own fund, Sureview Capital, that I call OPENFI.
Analysts across Wall Street use several methodologies and frameworks to evaluate companies and industries. The key to any sound framework is distilling the most important metrics and factors that can measure a company’s success. With the rise of DeFi, many view “hype” as the only requirement to having a successful project. On the contrary, lasting businesses built in DeFi likely share many common traits with traditional companies. I created OPENFI with this in mind to better assess a project’s potential impact on DeFi and how it disrupts traditional finance.
Before going any further, I must emphasize that this is not investment advice . OPENFI was created because I found myself asking the same questions every time a new project launched. This enables me — and hopefully others — to keep up with how quickly DeFi evolves.