So it looks like the ETH folks are trying to replicate MSTR's strategy with a new protocol. The protocol hasn't launched and the "whitepaper" and "docs" are...well, I put them in quotes so you can imagine the level of quality - hyperbolic marketing language that says nothing.

This protocol will leverage their own shitcoin STRAT (compared to MSTR stock) along with along with cbUSD (compared to USD but you know, "decentralized") to create both term and short term convertible bonds (the long term bonds at 4.2 years). Users deposit their ETH into the protocol which they then use to both build their treasury and bootstrap liquidity for both their own token and their made up stablecoin.

Now this should sound fairly recognizable to those of you who have looked into Saylor's strategy, but there are some key differences, most importantly in the stablecoin aspect. While us Bitcoiners can agree that the dollar is a shitcoin, it does carry weight in world financial markets as the current world reserve asset, but this new protocol is printed a new "dollar" out of thin air with user funds backing it. They even mention in their "whitepaper" (really more akin to a blog post with a couple pretty graphs), that there is no guarantee their stablecoin will be redeemable 1:1 with other stables that would generally be considered as "pristine" collateral such as USDC and Tether.

If you have swallowed the orange pill you can see the danger here, and how this may pose itself as a sound money win/win strategy, it is anything but and will leave users holding the bag. I have been involved protocols on ethereum in another life (Satoshi has forgiven my trespasses) and I can tell you I have seen this before.

There was a time when bonding protocols, and then the rebranded take of 3,3 protocols (basically buy the coin and hold forever) were hot in those markets and yields were exorbitantly high as ethereans thought they had reinvented the hodl dream. You can imagine that all those protocols are either dead, or were imagined into something else then also died in a blaze of shame.

Stay safe out there.