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YOUXIACRYPTO.COM

Story Behind Youxia

In 1099, Christian armies captured Jerusalem from Muslim control which led to pilgrims from across Western Europe visiting the Holy Land. The journey could take up to a year and many of them were attacked along the way. The pilgrims needed some form of protection.

�An obscure band of knights offered their services to protect the pilgrims. They were warrior monks, inspired by theology, a declaration of principles, and an ethical code. Their code made them act with honor, dignity, and grace, regardless of age or gender. They protected innocent lives. They were revered for being the first to enter battle and the last to retreat. They were the Knights Templar.

�The Templars soon realized the attackers were thieves trying to steal from the pilgrim’s and it was their wealth that needed protection most. The solution was setting up Templar houses from Ireland to Jerusalem where pilgrims could deposit gold, silver, and jewels for safe keeping. Anything deposited with the Templars was not pooled or reinvested. It remained in its owners’ strongboxes and could not be accessed without the owner’s permission. The Templar’s duty to protect the wealth was incorporated into their moral code.

�Pilgrims received a letter of credit for their valuables which could be redeemed at any Templar house along the journey. To help prevent fraud and enhance privacy the Templars used ciphers. Algorithms for scrambling the information on paper that only those with the secret key could read.

�The Knights Templar invented safe deposit boxes, the traveler’s cheque, and ultimately the world’s first international banking system.

�Templars invented all kinds of banking services to uphold human rights and privacy. They created the Swiss private banking model to defend privacy rights against religious and political persecution. They invented the common law trust for estate management and protection. They invented branch banking, bank bonds, certificates of deposit, and bank guarantees. This framework of banking, designed to be humanitarian for the people, is considered the foundations of modern banking. However, the Templars would completely reject the status of our current financial system - fiat currency, fractional reserve banking, and capital controls. Genuine Templar banking embodied the golden rule which arguably led humanity from the Middle Ages into the Renaissance.

During the Renaissance the image of a Knights Templar was generalized into the Knight Errant. A warrior, motivated by idealism, on a quest to right wrongs. In Chinese literature this person is called a Youxia (you∙sh∙ia).

�Yóu means wander, travel or move around, and xiá means someone with power who helps others in need. The xia stressed the importance of being treated equally and defending the weak. A Youxia’s temperament and need for freedom caused them to roam the land and help those in need from the powers that be. Judged by their personal code of chivalry instead of their social class or ethnicity. Folktales describe them as being princes, government officials, poets, musicians, physicians, soldiers, merchants, monks and even humble farmers and butchers. Some were skilled with a sword. Others were just as clever with a pen.

�Satoshi Nakamoto is a Youxia, a modern-day Knights Templar. Satoshi strolled into the financial world and righted the wrongs of conventional money. Satoshi invented Bitcoin, an egalitarian money that’s near impossible to censor, debase, or steal. For the first time in history, everyone on the planet can protect themselves from capital controls, inflation, and outright theft. Instead of needing a Templar on your side to protect your wealth all you need is a smart phone.

�

The invention of bitcoin set off a Cambrian explosion of cryptocurrencies that are laying the foundation for a new financial system. A system just as revolutionary as the Templar’s and just as idealistic as the Youxia. Decentralized Finance (DeFi) is inclusive to all peoples, most importantly the unbanked, who are excluded and oppressed by the traditional financial system (TradFi). Liberating the world from the tyranny of fiat money and central banking will usher the world into a second renaissance.

�

Youxia Crypto is your trusted guide on the journey. We navigate the complexities of investing in crypto for you. We’re an asset management company that takes the principles above seriously. We’re inspired by crypto’s potential to lift the unbanked out of poverty, represented by the lower-case “y” in our name being the same size as the capital letters.

�

At Youxia Crypto, you come first.

�

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Disclaimer

YOUXIA CRYPTO

This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments. Any such offering will only be made pursuant to definitive offering documents, which will contain the terms and conditions of such offering and the associated risks. No reliance should be placed on the information contained herein.��The information presented is confidential, intended solely for the recipient, and may not be reproduced, redistributed, or used for any other purpose without the express written consent of Youxia Crypto Ltd.��This presentation is intended only for prospective investors who are qualified as accredited, professional, or high-net-worth investors under applicable securities laws. It is not intended for general public distribution and is directed to qualified investors under applicable securities laws.��Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. Certain statements in this presentation may constitute forward-looking statements, which involve known and unknown risks, uncertainties, and other factors, and should not be relied upon as guarantees of future performance.��Youxia Crypto Ltd. and its affiliates make no representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and expressly disclaim any liability that may arise from the use of this information. Investors should consult their own legal, tax, and financial advisors before making any investment decision.��Youxia Crypt Ltd. and its affiliates may have financial interests aligned with the success of the strategies described herein, including personal investments in the same or related instruments.

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Objective

Seeking capital gains

and yield by investing

in core infrastructure

for crypto.

YOUXIA CRYPTO

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YOUXIA CRYPTO

John D. Rockefeller became the richest person in modern history by owning oil and gas�infrastructure.

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How Would John D. Rockefeller Invest in Crypto?

If I came to you all excited with an investment idea and summed it up in one word:

Infrastructure!

What would you think? You’d scrunch your face at me and wonder if I’m serious. Infrastructure? Like a utility? Borrrring.

Utilities are considered defensive stocks because they’re relatively stable. Which, in turn, means they don’t go up much either.

Oil pipelines are okay, if you’re looking for income. A railroad might be interesting, like Warren Buffet buying 100% of Burlington Northern Santa Fe in 2009. Burlington was Berkshire’s single biggest investment ever and remains one of their largest positions. The railroad has proven to be a great investment for Buffet, since the Keystone pipeline from Canada to the U.S. got rejected. Instead of oil coming to the U.S. in a pipeline, which is the safest and most environmentally-friendly way to do it, that same oil comes to the U.S. on rail cars. Rail cars owned by, you guessed it, Burlington/Berkshire. The mild-mannered Oracle of Omaha had quite the foresight to make that investment (I’m being facetious because Buffet had ties to the main environmental groups who lobbied against the pipeline, but I’m sorry, I can’t find the proof right now).

Unless you can pull off something like Buffet did above, buying infrastructure is one of the most uninteresting things in the world. Yet it’s vital to the economy and our quality of life.

But we’re looking at infrastructure that already exists. A framework that’s been in place for decades. What about building infrastructure from scratch in an emerging economy?

This is Where it Gets Interesting

In the 1800s, America was still being settled. By 1860, the U.S. was the 9th largest economy in the world. Despite the civil war from 1861–1865, the U.S. entered the Gilded Age, and by 1890, was the world’s largest economy. This rapid economic growth was made possible by the investment in infrastructure.

Railroad mileage in the United States tripled between 1865 and 1881. Transported freight increased by 643%. Steel production increased by 7,986% within 16 years. U.S. steel production surpassed the combined totals of Britain, Germany and France!

Those who made this possible, such as J.P. Morgan, Andrew Carnegie and Cornelius Vanderbilt, became the wealthiest people in the world. Their families are still living off those fortunes made 140 years ago. The list isn’t complete without mentioning John D. Rockefeller, considered the richest person in modern history.

Standard Oil Company was established in 1863. 16 years later, Rockefeller controlled 90% of the United States refining capacity. Rockefeller made his fortune by consolidating and vertically integrating America’s oil refineries, transportation and distribution. He didn’t discover oil, he had a monopoly on the entire oil industry’s infrastructure.

The above illustrates the importance of infrastructure to a developing economy and the fortunes that can be made by those who build it.

The Invention of Bitcoin was the Discovery of Digital Property

Digital property is a new frontier being settled right now. And like any physical territory, the crypto economy can’t reach its true potential without infrastructure. Whoever provides that infrastructure should profit handsomely.

One of the key pieces of infrastructure needed in crypto is the ability to exchange tokens in a decentralized manner. Don’t take it from me though, take it from the inventor of Ethereum.

“We should put resources toward a proper (trustless, serverless, maximally Uniswap-like UX) ETH <-> BTC decentralized exchange. It's embarrassing that we still can't easily move between the two largest crypto ecosystems trustlessly.” - Vitalik Buterin

THORChain is the first decentralized exchange (DEX) to solve this problem. It’s the only way to swap bitcoin for ethereum without going through a centralized exchange (CEX). But it doesn’t stop there. THORChain has made it possible to swap bitcoin with tether, the largest trading pair in the world, and thousands more cryptocurrencies.

Just as railroads made it easy to transport people and goods across vast distances, connecting markets like never before, THORChain makes it easy to transport tokens and value across blockchains, connecting those networks like never before. THORChain’s protocol is a crypto railroad, and RUNE is the token making up the rails.

What About Coinbase and Binance?

You might be thinking, we can already swap bitcoin for ethereum on exchanges like Coinbase and Binance and many others. Why do we need another exchange?

Those are all centralized exchanges. All the hacks and frauds in crypto have occurred on CEXs. The whole point of decentralization is to protect ourselves from those scandals. Those problems exist because of centralization. Decentralization neutralizes those risks.

Coinbase and Binance are just necessary evils to get us to where we want to end up. They do serve a purpose as on/off ramps to fiat money, so they aren’t going away anytime soon. They will just be dwarfed by THORChain, and they will even end up using THORChain in the background.

Plus, only 2 billion people have access to Coinbase and Binance. The 6 billion unbanked and underbanked people in the world can’t access a CEX because they don’t use the traditional financial system (TradFi). But they do have smartphones and they can download a crypto wallet.

THORChain is Core Infrastructure for Crypto

Rockefeller didn’t explore and drill for oil, he refined it, he created new products with it, he made it more accessible to the U.S.

THORChain is building products around bitcoin and making it more accessible to the whole world.

THORChain is more than the first DEX to support bitcoin. THORChain is the first DEX to have the ability to deposit bitcoin to earn yield off it, like a savings account. Soon, THORChain will be the first DEX that offers borrowing against bitcoin, so people don’t have to sell it and can free up capital. Perpetual futures are being worked on. All these products already exist in centralized finance (CeFi), but THORChain is bringing them to decentralized finance (DeFi). Just like railroads existing in Europe, and the industrialists bringing them to America.

THORChain has a monopoly on bitcoin’s DeFi infrastructure. It has a huge head start on its network effects, which should cement it in place for many years to come. Just like building railroads, pipelines, and highways — once in place, they tend to stay there a long time.

Anyone can interact with THORChain, and anyone can integrate it. Trust Wallet has already done it. Ledger is working on it. Many more are working on it and, eventually, every wallet will integrate THORChain, strengthening its monopoly.

Why?

Because everyone wants the ability to swap bitcoin inside their wallet and the wallet provider can start earning revenue.

Crypto wallets follow the Silicon Valley business model of getting lots of users, then finding a way to monetize them later. These wallets have been around for several years without any means to generate revenue. Until now. By integrating THORChain, a wallet can customize their own commissions on each swap and start making money.

As each new integration goes through, it puts pressure on other wallets to follow suit because who wants to use a wallet that can’t swap bitcoin? And what wallet will say no to revenue? It’s a win-win.

Eventually, everyone will take for granted the ability to swap bitcoin inside their wallets just like we take running water for granted today.

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YOUXIA CRYPTO

Erik Voorhees

Founder

ShapeShift

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Erik Voorhees video source

https://youtu.be/lMK0P8oQxfc?t=1543

THORChain is a decentralized exchange (DEX) that can be integrated into the backend of any wallet, website, app, or interface. THORChain gives the front-end users the ability to trade various cryptocurrency tokens. It’s the first and only DEX that can trade native layer 1 bitcoin with other native layer 1 tokens. No tokens are wrapped, and no bridges are used. This is important because all the major hacks you’ve heard about in crypto were on bridges. THORChain’s solution to cross chain swaps is a breakthrough in decentralized finance (DeFi) technology.

Despite being the largest cryptocurrency exchange in the world, Binance only trades several hundred different tokens. With THORChain’s DEX aggregation feature, it is now possible to trade bitcoin with several thousand other tokens. Since THORChain is open source and decentralized, any human being on the planet, most notably the unbanked, can use it. There are billions of people in the world who aren’t allowed to open a Binance account, but they have a smart phone and access to the internet. All they need next is a crypto wallet with THORChain integrated and they can trade as easily as someone in a developed country.

Trust Wallet is only one example of a front end integrating THORChain. There are already multiple wallets and interfaces that have THORChain integrated into their backends. As more integrate THORChain, the more pressure it puts on others to follow suit. Why would you use a wallet that can’t trade versus a wallet that can?

The motivation for the front ends to integrate THORChain is the ability to monetize their audience. In the CZ interview above, he mentions how Trust Wallet doesn’t make any money. With THORChain they can program in their own custom commissions, thereby monetizing their audience and creating a revenue stream. Or they can set the commission at zero and offer the ability to trade for free. Regardless, users will be happy because they now have a feature they want.

Centralized exchanges (CEX’s) are limited in how big they can grow.

A decentralized network can grow much bigger than its centralized counterpart because there are no barriers to entry. Anyone around the world, from individuals to corporations, can contribute as they please. Bitcoin mining is a clear example of this. It’s not unique to cryptocurrencies. Uber is the largest taxi company in the world but doesn’t own any taxis. Uber’s inventory of taxis is decentralized which makes it possible to grow much larger than any centralized taxi company. Airbnb is the largest hotel company in the world but doesn’t own any hotel rooms. The inventory of hotel rooms is decentralized, again, making it possible to grow much larger than any centralized hotel chain can manage.

Decentralizing the inventory and operation of a business enables it to grow much faster and bigger than centralizing the inventory and operations.

Therefore, it’s not a stretch to suggest THORChain can become bigger than Binance, Coinbase, etc. because its inventory is decentralized.

Since THORChain is the first and only DEX that can trade native layer 1 bitcoin, can be integrated into any front-end, and has a big head start on network effects, it could cement itself as core infrastructure for the cryptocurrency market.

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YOUXIA CRYPTO

is revolutionary because you can

SEND bitcoin

with no central authority or bank involved

is revolutionary because you can

SWAP bitcoin

with no central authority or bank involved

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To appreciate THORChain, recall what makes Bitcoin special and how THORChain compares.

“I’ve developed a new open-source peer-to-peer e-cash system called Bitcoin. It’s completely decentralized, with no central server or trusted parties, because everything is based on crypto proof instead of trust.” — Satoshi Nakamoto

A new open-source peer-to-pool exchange system called THORChain has been developed. It’s completely decentralized, with no central server or trusted parties, because everything is based on crypto proof instead of trust.

“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” - Satoshi Nakamoto (first sentence of Bitcoin whitepaper)

A purely peer-to-pool version of an exchange would allow online swaps to be done directly from one party to a market maker without going through a financial institution.

“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.” - Satoshi Nakamoto

The root problem with a centralized exchange (CEX) is all the trust that’s required to make it work. The CEX must be trusted not to steal from customers, but the history of CEXs is full of breaches of that trust. CEXs must be trusted to buy crypto and hold it in customer accounts, but they have opaque reserve reporting which increases the likelihood of fractional reserve banking. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.

“Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.” - Bitcoin.org

THORChain uses peer-to-peer technology to operate with no central authority or banks; managing liquidity pools and the approval of swaps is carried out collectively by the network. THORChain is open-source; its design is public, nobody owns or controls THORChain and everyone can take part. Through many of its unique properties, THORChain allows exciting uses that could not be covered by any previous exchange.

-------------------------

THORChain is not the next Bitcoin. THORChain complements Bitcoin and was modeled after Bitcoin. THORChain is the only decentralized exchange (DEX) that can swap bitcoin for thousands of other cryptocurrencies without a central authority or bank involved.

THORChain is being integrated into all the major crypto wallets. Wallet users will be able to swap inside their wallet and maintain custody of their crypto. They’ll have no idea they’re using THORChain since it works in the background - the best technology is that which you don’t know you’re using. Combined with first mover advantage, THORChain is poised to become core infrastructure for decentralized finance (DeFi) and cement it’s token RUNE as one of the sector’s top cryptocurrencies.

-------------------------

Note the difference between trading and swapping. Trading is when you buy and sell using fiat money. For example, if you sell stock ABC for some amount of dollars, then use those dollars to buy stock XYZ, you’re trading. If you could exchange stock ABC directly for stock XYZ without going into and out of dollars, then you would be swapping the two stocks. DEXs don’t use fiat money, therefore all cryptocurrencies are swapped for one another. Throughout this report and online, you’ll see the term swapping used instead of trading when referring to transactions on a DEX.

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Biggest Problem in Crypto

CEXs - Mt. GOX, QuadrigaCX, Celsius, FTX

Bridges - Top two hacks of all time

Atomic Swaps – Don’t scale

THORChain fixes this

YOUXIA CRYPTO

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In 2014, Mt. Gox was the largest exchange in the world handling about 70% of all bitcoin trading. The exchange was hacked and 650,000 bitcoin were stolen, about 5% of the total bitcoin supply at the time. At today’s bitcoin price that’s about $11.1 billion.
QuadrigaCX became Canada’s largest crypto exchange by 2018 with 350,000 clients. After the mysterious death of the CEO, $190 million in crypto went missing, and the company declared bankruptcy. Investigators later concluded QuadrigaCX was a basic Ponzi scheme and likely never invested any client funds.
Celsius was the largest crypto lender with 1.7 million users. They filed for bankruptcy in June 2022 following the collapse of LUNA and the market. Users are owed $4.7 billion and are unlikely to recover much of it. It’s still unclear whether Celsius failed because of poor lending practices combined with the market crashing and bank run, or if it was a fraud from the beginning.
Sam Bankman-Fried (SBF) is all the talk right now because of the collapse of FTX. Over 1 million Americans and 5 million others worldwide lost about $8 billion.

Largest hack of all time - Ronin Network, March 2022, $614 Million. 173,600 Ethereum and 25.5 Million USDC were stolen. Bridge for ethereum to Axie Infinity.
Second largest hack – Poly Network, August 2021, $611 Million worth of Poly tokens. Hacker returned the stolen crypto saying he did it for fun, but most likely he knew he would have a hard time selling them.

Atomic swaps require two people to find each other with the exact same amount to trade, for the exact same price, at the exact same time. Its like a dating app that requires two people to swipe right at the exact same time for there to be a match.

The whole point of bitcoin and crypto is to avoid counter party risk (ie) centralization.

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THORChain is the Solution

YOUXIA CRYPTO

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Wrapped Bitcoin is an I.O.U.

YOUXIA CRYPTO

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Wrapped Bitcoin is not Bitcoin

YOUXIA CRYPTO

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A wrapped token is just an I.O.U.

Think of a bridge like a goldsmith vault, and the receipt you get for storing gold there is a wrapped token. You could then trade the receipt/wrapped token for the same value as the gold backing it, because buyers of the receipt/wrapped token trust they can give it to the vault/bridge and get actual gold back. But you know all too well the problems throughout history with paper gold.

WBTC is bitcoin wrapped in an ethereum contract. WBTC is paper bitcoin, an I.O.U. for bitcoin. 1 BTC goes into the contract, 1 WBTC token comes out as the receipt. WBTC can then be used on Uniswap and any other ethereum based application.

On March 31^st, 2023 there were 150,450 bitcoin held inside WBTC. On September 1^st, 2022, there were 247,660 bitcoin. A lot has been withdrawn since the collapse of FTX and the market’s concerns about third party custody.

The market was so worried about counterparty risk, you can see them panic selling their WBTC in November 2022, driving the price below par with bitcoin. Overall, it was only 1-2% below par, so not the end of the world, but still noticeable.

However, the collapse in the price of wrapped bitcoin on the Solana network must have felt like the end of the world for some people.

Sam Bankman-Fried’s FTX had their version of wrapped bitcoin on the Solana network, called SOBTC. The collapse of FTX led to redemptions of SOBTC being stopped. That means people can’t exchange their SOBTC tokens for the bitcoin backing them. There’s supposed to be 16,150 bitcoin in SOBTC, worth about $452 million. All people can do is wait and see what happens with FTX or sell the SOBTC tokens on the secondary market. Rather than risk getting nothing for them, some people have been selling them for 3 cents on the dollar!

Counterparty risk isn’t the only concern with bridges and wrapping tokens. You also have smart contract risk. What if the code to the bridge gets hacked?

The WBTC smart contract is controlled by BitGo. Let’s assume they’re trustworthy and we don’t have to worry about them not delivering bitcoin when WBTC is redeemed. There’s still the risk that someone hacks the WBTC smart contract and steals the bitcoin. Since the bitcoin is being held inside an ethereum contract, it no longer has the protection of the Bitcoin protocol itself. This means a token held inside a bridge is only as safe as the bridge itself.

This makes bridges targets for hackers and has resulted in the top two hacks of all time, totaling $1.2 billion.

The largest hack of all time happened in March 2022 on Axie Infinity’s Ronin network. 173,600 Ethereum and 25.5 million USDC, worth $614 million, were stolen.

The second largest hack happened in August 2021 on the Poly Network. A dozen different cryptocurrencies were stolen, worth $611 million. In a strange twist of events, the hacker returned the stolen crypto saying he did it for fun. More likely, he realized he would have a hard time selling them.

Bridges also increase the incentives for a 51% attack on a protocol. Vitalik Buterin goes into further detail on this reddit post if you want to learn more. The main takeaway is:

“The fundamental security limits of bridges are actually a key reason… I am pessimistic about cross-chain applications… it's always safer to hold Ethereum-native assets on Ethereum or Solana-native assets on Solana than it is to hold Ethereum-native assets on Solana or Solana-native assets on Ethereum.”

– Vitalik Buterin, Ethereum Co-Founder

[AMA] We are the EF's Research Team (Pt. 7: 07 January, 2022)

Bridges aren’t an effective solution to cross chain swaps, and if anything, are creating new problems.

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YOUXIA CRYPTO

*Assuming $40,000 Bitcoin price, RUNE in network 3x TVL, growth multiple 3x

Date: Dec 1st, 2023

Sources: THORChain.net, THORCharts.org, WBTC.network

For every

1 Bitcoin in THORChain�There’s

97 Bitcoin in WBTC

If 160,293 bitcoin ends up in liquidity pool

RUNE would be $170.79*�If 247,660 bitcoin ends up in liquidity pool

RUNE would be $263.89*

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A good indicator of how much bitcoin could find its way to THORChain is WBTC. People put bitcoin into WBTC so they can use it in DeFi on Ethereum. They want to earn yield on their bitcoin and swap it on DEXs. THORChain offers yield on bitcoin and the ability to swap on a DEX, but without wrapping and is decentralized. Therefore, it’s reasonable to expect a similar amount of bitcoin, if not more, could end up on THORChain.

On September 1^st, 2022 there were 247,660 bitcoin wrapped in WBTC. On March 31^st, 2023 there were 150,450 bitcoin held in WBTC. The large decline was the result of FTX collapsing. The market got spooked about counterparty risk, and since WBTC is a centralized wrapped token, they didn’t want to take any chances and started withdrawing.

If 150,450 bitcoin ends up in THORChain’s inventory, and the bitcoin price is $30,000, that would be $4.51 billion worth of bitcoin in inventory. Times by three and RUNE would have a market cap of $13.54 billion, which works out to $41.40/token. If we give it a 3x speculative premium, that would be $124.22/token.

If 247,660 bitcoin ends up in THORChain’s inventory, and the bitcoin price is $30,000, that would be $7.43 billion worth of bitcoin in inventory. Times by three and RUNE would have a market cap of $22.29 billion, which works out to $68.16/token. If we give it a 3x speculative premium, that would be $204.49/token.

THORChain enables people to earn yield on their crypto therefore another way to estimate the amount of bitcoin that could end up in inventory is by looking at the companies offering yield on crypto. Celsius, BlockFi, Voyager, and several more offer people yield on their crypto by lending it out. The demand for these companies is a good indicator for the demand to earn yield on bitcoin.

In April 2022, Celsius was promoting they had over 150,000 bitcoin deposited on their platform. Add in the other companies and we easily get over 250,000 bitcoin pretty quickly, similar to the amounts held in WBTC.

All the above is just considering bitcoin. Add in ethereum, stable coins, and all the other crypto and we get a RUNE token price in the $100’s quite easily.

Also remember, Celsius, BlockFi, and Voyager all collapsed in the summer of 2022 and filed for bankruptcy. In the fall we had the collapse of FTX and the exodus from WBTC. All of this highlights the risks and problems with centralized companies, reinforcing the need for a decentralized alternative like THORChain, increasing the probability of attracting the same amount of bitcoin if not more.

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YOUXIA CRYPTO

Founder & CEO

Binance

Patrick Hillman

Chief Strategy Officer

Binance

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Exchange Spot Volume

YOUXIA CRYPTO

Date: Dec 1st, 2023�Sources: theblock.co, defillama.com

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During the bull market in 2021, Binance (BNB) catapulted to #3 by market cap. When Coinbase (COIN) went public in 2021, its market cap relative to the crypto sector put it at #5.

As of March 31, 2023, BNB is #4 and COIN is #7. We’re in a bear market so this makes sense. Trading activity on the exchanges has dropped, taking valuations down with it, and everyone is in cash so the market caps of the stable coins USDT and USDC are in the #3 and #5 spots respectively.

If DEXs will become bigger than CEXs, then it’s quite plausible RUNE could be the #3 crypto by market cap one day.

Right now, RUNE hangs out in the lower range of the top 100 crypto by market cap, making it a solid mid cap in the world of cryptocurrencies. However, THORChain is still tiny relative to its peers as you can see in the following charts.

For every $1/day of trading volume on THORChain there’s $131/day volume on Coinbase.

For every $1/day of trading volume on THORChain there’s $1,096/day volume on Binance.

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Exchange Spot Volume

YOUXIA CRYPTO

Date: Dec 1st, 2023�Sources: theblock.co, defillama.com

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DEX Comparison

YOUXIA CRYPTO

Date: Dec 1st, 2023�Sources: theblock.co, defillama.com

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YOUXIA CRYPTO

30-day average spot volume

Date: Dec 1st, 2023

Sources: theblock.co, defillama.com

For every

$1 of volume on THORChain

�There’s

$8 of volume on Uniswap

$10 of volume on Coinbase

$60 of volume on Binance

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On March 31^st, RUNE closed at $1.43/token. With 327 million RUNE outstanding that works out to a market cap of $0.47 billion.

The COIN IPO closed with a $63.31 billion market cap. If RUNE were to have a $63.31 billion market cap, RUNE would be $194.49/token.

During the COIN IPO, the market cap of BNB was $85.06 billion. If RUNE were to have a $85.06 billion market cap, RUNE would be $260.08/token.

The COIN market cap on March 31^st, 2023 was $17.21 billion. If RUNE were to have a $17.21 billion market cap, RUNE would be $52.62/token.

The BNB market cap on March 31^st, 2023 was $50.05 billion. If RUNE were to have a $50.05 billion market cap, RUNE would be $153.03/token.

As of March 31^st, 2023, Coinbase claims to have 110 million verified users, and Binance boasts having 120 million registered users. Based on all the front ends that have integrated THORChain, it has about 30 million potential users. COIN is trading for $156.45/user and BNB is trading for $417.08/user, and if RUNE had a similar valuation, it would trade between $14.35/token to $38.26/token.

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YOUXIA CRYPTO

*Assuming 337.87M RUNE outstanding

Date: Dec 1st, 2023

Sources: CoinMarketCap.com, CompaniesMarketCap.com, Coinbase.com, Binance.com

THORChain has 70 Million Potential Users

Coinbase has 120 million potential users

Valued at $292 per user

RUNE would be $60.49*

Binance has 140 million potential users

Valued at $247 per user

RUNE would be $51.17*

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On March 31^st, RUNE closed at $1.43/token. With 327 million RUNE outstanding that works out to a market cap of $0.47 billion.

The COIN IPO closed with a $63.31 billion market cap. If RUNE were to have a $63.31 billion market cap, RUNE would be $194.49/token.

During the COIN IPO, the market cap of BNB was $85.06 billion. If RUNE were to have a $85.06 billion market cap, RUNE would be $260.08/token.

The COIN market cap on March 31^st, 2023 was $17.21 billion. If RUNE were to have a $17.21 billion market cap, RUNE would be $52.62/token.

The BNB market cap on March 31^st, 2023 was $50.05 billion. If RUNE were to have a $50.05 billion market cap, RUNE would be $153.03/token.

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Liquidity Black Hole

YOUXIA CRYPTO

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19 of 25

Liquidity Black Hole

YOUXIA CRYPTO

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Every participant that interacts with THORChain has a financial incentive to do so.

The permissionless open-source nature of THORChain makes it possible for any wallet, website, or app to integrate it in their backend. It doesn’t cost them anything to do it, just their developers’ time to add the code. These front ends want to incorporate THORChain because they can customize their own fees on each swap and monetize their audience.

When a wallet integrates THORChain, it introduces new users and new volume to the liquidity pools. The wallet collects their fees on the swaps and gains new users because they’re offering a new feature that users want and other wallets don’t have. Competing wallets see this and want in on the action too, otherwise they’ll be left behind. They integrate THORChain and the cycle continues.

It will get to a point where not having THORChain integrated will hurt a wallet because they’ll lose users to their competition. Therefore, this virtuous cycle will continue until every crypto wallet in the world integrates THORChain. Several already have, most notably Trust Wallet. Ledger is working on it along with many others.

This is how THORChain becomes core infrastructure in crypto. Like infrastructure in the physical world, THORChain is buried and out of sight. Just as you take running water for granted, people will start taking for granted the ability to swap bitcoin within their wallets. They will come to expect it just like expecting a glass of water at a restaurant.

Wallets integrating THORChain, and increasing swap volume, create two more virtuous cycles.

The first cycle starts with an increase in swap fees, that increases the yield to the liquidity pools. People see the yield going up on the pools and they add more crypto to the pools. As the pools get bigger, the cost to swap in them goes down. The cheaper it is to swap, the more volume it will attract from traders. The swap volume goes up and the cycle continues.

This cycle will continue until the liquidity pools reach a steady yield dictated by the market.

The second virtuous cycle also starts with an increase in swap fees. These increase the yield to node operators. The increase in yield encourages new nodes to join which increases the RUNE bonded in the network. The increased bond size means network security goes up enabling the liquidity pools to get bigger. As the pools get bigger, the cost to swap in them goes down. The cheaper it is to swap, the more volume it will attract from traders. The swap volume goes up and the cycle continues.

This cycle will continue until the yield on the nodes reaches a steady state dictated by the market.

When we add all three virtuous cycles together, we get the Liquidity Black Hole.

Each cycle amplifies the other, like a black hole getting stronger as it gets bigger.

There’s nothing to stop the Liquidity Black Hole since THORChain is decentralized and permissionless. Crypto from all over the world will be sucked into the liquidity pools and they’ll keep growing until they reach a natural saturation point.

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YOUXIA CRYPTO

$3 RUNE

$1 Crypto

Node Operators Bond

Liquidity Pools

$1 Crypto & RUNE

$0.50 Crypto

$0.50 RUNE

$1 Crypto

$1 RUNE

$2 RUNE

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Liquidity Pools

Since the protocol does not own or provide any crypto to trade, the inventory of crypto must come from somewhere and must be held somewhere. This is where liquidity pools come in to play. A liquidity pool is always two different tokens paired with each other and they are constantly balanced at 50:50 by dollar value. Liquidity pools have been around since 2017 and have become the standard design in DeFi. Liquidity pools solve the problem of holding inventory in a decentralized manner.

On THORChain, every liquidity pool has the RUNE token as one of the pairs. Therefore there is only one bitcoin pool (BTC:RUNE), there is only one ethereum pool (ETH:RUNE), and so on. Since there is only one pool of each specific cryptocurrency, those pools can get big and deep, making them cheaper to trade and contributing to the virtuous cycle above.

This also gives the RUNE token an intrinsic value. Since liquidity pools are always balanced 50:50 by dollar value, if there is bitcoin, ethereum, and other liquidity pools on THORChain, the RUNE token must have a value.

Therefore, as bitcoin, ethereum, and other crypto are added to the liquidity pools, it drives up the intrinsic value of the RUNE token. If any crypto is removed from the liquidity pools, it will drive down the intrinsic value of the RUNE token.

If the network reaches a steady state and there is no more crypto being added or removed from the liquidity pools, the intrinsic value of the RUNE token will still fluctuate based on the price movements of all the various cryptocurrencies in the pools. Since these crypto are a representative cross section of the whole crypto market, it is fair to assume the intrinsic value of the RUNE token will fluctuate based on the price movement of the entire cryptocurrency market. In effect, the RUNE token price will eventually act like an ETF on the entire crypto market.

To summarize, there are two ways for the RUNE token to go up (or down) in value. Crypto can be added (or removed) from the liquidity pools. The total value of the crypto in all the pools can go up (or down).

There is no other cryptocurrency with this feature. Most cryptocurrencies are governance tokens which only give you the ability to vote on changes to the protocol. They’re not claims to equity or have a right to cash flow. The ability to vote may have some value, but otherwise the tokens do not have any intrinsic value, let alone are required for the protocol to function.

THORChain couldn’t be more different. The RUNE token has a demonstrable intrinsic value and is crucial to the working of the protocol. RUNE is what secures the network.

The RUNE used in the liquidity pools is only one half of the network. The other half of the network is the node operators. The nodes approve all transactions on THORChain and secure all the crypto held in the liquidity pools. To become a node operator, one must post a large amount of RUNE as a bond to enter the network. THORChain is designed to have the network balance out with $1 of RUNE bonded for every $1 of crypto in the liquidity pools.

Since the liquidity pools are always balanced at 50:50 by dollar value, half the value in all the pools is the RUNE token. Therefore, when the overall network is in balance, there is $1.50 of RUNE for every $0.50 of crypto in the pools. Said differently, $3 of RUNE for every $1 of crypto in the pools.

Well, at least that is how the network should settle out with the incentive pendulum.

With all the changes and tweaking done to the network design, it is moving more towards RUNE being worth at least $2 for every $1 of crypto in the pools. If you think about it, this makes more sense because it becomes more capital efficient. Instead of the nodes having to post a $2 bond to protect $1 of crypto, they should have the same incentives by posting $1.01 of bond to protect $1 of crypto. The money at risk does not necessarily have to be twice as much as that which is being protected.

The hard cap on the network is the lower 2/3 of node bond. If the pool size continues to deepen and grow, and the bonds in the nodes don’t keep up, the network will get closer to the hard cap, where the amount of RUNE in the pools equals the amount of RUNE bonded by the lower 2/3 of nodes.

Node Operators Bond

The RUNE bonded by node operators is to ensure they act in good faith to secure the network and keep it running smoothly. Should a node hinder the operations of the network, their bond will be slashed. Like paying a fine.

It’s possible that over 2/3 of the nodes could collude with each other to steal all the crypto from the liquidity pools. If so, the market would recognize THORChain has been compromised and the RUNE token would go to zero. The $2 of RUNE the node operators had to post as a bond would become worthless, the $1 of RUNE from the pools would become worthless, all the nodes would be left with is $1 of crypto. That means the nodes just spent $2 to steal $1 which does not make economic sense. Since the node operators are always posting a bond with a value greater than the amount of crypto they can possibly steal, the network is always economically secure.

Tokens that are wrapped or bridged are economically insecure. The people who are in control of the wrapped tokens have no money to lose if they get hacked. All the major hacks in crypto have occurred on bridges where the providers of that bridge had no money to lose. THORChain’s economic security ensures the people who are trusted to secure the network always have more to lose than what can be stolen. This incentivizes the nodes to do everything in their power to secure and protect the network. Otherwise, they risk losing the money they posted as a bond.

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THORChain Features

Single Side Savers

Lending

Order Books

Perpetual Futures

YOUXIA CRYPTO

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A drawback of swapping layer 1 to layer 1 tokens is the gas fees you must pay on each blockchain. For the average user they’re palatable. However, they can add up for active traders and become prohibitive to a particular trading strategy. Especially for arb bots. THORChain has made swapping extremely cheap through synthetics (synths).

Synths are kind of like a layer 2 on THORChain. Users can deposit a layer 1 token into a liquidity pool, and instead of receiving LP units, they can receive a synthetic representation of that token that’s always pegged 1:1 by price. I know, this is like a wrapped token... Synths can only be swapped on THORChain and only subject to THORChain’s gas fees and block times. This means active traders and arb bots can swap much cheaper and quicker than regular layer 1 tokens. When synths were activated, the swap volume on the liquidity pools went up by an order of magnitude and increased the yield going to the pools.

Synths also make it possible for single sided savers.

Savers is a way for users to earn yield on their crypto without going directly into a liquidity pool. When someone becomes an LP in the bitcoin pool, they have price exposure to two tokens, BTC & RUNE. But not everyone wants that. With single sided savers, a user can deposit bitcoin, maintain 100% price exposure to bitcoin, and receive yield in bitcoin. The swap fees on the liquidity pools are split between LP’s and single sided savers. The LP’s keep a larger portion of the fees for enabling this service.

There’s billions of dollars of demand for people to earn yield on their crypto demonstrated by the early success of BlockFi, Celsius, and Voyager. Unfortunately, they all blew up last year, highlighting the problems with centralization. THORChain’s single sided savers is the decentralized solution.

The failed entities above also lent billions of dollars to their clients using crypto as collateral. A lot of people want to borrow against their bitcoin instead of selling it. Instead of selling bitcoin, paying capital gains taxes, and having no more upside exposure to the price, people would rather keep their bitcoin for continued price exposure, delay paying taxes, and borrow against it to free up some capital. To meet this demand, THORChain developers are working on a lending feature. It isn’t live as I type but developers are expecting it to launch in Q2 2023.

The lending design has gone through several changes over the last couple of years. In its current form, users will deposit their collateral to THORChain and be able to borrow against it at some programmatic collateralization ratio. The loans will have no interest, no liquidation levels, and no maturity date! They’re a game changer in the world of finance.

How’s that possible? It’s because THORChain does not directly hold on to the collateral, it uses the collateral to its own advantage.

Consider a typical loan in TradFi. A bank will lend you money against collateral. If the value of your collateral drops toward the loan value, the bank will sell it to make themselves whole before the collateral drops below the loan value. Basically, a margin call. Now imagine instead, the bank taking your collateral, selling it, and using the proceeds to do share buybacks on its stock? The bank would get an immediate benefit from their share price going up. However, when you repay your loan to get your collateral back, the bank would have to issue new shares, sell them, and use the proceeds to buy your collateral back. This would hurt the bank’s share price.

This is how the proposed design will work on THORChain.

When a loan is opened, THORChain will sell the collateral to buy RUNE, then burn those RUNE tokens. This is deflationary on the RUNE supply and creates upward pressure on the RUNE price. The more loans taken out on THORChain, the more it will drive up the RUNE price.

The user’s collateral is effectively held in equity of RUNE.

When a user wants their collateral back, they have to pay back their loan.

When the loan is closed, THORChain mints new RUNE tokens to buy the collateral and deliver it back to the user. This is inflationary on the RUNE supply and will have downward pressure on the RUNE price.

The net effect on the RUNE supply, whether inflationary or deflationary, depends on the price movements of both RUNE and the collateral from the opening of the loan to the closing of it.

If the RUNE:COLLATERAL price ratio goes up from the loan origination to the loan closure, the net effect on the RUNE supply will be deflationary. If the RUNE:COLLATERAL price ratio goes down from the loan origination to the loan closure, the net effect on the RUNE supply will be inflationary.

Therefore, the main risk with the lending feature is the price ratio of RUNE:COLLATERAL. If it goes against us, and THORChain experiences a bank run of sorts where everyone is redeeming their loans at once to get their collateral back, it could cause a death spiral on the RUNE price.

This might be giving you flashbacks of the Terra LUNA/UST collapse. The design of THORChain’s mint/burn mechanism is completely different than LUNA/UST. For example, there’s a cap on the RUNE token supply at 500 million (there’s 327 million RUNE outstanding right now). Should the cap ever get hit, the protocol will pause the ability to access collateral until the RUNE supply goes back down.

If you have reservations about a mint/burn mechanism being introduced to THORChain, know this. It’s impossible for the mechanism to cause the RUNE price to collapse straight out of the gate. The loans have to be opened first before they can be closed. Opening the loans is what causes the run up in RUNE price from which it could fall. The fall in RUNE price would then be proportional to the initial rise in price.

In reality, the best-case scenario for THORChain is the borrowers never pay back their loan! Paying off the loan means RUNE has to be minted which inflates the supply. We don’t want that to happen, therefore we don’t want the loan to be paid back. This is how, and why, THORChain can offer no interest, no liquidation, no maturity date on the loans. Having interest, liquidation levels, and a maturity date would only encourage users to pay back their loan.

This lending design is revolutionary even by DeFi standards.

Therefore, it shouldn’t be a surprise that this is one of the more hotly debated features in the community. On one hand, it has the potential to make the RUNE price explode higher, and on the other, it has the potential to unwind unexpectedly and take the RUNE price down with it. None of the developers or node operators want to introduce a feature that could jeopardize the longevity of the protocol, but they’re also working on THORChain for a reason, to be on the cutting edge of DeFi.

Lending still has to go through testing and ultimately be approved by the node operators, so it’s possible the design outlined above doesn’t go through. But in some form or another, a lending feature will get approved. There’s billions of dollars of demand for borrowing against bitcoin, and if THORChain is the only decentralized way to do it, then its just a matter of time for people to adopt it.

Lending alone could drive a lot of users to THORChain and drive up the RUNE price. But that’s not all.

One of the advantages CEXs still have over DEXs is the ability to place limit orders. Right now, all the swaps on THORChain are market orders. Having the ability to enter limit orders would open the door to more users and volume. Therefore, developers are working on order books so that users can place limit orders.

Streaming swaps are also being discussed. These could make swapping on THORChain extremely cheap, compared to any CEX or DEX. Since swap fees are based on the size of the swap, smaller swaps have less fees. What if you broke your swap into hundreds or even thousands of tiny swaps that execute every few seconds? No human is going to do this, but it can be done by a program quite easily. Lowering the cost to swap, especially if it’s cheaper than CEXs, will drive more volume to THORChain.

When I reference trading volume on CEXs like Binance I’m just talking about their spot volume. It doesn’t include derivatives/futures trading. Futures trading in crypto, and all markets for that matter, dwarf spot trading. If THORChain had futures trading it could easily double or triple its total swap volume. Developers have been tinkering with how to introduce a perpetual futures contract on THORChain. They’re not sure if it’s technically possible yet but it’s something they have cooking in the oven.

Now that you understand how THORChain works, how the RUNE token derives value, the implications of the Liquidity Black Hole, and all the features being developed, go back and review the valuation analysis.

The numbers should hit home better now. And perhaps you can envision those valuations as just the beginning.

22 of 25

YOUXIA CRYPTO

Pool RUNE

50% RUNE + 50% Other Crypto Exposure

Capital Gains Potential

Yield Potential

Increases Network Liquidity

Bond RUNE

100% RUNE Exposure

Capital Gains Potential

Yield Potential

Increases Network Security

Hodl RUNE

100% RUNE Exposure

Capital Gains Potential

No Yield

No Benefit to Network

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Hodl

You can buy RUNE and just sit on it. Nothing wrong with doing that. However, there’s no opportunity to earn any yield on it and it does not help THORChain succeed. The best scenario for THORChain is having the whole RUNE supply in the liquidity pools and bonded with nodes. Nevertheless, hodling is good enough for the average investor looking for capital gains.

Pool

More advanced investors can buy RUNE and deposit it into a liquidity pool. In doing so, you contribute to the success of your investment by helping the Liquidity Black Hole play out.

Adding RUNE to the liquidity pools increases their depth, making swaps cheaper, attracting more swap volume, increasing the yield, attracting more crypto deposited into the pools, making swaps cheaper, and so on. As the pools get deeper, the value of RUNE increases.

Anyone can add RUNE to a liquidity pool. However, you’re forced to take on price exposure of the other cryptocurrency in that pool too. If you buy RUNE and deposited 100% of it into a liquidity pool, you’ll be credited with 50% RUNE and 50% other crypto. When you participate in liquidity pools you are always exposed to two different assets. That’s okay if you want exposure to both different assets. Perhaps you have equal dollar amounts of RUNE and bitcoin, rather than have them sit there and do nothing, you could deposit them both into THORChain’s bitcoin pool and start earning yield on them.

There is, however, the risk of impermanent loss.

The pools continually rebalance themselves to maintain the 50/50 weighting by price which can have a negative impact on the value of your position. It’s possible the constant rebalancing could start to erode the value of your holdings and they end up being worth less than that which you started with. Add in the leverage caused by THORChain synths, the losses could become even greater. The leverage from the synths works both ways, so it could also work in your favor.

The math involved in providing liquidity to the pools is beyond the scope of this report. Suffice it to say, participating in the THORChain liquidity pools is for advanced investors.

Bond

For the most sophisticated and expert investors, you can post your RUNE as a bond and run a node on THORChain. Running a node will allow you to collect yield on your RUNE and maintain 100% exposure to the RUNE price.

Bonding your RUNE also contributes to the Liquidity Black Hole because it increases the security of the network, increasing the depth of liquidity pools, making swaps cheaper, attracting more swap volume, increasing the yield, attracting more nodes, increasing the security of the network, and so on. As the pools get deeper, and new nodes buy RUNE to post as a bond, the value of RUNE increases.

Using your RUNE to run a node on THORChain is the best thing you can do to help facilitate the success of your investment.

However, you most likely don’t have the technical skills to run a node, or minimum 600 thousand RUNE to post as a bond, let alone both.

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Fund Structure

YOUXIA CRYPTO

High Water Mark on Fiat and RUNE

1 Year Lockup

Quarterly Liquidity

Management Fee

20%

Performance Fee

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Our Fund makes it easy for you to participate in running a node on THORChain. You don’t need technical skills or 1 million RUNE, you just have to fill out some paperwork and do a wire transfer. By investing in the Fund, you catapult yourself from being an average investor to a sophisticated investor.

The goal of the Fund is to achieve capital gains and yield. The fund will invest in the RUNE token and post it as a bond to run as many nodes as possible. The yield collected from running the node(s) will compound within the Fund until the RUNE token goes up a significant amount, like a 10x return.

Your initial investment will be distributed back to you and then you’ll start receiving part of the yield as income. The remaining yield will stay within the fund to continue the compounding process, albeit at a slower pace.

The idea is to continue compounding while still collecting income. The goal is for every $1 invested today, to yield $1 per year, and eventually $1 per month. All while continuing to sit on a large capital gain, since the principal will remain invested.

The Fund will not be actively trading the RUNE token nor use any leverage. It has a buy and hold strategy. Think of it like commercial real estate or infrastructure, but with much higher potential.

That’s the plan anyway. Reality has a habit of getting in the way sometimes.

Crypto is volatile and there will most certainly be times when RUNE should be sold instead of bought. The Fund will monitor the market and may raise cash, or even go to 100% cash, if deemed prudent. A handful of well-placed trades would contribute to compounding and simultaneously reduce volatility of the Fund.

The Fund is open-ended and intends to exist for as long as THORChain exists. If THORChain becomes the core infrastructure for crypto, the Fund could last for decades.

The Fund can accept crypto, so if you already own some RUNE tokens, you can use them to invest in the Fund.

You don’t need any experience with crypto to invest in the fund. You don’t have to deal with any crypto wallets. You don’t have to learn anything new. You don’t have to worry about your taxes, you’ll get all the statements your accountant needs. You don’t have to stay on top of news or changes to the protocol. You can sit back, relax, and enjoy the ride.

A wild ride it will be!

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Youxia Gives Back

If there is hope,

it lies in the unbanked.

YOUXIA CRYPTO

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“If there is hope,” wrote Winston, “it lies in the proles.”��“If there was hope, it must lie in the proles, because only there in those swarming disregarded masses, 85 percent of the population of Oceania, could the force to destroy the Party ever be generated. The Party could not be overthrown from within… But the proles, if only they could somehow become conscious of their own strength, would have no need to conspire. They needed only to rise up and shake themselves like a horse shaking off flies. If they chose they could blow the Party to pieces tomorrow morning.”

�1984, George Orwell

There are 1.7 billion unbanked people in the world. This means 1 out of 5 people don’t have a bank account.

There are 4.3 billion underbanked people in the world. This means 1 out of 2 people have a bank account but they don’t rely on it. Instead, they use cash and alternative financial services.

In total, that’s 6 billion people. 3 out of 4 people in the world don’t have access to, nor use, traditional banking methods that those in the West take for granted.

What would happen if 6 billion people adopted bitcoin en masse?

It would be a decentralized revolution.

��Consider the petro-dollar.

After Nixon stopped the convertibility of dollars into gold, the U.S. convinced Saudi Arabia to only accept dollars for their oil production, and in return, the U.S. would provide military support. Eventually all oil producing nations followed suit and now the only way to buy oil is with dollars. This created a demand for dollars and in essence the dollar became backed by oil. This led to all commodities being sold in dollars and maintaining the status quo of the dollar as the world’s reserve currency.

It worked because Saudi Arabia is the world's largest oil producer, oil is one of the largest markets in the world, and oil is crucial to the world economy.

More vital to the world economy, and even larger than the oil market, is the labor market.

The labor market is the 6 billion unbanked and underbanked people in the world. The world economy could exist without oil but it can’t exist without labor.

What if the unbanked demand paychecks in bitcoin?

Just like Saudi Arabia demanding payment in dollars, if the labor market demanded payment in bitcoin, it would create a world wide demand for bitcoin.

Or, what if the unbanked simply convert their fiat currency paychecks immediately into bitcoin to protect themselves from inflation and capital controls?

It’s already happening.

Third world countries are the main adopters of bitcoin. In countries like Venezuela, Argentina, Turkey, and Nigeria, residents are suffering from high inflation rates and capital controls. They’re turning to bitcoin as a store of value and to protect themselves from their banking systems. El Salvador and Central African Republic have declared bitcoin legal tender, with several more countries rumored to follow suit. The people who bitcoin can help the most are starting to use it.

The Saudi’s only represented 20% of the world’s oil production yet it was enough to get all the world’s oil production priced in dollars. The unbanked and underbanked represent 75% of the world’s population. Only a fraction of them need to adopt bitcoin to make it a reserve currency.

If there is hope,

it lies in the unbanked.

Bitcoin has no marketing team and no marketing budget. Yet, bitcoin is one of the most successful brands in history. Its success is due to word of mouth, due to people passionate about freedom and spreading the message.

Bitcoin’s marketing is decentralized.

Youxia Crypto is doing its part to contribute to the decentralized marketing of crypto by donating a portion of its revenue towards educating the unbanked on financial literacy and crypto. As a client, view this as a form of cash back. By helping onboard the unbanked into crypto, you help them save, grow, and protect their wealth. While at the same time contributing to the success of your own investment. You win, the unbanked win, the world wins.

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Kenton Ralph Toews

Founder & Investment Manager

1-505-340-2010

kenton@youxiacrypto.com

Elena Codreanu

Executive Assistant

1-858-519-5500

elena@youxiacrypto.com

Kenton Ralph Toews

Kenton grew up in Alberta, Canada. He has a mechanical engineering degree from the University of Calgary and was a petroleum engineer for a decade — working in Canada, Yemen, Libya, and Cuba. He’s a registered Professional Engineer with APEGA. During his engineering career, Kenton fell down the rabbit hole of fiat money and central banking. He found Austrian Economics which forms the core of his investment philosophy.

His passion for the subject led to selling precious metals through Miles Franklin, one of the largest bullion dealers in the United States, and becoming an Investment Executive with Sprott Asset Management, the largest precious metals boutique investment firm in the world.

Kenton’s career with Sprott spanned another decade where he oversaw a $50 million book. He managed portfolios of mining stocks for high-net-worth individuals and advised clients on investing in private placements, investment funds, and alternative investments. He started helping clients invest in crypto in 2015.

It's obvious to him that decentralization is the future of money and banking. However, most investment professionals don’t take crypto seriously and there are even fewer companies for people to reach out to for quality advice and products. Therefore, Kenton started Youxia Crypto, an asset management company specializing in cryptocurrencies.

Kenton believes crypto is more than just about trying to make money, it’s about creating freedom for oneself and the rest of the world.

Kenton is a voluntaryist and contrarian. He enjoys downhill skiing, scuba diving, live music, yoga, and traveling.

Elena Codreanu

Elena is from Romania. She studied automotive engineering at the Politehnica University of Bucharest and finance at the Bucharest University of Economic Studies. She speaks Romanian, English, German, Spanish, and some Italian.

Elena moved to the US in 2011 and became a citizen in 2017. Since arriving in the US, she’s worked directly with customers at National Penn Bank and later as a permitting manager for Renewal by Andersen.

In 2020, she started with Sprott Asset Management as an Executive Assistant to Kenton. Her optimism on the future of DeFi is reflected in her decision to join Kenton at Youxia Crypto.

Elena is passionate about fitness, travel, photography, and Formula 1 racing.