jedi blocmates 🥷 (@jediblocmates)

The VRTX LBA: A Deep Dive

Mon, 13 Nov 2023 07:30:49 GMT

𝟏𝟎 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐃𝐨𝐥𝐥𝐚𝐫𝐬 𝐢𝐧 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐯𝐨𝐥𝐮𝐦𝐞 𝐢𝐬 𝐧𝐨 𝐬𝐦𝐚𝐥𝐥 𝐟𝐞𝐚𝐭

@vertex_protocol has slowly but steadily been improving on the features of their Hybrid order book AMM-DEX

The $VRTX LBA is live
app.vertexprotocol.com/vrtx

All you need to know

This thread will cover:

- WTF is a VRTX LBA?
- Participation details
- The VRTX Auction design
- Why you should participate
- Auction parameters
- Key lockup and vesting schedules

Let’s get into it.

WTF is the VRTX LBA?

The goal of the VRTX LBA is to set a fair price for the token in seeding the starting VRTX liquidity to the markets.

The Liquidity bootstrapping Auction is the method by which Vertex hopes to achieve this.

The LBA will be a 7-day auction that concludes with the eventual $VRTX token launch

Three things make an LBA distinct from the usual LBP method:

- Elongated price discovery period utilizing a specific price curve.
- 2 Pool → 1 Pool model.
- LP token vesting and incentives.

This method allows anyone to participate, earn the VRTX tokens and receive rewards as well.

Let’s go into the details of participation shall we?

👇🏽

Participation details

- The LBA will start on the 13th of Nov up until the 20th of Nov from 13:00 UTC - 13:00 UTC

The LBA will occur in stages:

• Stage 1: The 7-Day Auction
• Stage 2: VRTX Token Launch & Liquid Claiming
• Stage 3: Post-LBA Vesting & VRTX Tokenomics

Auction Design

In stage 1, there will be two single-sided pools: A USDC.e pool and a VRTX pool

To participate, you’ll have to provide liquidity to either pools

After day 7, the final price at launch will be determined after both pools have been fused together.

Who can participate in the LBA:

The answer is anyone. However, only those who interacted (traded) on Vertex before the LBA, are eligible to supply VRTX to pool 2.

The VRTX will be distributed as a reward to these users on the first day of the LBA.

Post-LBA vesting schedule :

It’s important to note that deploying liquidity to either pool 1 or 2 will end in your LP being locked up and vested.

1/3rd of the LP liquidity from the auction will unlock 60 days after the LBA

The remaining LP will be unlocked 120 days after the end of the LBA

But that’s not all:

- After the LP is fully unlocked, those who choose to not withdraw it will continue to earn dual rewards

- However, those who withdraw the vested LO capital will stop earning

For more details on the LBA feel free to read the article published by Vertex on it.

https://twitter.com/vertex_protocol/status/1719349409413283965

Also, do your due diligence before choosing to participate.

You can read the unrolled version of this thread here: https://typefully.com/jediblocmates/0JaDQxJ

The Importance of IPOR in DeFi's Credit Market

Fri, 27 Oct 2023 15:58:16 GMT

OK! DeFi's credit market is not gonna survive without guys like IPOR, it's as simple as that.🤷🏼‍♂️

In the V1 of the protocol, the team focused on the MVP - Credit market fundamentals. V2 of @ipor_io Just launched!

Wanna find out what it brings & why it's so important?

In this thread, we will look into:

- A brief revisit of v1
- Zap-in into IPOR v2
- stETH yield boosting
- 90d DeFi interests rate swaps
- Architecture for Growth
- Structured products & Bonus feature
- Upcoming IPOR products

Let's get into it

1/ A brief revisit of V1

One main takeaway from V1 products: The IPOR Index; Interest rate swaps; IPOR AMM; and the Asset manager, is that great products in DeFi can be somewhat complex.

Especially when the goal is to create a structure that attracts Tradfi's interest.

2/ The solution to this would be simplifying the underlying tech to become usable by a larger audience.

In simple terms, if a Tradfi bro can understand it, then that's less work for a 'Brypto' bro

A look into the improvements, shall we?

3/ Zap-in into v2

V2 of the IPOR dApp comes with a better user interface that bumps up the general usability of the protocol.

It’s now easier to choose the APR that matches your appetite and Zap into it with a few clicks.

4/ stETH Yield boosting

V1 of IPOR allowed users to deploy their Stablecoins and earn reasonable yields on them (some of the best stablecoin yields in DeFi)

V2 opens the door to a plethora of other yield-seeking folks through stETH deposits

5/ Users with ETH, WETH, or stETH can now deposit into the stETH LPs.

What they’ll earn:

- Lido staking yield +
- pwIPOR LM rewards

stETH positions can also earn boosts by delegating pwIPOR to their positions just like it was tenable for stablecoin deposits in v1

6/ 90d DeFi interest rate swaps

Another addition to v2 is that it offers longer terms structure and improved LP risk management.

This is achieved through the removal of optionality and allowing close with an offsetting swap.

Interestingly, this might improve beyond 3months

7/ Architecture for Growth

In terms of architecture, IPOR v2 simplifies the protocol through:

- A diamond proxy to route users through the entire Protocol with a single approval.

- Updated pausing mechanism, accepting a list of method signatures executed only on the router

8/ As well as;

- Running “onBehalfof” functions

In v1, users could only run functions on their own behalf.

With the update, middleman solutions are now possible allowing for zapping, batching, and multi-call contracts or asset managers.

9/ For the derivative engine, three changes were made:

✦Extension of swap tenors up to 3 months

✦Removal of optionality from swaps (compression of spreads by AMM) and additional demand pricing;

✦Introduction of a risk oracle.

10/ Upcoming Products:

More products are yet to come as v2 will have more iterations in the coming weeks and months.

Some of these upcoming features are:

• The IPOR Stake Rate Swaps enable users to fix their ETH staking rate.

11/ • RWA bridge tapping into yield-bearing positions to capture the top yields from either DeFi or RWA.

• Liquid Fixed Rates help users borrow from the deepest liquidity at the best-fixed rates on the market.

12/ And finally,

• LP Leverage that enables IPOR LPs to loop-borrow against their liquidity positions leveraging up.

All these are exciting and would be worth the wait.

13/ Lastly, IPOR with the v2 upgrades will be the base for structured products in DeFi.

How? 👇🏽

It'll be able to combine Deep Liquidity + Capital Efficient Swaps to offer the best-fixed rates on the market.

An example of a protocol that can leverage IPOR is @MorphoLabs

14/ Concluding thoughts:

V2 exposes IPOR to mainstream DeFi participants, as well as Tradfi seeking to leverage DeFi.

Also, v2 opens the door for protocols to tap deep liquidity, take advantage of capital-efficient swaps, and opens the door for new assets.

15/ IPOR V2 ushers the protocol into a new phase: A decentralized marketplace that serves as the Credit Hub of DeFi. Connecting market liquidity and offering the best interest rates

However, it is important to understand how it works before jumping on it.

Kindly DYOR as well.

You can read the unrolled version of this thread here: https://typefully.com/jediblocmates/TweaTve

Migration Guide for @LybraFinanceLSD V2

Thu, 31 Aug 2023 16:18:49 GMT

@LybraFinanceLSD V2 here, it is MIGRATION time.

To enjoy v2, you have to move over from v1 buddy.

This thread will highlight how to do just that, migrating the following:

- LBR tokens
- eUSD
- LP

If you hold any of these, check below for how to migrate: 👇🏽

This thread will cover the following:

> How to migrate LBR from v1 to v2
> How to migrate eUSD from v1 to v2
> How to migrate your LP from v1 to v2
> How to apply for CR Guardian, Redemption Provider, or Liquidation Provider
> Rewards for early migration

Let's get into it.

How to Migrate LBR

For those who hold LBR on OKX, there's no need to migrate.

If not, do this:

- Go to the Lybra Finance website http://lybra.finance/ and click “Launch App” in the top-right-hand corner:

- Click “Connect Wallet” in the top-right-hand corner

- Proceed to click on the “Approve To Migrate” button

- Within your wallet, you will then be asked to set a Spending Cap. Select “Max” and then click “Next”. You will then be asked to review your Spending Cap.

- Press “Approve”

- Once you have done this, a new button will appear in the top-right-hand corner of the V2 app, saying “Migrate”. Click on this button:

- After following all of these steps, your LBR will have been successfully migrated from Lybra V1 to V2.

How to migrate eUSD from v1 to v2

It is important to note that you can always migrate your eUSD at any time.

- Go to Lybra V1 http://v1.lybra.finance/ and unstake your eUSD/USDC LP:

- Remove your eUSD/USDC LP on Curve

- Repay your eUSD loan on Lybra V1:

- Withdraw your collateral assets on Lybra V1 and close your position

- Launch the Lybra V2 app (you can do this by heading over to the Lybra Finance homepage http://lybra.finance/ and clicking “Launch App”).

- Mint your V2 eUSD on the Lybra V2 app.

How To Migrate LP From Lybra V1 to Lybra V2

- Go to Lybra V1 http://v1.lybra.finance/ and unstake your LP.

- Remove your LBR/ETH LP on Uniswap V2 AND/OR remove your eUSD/USDC LP on Curve, as appropriate.

And that's it.

Concerning the esLBR migration, Lybra has this automated so you would not need to go through a process similar to the aforementioned migrations.

Lastly,

How to apply for CR Guardian, Redemption Provider, or Liquidation Provider

The application process is similar to that of V1, nothing changes.

Head to the Lybra Finance homepage and sign up.

Rewards for early migration/deadlines:

LBR migration will end by September 30th, however, eUSD migrations have no deadline.

In terms of rewards, users who migrate from V1 to V2 or sign up to V2 for the first time within 7 days of the V2 mining program starting will receive 1.5x emissions compared to base V2 emissions if participating in mining activities.

Enjoy the new improved Lybra.

Challenging Lido's Dominance: Swell Network's Approach

Mon, 21 Aug 2023 10:00:36 GMT

Who would you Pick as a "Worthy Challenger" to Lido's LSD dominance.

Consider that Lido's TVL is ~ $15B.

Today's thread looks at @swellnetworkio in the LSD scene.

Swell's approach is different and exciting -- A challenger maybe?

Let's find out 👇🏽

In this thread, we will look at

> The issues with Lido's dominance
> A worthy challenger, Swell
> Swell's achievements
> Dethroning Lido and Rocketpool
> Security Simplicity, Profitability
> LSDfi
> What to expect
> Thoughts

If you've ever strolled to @DefiLlama to check the pie chart for LSD protocols, you would know that the chart is the textbook definition of a monopoly.

Lido alongside its LST, stETH, occupies a more significant share of the LSD market.

https://defillama.com/lsd

For a number of reasons, this is a ticking bomb. E.g:

- The Cartel :)
- MEV Abuse
- Censorship

Are all rational fears concerning Lido's monopoly on ETH staking.

A worthy challenger, Swell.

For Swell to compete with Lido, one thing is very important

--> It has to offer more yields.

Thankfully, Swell is focused on both simplicity and profitability
And offers better yields than Lido.

Swell launched in April and is one of the fastest-growing protocols in terms of TVL.

In the first week of August, Swell's TVL grew from $58m to $75m and has been on the rise ever since

What are the Devs doing right? Because they are clearly doing something.

In terms of growth, Swell is the third fastest-growing LSD protocol, overtaking frxETH

And with the ongoing "The Voyage" Campaign, we can expect Swell to continue in this trajectory.

The voyage campaign allows a hunt for "Pearls",

https://app.swellnetwork.io/voyage

I've been collecting pearls, have you?

You collect pearls by holding swETH and LPing eligible pools. More volume = More pearls and there are legit no minimum requirements.

Swell's also been integrating with other protocols

E.g: swETH-ETH pool on Maverick with ~ $19m TVL.

Beyond integrations, some major UI updates have been implemented.

Remember that the focus is on simplicity and profitability

Nonetheless, despite all of these, there is a need to look at the chances Swell has in dethroning Lido and Rocketpool.

In order for Swell to perform significantly better than these two forerunners mentioned,

Swell would need to be better at the variables that constitute the success of both Lido and Rocketpool

And not to forget that the TVL also matters.

Three things come to mind beyond the first mover advantage for Lido and Rocket, and they are:

- Security
- Ease of use
- Profitability

Doing better at these will surely see an influx of ETH into Swell.

Security

Similar risks exist in all 3 protocols (Lido, Rocket, and Swell), including the everpresent smart contract risk

Steps like audits and bug bounties help minimize this risk

Swell stand out with an audit from Ethereum Foundation's Sigma prime, ensuring top security.

Still on security, Penalties and slashing are shared risks. Missed attestations or malpractice leads to ETH loss

Swell, in this case, wisely goes for trusted node operators to reduce this risk.

Additionally, they have insurance coverage for unforeseen scenarios. Sweet!

Now, let's look at "Ease of use"

All 3 protocols offer sleek UI and a good user experience. But Swell goes beyond with direct on-ramping, allowing seamless access via:

- credit/debit cards
- bank wire
-cashapp
- google pay or apple pay

It's genius!

Swell also simplifies the onboarding process, avoiding complex steps like KYC, multiple transfers, and wallet setups'

It's integrated with Transak ensuring a seamless user experience.

In-house vaults are in the works bringing even more simplicity and yield opportunities.

Lastly, Profitability:

Swell enhances user earnings/yields with liquidity mining partner integrations, offering higher yields than elsewhere.

Beyond the regular 3-5% APR by the trio, Swell's ongoing incentive allows users to get boosted swETH + $SWELL currently at 34.5%

Swell also plans for sustainability in two ways;

- Waived fees will cease to exist and 10% will be charged moving forward

- Swell allows you to boycott taxes levied on the rebase system of accruing ETH used by Lido and Rocket.

You get the same % but boycott taxes.

LSDfi:

Born from the success of LSD protocols, LSDfi is a multi-tiered ecosystem with base LSD providers like the Trio (Lido, Rocket, Swell etc)

LSDs create higher yields, diversification, and optimization.

Swell's taking advantage of the LSDfi momentum. How?

LSDfi protocols are getting massive TVL with protocols like Asymmetry and UnshETH leading the onslaught.

Swell integrates with protocols like Gravita, and has hinted at a Lyra partnership as well.

The more LSDfi integrations for swETH, the more Swell grows rapidly.

What to expect:

- Permissionless nodes
- More yield opportunities
- CDP integrations
- Other protocol integrations

Thoughts:

Lido remains a big player, no doubt. However, Swell gradually meets all the requirements of a serious contender and should not be underrated.

The Swell team remains committed to innovation and is on top of its game.

Go DYOR and would love to hear your thoughts.

Bumper Your ETH: Protecting Assets from Volatility

Mon, 07 Aug 2023 14:39:12 GMT

Ever heard of the term "Bumper your ETH"?

If YES, then you are a step ahead in this crypto thing.
However, if NO, then grab a cuppa, grab a seat, and read through this thread.

Perhaps, you will discover how you can protect your assets from downside volatility.

Dive in 🏄🏻‍♂️

This thread will cover :

- An intro to @bumperfinance
- The problem
- Bumpering your asset - The solution
- User dynamics
- Simulation report
- Bumper v1
- Our thoughts

The problem:

Trading crypto assets is not an infinite money glitch, so price movement is not up only.

On a CEX, you'll reckon that the smart thing to do is set a stop loss..but what happens when that is not triggered?

Or when it triggers, albeit, the price says; Gotcha!

... and moves in the opposite direction.

You miss the pump even though you had a near-accurate analysis of price action, as well as loss from the fees charged.

And don't get me started on existing DEXs either.

What then, is the solution?

The solution

Simple! Bumper your crypto asset.

huh? What's that?

Picture bumpering your crypto asset like you are setting a stop loss, this time, without the nuances.
I'll explain.

The act of Bumpering your assets is pioneered by @bumperfinance; a protocol that introduces a novel approach to risk management for those interested in hedging against losses, combining Stop loss and Put options

Two key users play a role:
- The protection seeker
- The earner

The protection seeker - A user who wants to protect their assets from price drops

The earner - clever folks who make sure price protection works like magic, in turn, they get to earn yields!

How does it work though?

Bumper’s solution helps users protect the value of their assets like ETH and wrapped Bitcoin (wBTC) by holding deposits of a volatile token for a certain period.

These deposits are pooled and generate a regular premium.

Imagine it as joining an "insurance pool" for your crypto assets. This way, you shield their value from potential losses caused by wild price swings.

Picture the US dollar tied to gold before 1970 and you’d have a pretty good idea of how this works

Protection seekers contribute to the pool and can claim compensation in stable tokens if the asset value falls below their chosen floor price, all while retaining their original asset in the system.

They receive a synthetic asset once they deposit.

Deposits ETH receives "buETH" that's shielded from downside volatility and can be used in other protocols.

The deposited asset remains locked in Bumper for the chosen term.

At term end, two outcomes emerge: asset >= floor = keep asset, asset < floor = receive stablecoin.

It's a win-win for protection seekers! No loss situation! 🤝

Advantages abound for DeFi enthusiasts. With bETH, you can explore protocols while being protected from lows.

Capital efficiency and reduced Impermanent Loss make LPing more exciting in Bumpered asset pairs.

Earners, you're in for a treat too!

>Provide stablecoin to profit from negative price changes of supported crypto.

>Earn premiums from protection-seeking users when they close their position.

Renew or close positions, claim protection, and withdraw ETH/USDC from the pool.

Simulation report:

Protocols in the bear market often neglect the R&D phase, but not Bumper!

Stress-testing is crucial for innovation, and Bumper takes it seriously.

They simulated historical price action and various market scenarios to ensure efficiency and solvency.

The simulation acted as a 'crash test' for Bumper, validating its effectiveness.

On the Protection side, it proved highly price efficient, while Earn side users enjoyed better yields.

Bumper remained solvent in all situations.
Robustness is key in crypto!

Bumper Protocol's brilliance shines in benchmark pricing! 🌟

Compared to traditional Put options, Bumpered positions paid lower premia.

It's an economic win for users, proving Bumper's effectiveness in dynamic environments.

Bumper V1 is rumoured to be coming soon (August?) and the codebase is undergoing smart contract audit at this very moment.

While this sounds quite exciting and fresh, as always, DYOR

The Lybra Wars: Exploring V2 Vaults and Pools

Sun, 06 Aug 2023 15:15:28 GMT

First came the LSDfi wars with a scramble to attract the:

-most liquidity
-most trading volume
- and be paired with the most assets

Now, Lybra v2 brings to our doorstep, a new WAR ⚠️

Wanna find out what the “Lybra wars” would look like, tap in👇🏽

In this thread, we will cover:

-Lybra v2 Vaults and pools
-New governance model
-How the wars would work
-Bribing process
-Summary

Let’s dig in:

V2 testnet has been live for a while and Mainnet seems close.

The focus today is how v2 enables a fight for incentives.

To understand the “How” we must grasp how the vaults and pools work.

One thing is certain.

Lybra v2 will come with a lot of LST pools, significantly more than v1.

What this means, is flexibility in terms of LST collaterals to mint eUSD (interest-bearing stablecoin with 8% APY)

The vaults will be divided into two:

-Rebase Vault
-Non-Rebase vaults

Each vault will have a separate pool for individual assets.

e/g. Distinct pools for stETH, WBETH, rETH, swET,H and other LSTs

New Governance model:

Now that we’ve established how the vaults and pools are distributed, we examine how the governance would function.

V2 gives Lybra’s governance tokens more power or control or whatever you name it.

You see… 👀

esLBR holders now have a say in the direction of the protocol and this includes the treasury 🔑

esLBR will be used to vote on LST pools such that it determines:

-Accepting an LST
-Mint limit
-Emissions allocation to LST pools

Not to shabby!

Of course, to participate in such votes you and I have to hold esLBR, in which case our holdings are proportional to the amount of votes, or not.

Not because you can vote with your $LBR as well!

How?

The protocol automatically converts LBR to esLBR to enable them with the voting power

Voting powers =

Quantity of esLBR
Length of Time in which it’s been locked

Now that we know this, how would the wars work?

esLBR holders will be able to vote on quite a few things but what’s important is voting on the direction of emissions .0

This opens the door for bribes, potentially creating a scenario where individual LST pools will incentivize holders to vote in favour of their pools.

The bribes will most likely be in the form of token rewards to esLBR holders.

Holders' incentives match their voting power in support.

Higher esLBR votes boost pool weight, leading to escalated emissions.

Boosted esLBR emission attracts more deposits to the pool.

A cycle of growth fueled by aligned incentives!

This is reminiscent of the curve wars and sounds exciting for esLBR and LBR holders.

Summary:

Amongst other significant changes coming in v2, Lybra is indeed protecting the interest of long-term supporters with an incentivized war and bribery mechanism.

In anticipation, you can start locking your LBR tokens to accumulate voting weight😉

Get on it!

Discovering Solana's New Epoch with Hxro Network

Wed, 19 Jul 2023 22:13:08 GMT

If you think @solana is a wasteland, skip this...

But,

If you agree with Vitalik's position on the American chain, then check this thread for details on one of the frontrunners of Solana's new epoch:

@HxroNetwork

Dive in 🏄🏻‍♂️

If you are looking for projects that thrive in this space from the shills of your favorite threadoors, then you are sniffing at the wrong place

If you pay attention to detail, you will discover that the projects that do well all have one thing in common.

wanna find out?
👇

Good projects always have one thing in common: "An Ecosystem of products built around them:

Examples:

Curve - Convex, The llamas, Frax, Redacted Cartel

GMX - So many GMX forks and GLP products

Uniswap - @0xOrangeFinance , Arrakis, Panoptic etc

And HXRO? What about it?
👇

Like these projects mentioned above, the HXRO network is rapidly building and onboarding projects at a rapid rate.

Hxro's core primitives, Dexterity and Spandex, empower builders to leverage their underlying architecture for maximum advantage...💪⚡️

From perps and expiring futures to options and bonds.

The net positive for $HXRO holders is that;

- Network revenue share,
- Fee capture,
- HXRO buyback and max-locks

all increase with the more products that are built using their tech.

It gets more interesting as projects will likely begin to fight to get the lion's share of the network's revenue by staking their HXRO treasuries

Yea! Pretty much like the curve wars type of stuff.

Some of the exciting projects onboard HXRO are : 👇

- @ThePepperDEX
- @FlowmaticXYZ
- @IconicMarkets
- @BONKorBUST and

- @YoloNoloBot - a discord bot built on a parimutuel protocol and generating fees that go $HXRO stakers...likeevery other Dapp on HXRO network

As more protocols build on the HXRO network, the more value for HXRO stakers. Exciting right?

The question, however, is how are projects incentivized to build on top of HXRO?

The reason: 👇

Hxro boasts a cohesive liquidity layer throughout its DApps, eliminating the need for individuals seeking to bootstrap liquidity to embark on a quest for new LPs or rely on superfluous liquidity mining rewards.

Hxro therefore, is an obvious alternative, allowing projects to..

utilize the depth of Network shared liquidity, take advantage of the risk engines and infrastructure and earn protocol fees.

tl:dr
• HXRO accrues value from all protocols built on top of it

• Protocol revenue share is used to purchase HXRO off the market, and

max stake it taking additional supply off the market

• Fees will be paid from all corners of the network to HXRO Stakers

In all of this, the commitment of the HXRO team to the tokenomics of projects built on it supersedes all existing SOLANA tokens ...

Especially those that had the Alameda stamp of low float, High FDV

We all know how that ended...

However, w HXRO, you can't help but feel something fresh is on Solana

While I will be going all in, Locking those HXRO tokens of mine to enjoy the incentives...

Feel free to check out the projects building on the HXRO stack as some of them have proven to be real-time wallet coke

Like always, don't just take my word for it..DYOR ..however, we know a real deal when we come across one.

You can read the unrolled version of this thread here: https://typefully.com/jediblocmates/1uQ2CSW

Spool V2: Revolutionizing DeFi Investments

Fri, 14 Jul 2023 10:18:09 GMT

@SpoolFi is back with a newer, improved V2

https://www.spool.fi/

Let's see what V2 entails.

Check it out👇

Introducing V2:

Spool V2 is a DeFi toolbox revolutionizing investment products for DeFi yield.

A complete rewrite of V1: it is faster, more efficient, and remarkably flexible.

This product caters not only to DeFi enthusiasts but also to hesitant TradFi institutions.

At the core of this protocol are the smart vaults, akin to traditional DeFi vaults.

These smart contracts automate investment strategies, executing chosen strategies to earn users' yield.

What sets Spool Vaults apart is the in-built risk model, providing users flexibility.

Guards:

Guards in Spool Vaults are a powerful feature that allows creators to control access to their investment vaults.

While vault creation remains permissionless, creators can decide who can invest in their vaults.

Guards can take various forms recorded on a smart contract.

Examples include:
- Whitelisting
- NFT gating
- Fungible token gating
- Time locks
- and wallet age gating.

These guards provide flexibility and control vault access.

Another feature is "Actions"

Actions are designed to enhance adaptability and efficiency for creators and investors.

Actions are tied to user activity, primarily deposits, and withdrawals, deposit fees, or early withdrawal penalties.

Actions provide creators with customization options and allow for a tailored user experience.

Let's explore a couple of examples:

Institutions can implement deposit fees for an instant and consistent ROI on their investment product.

Another "Action" is an insurance fee to cover unforeseen catastrophic events in the crypto market.

This fee offers additional protection to investors.

Early withdrawal penalties can also be imposed, providing an option for those seeking to exit a vault prematurely.

The most intriguing Action is Automated Asset Swaps.

Vault creators can configure automatic token swaps to align with the specific strategy executed by the vault.

This enhances flexibility and control over the investment product.

Complex Actions

The driver of liquidity in the Spool ecosystem is vault strategies.

V2 brings significant improvements, allowing for volatile assets and multi-asset strategies.

Spool's risk models ensure diversification and minimize risks based on user preferences

Vault tokenization adds complexity and composability.

Depositors receive NFTs representing their positions, which can be used as collateral, staked for yield, or traded for premiums and discounts.

Endless possibilities arise from this innovation.

Liquid Staking Derivatives (LSDs) are another exciting addition.

Spool V2 enables the creation of complex strategies using different LSDs.

The yield generation potential with LSDs is vast, and Spool automates these multi-asset strategies.

Spool Token:

The $SPOOL token grants value accrual to holders and permits governance.

With a maximum supply of 210M, distribution includes fair launch, builders, advisors, ecosystem, and DAO governance.

DAO controls 67% of the supply for emissions, liquidity, and growth.

Impressive fact: 1/3 of the supply has already been burned by builders, preDAO members, and the treasury to maintain decentralization.

Holders can stake SPOOL to acquire voSPOOL, gaining governance power.

Voting covers SIPs, emissions, risk models, and treasury management

voSPOOL accumulation starts after staking SPOOL, increasing with stake size.

Long-term voting is prioritized, resetting voSPOOL to 0 upon unstaking.

The treasury is built through performance fees, with 80% distributed to stakers and 20% going to the DAO-governed treasury.

Keep an eye on Spool and their V2 offering.

I think they will change the way vaults operate efficiently in DeFi and will allow institutions to get involved.

Please like and RT.
It is appreciated.

WenLlama: The NFT Project That's Actually Working

Fri, 09 Jun 2023 08:03:26 GMT

Two months ago we told you about the @WenLlama 's.
Most of you faded and thought:
"This is just another cash grab NFT project".

We presented a long-form article about what @WenLlama were doing.
This was an obvious winner and yes we were right.

https://blocmates.com/blogmates/the-llamas-a-social-layer-cultural-flywheel-of-the-curve-ecosystem/

If you had read our article I bet you bought yourself a llama.

This kind of project brings that innovation to NFT's that few are doing—a flywheel effect from the curve ecosystem of yield paid to you as a llama holder.
If you were not aware of this project the TLDR is as follows:

1111 Llamas exist
The public mint is still underway and I think 30 remain... The public mint is a live auction.
One llama every hour for 30 days.
Almost 3 milly raised which will be put to work.

https://llamas-teal.vercel.app/

It will be interesting to see how the hodl culture develops around these particular NFT's and also how the wenllama crew go about creating revenue for their holders.
A brilliant experiment unfolds, and we get to see it reveal itself in all its complexities.

Lybra V2: Overview and Updates

Tue, 23 May 2023 11:06:43 GMT

This is not an alpha thread or is it?

This is a summary thread on wtf is going on with Lybra V2.

Do not read it if you do not want to grow your knowledge.

If however, you want to know what @LybraFinanceLSD are doing with the V2 edition of their experiment then read below.

This thread will cover:

> Lybra’s v1 success
> Omnichain (OFT and weUSD)
> Added LSDs collaterals
> Tokenomics upgrades
> Mining update/Emission tweaks
> Wen Launch
> Closing thoughts

Lybra’s V1 success:

Lybra’s a decentralized finance protocol issuing a stablecoin (eUSD) backed by LSDs starting with stETH — the liquid received for staked ETH on @LidoFinance

You can check out our previous article here to get started. 👇🏽

https://blocmates.com/blogmates/the-race-to-stablecoin-supremacy-enter-lybra-finance/

since the launch of Lybra v1 in April, the protocol’s performed considerably well with some of the metrics mentioned above:

> Over $60m in TVL
> Over $20m eUSD borrowed and in circulation
> crossed 7k on twitter before @jediblocmates
> Launched a bug bounty program

.. 😮‍💨

But Lybra isn’t stopping anytime soon. Laced with feedback from the community and supporters, Lybra is gearing up for V2

What’s the content? We are about to find out in this thread starting with Omnichain integration.

Ready?

Ominichain integration (OFT and weUSD)

>Arbitrum’s TVL has been impressive and is simply becoming the home for DeFi.

>Lybra recognizes this and will be integrating with the Arbitrum chain and other chains in the future.

Lybra will be omnichain by integrating LayerZero.
👇🏽

To function as an omnichain protocol, Lybra tokens (eUSD and LBR) will need to be transformed to OFTs (Omnichain fungible tokens)

Users will be able to:

>Mint eUSD on ethereum
>Bridge eUSD to L2 to receive OFT - weUSD

Once eUSD is bridged, a pool is formed in weUSD
👇🏽

Support for other LSDs and LSTs :

In V2 , Lybra will add support for the following:

rETH, stETH2, wBETH, swETH, and tapETH.

However, these can be removed by the DAO and newer ones can be added as well if a decision is reached by the DAO
👇🏽

New LSD integration means more opportunities and room for growth as TVL increase will attract more deposits and increase eUSD borrowing

More borrowing = eUSD utility across chains

It’s all a big beneficial f—- cycle

There’s more 👇🏽

Tokenomics Upgrade:

The Lybra team will be adjusting the tokenomics to accommodate a few new items:

> LBR to become deflationary token via burns

> A small portion of the supply goes to reserves to supercharge Lybra through partnerships and onboarding institutions.

👇🏽⛳️

More on tokenomics upgrade:

> In a situation where a VC is onboarded, vesting will be in line with TGE and for a year

It’s also important to migrate from the genesis LBR to the new contract as a deadline would be fixed and a snapshot taken to this effect.

👇🏽

Contd:

> esLBR vesting will be increased from 30days to 60days at 1.66% daily vesting.

👇🏽

Mining update/ emission tweak

esLBR emission will be tweaked using a dynamic liquidity provider metric. How?

> A minimum 5% threshold in locked Dynamic Liquidity relative to the total value of borrowed eUSD

Contd:

To be eligible for emission rewards, users got to provide dLP tokens in the tune of 5% and above

> Where a user’s dLP falls below the threshold (5%) of borrowed eUSD, the user won’t receive the next esLBR emissions

👇🏽

Contd:

> During the period of ineligibility, a bounty will be placed on the unclaimable reward and can be purchased at a 50% discount in LBR

> Should the dLP rise back to or over 5%, the user resumes receiving the rewards

Contd:

> Version 2 will witness an increase in locking lengths and proportional boosts

> Other pool incentives will remain unchanged although yields might fluctuate

👇🏽

Other updates 🤷🏼‍♂️

> V2 will come with an updated UI/UX design, (hopefully distinct from LIDO’s this time in terms of UI 😂)

> The DAO will be officially launched after V2 and will be highly effective in decision making

> More research into improving eUSD peg / Audits

👇🏽

Wen Launch? 🚀

The moment you’ve been waiting for 🌚🏌️‍♂️

Testnet will be available next month, while Mainnet is scheduled to arrive sometime between July and August.

🔥💯

Closing thoughts 💭

As LSD narrative continues to heat up, Lybra’s sturdy approach to Stablecoins is interwoven so neatly with the narrative and as early signs have shown, is quite promising.

Lybra protocol is one to keep an eye on especially as we gravitate towards V2!

You can read the unrolled version of this thread here: https://typefully.com/jediblocmates/vKe2FWB

Lyra V2: A Comprehensive Overview

Tue, 23 May 2023 10:57:48 GMT

This is not an alpha thread.

This is a summary thread on wtf is going on with Lyra V2.

Do not read it if you do not want to grow your knowledge.

If however, you want to know what @LybraFinanceLSD are doing with the V2 edition of their experiment then read below.

This thread will cover:

> Lybra’s v1 success
> Omnichain (OFT and weUSD)
> Added LSDs collaterals
> Tokenomics upgrades
> Mining update/Emission tweaks
> Wen Launch
> Closing thoughts

Lybra’s V1 success:

Lybra’s a decentralized finance protocol issuing a stablecoin (eUSD) backed by LSDs starting with stETH — the liquid received for staked ETH on @LidoFinance

You can check out our previous article here to get started. 👇🏽

https://blocmates.com/blogmates/the-race-to-stablecoin-supremacy-enter-lybra-finance/

since the launch of Lybra v1 in April, the protocol’s performed considerably well with some of the metrics mentioned above:

> Over $60m in TVL
> Over $20m eUSD borrowed and in circulation
> crossed 7k on twitter before @jediblocmates
> Launched a bug bounty program

.. 😮‍💨

But Lybra isn’t stopping anytime soon. Laced with feedback from the community and supporters, Lybra is gearing up for V2

What’s the content? We are about to find out in this thread starting with Omnichain integration.

Ready?

Ominichain integration (OFT and weUSD)

>Arbitrum’s TVL has been impressive and is simply becoming the home for DeFi.

>Lybra recognizes this and will be integrating with the Arbitrum chain and other chains in the future.

Lybra will be omnichain by integrating LayerZero.
👇🏽

To function as an omnichain protocol, Lybra tokens (eUSD and LBR) will need to be transformed to OFTs (Omnichain fungible tokens)

Users will be able to:

>Mint eUSD on ethereum
>Bridge eUSD to L2 to receive OFT - weUSD

Once eUSD is bridged, a pool is formed in weUSD
👇🏽

Support for other LSDs and LSTs :

In V2 , Lybra will add support for the following:

rETH, stETH2, wBETH, swETH, and tapETH.

However, these can be removed by the DAO and newer ones can be added as well if a decision is reached by the DAO
👇🏽

New LSD integration means more opportunities and room for growth as TVL increase will attract more deposits and increase eUSD borrowing

More borrowing = eUSD utility across chains

It’s all a big beneficial f—- cycle

There’s more 👇🏽

Tokenomics Upgrade:

The Lybra team will be adjusting the tokenomics to accommodate a few new items:

> LBR to become deflationary token via burns

> A small portion of the supply goes to reserves to supercharge Lybra through partnerships and onboarding institutions.

👇🏽⛳️

More on tokenomics upgrade:

> In a situation where a VC is onboarded, vesting will be in line with TGE and for a year

It’s also important to migrate from the genesis LBR to the new contract as a deadline would be fixed and a snapshot taken to this effect.

👇🏽

Contd:

> esLBR vesting will be increased from 30days to 60days at 1.66% daily vesting.

👇🏽

Mining update/ emission tweak

esLBR emission will be tweaked using a dynamic liquidity provider metric. How?

> A minimum 5% threshold in locked Dynamic Liquidity relative to the total value of borrowed eUSD

Contd:

To be eligible for emission rewards, users got to provide dLP tokens in the tune of 5% and above

> Where a user’s dLP falls below the threshold (5%) of borrowed eUSD, the user won’t receive the next esLBR emissions

👇🏽

Contd:

> During the period of ineligibility, a bounty will be placed on the unclaimable reward and can be purchased at a 50% discount in LBR

> Should the dLP rise back to or over 5%, the user resumes receiving the rewards

Contd:

> Version 2 will witness an increase in locking lengths and proportional boosts

> Other pool incentives will remain unchanged although yields might fluctuate

👇🏽

Other updates 🤷🏼‍♂️

> V2 will come with an updated UI/UX design, (hopefully distinct from LIDO’s this time in terms of UI 😂)

> The DAO will be officially launched after V2 and will be highly effective in decision making

> More research into improving eUSD peg / Audits

👇🏽

Wen Launch? 🚀

The moment you’ve been waiting for 🌚🏌️‍♂️

Testnet will be available next month, while Mainnet is scheduled to arrive sometime between July and August.

🔥💯

Closing thoughts 💭

As LSD narrative continues to heat up, Lybra’s sturdy approach to Stablecoins is interwoven so neatly with the narrative and as early signs have shown, is quite promising.

Lybra protocol is one to keep an eye on especially as we gravitate towards V2!

Caviar Labs: Building DeFi on Radix Network

Fri, 19 May 2023 12:50:48 GMT

Babylon is getting closer; our eyes are on some exciting projects that made it through the grant.

Today's spotlight is on @CaviarLabs

Building the nitty gritty of DeFi on Radix, here's what this project is doing differently on the Radix network.

Let's dive in.

🧵👇

This thread covers the following:

- Backpedaling to @Grantblocmates masterpiece
- Why @radixdlt
- @CaviarLabs
- The Caviar ecosystem
- Closing thoughts

Keep scrolling, mate.

Grant:

As long as we continue covering projects from the Radix eco, we will refer you to @Grantblocmates article on Radix as a precursor to understanding these projects.

Here's the article: bit.ly/41kzyUp

Why’s this worth mentioning, you may ask?

⤵️

The guys at @CaviarLabs
have chosen to build DeFi applications on Radix, a Layer 1 network.

For some reasons which are:

- High throughput
- Rapid finality

Now, back to our guys at Cavier ⬇️

Caviar Labs:
Caviar’s team of 8 individuals is based across Thailand, Singapore, and Australia with Oliver-Scott Simons & Chris Colman leading the band as co-founders.

The team is focused on building a unique combination of financial products on #Radix. 🎯

4) @CaviarLabs is gearing up for the Mainnet launch, having released prototype centralized versions of some of the products.

A combination of financial products makes the Caviar ecosystem.

⤵️
https://twitter.com/Jacob_XRD/status/1659445027440037889?s=20

Caviar products:
Caviar Swap — a DEX where users can provide liquidity to enable swaps using a single token as well as multi-transactions execution in a single request. Fees from Caviar Swap will accrue to $floop Stakers.

Prototype --> https://caviarswap.io

⤵️

More on products;

Caviar DEX aggregator (DSOR) — a decentralized order smart router offering the best liquidity-efficient options for DEX users.

Check out the centralized prototype at https://dsor.io

Keep reading:

⤵️

🪄Caviar’s suite of products would later down their roadmap feature a Perp DEX, investable indexes, and others.

The Floop token will be released after Babylon and will only ever have a total supply of 1000 tokens.

It gets more interesting👇

Floop holders are guaranteed a discount in transaction fees on CaviarSwap.

Holders who decide to stake their Floop will benefit from a share (20%) of the fees generated on the Caviar swap as well as a share of fees across Caviar’s other suite of products. 💰

👇

Closing Thoughts:

the @CaviarLabs team is pretty based and ready to contribute their quota to the growth of the Radix ecosystem.

They’re worth keeping an 👀on and we at Blocmates will be doing just that.

To learn more about what these champs are building 👇

Check out the prototype version of the products at the moment or look up the docs for CaviarSwap: docs.caviarswap.io/ and DSOR: docs.dsor.io/

Join the Cavier Discord community: discord.gg/GRHYFZxU

You can read the unrolled version of this thread here: https://typefully.com/jediblocmates/HqEtLkD

Avoiding MEV Bots in DeFi: Tips and Tools

Fri, 12 May 2023 12:00:23 GMT

MEV bots are a pain in the ass!!
If you forget to set your slippage in DeFi you can get properly rinsed.

Want to know how to stay safe?

Set up a Flashbot Protect RPC or MEV Blocker.

> Here' is how.....

🧵👇

1) To start with, the meme narrative over the past weeks and Jared, an exceptionally lucrative MEV bot has brought the concept of sandwich and MEV exploitation to the limelight.

To understand better, here's a good thread explaining it all.

https://twitter.com/bertcmiller/status/1656392878946648064?s=20

2) Flashbot protect RPC helps you front-run sandwich attacks;

It allows your Txns to skip the public mempool; a den of vicious sandwich bots, sending your txns straight to the miner.

Of course, you might even enjoy another feature beyond security, i.e: txn priority.

OK?

3) How to set it up?

> Ensure that whatever wallet being used supports "Custom RPCs"

> Proceed to click on add network

> Click on add network manually

⤵️

4) Proceed to add the following details:

Network Name: Flashbots Protect RPC

New RPC URL: https://rpc.flashbots.net

ChainID: 1

Currency Symbol: ETH

The Block explorer can remain "https://etherscan.io

5) Click on "Save" and stay on the network to use Flashbot protect RPC to safeguard your transactions.

On the other hand, you have "MEV' Blocker and while they are similar (MEV blocker and Flash), there are dissimilarities such as:

6) Flashbot vs MEV blocker:

While Flashbot Protect sends to 1 builder, MEV blocker sends to 6 builders

Flashbot Protect will give you security and a lil bit of frontrunning TXNs but zero rebates, while MEV blocker gives you 90% rebate.

So, here's how to add MEV blocker

7) To add directly,

> Go here: mevblocker.io/#rpc

For Manual addition:

> Ensure that whatever wallet being used supports "Custom RPCs"

> Proceed to click on add network

> Click on add network manually

(PS: Images above are relevant to this process)

8) Proceed to add the following in the space provided:

>Network Name: MEV Blocker (Ethereum Mainnet)

>New RPC URL: https://rpc.mevblocker.io

>Chain ID: 1

>Currency Symbol: ETH

>Block Explorer URL https://etherscan.io

9) That's about it, fellow autists!

As always, endeavour to stay protected in this space.

If you find this thread resourceful, like, RT, and follow this account with your tweet notification on.
A rude comment also goes a long way.

You can read the unrolled version of this thread here: https://typefully.com/jediblocmates/sguDB4j

InterSwap vs. Stargate: What's the Difference?

Mon, 17 Apr 2023 14:01:42 GMT

So what is the difference between @InterSwap_io and @StargateFinance?

A lot of people think that they are the same thing.
Well they not

In this thread, we will cover the following:

> No one wants to bridge like that in 2023
> Enter Stargate
> What is Interswap ?
> InterSwap goodies
> Closing thoughts

No one wants to bridge like that in 2023

It is insanely risky to use intermediary chains to move assets from chain A to chain B

Likewise, using wrapped assets, burn and mint, lock and unlock processes to facilitate inter-chain asset movement are prone to risks.

Some of these risks are:

> Smart contract breach risks

> Black-swan events

> Wrapped assets de-pegging

And all of these have pretty much happened in recent times.

The good news, however, is that InterSwap doesn't use any of these processes.

⤵️

Enter Stargate?

To also clearly differentiate between what Interswap is doing and is not doing, it's essential we look at a close look-alike --Stargate.

> Stargate is a fully composable, omnichain liquidity transport protocol.

Huh? What does that mean?

⤵️

On a protocol level, Stargate provides a liquidity layer through its pools.

> On the other hand, at the infrastructure level, Stargate provides a bridge that allows Dapps to carry out cross-chain transactions.

In plain language:

> Stargate = bridging infra

What is InterSwap?

InterSwap allows users to directly swap native assets for assets they want within the protocol.

x No intermediary chain
x No wrapped asset
x No bridging

Assets are also swapped in a single transaction, powered by LayerZero.

Some other features of InterSwap are:

> Non-upgradable open-source smart contracts across supported networks.

> Introduction of weighted and stable pools.

> 3x lesser fees when compared to Stargate.

It surely feels like checkmate! But that is not all.

⤵️

InterSwap doubles as a cross-chain portfolio manager, a functionality that is quite brilliant due to its multi-asset pools.

With all of these, one can consider InterSwap as a one-stop for cross-chain interaction.

Which is pretty much what any DEFI maxi would want anyway.

Closing thoughts:

Stargate and InterSwap diverge significantly in their integration of LayerZero, which is central to their operations.

Stargate positions itself as a bridge and liquidity layer

whereas,

InterSwap is an open and decentralized automated market maker that pools legacy liquidity and empowers seamless cross-chain swaps through its proprietary liquidity reserves.

As protocols are built around LZ, It is important to distinctively understand their differences.

You can read the unrolled version of this thread here: https://typefully.com/jediblocmates/6iQvZWH

Sector Finance's Launch

Tue, 28 Mar 2023 11:59:42 GMT

Arbitrum is really hot now post $ARB,

Sector Finance’s VaR Metric is 10x hotter 🔥

@sector_fi
Token launch 29th March

- Wtf is a “sector finance”
- VaR ?
- Agg & Single-strategy Vaults
- Strategy types
- Tokenomics
- Wen Launch

👇🏽 🧵

The average yield farmer understands the converse nature of earning yields.

The riskier the pool, the juicier the yields 😬

It’s like hunting in a forest filled with predators 😰

Catching prey without falling into unforeseen danger is not guaranteed⚠️

As the macro economy weakens🚮, yield-seeking hedge fund patrons are looking elsewhere 🌾

They represent an ideal audience for innovative yield aggregators 👌🏼

They want in, but are often discouraged by the associated risks..⚠️

But what if things were different?

What if they could rely on a data-driven metric that calculates the risks ahead? 🤔

It’ll no longer be a blind quest for yields but a calculated venture

This is the gospel that @sector_fi preaches with the Value at Risk metric (VaR).

Sector finance classifies risks into 4 categories

▷ smart contract risk
▷ Asset risk
▷ Liquidations
▷ Strategy risk

For each of these risks, a % is assigned to the value at risk for a one-year period.

The total is summed to be the total value at risk (VaR).

For a User who wants to deposit into a specific Yield-bearing Vault with a single strategy, the VaR calculation for that strategy will be defined using a 1-10 risky to less risky score.

Risk tranches are classified as “Junior and Senior tranche” (high - low risk)

That way, the user understands the risk associated with such a vault and can choose to proceed or not. 🤞🏻

I mentioned single-strategy vaults ☝🏽

Two vaults exist on sector finance.

- The Aggregator Vault
- The single-strategy Vault

The Aggregator vault - As the name connotes - It aggregates multiple single strategies into various risk tranches from high to low.

E.g. Multiple DAI strategies with different risk levels will be aggregated into vaults, either Junior or Senior tranches.

* Single-Strategy Vaults: This vault is designed for those who intend to keep an eye on how their capital is allocated.

* Users can deposit into any strategy separately instead of having to deposit into the aggregated vault where liquidity is allocated across strategies.

The single strategy vaults are flash loan resistant and put up a defence against sandwich attacks.

Strategies:

Sector finances make use of 4 defined strategies:

- Delta-Neutral LP: Deploys liquidity to AMMs informed by risk assessment and rebalances LP in a situation where the position is close to impermanent loss limit.

- Leveraged Delta-Neutral LP: Deploys delta-neutral liquidity to protocols that allow for single-sided liquidity leveraged yield farming on pools.

- Lending: Deposits liquidity in lending and leveraged lending pools, and proceeds to farm external tokens with LP tokens.

Leveraged convex strategies:
Deploys curve LP tokens on convex to farm rewards while using Gearbox to lever up.

DAO:

Sector finance also functions as a DAO with the $SECT token for governance.

For changes to be made to strategies, a 5day duration time-lock contract will be created

Token holders will be able to vote in favour or not within the 5-day period 👎🏻👍🏻

Holders of $SECT will be able to lock their tokens to receive veSECT representing their governance weight.

veSECT holders just like vlAURA can vote on where protocol fees and emissions go

This unlocks another economic cycle for the Sector DAO as it welcomes bribes and incentives

Drumroll 🥁 — Wen Token launch?

$SECT launches on the 29th of March at 1:00PM EST

Early depositors and @camelotdex xGRAIL holders will be able to participate in the whitelist launch

Total commitment is set at a minimum of $1.5m and maximum of $4m

If sale = < than token price, Sector Finance will absorb what’s left of the tokens.

👀 Incentivized Vault? Yes.

Early depositors after launch will receive 2% of the total $SECT supply at the end of April as vSECT and bSECT, in addition to yield from the vaults.

Total supply = 100million

10 million allocated at public launch.

Read our article on Sector here.

https://blocmates.com/blogmates/what-is-sector-finance-a-complete-guide/

Sector finance is innovating along the lines of improved risk management in yield aggregation while introducing a voting-escrow economic flywheel

-Please comment, like and subscribe
-Set your reminders for $SECT launch on the 29th March 👀
https://twitter.com/sector_fi/status/1640093674649313283?s=20

FactorDAO

Thu, 09 Feb 2023 14:39:24 GMT

1/ The TradFi world is populated with varied asset management services. These include:

1️⃣ Hedge funds
2️⃣ Mutual funds
3️⃣ Pension funds
4️⃣ Private equity funds

Why should the centralised entities have all the fun, eh? 😅

Introducing: @FactorDAO 🏭

A Thread 🧵👇

2/ With the advent of DeFi, it was only a matter of time before someone attempted decentralised asset management on the blockchain for us, the crypto folk. 🫡

@FactorDAO promises to be that one-stop shop. 🔥

Their aim is to democratise and decentralise asset management!

3/ Factor is building a modular decentralised asset management infrastructure on Abritrum, which can be looked at as the middleware of liquidity. 💰

This will allow gigabrains with a platform to showcase their abilities and build unique DeFi native financial instruments. 💪

4/ The nature of DeFi is such that it is complex to build automated complex strategies.

The major roadblocks are due to the following:

• Inflexibility
• Siloed protocols
• Technical barriers
• Complex user flows
• Lack of transparency
• Inability to factionalise

5/ Factor is attempting to solve these problems and then some!

The major benefits of a decentralised asset management protocol are:

• Allow DeFi participants to gain exposure to strategies of various risk tolerances.
• Allow fund managers to monetise their skills.

6/
• Service DAO treasuries and DeFi native funds to park their capital.
• Allow standalone protocols to aggregate liquidity and create various strategies to incentivise their users.

The opportunities are endless! 🙌

Continue reading, as I explain how all of this is possible.

7/ Factor's DeFi infrastructure offers the necessary tools for strategists, builders, and market participants to establish new markets. 🤝

Factor defines itself as, "The Building Blocks of Asset Management".

All of this is achieved via three major product offerings! 👇

8/
1️⃣ Tokenised Baskets: Self-custodial tokenised baskets of crypto, thematic indices and more
2️⃣ Yield Pools: Permissionless, non-custodial yield aggregation for borrowing and lending
3️⃣ Derivatives: Create, settle, and trade decentralised derivatives on any underlying asset.

9/ Factor is changing the way on-chain asset management is made possible by building a platform that combines important DeFi primitives and liquidity.

The platform requires no coding skills. This allows asset managers to develop new products, attract TVL, and earn revenue. 🤑

10/ Factor will integrate multiple DeFi primitives under this one platform.

The workflow will be intuitive, allowing users to build their strategy, set their management/performance fees, and that’s it. 💯

Investors will be able to deposit their crypto and earn yield with ease.

11/ Factor leverages some impressive heavy-duty tech under the hood.

Factor’s infrastructure for tokenised vaults utilises the ERC-4626 token standard, which was officially accepted by Ethereum in the last quarter of 2021.

Learn more about it 👇

https://ethereum.org/en/developers/docs/standards/tokens/erc-4626/

12/ This implementation will be able to support any conceivable complex strategy that can be represented by an ERC-4626 token.

Furthermore, the Factor devs made significant changes to enhance the smart contract's features and versatility - greatly increasing the use cases. 😤

13/ Tokenised Baskets: Factor offers tokenised baskets for seamless AUM accumulation, full control for creators, and options for maximising yield potential with performance/risk metrics.

Tokenised baskets offer investors the chance to invest in a variety of asset compositions.

14/ Features:

• Create tokenised basket, containing any kind of underlying asset
• Trustless & permissionless
• Passive & active strategies
• Flexible fee structure
• Third-party integrations with AMMs
• Connectivity with Factor's lending pools enables short selling

15/ Yield Pools: Factor also allows for easy deployment of decentralised pools for lending and borrowing, which can be customised to suit any risk profile.

These pools are represented by dedicated tokens, and their isolated nature keeps the risk contained within the pool.

16/ Essentially, these are akin to your traditional DeFi lending protocols, but with the form factor of delegation and asset management for yield maximisation.

Features:

• Permissionless creation of non-custodial lending pools
• Caters to all risk profiles

17/
• Creators can create permissioned pools for KYC or partnership purposes
• Compatible with any yield-bearing asset that is supported by a pricing oracle

Decentralised Lending 🤝 Decentralised Asset Management

18/ Derivatives: Factor is developing a decentralised, open-access platform for the creation, settlement, and trading of derivatives on any underlying asset without the need for trust or permission.

The infrastructure enables derivatives on tokenised assets in the real world. 👀

19/ The platform allows traders to hedge their positions and execute market-neutral strategies using baskets and tokens originated on the platform.

Additionally, it will be possible to use algorithmic trading bots for executing strategies such as delta neutral or arbitrage.

20/ Features:

• Create endless derivatives
• Trustless & permissionless
• Supports any ERC-20 token or stablecoin as collateral
• Compatible with any underlying asset and pricing oracle
• Optimistic oracles may be used to prevent data feed manipulation

21/ As you can gauge, Factor is an ambitious and all-encompassing project! 🤯

Key Participants: These will be the primary participants in the Factor ecosystem.

• Asset Managers
• Partner Protocols
• Treasury Managers
• Investors

22/ The underlying thesis is that Factor will act as a broad aggregation and liquidity layer for DeFi funds, DAO treasuries, protocols and individuals.

It'll help all of the primary participants in various ways, thus, cementing itself as the ultimate one-stop shop!

23/ The FCTR token will be the native governance token of the Factor DAO. The token will also be used to help bootstrap liquidity. It’ll also serve as a utility token, underpinning the entire Factor ecosystem.

Check out the details of the public sale! 👇

https://twitter.com/FactorDAO/status/1620750522411016194?s=20&t=btKYIocypY2tobP7WoYvkA

24/ veFCTR:

FCTR holders have the ability to stake and lock FCTR and receive veFCTR (vote-escrowed FCTR). This mechanism is similar to the veCRV implementation.

Benefits:

• Governance rights to direct protocol fees and emissions
• A 50% share of platform revenue

25/ The veFCTR tokens received for locking FCTR are non-transferable, and their amount gradually decays until the locking period expires and the user can reclaim their original FCTR.

This is the standard vote-escrow implementation we've all become familiar with.

26/ Factor Open & Events:

Factor’s dashboard will allow users to evaluate and compare baskets and pools based on various performance metrics such as absolute returns, relative returns and risk-adjusted returns.

Top-performing managers will be rewarded by Factor.

27/ Managers can also showcase their investment skills by participating in one of Factor’s leagues.

These leagues are competitions between aspiring asset managers and can be open to the public or private, created for talent recruitment or asset management outsourcing.

28/ Factor Open is incentivised by the DAOs ecosystem fund and distributes FCTR as a reward, also serving as a talent acquisition event to identify future treasury managers or other roles within the community.

Additionally, protocols can create their own branded leagues.

29/ These initiatives help in gamifying the entire process and adding a pinch of competitive spirit! 💪

Some likely events:

• Yield strategies
• Token trading
• Multi-asset strategies
• Exotic strategies
• Automates strategies

30/ The functioning of Factor is ensured by the DAO members i.e. veFCTR holders.

The devs are of the belief that community governance and a well-structured process will be beneficial for the Factor ecosystem.

The aim is to propagate a lively community that benefits everyone.

31/ Community Strategy Incentives (CSI): The Community Strategy Incentives program will be utilising the ecosystem fund, controlled by the DAO, to incentivise the growth of Factor.

The following actions will be undertaken:

• Manage Factor Open
• Host hackathons
• Grants

32/ The management of the DAO’s treasury will be overseen by a council of members who possess relevant expertise, elected by the DAO i.e. the Treasury Council.

The main treasury will not engage in trading FCTR to avoid any conflict of interest.

33/ Furthermore, the council will be responsible for managing the profit-sharing pools of FCTR, utilising LP fees and revenue generated from protocol fees to acquire additional liquidity for FCTR.

This results in protocol-owned liquidity, eliminating the need for external LPs.

34/ The protocol is yet to launch on mainnet. However, the devs recently unveiled the launch plan.

It'll be divided into 3 phases:

• Stake: Allow users to help bootstrap FCTR liquidity or lock their FCTR for veFCTR

35/
• Discover: The DAO will create its first set of vaults on the mainnet, allowing anyone to deposit into community-voted indices
• Create: Will unveil the complete platform and its no-code vault-building wizard

It’s safe to say that I’m totally impressed by these devs! 🤓

36/ In case you're interested and want to dive deeper, you can read our in-depth guide: https://blocmates.com/blogmates/what-is-factor-a-complete-guide/

If you found the thread informative and helpful, please hit follow, like and comment. It will be appreciated. 🙏

1/ When it comes to financial markets - the FX ma…

Tue, 22 Nov 2022 13:10:01 GMT

1/ When it comes to financial markets - the FX market is by far the largest by all metrics.

Couple that with the fact that stablecoins account for ~15% of the crypto market cap.

There is massive potential to create a DeFi native forex market.

A Thread 🧵 👇
@handle_fi

2/ The foreign exchange market sees a daily trading volume of ~$6.6 trillion, yes trillion with a T.

In essence, the daily trading volume of the FX market is ~6x the total crypto market cap.

Let that sink in. 🤯

Moreover, stablecoins continue to play a pivotal role in crypto

3/ DeFi and Forex are a match made in heaven.

Till now, only USD-backed stablecoins have properly penetrated the crypto market. However, we're building a global industry.

Therefore, the requirement and demand for foreign fiat-backed stablecoins will only rise in my opinion.

4/ The primary benefit of this is to eliminate foreign currency risk in a DeFi-native way.

This will allow people to take part in DeFi activities but do everything in their local currency to avoid excess conversion fees and general foreign currency risk.

That's interesting, eh?

5/ Now that I've piqued your interest, let me introduce you to handle.fi.

Users can settle trades in their local currency, borrow against their crypto assets in their local currency, access leverage in their local currency, and yield farm in their local currency.

6/ Other than this it is also provides another way to make a profit.

One can use leverage products to either speculate or hedge using these multicurrency stablecoins, and they can also earn arbitrage profits through redemptions.

Confused? Don't worry, I will break it down.

7/ Handle.fi is currently live on Abritrum, Polygon, and Ethereum with integrations on more chains expected very soon.

The stablecoins are called fxTokens and are collateral backed. In order to mint a fxToken, users will have to over-collateralise their ETH.

8/ In essence, you can think of the various fxTokens as DAI or MIM - as they are over-collateralised fiat-pegged stablecoins, backed by crypto.

The difference is that DAI and MIM are USD-pegged stablecoins, whereas fxTokens are pegged to 10 different fiat currencies.

9/ Supported currencies are:

1. fxUSD (US Dollar)
2. fxAUD (Aussie Dollar)
3. fxGBP (British Pound)
4. fxCAD (Canadian Dollar)
5. fxCNY (Chinese Renminbi)
6. fxEUR (Euro)
7. fxJPY (Japanese Yen)
8. fxPHP (Philippine Peso)
9. fxSGD (Singaporean Dollar)
10. fxCHF (Swiss Franc)

10/ So how does the protocol work?

Well, users can deposit their ETH as collateral to mint any fxToken. For now, ETH is the only form of acceptable collateral.

This collateral is deposited into vaults. Each vault is responsible for minting only one type of fxToken.

11/ Degens can have multiple vaults active at one time.

As for assessing the risk, the vault has a bunch of different metrics like interest rates, liquidation triggers, and the maximum fxToken minting limit. However, the most important of them all is the minimum c-ratio.

13/ The liquidation process has two phases.

In the first phase, when a vault is declared, "at risk", any other fxToken holder can make a redemption call. They simply burn their fxToken and receive an equal amount of protocol collateral in return.

14/ The vaults that are at the highest risk will have to deliver the collateral first and will have to deliver it from their largest holding.

In the first phase, by making a redemption call - any protocol user can burn the required amount of fxToken and receive the collateral.

15/ If this is not sufficient to prevent liquidation and the c-ratio falls below the ‘liquidation trigger’ then the liquidation process of collateral will begin.

Starting with the largest positions, an amount of collateral is sold until the vault is back to the required c-ratio

16/ The vault is charged a liquidation fee which is distributed to the fxKeeper pools that funded the liquidation.

This is a partial liquidation mechanism which ensures that a user doesn’t forfeit more collateral than is required.

So who are these Keepers?

17/ Keepers are an important part of the liquidation process.

Keepers are essentially a party that is given a pre-defined set of conditions which when met will automatically execute the smart contract.

Pretty cool, isn't it?

18/ The fxKeepers are built in partnership with Chainlink.

The keepers work through fxKeeper pools. Participants can stake tokens with these pools for a reward.

If the liquidation trigger is hit, the fxKeepers automatically execute the liquidation using the staked tokens.

19/ Stakers in the fxKeeper pools receive a proportionate share of any of the profit that is made from the liquidation.

Another major part of the Handle.fi protocol is the redemption facility. Any fxToken can be redeemed for protocol collateral at a 1:1 ratio.

20/ The main purpose this facility serves is to ensure that the peg of the fxTokens is maintained.

Any time there is a depeg, users are incentivised to redeem since there is an opportunity to make a profit off arbitrage.

So redemptions ensure that the fxTokens maintain the peg

21/ It is also worth noting that in the future they will be introducing protocol-controlled value (PCV).

They will essentially use the staked collateral and tokens as PCV which will allow them to generate extra yield for their users.

22/ In summary, users can perform these key actions on the protocol:

1. Users can mint fxTokens by depositing collateral and recover their collateral by burning their fxTokens.
2. Users can trade these fxTokens against one another.

23/
3. Users with their fxTokens, can either redeem them for protocol collateral in an attempt to make money off arbitrage or they can stake their tokens to earn a certain reward in the form of fees collected by the protocol.

4. Users can bridge tokens across multiple chains.

24/ Let me now explain the various Handle.fi contracts.

1. Handle Contract: It is responsible for storing all the main data and configurations of the protocol as well as holding a reference to all the other contracts in the protocol.

25/
2. Treasury Contract: It enables the deposit and withdrawal functions in the vaults. It also holds all the protocols tokens, it’s the contract that controls the treasury.

3. Comptroller Contract: It provides the mint-and-burn function for the vaults.

26/
4. VaultLibrary Contract: It is the contract that is directly linked to the protocols dashboard. It calculates and collects the different types of vault data such as the collateral ratio, exchange rates, weighted fees, the ETH value of collateral/debt and much more.

27/
5. Interest Contract: It keeps track of interest rates and time passed. The interest rates are also adjusted and updated using this contract.

6. Collateral Health Contract: It contains a liquidator contract which is responsible for liquidation and redemptions.

28/ 7. Protocol Controlled Treasury Contract: It is responsible for interacting with external protocols on which they will execute different strategies to earn interest using the tokens and collateral that is staked in the protocol.

These are all of the major contracts deployed.

29/ Let me also cover the fee structure of the protocol.

The fee is either redirected to the treasury or proportionally distributed to shareholders.

The first way they generate fees is through convert/trade. Each type of trade has a different fee assigned to it.

30/ Swapping for the same currency stablecoins has a fee of 0.04%, and trading a multi-currency stablecoin pair or an ETH/fxToken pair has a fee between 0.10%-0.30%. Lastly, converting fxTokens to any other ERC-20 has a standard fee of 0.30%.

31/ Apart from that, fees are also accrued via interest income.

Since users essentially create a collateralised position by minting fxTokens, there is an interest rate that is charged, this interest rate is a major part of the revenue generated by the protocol.

32/ This interest rate is variable depending on the vault.

The third method is liquidation fees. When a vault gets liquidated, the user is charged a liquidation fee by the protocol.

This fee is also variable and is distributed to stakers in the fxKeeper pools.

33/ The native token for Handle.fi is $FOREX.

It is a governance token which is mainly distributed through rewards.

Apart from staking rewards and other forms of fee redistribution, users can also earn $FOREX by participating in the protocol-incentivised activity.

34/ The first one is Protocol Incentive Experiments or PIEs for short.

PIEs can be thought of as bounties, but bounties are focused on growing a community rather than doing something specifically on the project.

Retweeting community content for instance will count.

35/ While the PIEs are focused on growing the community, the Protocol Earning Program are focused on encouraging protocol and token usage.

Users are basically rewarded for using their FOREX tokens as well as using the fxTokens in all the different ways the protocol allows.

36/ Total Supply: 420,000,000 FOREX will be minted across an initial 182-week period, after which there will be an annual inflation rate of 2.1%.

1. 41.1% – Protocol rewards
2. 26.9% – Strategic partners
3. 22% – Team
4. 5% – Community TGE
5. 5% – Handle DAO & community rewards

37/ The vesting schedule is only valid for the team and strategic partners' allocations.

Seed round makes up 20.2% of the total supply. For them, 10% will be vested at TGE with the remaining tokens unlocking equally every month across 12 months.

38/ The strategic round which makes up for 6.7% of the token supply has 25% vested at TGE while the remaining will unlock equally across 12 months.

The team and advisors have 22% of the token supply.

39/ For them, 3 months after the TGE will be a 10% vest after which the remained will be unlocked equally across 18 months.

It is worth mentioning that Handle.fi has also implemented a vote-escrow mechanism for the FOREX token.

40/ veFOREX gives users the ability to participate in protocol governance while also entitling them to boosted rewards from the FOREX emissions.

A little added bonus feature is that Handle.fi minted two different NFTs as well.

41/ Finally, the community is vibrant and strong. They are currently 5.78K strong on discord and 3k strong on Telegram.

They refer to themselves as troopers and are all very committed to the success of Handle.fi.

42/ Handle.fi is filling a niche in DeFi that very few projects have looked at.

They are trying to combine the largest financial market in the world with the accessibility and open nature of DeFi.

If you found the thread informative please hit follow, like and RT.

1/

Thu, 03 Nov 2022 13:15:06 GMT

1/
Decentralised Society: Finding Web3's Soul

This is the title for a paper that @VitalikButerin co-authored.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4105763

@MetisDAO are passionate about implementing this.

Enter Metis, and taking this idea of decentralised governance to a new level

A thread 🧵👇

2/ @MetisDAO is an EVM-compatible Layer 2 scaling solution built on top of Ethereum.

The network enables much cheaper (cheapest relative to other L2s) and faster transactions than the Ethereum mainnet.

So what makes Metis unique?

3/ The platform specialises in hosting decentralised autonomous companies (DACs).

Moreover, the chain is highly interoperable with no code middleware like Polis allowing for easy web 2.0 portability.

Finally, the network provides native data storage (IPFS integration).

4/ At the core, the @MetisDAO team strive for the chain to be decentralised and community-governed.

Enter the Community Ecosystem Governance (CEG) and Community Verified Project (CVP).

These two initiatives are intertwined to help with decentralisation.

5/ So what is Community Ecosystem Governance (CEG)?

Well, via CEG, the community is allowed to participate in governing certain facets of @MetisDAO through a voting system.

The goal is to gradually increase the responsibility on the community and involve them in more decisions

6/ As for Community Verified Project (CVP), this can be thought of as the first major task that was delegated to the community.

A CVP is a project that is officially recognised by the Metis community.

Any project deployed on Metis Andromeda is eligible to enter the CVP list.

7/ Projects that get accepted will stand to gain certain benefits, which are:

1. Featured on the Weekly Wisdom Podcast
2. Twitter Spaces, & Telegram AMAs With the Metis Team
3. Boost Community Presence Via Social Media & Marketing Activity.
Let’s not forget the bragging rights!

8/ Interested projects will have to meet certain protocol requirements, prepare a video presentation, and obviously pass a community-led vote in order to be recognised as a CVP.

A majority pass (80% Yes vs. 20% No) is granted as passing the community verification.

9/ Do keep in mind that this is still a work in progress.

Decentralisation is not black and white, but instead a spectrum - eventually most projects will have to adopt some sort of decentralised governance system. Metis are experimenting and forging forward. Very cool imo!

10/ The revolutionary Reputation Power System has been implemented in the @RPSMatrix protocol (which is a dapp deployed on Metis).

Web3 is seriously lacking a solid reputation system.
Imo, We need a mechanism to reward good actors.

11/ We need a mechanism to at least recognize and appreciate the good actors, right?

Well, this is what the Reputation Power Matrix aims to achieve.

So what is Reputation Power

12/ Reputation Power is portable and composable reputation earned through on-chain achievements and history.

Reputation Power (or RP) can be earned on @RPSMatrix protocol for engaging and contributing to protocols, DApps and Decentralized Autonomous Companies.

13/ In essence, Reputation Power can be seen as your digital on-chain immutable social capital.

Think -> blue checkmark on Twitter, or high Reddit karma but now made possible in web3.

This model also helps incentivise certain actions for the betterment of the said protocol.

14/ Imagine owning your web3 credentials, representing on-chain achievements for all of your community, frens, builders, and others to easily view on your individual profile.

Actions that are rewarded include deploying smart contracts, minting NFTs, voting in governance etc.

15/ So how does it work?

Well, simply put, RP accrual is like earning XP in a video game. Users can earn RP to level up and gain benefits like the ability to mint nontransferable NFT badges on their Matrix profile, representing milestone achievements on-chain.

16/ NFT badges are issued by @MetisDAO or other dapps on Andromeda and are tied to a user’s wallet address on the Metis network.

Basically, the Metis team is gamifying the entire process - to ensure it remains fun and does not feel like a tedious chore.

17/ RP NFT Badges: NFT Badges Issued by @MetisDAO

1. Metis Master
2. Metis Citizen
3. Andromeda Builder
4. Metis Fren
5. Metis Artiste
6. Metis Mosaic

These are the initial set of RP NFTs issued. As I mentioned other dapps can issue their own iteration.

18/ Finally, in web3 unlike web2 you actually own your reputation via ownership of the nontransferable NFT badge.

In web2 you're renting the reputation. If Amazon doesn't like you - they may decide to delete your seller profiler even if you had thousands of positive reviews.

19/ Similarly, Twitter may decide to revoke your blue checkmark if you fail to comply with certain rules. However, in the permissionless and decentralised world of web3 - that will not be possible.

Your actions will determine your reputation, not someone's interpretation of it.

20/ RP is relevant and it will be interesting to see how it develops

The possibilities for an autonomous identity in the virtual space is being manifested. T
his is indeed the brave new world.

If you found the thread informative please hit follow, like and RT.

Options have begun to pique users’ interests, par…

Wed, 28 Sep 2022 11:42:17 GMT

Options have begun to pique users’ interests, particularly in these volatile times. Let's take a look at the @lyrafinance protocol and their role in presenting options trading to us Degens.

Fasten your seat belts it is 🧵 time 👇

First a little context: If we work backwards and look at what the traditional markets tell us about the relationship between options and derivatives activity, we can somewhat forecast where the crypto/DeFi options space will end up.

Global options contracts slightly outweighed traditional futures volumes, whereas, in our beloved crypto world, options (despite their growing volumes), are vastly underutilised/valued.
Imagine the potential if options catch on in crypto?

On-chain perps amount to around $1-2bn in notional volumes per day, collectively… So, roughly around 80x smaller than CEX notional volumes… https://ftx.com/volume-monitor
lol 80x

Moving onto Options…
This graphic shows that the relative options open interest compared to Bitcoin and Ethereum market cap doesn’t addup when we compare to more mature markets such as the S&P.
Oh goodness the smell!

So, despite the extremely strong S&P/Nasdaq/BTC/ETH correlation, there are still some areas which will inevitably begin to converge.

Crypto options are underutilised and undervalued in comparison to the relative traditional market. DeFi is also undervalued and underutilised compared to CeFi.
This presents a huge upside for those projects that look to capture this incoming growth.

Liquidity is a real sticking point, particularly for on-chain options. Those that solve this issue will begin to build a moat, much like we are seeing with the likes of dYdX and GMX at the minute in the perps markets.

You ideally want low risk, high activity and consequently the yields will come.
So, with that in mind, let’s lets dive right in to Lyra Finance.

Lyra Finance is an on-chain options protocol that uses an automated market maker (AMM) for anyone looking to buy/sell a call or put on ETH and BTC.

If you are still in the dark about how options work, we created a full beginners guide which you can read.

We translated this to ape-speak so you should be good to go after reading.

Thanks @eli5_defi for your infographics.

https://blocmates.com/blogmates/a-degens-guide-to-options-perps-and-hedging-with-hxro-network/

Lyra is built on @optimismFND, so you get sub-second transaction times, cheap fees and a great user experience. I don’t need to tell you that if you have used optimism.

At the time of writing, Lyra has amassed over $680m in notional trading volume, has around $17.67m total value locked and over 38,000 trades executed on the platform, with a 70%+ retention rate… not bad at all.

Think of options as insurance on your spot exposure, it is the best way for people to get their head around it. That doesn’t necessarily mean you can’t bet on the direction of the market either.

A Quick @ELi5 Recap below:

Key things to consider when trading options.

Strike Price – The price at which you have the right but not the obligation to purchase or sell the underlying asset.

Time to Expiry – The date at which the options contracts are settled.

Implied Volatility – market is anticipating volatility and this can be derived from the net purchase of options.
Increase demand = increase in IV.
This may be due to a big catalyst around a certain date or due to an external catalyst the market is beginning to price in.

Buying a CALL option allows you the right but not the obligation to buy an asset at a specific strike price on a specific date.

So, as I type ETH is at $1322 and I am looking at the 30th of September for expiry.

In this hypothetical situation, I expect ETH to nuke!

I then have a series of strike prices that I need to weigh up before I purchase a call option.
If I buy the $1,150 strike, it would cost me $183.58 (in sUSD). So, what does that allow me to do? Well, if ETH is above $1,333.58 at the expiration date, then I am in profit.

This is why:
• You have purchased the option for $183.58
• You have the right but not the obligation to buy ETH on the 26th of September for $1150
ETH has to be above your cost basis of the two above to make this a profitable trade i.e. $183.58 + $1150 for the ETH=$1,333

Buying a PUT option allows you the right but not the obligation to sell an asset at a specific strike price on a specific date.
This one is for the bears who believe the macro headwinds are way too strong and ETH is going to $0…

If you believe that ETH could be at $1000 there could be some opportunity for you, Mr Michael Bury Jr.

For the $1,150 strike, i.e. the option to sell ETH on the 26th of September for $1,150 it currently costs you $8.60 dollar for this privilege.

Again, take into account the price of the option when working out the PnL but $1,000 ETH yields you a profit of $150 or 17.4x on the money…
Options really can be juicy!

That's not all... Lyra offers more!
You can provide liquidity on Lyra and earn fees.
Lyra looks to use an AMM model which is the go-to choice for on-chain traders in the spot and often perps markets. If you are wondering what exactly is an AMM or Automated Market Maker...

AMMs allow digital assets to be traded without permission and automatically by using liquidity pools instead of a traditional market of buyers and sellers.

For all good AMMs, we need liquidity providers (LP) to come to the pool/vault and deposit tokens to allow others to trade in and out.
Naturally, Lyra is the same and allows users to deposit sUSD (Synthetix USD) into the protocol as an LP into their market maker vaults (MMVs)

The protocol incentivises LPs to deposit their sUSD into Lyra, allowing them to earn a proportional trading fee to their share of the pool i.e. if you accounted for 10% of all the sUSD in the vault then you would earn 10% of all fees accrued to that pool.
This is real yield!

How does Lyra earn fees for LPs?
When a user deposits into an MMV, their assets are used to quote calls and put options for those looking to purchase them. This is supply and demand driven much like any market which in turn sets the price.

Still on the fence with AMMs and OVs?
Well, you can use @PolynomialFi
These guys built options vaults on top of Lyra to make it seamless for you apes to gain some extremely impressive yields on stables and ETH.
Kinda sad I just gave up this for free… oh well.

@synthetix_io and Lyra partnership sees the sUSD stablecoin being used as the primary collateral on Lyra. Moving away from USDC, USDT etc. DeFi protocols are now scrambling to fix their stablecoin dependency in light of blacklisting events, which I would expect to continue.

LYRA has been used for Curve bribes as a part of the incentive to maintain the sUSD-3CRV pool which seems a fair trade-off. You have to think it is in the protocol’s best interest in incentivising the sUSD peg as it is the underlying collateral on the platform.

These are two powerhouses of Optimism and this is a great step forward for intra-chain composability and decentralisation in my opinion.

I look forward to seeing how the two protocols integrate further in the future.

The LYRA token is available on Ethereum and Optimism. Currently sitting at around $10m mc with a fully diluted valuation of around $160m.

These numbers seem laughable. The options markets are still in their infancy in crypto and in DeFi, they are just being born.

Finally, Lyra has a trading competition with $30,000 in $OP in rewards to be distributed. For more information see their tweet below –
There is still time!
https://twitter.com/lyrafinance/status/1566949270137217025

That is about it I hope you liked it and let me know what you think!

Lyra Resources –

dApp – https://app.lyra.finance/portfolio

Twitter – https://twitter.com/lyrafinance

Discord – https://t.co/pr4c5tGTMi

If you like this kind of content, please consider subscribing to our newsletter The Ape Enclosure. It is all of this good stuff and more for FREE: https://blocmates.substack.com/

Our FREE Discord https://discord.gg/blocmates

You can read the unrolled version of this thread here: https://typefully.com/jediblocmates/nXRBct4

Want to make it in crypt

Thu, 01 Sep 2022 11:57:34 GMT

Want to make it in crypto? Then go find your tribe.
The right tribe is akin to the perfect Samurai sword one would take into battle. It is however never easy to find your tribe.

I have a story on how you can and possibly make serious bank.

Here is a 🧵

What does "making it" mean?
Quiet simply, not having to ever work again because well, you made it... example, you buy a yacht and quit the mundane grind = making it.
There are some that will make it on their own. Then there are those that have the need to be one of us.

Why tribe?
To research, to debate and to make sense of it all. The more brains and eyes in the collective the more chances of finding those 1000x plays.
I have a story of how I found my tribe, the people in it and the potential and realisation for 1000x in money and wisdom.

Markets are the ultimate game and you need to figure out how to win. In other words, make sure you are in the pilot’s seat with the destination firmly set for the heart of the sun.
Having your crew keeps you on this course.

@cobie's brilliant “Trading the metagame” https://cobie.substack.com/p/trading-the-metagame
Trading the meta is knowing what comes next before most people figure it out. Be aware of game design changes. To maximise the opportunity for winning you must be ready and willing to adjust before the herd.

Knowing what comes next comes from researching and having your tribe in communication mycelium style, before too many other tribes figure it out. There are many tribes that are mirroring what you are doing you just hope that not too many get too much wind under their wings.

My experience of crypto since 2015 was to mine bitcoin and run multiple nodes and I never really traded or interacted with what is the crypto community.Paying my electricity bill and accumulating corn.

I survived 2018 and then along came Covid and through sheer boredom I reactivated my Twitter account and shortly thereafter I joined a Discord server after watching The Chad @randomtask on the @RealHxroLabs Youtube channel https://www.youtube.com/c/Hxrolabs

It was a random event due to me having had too much time on my hands and interacting with twitter. This discord server was HXRO. The Bull market was in full swing and I could not believe what I had been missing all these years.
You can join here too https://t.co/IkNk1gTSh7

HXRO was this project that was being developed on @solana by two OG’s @robbylevy and @hxrobtc who essentially wanted to replicate tradfi derivative degeneracy on chain. They raised capital with @SBF_FTX to build $HXRO, then community.

HXRO discord server was degen central. I did not know it at the time but it was the best place to be during the bull run. Simply put these degens were masters at making the right calls on the market. Alpha flowed daily and in abundance. The research was on point.
I had arrived!

I found myself in a channel named The Pit… aptly named after The Pit that Rob and Gunny traded on in the tradfi Chicago market. I have no idea what it would have been like to trade on that floor but the HXRO Pit might just live up to the mania that only a market can reflect.

From blinding euphoria of guys screaming for $300 $ICE to the end of the world as $TIME imploded.We were there when $OHM was the obvious ponzi that would blow minds, and it did. All 3143 Gods were smiling as $AVAX came into it’s glorious ascendency. Enter @0x_Messi - Avax God!

Messi was in on AVAX early and he led us into the promised land. We spectated as @AlamedaTrabucco made more money farming $JOE than corporations would make in their lifetimes.
10x was a standard on plays.
Money flowed and complaints were always how you faded someone’s calls.

$TIME was the veritable printer that literally changed people’s lives in that discord. In November 2021 a number of Chads messaged their farewells to me and I have not heard much from them since. Except to donate cash to a soccer project I manage.

I had my own individual calls that saw huge profits for all present. My biggest winners... $rDPX and $DPX @dopex_io
Still a sleeping giant that with education (Hint hint) could see it achieve ATH's again.

HXRO community is the reason why I seeked out a living in this space. It was exactly what got my mental and creative juices flowing. I would not be a partner in blocmates if I was not inspired by the Apes and the endless possibilities. Legends I have met were directly HXRO.

This is what we cultivate in the blocmates discord server and it is happening. There are some proper big brains in there that put the work in. I get to participate in two discord servers that have incredible alpha going on even in this market. Join us here https://t.co/GSDSwGq9f2

At blocmates we have written extesively about HXRO over the last few months simply because they have built what Apes love to do. Trade, Ape, Trade, Ape. You simply cannot fade that. My favorite article is token value accrual. A thing of beauty!
https://blocmates.com/blogmates/what-is-the-fair-value-for-the-hxro-token-an-idiots-prediction-model/

There is a thing about being able to plug into a winning energy.
It is intoxicating, and one win leads onto another and another. I feel this is what Rob and Gunny are about. Create the space and the Apes will come and they will prosper... simply put, build it and they will come.

We all seek inspiration.
Found mine and I am sure many more will present themselves. Seek out the real winners, not the larps.
Do your research and learn to seek out alpha.
Join the links I posted above but with the intention to contribute and trust it will come back 10x+