Every @GainsNetwork_io metrics need to know if you deposit to $gDAI #realyield
👇

🔹 Traders' PnL
🔹 Collateralization Ratio
🔹 Platform config
➡ OI Cap
➡ Total OI
➡ Effective OI
🔹 Positions
➡ Long/Short Ratio
➡ Average Leverage
🔹 product that built on gDai - @pendle_fi



0/ what is @GainsNetwork_io and $gDAI

❇ gTrade is a decentralized leveraged trading platform on MATIC and ARBI
❇ can trade up to 150x on cryptos, 1000x on forex, 50x on stocks, and 35x on indices
❇ gDAI represents ownership of DAI, accumulated fees and traders' PnL


1/ traders' PnL

❇ gDAI vault serves as the counterparty of gtrade

⚠ when traders win (positive PnL), winnings go into vault
⚠ when traders lose (negative PnL), losses are paid by vault

ℹ historical stats indicate a negative traders' PnL in past 6 months

2/ collateralization ratio

❇ is determined from the snapshotted total PnL at current epoch
❇ to deduce pending withdraw windows in terms of epoch

ℹ The higher the ratio, the better as traders lose money to gDAI, the shorter pending withdraw window


3/ platform config - open interest (OI)

$gDAI holders should closely monitor gtrade OI cap, total OI and total effective OI and ensure they're properly configurated

you can monitor OI at https://www.gtrade.tools/arbitrumpairs/
by @vesnushkiii


3.1/ OI cap

❇ there is max of OI for each asset that indicated on the top

ℹ it limits gDAI's max exposure on that asset
ℹ the more liquid the asset, the higher the cap can be

3.1/ OI cap vs $gDAI

using MATIC platform as example

- current gDAI = US$ 15MM
- total OI cap = US$ 116MM

👉 700% of gDAI configurated

ℹ there is no hard answer if well-configurated but the most important figure is the total (effective) OI instead

3.2/ total OI vs $gDAI

❇ total OI refers to the sum of OI on all assets pair

- current gDAI = US$ 16MM
- total OI = US$ 26MM

👉 160% of gDAI

3.2/ total effective OI vs $gDAI

❇ effective OI refers to the sum of net OI (long - short)

- current gDAI = US$ 16MM

- total effective OI
= long OI - short OI
= US$6MM

👉 60% of gDAI

4/ traders' positions

traders' position long-to-short ratio and average leverage are also essential to monitor to $gDAI holder

available on @unionepro dune dashboard, breakdown by asset class:
- crypto pairs
- stock pairs
- forex pairs

https://dune.com/unionepro/Gains-Network-gTrade-Stats-by-Asset-Class

4.1/ long-to-short ratio

the best scenario is a balanced long-to-short ratio so there is no exposure to either side, ie delta natural #realyield

current ratio
- crypto pairs: 1.36
- stock pairs: 4.05
- forex pairs: 1.01


https://twitter.com/GainsNetwork_io/status/1633969669437808640

4.2/ average leverage

average leverage may not necessarily holds a direct relation on open interest and on a risk perspective,

the higher the leverage, the likely trader’s PnL is negative

current ratio:
- crypto pairs: 75.6x
- stock pairs: 13x
- forex pairs: 122x

👀👀👀


5/ product that built on $gDai

@pendle_fi recently launched $gDAI and if you hold its principal token, aka the counterparty of gtrade, make sure you monitor all the metrics mentioned

https://twitter.com/pendle_fi/status/1633829876624146436

Every Key Metrics Gains Network gDAI Depositors Need to Monitor

how to execute funding arbitrage fully decentralised on both positive and negative funding?

negative funding is as high as ✨133% APR ✨ on Kwenta but how to capitalise on-chain?

💎 133% = 0.01534% * 24 * 365

here is all you need to know 🧵

This 🧵 explains

1/ what is funding rate ( positive / negative )
2/ what is funding rate arbitrage strategy
3/ positive funding strategy execution
4/ negative funding strategy execution
5/ decentralised perp protocol
6/ strategy risk management


1/ what is funding rate

🔹 exists on both CEX and DEX perpetual market
🔹 it helps long-to-short-ratio balance.

@kwenta good 🧵 explaining funding rate
https://twitter.com/Kwenta_io/status/1631778954020552705

1/ what is positive / negative funding

❇️ positive funding: long > short open interest
❇️ negative funding: long < short open interest

most of perpetual markets work similarly, includes @Kwenta_io
https://twitter.com/Kwenta_io/status/1631778969552060418

2/ what is funding rate arbitrage strategy

🔹 a strategy to earn funding rate as yield
🔹 aim to be delta neutral, ie no long or short exposure


3/ positive funding strategy execution

🔸 long pays funding to short positions
🔸 short on perp and long on spot market

🫡 salute @phtevenstrong explainer of positive funding strategy

​​https://twitter.com/phtevenstrong/status/1585417680143929344

3/ positive funding strategy execution - explainer

🔸 bull market
🔸 easy to execute as loads of DEX liquidity
🔸  perp shorting is capital efficient but higher management cost with higher leverage


4/ negative funding strategy execution

🔸  short pays funding to long positions
🔸  long on perp and short on (?), where 😕

@Defi_Maestro chose to short on CEX but

✔️ can short on money market AAVE, Euler. deposit stables and borrow asset to sell

https://twitter.com/Defi_Maestro/status/1631899191416078337

4/ negative funding strategy execution - explainer

🔸  bear market
⚠️ harder to execute if fully decentralised because of involvement of money market, eg AAVE
⚠️ short on money market is not capital efficient and limited assets to borrow


5/ decentralised perp protocol

🔸 Gains Network - MATIC, ARB
🔸 Kwenta - ETH
🔸 dYdX - OP
🔸 Perpetual Protocol - OP
🔸 ApolloX - ETH, BNB, ARB

5/ decentralised perp protocol - tag

to tag all mentioned perp protocol 🫡 salute
@GainsNetwork_io
@Kwenta_io
@dYdX
@perpprotocol
@ApolloX_Finance

🤝🤝🤝🤝🤝🤝🤝🤝🤝🤝🤝🤝🤝🤝

6/ strategy risk management

⚠️  monitor if funding flips when different momentum develops
⚠️  make sure enough position margin on perp


Funding arbitrage, fully decentralised for postive and negative funding

@ankrstaking TVL record high. I found an #arbitrage strategy on $ankr #LSD token

On this thread
1️⃣  what is ankr and availability
2️⃣  strategy APR overview
3️⃣  ankr UI hinted arb strategy
4️⃣  strategy reference - $sAVAX
5️⃣  strategy implementation

https://twitter.com/ankrstaking/status/1629163006423695362

1️⃣  what is @ankrstaking and its service availability

$Ankr provides liquidity staking service just like @LidoFinance and their staking TVL recently was up 48.7% last week.

https://twitter.com/ankrstaking/status/1629163009657520133

2️⃣  strategy APR overview

・ $ankrETH     -  no unstake is available
・ $ankrBNB     -  juicy, isn't it?
・ $ankrMatic   -  not at discount
・ $ankrAVAX   -  alright
・ $ankrFTM     -  🤑 but literally no TVL


3️⃣  ankr UI hinted arb strategy

Arbitrage Opportunity is literally everywhere.

As DEX LPs provide immediate liquidity to exit from staked token position, ankrToken is on discount via LPs.

Ankr staking UI indicates if its on discount

4️⃣  strategy reference - $sAVAX

What does it mean if there is a discount? SAFU strategy can be deploy!

It will be a similar strategy on sAVAX from my previous post
https://twitter.com/StrategySafu/status/1626438874041024512

5️⃣  strategy implementation

❇️ Swap Token to ankrToken on DEX
❇️ Unstake ankrToken on ankr
❇️ Claim Token on ankr
❇️ Repeat all above

What does it mean for ankr token if TVL picks up a good pace?

NFA. Stay SAFU_


Ankr LST arbitrage, risk-free!

What would be alternative of @yieldyak_ and @rage_trade #GLP strategy?

Long and Delta Neutral @CurveFinance tricrypto strategy

1️⃣ tricrypto pool weight mechanism
2️⃣ tricrypto Long strategy
3️⃣ tricrypto Delta Neutral strategy
4️⃣ Strategy APR
5️⃣ Strategy management


If not familiar with Curve tricrypto, can go through previous thread 🙏

This explains how TirCrypto consist similar risk of @GMX_IO #GLP

https://twitter.com/StrategySafu/status/1627270566335094787

1️⃣ tricrypto pool weight mechanism

tricrypto maintains each assets' weight as 33%,

❇️ when BTC price 🔼, pool is adjusted to less BTC token
❇️ when BTC price 🔽, pool is adjusted to more BTC token

while BTC's weight remains at 33%

2️⃣  tricrypto Long Strategy - implementation and exposure

🔸 deposit USDT on Curve for tricrypto and hold
🔸 stake on @CurveFinance, or @ConvexFinance if available

⚠️ 0.3 delta on both BTC and ETH

3️⃣ tricrypto Delta Neutral strategy - reference

Taking @rage_trade #GLP delta neutral implementation, supply USDT and borrow BTC & ETH to mint GLP @AaveAave

💠 can execute the same on tricrypto

https://docs.rage.trade/mechanism

3️⃣ Delta Neutral strategy - implementation

🔸 deposit USDT on @AaveAave
🔸 borrow BTC and ETH
🔸 use borrowed BTC & ETH and USDT to mint tricrypto

⚠️ ensure equal USD worth of BTC, ETH, USDT to mint tricrypto for #deltaneutral exposure

4️⃣ Strategy APR - Long

🔹 trading fee - varies from 0.7% to 1.8% depends on chains
🔹 staking yield - varies from 5% to 18% pre-CRV-boosted depends on chains

ℹ more stats on $CRV emission from @CurveCap

https://twitter.com/CurveCap/status/1625532410069913603

4️⃣ Strategy APR - Delta Neutral

assume maintaining 60% loan-to-value to borrow BTC and ETH on @AaveAave

DN strategy can only mint $70 worth tricrypto with $100 fund

DN APR take a 30% cut; approx a 35% cut with AAVE borrows

5️⃣ Strategy management

🔸 long strategy - simply buy and hold, just harvest to compound

🔸 DN strategy
✔ maintain health AAVE debt ratio avoiding liquidation
✔ maintain equal USD worth of BTC and ETH between borrows and tricrypto

Curve tricrypto Strategy Summary

🔸 similar to @yieldyak_ and @rage_trade $GLP
🔸 long - buy and forget and no management
🔸 DN - require AAVE to execute and to maintain equal portion assets, debt ratio
🔸DN take ~35% cut from long strategy APR

wen long and DN tricrypto vault?

Curve Tricrypto strategy - long and delta neutral

GMX GLP yield goes super viral on yield farming. Is there any alternative with similar risk?

Curve TriCrypto. Why? Let's dive in 👇
1️⃣ TriCrypto Basic
2️⃣ TriCrypto Yield Source
3️⃣ TriCrypto Risk
4️⃣ Comparison with GLP
5️⃣ Chains Availability


Big shout out to @DeFi_Made_Here for the inspiration!

https://twitter.com/DeFi_Made_Here/status/1623708932538507269?t=gY3bZsGy1oLkKZHWQtbbYg&s=19

1️⃣ TriCrypto Basic

It is a Curve v2 liquidity pool consisting of equal portion of USDT/WBTC/WETH. It powers the swaps between these 3 assets on Curve.


2️⃣ TriCrypto Yield Source

- trading fees, fees collected during any swaps via Curve
- staking yield, incentivized CRV from Curve

3️⃣ TriCrypto Risk

Suffers from impermanent loss. For instance, the pool will have 1.74% IL when there is 50% price change on both WBTC and WETH.

Can simulate the IL from the tool https://baller.netlify.app/.

5️⃣ Chains Availability

GLP - only on Arbitrum and Avalanche (BNB soon)
TriCrypto - on 5 chains including Ethereum, Polygon, Arbitrum, Avalanche, Fantom

(Thanks @CurveCap summarising $CRV emission on each chain)
https://twitter.com/CurveCap/status/1625532410069913603

Curve tricrypto is the new GMX GLP!

I came up with a USDC neutral arbitrage strategy that is NOT on @DefiLlama without any coding

~10% APR 

Let’s dive in, 
1⃣How to execute this arbitrage (NO coding needed)
2⃣Strategy constraints
3⃣Strategy APR

Big shout out to @SirMoremoney  for the inspiration and I made it as a USDC strategy utilizing the underlying yield source

https://twitter.com/SirMoremoney/status/1626131603712884742

To execute this arbitrage 

1⃣Deposit USDC to @AaveAave  / @BenqiFinance 
2⃣Borrow AVAX up to 65% LTV
3⃣Swap AVAX to sAVAX on DEX
4⃣Unstake sAVAX on BenQi
5⃣Repeat 2 to 4

Strategy constraints 1⃣

Note that how much to borrow AVAX is adjustable accordingly as USDC max LTV on:
🔹AAVE - 82.5%
🔹BenQi - 80% 

Strategy constraints 2⃣

KyberSwap provides best sAVAX/AVAX rate and below are all the rates: 

@KyberSwap : 1000 AVAX -&gt; 944 sAVAX
@Platypusdefi : 1000 AVAX -&gt; 943 sAVAX
@paraswap : 1000 AVAX -&gt; 938 sAVAX
@1inch (also routing on Kyber): 1000 AVAX -&gt; 944 sAVAX 

Strategy constraints 3⃣

Liquidation risk on AVAX debt - as if price of AVAX may increase the debt ratio. 

If you borrow AVAX up to 65% LTV and given 86.25% of liquidation threshold on @AaveAave  , you will have around 30% of headroom on AVAX price appreciation.

Strategy APR - 1st part

1) lending &amp; borrowing  
USDC lending yield = 2.5%
AVAX borrow rate = 5.25%
resulting = 2.75% (paying) 

Strategy APR - 2nd part

2) arbitrage yield from unstaking sAVAX

Unstake on BenQi with 1 AVAX = 0.937 sAVAX. 

Equivalent to get 1007.5 sAVAX 

That yields 0.75% on every arbitrage 

Assume arbitrage twice a month for 12 months = ~18% APR 

Strategy APR 

= (lending &amp; borrowing) - (arbitrage yield)
= -2.75% + 18% * 70%LTV
= ~10%

Noted that as only 70% of borrowed AVAX used for arbitrage yield.

SAFU_

You know what to do 🙏🙏

https://twitter.com/StrategySafu/status/1626438869272113155

I know you must love it!

@phtevenstrong @luigidemeo

Strategy constraints 2⃣ in case that tweet is not available to you! 

Benqi sAVAX LST arbitrage, risk-free!

$GMX GLP yield hits a record high this week, 90% on #Avalanche  and 55% on #Arbitrum  

but did it compensate the trader's PnL from the past 3 months on a cumulative perspective? 

Let’s find out!

On #Avalanche , GLP APR is 89.2% pure AVAX without esGMX. 

On #Avalanche , from the past 3 months, cumulative fees is at US$5.1MM. 

On #Avalanche , from the past 3 months, cumulative trader's PnL is at US$4.48MM. 

On #Avalanche , the resulting net between US$5.1MM fees and US$4.48MM trader's PnL for the past 3 months is just slightly less than 600K.

On #Arbitrum, GLP APR is 54.5% pure ETH without esGMX. 

On #Arbitrum, from the past 3 months, cumulative fees is at US$24.3MM. 

On #Arbitrum, from the past 3 months, cumulative trader's PnL is at US$7.4MM. 

On #Arbitrum, the resulting net between US$24.3MM fees and US$7.4MM trader's PnL for the past 3 months is US$17MM.

In conclusion, overall GLPing for the past 3 months is profitable on both #Avalanche  and #Arbitrum even taking trader’s PnL into account. 

SAFU_

@TheCryptoDog

@milesdeutscher

@Crypt0_Andrew

@monosarin

@defi_mochi

@alpha_pls

@DeFi_Cheetah

@OnChainWizard

@DeFi_Made_Here

@Slappjakke

@Only1temmy

@Chinchillah_

@0xTindorr

@SmallCapScience

@cyrilXBT

@Alvin0617

@thedailydegenhq

@DAdvisoor

@rektdiomedes

@crypto_linn

@crypthoem

@alpha_pls

@ViktorDefi

@DeFi_educator

@CryptoShiro_

@DegenCamp

@crypto_condom

@CryptoDragonite

@DefiIgnas

@defiprincess_

@thewolfofdefi

If you like this tweet, you know what to do.

https://twitter.com/StrategySafu/status/1626011926831714305