The Bull Case for $100k EVNY

Introduction

I was inspired by John Todaro after I read his analysis in Bankless DAO about the $100 case for SUSHI, https://newsletter.banklesshq.com/p/the-case-for-100-sushi.

After my father-in-law introduced me to the project launched by Evolution Finance, I have been wanting to write my analysis regarding this interesting project. However, please bear in mind this a project that it´s still building the product and there are many risks and unknowns, therefore take this analysis with caution.

At the same time, my intention is not to cover the technical details of the project, nor a complete fundamental analysis and my sole intention is to analyze the potential of EVNY as an investment.

What is Evolution Finance?

Evolution Finance is a lending platform built on Ethereum that targets x10 larger market than any other lending platform. With RenVm technology, Evolution Finance will be able to port the top-50 blockchain assets into the Ethereum Blockchain to be used on their platform with no need for those assets to be ERC-20 tokens.

A part from targeting all top-50 blockchain assets, something really unique for Evolution Finance is their tokenomics. Every time there is a transaction 0.4% of the Evolution native token (EVN) is burned, creating deflation and therefore reducing the total supply.

What is EVNY?

Evolution Finance has two tokens, the platform native token EVN and the EVN liquidity providers token that is EVNY. EVNY has a total fixed supply of 18311 and the holders of the tokens that are staked get as a reward 1% of all EVN that are sold in a DEX, in today´s case would be Uniswap.

Valuation Model for EVNY

In order to understand how much value and what are the expected rewards for EVNY holders we need to understand that we could have three different scenarios:

• Bearish case:

Median Volume for crypto assets ranked 100 to 200 market cap (Evolution Finance right now is ranked nº280).

• Neutral case:

Median Volume for crypto assets ranked 50 to 100 market cap.

• Bullish case:

Median Volume for crypto assets ranked 4 to 49 market cap.

At the same time to calculate the price I have assumed a P/E of x10 that is really undervalued, however, similar valuations are being used to value other Defi lending protocols.

• Bearish Case for Evny:

The Bearish case for Evny would yield around $2,189 dollars per year per token. The main assumption here is the daily volume of $20 M, for EVN that results in the median volume of the 100 to 200 crypto assets by market cap. At the same time this would result in a price of approximately $21,894 per EVNY.

• Neutral Case:

The Neutral case for Evny would yield around $11,033 dollars per year per token. The main assumption here is the daily volume of $102 M, for EVN that results in the median volume of the 50 to 100 crypto assets by market cap. At the same time this would result in a price of approximately $110,339 per EVNY.

• Bullish Case:

The Bullish case for Evny would yield around $78,989 dollars per year per token. The main assumption here is the daily volume of $732 M, for EVN that results in the median volume of the 4 to 49 crypto assets by market cap. At the same time this would result in a price of approximately $789,899 per EVNY.

Conclusion

The price of EVNY right now is around $1,000 and I personally believe that is a really good investment opportunity. At the same time, it is a highly risky investment as there are many unknowns yet to be discovered and risks regarding the launch of the lending platform.

*Disclaimer: This report should in no way be considered financial advice. Always do your own research.