Learning from Tomb Finance’s Mistakes.

The previous section touched on some things that Tomb has managed to do to bring value to their product outside the realms of speculation, but a lot of what has been done has neglected the pursuit of non-speculative use cases.

When we say non-speculative, we refer to the utilization of an asset that is outside of the ‘buy low, sell high' principle, which is the most basic premise of investing.

$ETH, for example, has held up well in price due to the demand for the token to participate on the network by paying gas gees.

Tomb has also provided little in the way of educating new investors. Many that participated in Tomb, and indeed similar forked protocols, have had to develop their own understanding of the risks and benefits of investing in the product.

As it stands, Tomb Finance does not appear to be pursuing methods to bring external revenue into the protocol.

Now, the previous observations are not to throw shade on Tomb Finance.

It fulfilled its core value proposition beautifully by capturing liquidity and growing from the interest in the pegged collateral asset $FTM. At the height of the bull market, those staking $TSHARE were printing hundreds if not thousands of $US dollars’ worth of $TOMB every day.

However, if $FTM never recovers or cannot compete against other L1s, what will lead to growth in the protocol in the future? $FTM does not necessarily need to recover for Tomb to be sustainable, but if $FTM does not break past its previous all-time high, it is highly unlikely we will see $TSHARE reach $24,382.13 again.