Why I'm Bullish on Mode and How I am Farming it

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Reading https://wajahatmughal.substack.com/p/why-im-bullish-on-mode-and-how-i

TLDR :cherry_blossom:

The author is bullish on the Layer 2 protocol Mode due to its unique revenue-sharing model, referral program, and native yield opportunities.

Key Points :dizzy:

  • Mode shares sequencer revenue with developers, incentivizing them to build apps that drive more transactions.
  • Mode offers a referral program where users can earn a share of sequencer fees from people they refer.
  • Mode provides native yield opportunities through integrations with Redacted’s pxETH and Ethena’s sUSDe.

In-depth Summary :memo:

The author starts by expressing skepticism towards most Layer 2 protocols, as they often fail to capture value or have “ponzi-like structures.” However, he sees two exceptions - Blast and Mode.

Mode is a new OP stack Layer 2 chain that is part of the Optimism Superchain. What sets Mode apart is its unique revenue-sharing model. Instead of relying on token incentives, Mode shares the revenue generated by its centralized sequencer with the developers building apps on the platform. This creates an incentive for developers to build apps that drive more transactions, as more transactions mean more revenue.

Additionally, Mode offers a referral program where users can earn a share of sequencer fees from people they refer to the platform. This creates a system where users are incentivized to onboard their communities and followers to Mode, as they can profit from the transactions of those they refer.

Finally, Mode provides native yield opportunities through integrations with Redacted’s pxETH and Ethena’s sUSDe. This allows ETH and stablecoins held on Mode to earn passive yield, further incentivizing users to use the platform.

ELI5 :hugs:

Mode is a new Layer 2 blockchain that is trying to be different from other Layer 2s. Instead of just giving out tokens to get people to use it, Mode shares the money it makes from processing transactions with the people who build apps on it. This means the more people use the apps on Mode, the more money the app builders make. Mode also lets you earn money by getting your friends to use it, and your ETH and stablecoins can earn interest just by being on Mode.

Writer’s Main Point :thought_balloon:

The author is bullish on Mode because of its unique revenue-sharing model, referral program, and native yield opportunities, which he believes will help the ecosystem grow and attract more developers and users.