Harmony: Reflect DAO change in direction

Okay, more farms to yield, but before we do that, let's take a step back and evaluate my self-funding projects.

• @finance_unite is not making money until it returns to peg
• @Reflectaverse ???
• @DefiKingdoms, yes, please
• CrystalVale doesn't have an @ yet
• @Defiraverse YAS!

So, @finance_unite is a known problem with a known solution.*

• return to peg to return to productive yields

My strategy then is: wait and see.

But @Reflectaverse is also a known problem with a known solution, after I've put some thought into it.

Let's examine @Reflectaverse.

*... actually my @finance_unite strategy, refined, is: "wait and see after buying every last $UBOND that I can." I discuss this in more detail here and here.

The @Reflectaverse strategy WAS:

• accumulate rf-tokens, get token yield.

So: I accumulate $rfUST for $UST yield.

Simple.

The problem with this 'WAS'-strategy is that it worked fine on paper, but not so fine on the blockchain, so @Reflectaverse added $ECHO and $ECHO LPs to address the yield-gap that simply HODL'n rf-tokens didn't solve.

How is the $ECHO-strat working? 

Well, imo: ... not so much. 

The problem with a protocol token, like $ECHO, is that is if it's not pegged to something of tenable value, its price can be anything traders see it as.

This is a recipe for disaster.

The counter of "But $ECHO will be a game-token!" is a recipe for volatility; not the good kind

So: will $ECHO go up or go down? I don't know. I do know its valuation, which currently depends on utility in a game not in production. And I have measured its trend: downward.

So: will $ECHO go up or go down?

Here's the thing.

I.

don't.

care.

about $ECHO.

I don't care about $ECHO. I care about the yield of $rfUST, $rfETH, rf-whatever. So I care about the rf-tokens, and, pairing them with $ECHO now, I'm losing those tokens.

Quick(ly).

I do care about capturing the LP yields of $ECHO, but there's a perfectly good LP for that: the $ECHO - $ONE LP.

With this LP, I capture the yield, and I don't sacrifice my rf-tokens. I do sacrifice my $ONE, but since that $ONE is coming from an $ECHO-swap, I can stomach that. 

So given the above, here is my new @Reflectaverse self-funding experimental approach:

• SPLIT ECHO-rf LPs
• FUND ECHO-ONE LP with that split out $ECHO
• HODL all rf-tokens
• FUND ECHO-ONE LP and all rf-tokens with ECHO-ONE $ECHO yield 50/50.

This new approach gives me the following

• I incrementally grow rf-tokens (not lose them)
• I now GET token yield and MEASURE rf-token efficacy
• $ECHO yields are now concentrated on $ECHO - $ONE LP, constraining its potential hyper-inflation there

Let's see how this pans out.

Level-set

This is how my @Reflectaverse portfolio looks before I adjust my strategy away from rf-ECHO LPs.

One Split

Let's walk through one split

1. I split rfUST-ECHO LP into its component parts.

My investment in the LP? $210.00, or $105 $rfUST.

The value of my $rfUST now? $33.91

TAX @Reflectaverse takes to do the split?

160612211 (their take) / 1445509905 (given to me)

or 11%.

Fair? 🤔

After splitting the rf-LPs the portfolio now looks like this. 

Will the yields be the same? No, they'll be different, very different, but still measurable. Time will tell what this portfolio shapes up to be. And I'll be sharing what happens along the way.