GLP lost over 30M to traders over a 3 month period.

Chads like @rewkang are completely crushing it and GLP holders are learning a painful lesson

A thread on risk Management for P2Pool Perps, and what you need to know before providing liquidity
🧵

Most P2Pool models are built on the idea of “retail traders will lose money over the long run” - aka LPs are betting on:

1. The protocol’s user base, on average, will be -EV traders over the long run
2. Fees accrued to LPs will be greater than the average trader's EV

While there is a decent amount of data out there to show that the average trader is probably not profitable in the long run, this analysis is overly simplistic and overlooks the day-to-day deviations of trading and directional risks that supposedly neutral LPs are exposed to.

While I don’t agree 100%, @gametheorizing argues oracle-based exchanges are more akin to casinos than they are exchanges.

He does make a valid point, as the counterparty pool model is basically marketed as “being the house”.

https://twitter.com/milesdeutscher/status/1605213283706757120

However, unlike casino games, which were carefully designed to give the house a clear edge over the long run, leveraged trading is not necessarily the same.

Evidently from the GMX example above, the house can lose sometimes.

The risk of traders having short-medium term wins are very much in the realm of possibilities.

Forks like @Level__Finance are prone to the same risk:

In CLOBs, liquidity is provided by market makers, who are passively bidding both sides of the book to ensure that orders can be filled in either direction.

MMs are usually not directional, meaning they need to actively hedge out their market exposure at any given time by taking the other side of the market, either through perps, futures, margin, or options.

Counterparty pools (NLP, gDAI, GLP), however, are not delta neutral (even the stablecoin-only vaults).

At any given time, LP pools are taking on market risk based on the current open interest skew (long:short ratio).

We can define skew, and henceforth the market risk (beta) that LPs are exposed to at a given time as:

Proportional skew: (Outstanding longs - outstanding shorts) / Total size of all outstanding positions

Taking GMX as an example again, on top of the market risk (50% volatile assets) GLP is exposed to, OI over the past 3 months has been >60% in either direction.

When the market pumps when 80% of traders are long, LPs are inevitably going to loses

Mechanisms to mitigate risk

LPs are kind of like a bad market maker, they take every opposing trade without hedging and earn fees in return.

Good risk management for P2Pool trading should prioritize
1. Incentives to reduce skew
2. Protection for tail risks

1. Incentives to reduce skew

Funding rates are the most straight forward way to incentivize skew reduction.

In CLOBs, funding rates are implemented to incentivize perp price to trade at par with spot prices

When perps are trading at a premium, longs pay shorts, which incentivizes sellers and vice versa.

In oracle based exchanges, the objective for funding rates should be to disincentivize skew, as such funding rates should be a direct function of skew

Another interesting parameter is duration of the skew, which has been implemented in @synthetix_io perps V2

Their funding rate takes three parameters:
Time since skewness begin, skewness, and premium constant

2. Protection for tail risks

In this context, tail risks would refer to events in which LPs would suffer extremely large losses. e.g.

- Parabolic rally, all traders are max long
- Black swan event such as LUNA crash, traders are all short

I've been in crypto long enough (not even that long) to know that these events happen a lot more often than what one might think of in a rational market.

Funding rates might disincentivize skew in normal situations, but in these events traders would happily pay 500 bps in fees for hundreds of % gains

So what can be done?

Truth is LPs are likely going to lose in these events given they are passive liquidity providers, but a few practices that can help include:

1. Setting OI Caps for smaller assets
2. Exponential funding rates
3. Capping PnL %
4. Isolated markets

If I've learnt anything in my years of crypto, that would be to be careful of tail risks.

Perp DEXes that are generating #realyield through fees, but there's definitely more to the story as a liquidity provider.

When designing Narwhal, we took all these learnings in mind, and want to push the industry forward towards better risk management.

Degen responsibly 🫡

Further reading: I discuss the state of the perps market in a previous thread here

https://twitter.com/0xNairda/status/1636740678968549378

Risk Management for P2Pool Perps

Pendle has been on an absolute tear in 2023. In the past 3 months we've seen:

TVL up 3x (now ATH)
Price up 6x

A deep dive into @pendle_fi and $vePENDLE

🧵

Due to the complexity of the protocol, I will be breaking this down into two threads.

In part 1 we will go through:

1️⃣ How Pendle works
2️⃣ Understanding PT/YT
3️⃣ vePENDLE
4️⃣ Ecosystem+adoption

Part 2 will go through advanced yield trading/farming strategies - stay tuned!

1️⃣ How pendle works

Pendle is a yield protocol that splits up a yield-bearing token into two components with a fixed maturity date:

- PT: Represents the principal of the underlying token
- YT: Represents the yield accrued for the underlying asset

At maturity, PT is redeemable for the underlying asset, and YT is redeemable for the yield earned by the underlying asset through the duration.

What qualifies as a yield-bearing token?

1.  Proof-of-stake tokens, e.g. $stETH

2.  LP Tokens, e.g. $GLP, $gDAI

3.  Protocol tokens with staking emissions or fee sharing mechanism e.g. $APE, $LOOKS

In TardFi terms, this is analogous to valuing a vanilla bond, which is comprised of face value redeemable at maturity, and coupon payments throughout the duration of the bond.

The current value is the discounted value of the two components

A bond’s principal and future coupon payments are discounted based on the time and discount rate to get the current value of the bond:

PT: Face value

YT: Coupon payments

Take stETH as an example, providing 1 ETH into Pendle, you can get:

1 PT stETH, redeemable for 1 ETH at expiry (29 Jun)

1 YT stETH, redeemable for the yield earned for 1 stETH from now - 29 Jun

PT/YT is traded through an embedded AMM, which allows for price discovery between the two based on future expectations of the underlying token's yield.

2️⃣ Understanding PT/YT

Taking the same stETH example, at current prices:

PT stETH = 1735.31
YT stETH = 21.63
Days to maturity = 93 Days

Buying PT stETH is the equivalent to buying ETH at a discount, where in 93 days you would be able to redeem it for 1 stETH.

Buying at current prices would net you:

(1+ 21.63/1735.31)^(365/93) = 4.95% APY.

Regardless of how much stETH earns in yield over the next 93 days, you lock up 4.95% up front.

Alternatively, buying YT is a leveraged bet on the future yield (until maturity) of stETH.

Recall that at maturity, 1 YT is entitled to accumulated yield of 1 stETH throughout the duration.

Should the yield of stETH increase above 4.95%, profits will be magnified

3️⃣ vePENDLE

PENDLE is the native token of the protocol, it can be locked and staked for vePENDLE, the vote locked token entitled to:

- Governance rights
- Protocol fees
- Boosted rewards

PENDLE can be locked for anywhere from 1 week to 2 years, and decays overtime until the end of the lock

A key difference between Pendle and other ve-models is that voting for a pool allows you to earn 80% of swap fees earned from that pool in exchange for directing emissions to the pool.

Additionally, vePENDLE holders also earns a 3% fee from all yield accrued by YT

Lastly, if you are a LP in a pool while holding vePENDLE, your emissions and rewards will be boosted by up to 250% based on your vePENDLE balance.

(More alpha on how to leverage this in part 2)

4️⃣ Ecosystem+adoption

If you've been active at all on CT, you'd see the Pendle is the talk of the town.

However, Pendle isn't your hottest AI shitcoin.

In fact, the team has been building since 2021

Its TVL visibly died down in 2022, but has seen a resurgence over the past 4 months - I would attribute this to:

1. LSD Narrative
2. Arbitrum deployment

LSD - the original idea behind the project was create yield derivative markets for PoS tokens, and Pendle has already integrated with @LidoFinance, @ankr, and @Rocket_Pool

A renewed interest in ETH staking = gud for Pendle

Arbitrum

The biggest catalyst for any non-Arb project is deploying on Arbitrum. With #realyield running rampant, degens are rushing over to trade the likes of $GLP and $gDAI

The team is also very much DeFi native, with integrations with @0xAcidDAO, @Bond_Protocol and @StargateFinance

Gud recap by @crypto_linn on latest developments:

https://twitter.com/crypto_linn/status/1639638803890704385

I still believe we're quite early to on-chain credit markets.

For the most part I think pendle is still mostly used by speculators (if there's data that says otherwise lmk), but yield hedging will be an extremely important use case for sophisticated investors.

Appendix: Pendle thread that goes through the AMM by @NintendoDoomed

https://twitter.com/NintendoDoomed/status/1637475974454431747

Chads who might be interested:
@ipor_intern
@defi_mochi
@DeFiMinty
@TheDeFinvestor
@0xCrypto_doctor
@rektdiomedes
@crypto_linn
@Slappjakke
@crypto_condom
@DegenCamp
@Chinchillah_
@cryptoshiro

@DeFi_Cheetah
@DAdvisoor
@cryptodetweiler
@schizoxbt
@Subli_Defi
@thelearningpill
@Louround_
@DefiCryptoGuy
@0xJamesXXX


Pendle Part 1

The fall of FTX and rise of GMX set up a perfect storm for decentralized perps and has led to a wave of second movers entering the market.

With a seemingly new perp DEX every week, is the narrative just hype, or have the pseudo-forks achieved PMF?

A megathread+predictions
🧵

This thread will break down the current landscape of synthetic, P2Pool perps.
We will discuss:

1️⃣ The current landscape of perpetual exchanges
2️⃣ Rising perpetual DEXes (alpha)
3️⃣ Upcoming catalysts and risks

Diving in! 👇

1️⃣

Although the collapse of FTX created widespread fear within the industry and the narrative for traders to start favoring DeFi alternatives over their centralized counterparts, data by @theblock suggests that this hasn't amounted to perp DEXes gaining meaningful market share.

I’d argue that the main reason is that other than self-custody, perp DEXes do not offer significant competitive advantages (yet) over CEXes. Trading perps on a CEX still has:

1. Better UX
2. Lower fees
3. More assets
4. A mechanism for price discovery (CLOB)
5. Deeper liquidity

@gametheorizing explains this very well from a trader’s perspective:

h/t @milesdeutscher

https://twitter.com/milesdeutscher/status/1605213283706757120

However, that is not to say synthetic perp DEXes do not have a place in the market. Volumes across major perp DEXes have remained resilient as the preferred trading venue for DeFi native degens

Additionally, innovations and improvements in tokenomics have led to the #realyield movement, leading to greater interest from investors and yield farmers.

Price go up > free marketing > new users > more fees > price go up

My thoughts in a nutshell:

In the short term, the perp DEX market will be PvP as protocols target a similar userbase.

Projects with strong differentiators and good marketing will gain mkt share.

Social trading remains a strong use case not fully figured out by teams.

In the long term, synthetic perp DEXes will bleed market share % wise, but adoption will increase in absolute terms (positive sum game)

New primitives will be introduced to challenge the synthetic model (@infpools)

There remains room for innovation for aggregators to improve capital inefficiencies of current models

An on-chain, CLOB DEX that can solve tokenomic issues will ultimately win (@dydx v4?)

2️⃣

First, the category I am bearish about is GMX forks. GMX had the first mover advantage, deepest liquidity, and a dedicated community.

But the protocol is not as scalable, and second movers can't offer much more

Despite 21 forks, all GMX forks only combine for 42M TVL.

Now for some strong projects.

First up: @vela_exchange

Vela is an arbitrum native perp DEX that was formerly known as DXP.

Vela has been on the rise in terms of both volume and TVL, and I think this can be attributed to:

1. Market timing
2. GTM and bootstrapping
3. Innovative features + positioning

Explained eloquently by @LouisCooper_:

https://twitter.com/LouisCooper_/status/1633803286439665665?s=20

1. Market timing

Vela launched at the peak of Arbitrum hype, where mindshare and liquidity were at all time highs.

This doesn't matter as much for 0-1 DeFi primitives, but for a saturated sector like perps, timing 100% matters.

2. GTM and bootstrapping

Vela had a great answer to the coldstart problem for a two-sided perp market with HyperVLP, airdrop tease, and incentivized trading competitions.

HyperVLP was able to bootstrap $10M liquidity very quickly, and since then VLP deposits have been up only due to the attractive, single-sided APR.

They saw a sharp dip during the USDC depeg but is now close to ATH again.

3. Innovative features + positioning

Vela recently released multichain swaps+deposits, which allows users from other chains to deposit+swap to USDC on arbitrum, significantly improving the onboarding experience for non-arbitrum native users

https://twitter.com/vela_exchange/status/1631366504385249280

Vela also offers a broader asset list, and while it can't really compete for ETH or BTC volume share with GMX, over 50% of its volume is generated from FX pairs, with 33% alone in EUR

@GainsNetwork_io

Gains is an OG project that has been around for a while. I used to be skeptical of its model as it was prone to a death spiral risk with $GNS as the final backstop for LPs.

We saw this happen in May 22' when LUNA crashed and DAI vault became undercollateralized

However, since then GNS has introduced a number of changes which has led to them safely securing the #2 spot behind GMX:

1. Improved protocol risk management
2. Expanding into different asset classes (FX, stocks, commodities, indices)
3. Deploying on Arbitrum

1. Protocol Risk Management

GNS implemented a number of risk measures to better protect DAI holders and resemble a CEX:

✅ Funding rates to balance L/S
✅ Price impact + Spread to prevent market manipulation
✅ Rollover fee to simulate cost of borrowing

https://medium.com/gains-network/gtrade-v6-1-in-depth-b06c0b93fad1

2. Asset class expansion

Similar to Vela, an advantage of the synthetic model (as opposed to margin trading GMX offers) is the scalability for asset listings.

Roughly ~30% of GNS volume is made of non-crypto assets, predominantly FX.

They've also listed many blue chip stocks, commodities, and US indices.

These do not have significant usage as of yet, but when the demand comes @GainsNetwork_io will be the first place to go.

3. @arbitrum

After deploying in Jan 2023, gTrade saw:

2x Daily OI
~1.5x daily users
3x gDAI TVL
70% of platform volume comes from Arbitrum

Need I say more?


@muxprotocol

MUX is a multichain leveraged trading aggregator on @arbitrum
@avalancheavax, @BNBCHAIN, @FantomFDN, and @optimismFND

MUX has its own crosschain LP, but also aggregates liquidity from other perps like @GMX_IO and @GainsNetwork_io via its aggregator:

In terms of performance, MUX's growth hasn't been as explosive as the likes of @vela_exchange, but their marketing also isn't as aggressive

Though they recently hit 3B c. volume, and efficiency of their aggregator is seen as trades are routed through other protocols

https://twitter.com/muxprotocol/status/1636475234164285440

They also recently received 250K $OP from @optimismFND which will be used as rebates.

Potential catalyst for growth as Optimism doesn't have a clear perp winner yet.

https://twitter.com/muxprotocol/status/1633203404662243328

They've also announced an integration with @synthetix_io perps V2, could be a huge catalyst for them in the Optimism ecosystem.

As an aggregator, I believe MUX has the highest ceiling of all three of these protocols.

3️⃣ Upcoming catalysts and risks

For degens, there will be plenty of opportunities for quick flips/farm and dumps as forks with no value props continue to pop-up.

Though we should see some consolidation over time as over-pumped forks die out.

DYOR, don't get rugged.

Developments I am paying attention to:

1. GMX synthetics
2. Adoption of non crypto/FX pairs on @GainsNetwork_io
3. Any perp DEX that can capture the @BNBCHAIN ecosystem
4. Social features, either protocol-native or built on top of protocols (e.g. @PerpyFinance)

H/t to these Dune Wizards for data:

@0xpurif
@unionepro
@JamesCliffyz

@DeFi_Cheetah
@DAdvisoor
@cryptodetweiler
@schizoxbt
@Subli_Defi
@thelearningpill
@Louround_
@DefiCryptoGuy
@0xJamesXXX
@ThorHartvigsen


DeFi Perps landscape

Wake up, anon. It’s perps season

“But they’re all GMX forks”, you say?

Clearly you’ve been asleep too long.

Introducing @InfPools, a Permissionless, oracle free, liquidation free leverage trading platform

Understanding new DeFi primitives in a bear market will be your best r/r play to capitalize when the bull market inevitably returns.

InfinityPools is one of the more innovative projects launching soon.

Keep this one on your radar.

This thread will cover
1️⃣Leverage and liquidations in DeFi
2️⃣ Uni V3 Recap
3️⃣ InfinityPools Overview
4️⃣ Trade lifecycle
5️⃣ Final thoughts

1️⃣Leverage and liquidations in DeFi

Traditional margin or leverage trading currently requires liquidators to maintain protocol health and prevent bad debt.

To protect the platform, risk management measures need to be introduced, such as:

✅ Liquidation penalties
✅ Limited leverage for illiquid assets
✅ Forced settlement

While these measures help keep exchanges solvent, it comes at a cost of user experience

Additionally, there is a fundamental mismatch between risk profiles of traders and lenders in margin trading:

1️⃣ Traders want to take on leverage and get magnified returns = high risk
2️⃣ Lenders want preserve capital and earn a yield = low risk

While the risk profile of a traditional lender can’t be changed, but what if they can be replaced with an existing demographic within DeFi users?

Uni v3 Concentrated Liquidity Providers.

2️⃣Uni v3 Recap
LPs can concentrate their capital within custom price ranges, providing greater amounts of liquidity at desired prices.

Uniswap combines individual price ranges to create an aggregated price curve AMM function similar to Uni v2.

When a LP range is outside of the current market price, the entire LP token will be composed of the less valuable of the two assets.

See below example -
ETH is currently 1639,providing liquidity in a range below the current price will make deposits all in $USDC

3️⃣InfinityPools Overview
InfinityPools builds on top of Univ3 by allowing concentrated LP tokens to be lent out to facilitate margin trading.

On a high level, Infpools is a two sided marketplace, with traders on one side and liquidity providers on the other.

Liquidity providers can either deposit assets directly to the protocol or can lend out Uni v3 LP tokens.

Leverage traders can borrow directly from supplied LPs, and lent LP tokens are redeemed to purchase more of the trader’s leveraged asset.

Borrowing LP tokens instead of single assets has a subtle yet impactful effect on a trader’s user experience:

Normally, stablecoin loans such as USDC are used to facilitate leveraged trading

Therefore, the loans are expected to be paid back in the same assets borrowed.

When a trade goes south, this will inevitably lead to a margin call and subsequent liquidation, since the leveraged asset must be sold before the trader’s position is lower than the initial debt.

The subtle effect of using LP positions as the loan source is that the payback of the loan can be in either of the LP assets depending on price

E.g. Borrowing a LINK/USDC LP to long $LINK -

when the price of $LINK falls, debt becomes denominated in $LINK rather than $USDC.

4️⃣Trade lifecycle

This is probably better visualized with an example:

Say Chad decides to long 1 ETH when ETH price is at $1000.

He puts down $100 collateral and borrows $1000 worth of ETH/USDC LP at the 900 tick range.

Infinitypools will reserve his borrowed LP in a private pool called a swapper.

It will then be redeemed for USDC and swapped into ETH through any external DEX aggregator.

Chad is now is 10x leverage long on $ETH.

Now there are three possible situations:

1️⃣ ETH Price increases above $1000
2️⃣ ETH Price falls below $1000, but above $900
3️⃣ ETH Price falls below $900

1️⃣ ETH Price increases above $1000

This is the most simple - Chad sells his ETH for above $1000, repays the $1000 debt, and unlock's his collateral.

2️⃣ ETH Price falls below $1000, but above $900

The ETH Chad holds is now worth less than $1000, but above 900.

The lender is expecting an LP token worth $1000 USDC, so Chad has to sell his ETH, and cover the remainder of the debt with his initial $100 collateral to repay debt

3️⃣ ETH Price falls below $900

The lender is now expecting an LP token worth (1000/900) ~1.11 ETH.

Chad already holds 1 ETH, and the remaining 0.11 ETH, at most, 100 USDC, therefore his collateral will always be enough to repay the LP position in full.

5️⃣ Final thoughts

InfinityPools is introducing a brand new primitive to DeFi. Leverage trading without oracles and liquidations removes many external dependancies

Leverage multipliers and asset listings are all limitless, enabling perp markets for long-tail assets.

.@InfPools is still in early development, so not much information about their revenue model or tokenomics have been released yet, though I can already think of many areas they can charge a small fee on.

For a more thorough breakdown, I'd highly recommend checking out their whitepaper and join the discussion on discord.

@MLGavaudan and @n0egen are very responsive to questions 🫡

Borrowing LPs can also create other option payoffs, rather than redeeming it to leverage trade.

Structured products or vanilla options could be possible products in their future pipeline

Composability has always been a big theme in DeFi, and this new wave of protocols leveraging Uni v3 LP tokens is very cool to see. (h/t @GammaSwapLabs @Panoptic_xyz @SmileeFinance)

Though I wonder if Uni v3 LP tokens will become a hot commodity? 🤔

Infinity Pools

Interest rate derivatives are a 632 TRILLION market in TradFi.

Yet they haven't made their way to mainstream DeFi adoption yet.

What if I told you there was a project revolutionizing credit markets in DeFi under 7M MC?

Introducing @ipor_io 🧵

This thread will cover:

1️⃣Interest rate swaps in TradFi
2️⃣Overview of IPOR Protocol
3️⃣Introduction to the Inter-protocol over-block rate (IPOR) Index
4️⃣IPOR swaps
5️⃣Tokenomics
6️⃣Adoption
7️⃣Roadmap and catalysts

Let's dive in👇

Interest rate swaps in TradFi

An interest rate swap is a contract in which two parties exchange streams of income, based off some sort of reference rate, such as the Secured Overnight Financing Rate (SOFR)

1/

https://twitter.com/ipor_io/status/1628001917409394689

In most cases, a fixed rate is swapped for a floating rate:

Going “long” means paying a fixed rate, and receiving a floating rate (Profit when rates go up)

Going “short” means paying a floating rate, and receiving a fixed rate (Profit when rates go down)

2/

Institutions are constantly exposed to rates through debt, so swaps are a key instrument for TradFi institutions to manage risk.

Some use cases include:

✅Hedging interest rates
✅Arbitrage
✅Securing cost of debt
✅Speculation and leverage

3/

At this point in time, IRS are not easily accessible in DeFi, nor is there a consensus rate for stablecoins.

Just look at the spread between these stables on @aaveaave👀

4/

For DeFi markets to evolve into the fixed-income markets of tomorrow, they must provide the same risk management tools that TradFi institutions require

5/

Enter @ipor_io.

IPOR Protocol is a decentralized credit protocol on Ethereum. It consists of three elements:

1️⃣ IPOR Indices
2️⃣ Interest rate derivatives
3️⃣ Liquidity pool & AMM

6/

1️⃣IPOR Indices

IPOR stands for inter protocol over-block rate

Its name is a reference to commonly used TradFi rates such as the LIBOR (rip) and SOFR.

7/

The IPOR Index is a benchmark reference index rate sourced from DeFi credit protocols and published on chain.

The IPOR Index is designed to produce the average rate that represents the cost of borrowing or lending in DeFi.

See current rates for USDC, USDT, and DAI below:

8/

The index takes a weighted average of rates sourced by constituents based on liquidity.

At genesis, @compoundfinance and @aaveaave rates will be used, but other protocols can be added via governance

The formula may look complex, but its really just a weighted average:

9/

The IPOR aims to become a composable tool in DeFi referenced as the cost of capital for stablecoins.

It also is the benchmark rate used for the IPOR Protocol's native interest rate swaps 👀

10/

IPOR Interest Rate Swaps (IRS)

IPOR IRS will be the flagship use case for IPOR indices, allowing users to take either side of the IRS trade.

11/

Traders put down collateral+fee+a refundable liquidation deposit+gas to secure their position.

The counterparty LP will post equal margin in the same contract.

Positions/payouts will be managed by the contract.

12/

Example here for entering into a long IRS for USDC.

The pricing and execution of IPOR IRS is facilitated by an AMM.

13/

The AMM

The AMM is a dynamic pricing mechanism that quotes users that want to enter either side of an AMM trade

14/

The AMM takes the current IPOR rate at the time of quote and adds a spread, which accounts for:

✅ Volatility
✅ Historical rates
✅ Demand
✅ Time to maturity
✅ Direction

15/

Liquidity providers (LP) can supply stablecoin liquidity into isolated stablecoin pools, responsible for underwriting/market making swaps for that token.

LPs receive a liquidity token representing their share of the pool, (e.g. ipUSDC for USDC).

16/

In return, LPs are compensated by receiving:
✅ Fees charged when opening positions
✅ Fees charged when withdrawing liquidity
✅ Counterparty PnL against traders
✅ Yield from idle capital deployed into money markets

17/

Tokenomics

$IPOR is the protocol's native token. There are a total of 100,000,000 $IPOR and no additional tokens can get minted.

18/

$IPOR can be staked to receive $pwIPOR (Power IPOR).

$pwIPOR is a non-transferrable representation of staked $IPOR. Unlike veTokens, there is only a 14-day unstaking period.

$pwIPOR holders are eligible to vote and access to liquidity mining

19/

$pwlIPOR can be delegated to your staked LP positions for up to a 10x boost 👀

We're seeing a ~45% average APR for single sided stablecoin deposits

20/

https://twitter.com/DimitarDinev7/status/1627855966531117056

Adoption

TVL on IPOR surged recently following liquidity mining incentives, making it the #5 derivative protocol by TVL, trailing giants like @GMX_IO and @GainsNetwork_io

21/

You could argue the TVL surge is expected, but what about trading volume?

Despite IRS being a predominantly institutional product, with the help of community education on crew3 and trading competitions,  we've seen close to ~200M notional swaps outstanding.

Not bad at all.

22/

Roadmap and catalysts

The team has not disclosed much about their product roadmap, but confirmed that one item will be an IPOR for $ETH.

An IRS for ETH yield could be very useful for when more institutions onboard.

23/

TL;DR:
✅ IPOR is a new DeFi primitive for credit markets
✅ It has the potential to become a core component for crypto-native institutions
✅ LP Yields are rather lucrative right now if you delegate pwIPOR (NFA)

24/

Tagging the @ipor_io chads below for exposure:
@DarrenCamas
@ipor_intern
@DimitarDinev7
@lukaszmuzyka
@FearsomeLamb789

And ccing my favorite CT threadors:

@defi_mochi
@DeFiMinty
@TheDeFinvestor
@VirtualKenji
@0xCrypto_doctor
@rektdiomedes
@crypto_linn
@Slappjakke
@midoji7
@crypto_condom
@eli5_defi
@DegenCamp
@Chinchillah_
@cryptoshiro

@DeFi_Cheetah
@DAdvisoor
@cryptodetweiler
@HaowiWang
@schizoxbt
@Subli_Defi
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