Assuring Minting Collateral on Kujira BLUE

How to 'assure' minting collateral on @TeamKujira BLUE.

Credit to @ScammoonR for advising against my usual 'borrowing at max LTV'-policy.

1. When minting, mint at max SAFE level, which is currently 30% of collateral or LTV.

2. check your BLUE mint positions. I check them daily.

When a position goes from blue to orange, you have three options:

1. do nothing, because it's 31%, so who cares?
2. supply more collateral
3. pay down some minted $USK.

Guess which one I will NEVER do with $USK above peg?

Let's explore the options.

1. You (eventually) risk being liquidated, which is fine by me, although it does my my spongecake heart bleed, just a little bit, in sympathy, as I walk away with your money you just gave me.

no, really, my heart bleeds.

I'm still taking your money.

b. Supply more collateral.

Where do we get more collateral? We'll explore options later in this thread.

So: supply more collateral; 

the LTV returns to blue; 

you go back to living your life in peace and harmony with birds, bees, and many, many children and children's children.

c. repay $USK mint

Only when $USK is BELOW peg, NEVER when it is ABOVE peg, as it is now.

Why?

You're currently minting $USK at $1.01 - $1.05 range, which means your paying back at a 1% to 5% PREMIUM.

When $USK is BELOW peg, you pay back ON SALE, pocketing the difference.

Dry Powder

A part of this 'assurance' is having access to collateral to supply with LTV turns orange.

How do I do that?

1. I have bids on ORCA covering a percentage of the collateral I've supplied.

When price drop, I get the liquidations to cover my supply from liquidation. Win-win. 😎

2. Arbitrate the collateral token on FIN.

How often do you arbitrate a token?

Well: how often do you want to have more of something from something?

Arbitrate: oftenly, ... as oftenly* as you are able.

*oftenly, adv: that's a word now. Deal. 😎

3. ORCA bids and Arbitration are two ways to supply collateral. The other way is to straight up buy the collateral, which you can do on-chain or off-chain, then bridge that in.

With LTV set at 30% you have time to react; at max LTV you don't have that time.

Time is of the essence.

The Process of Learning

"BUT, O, GREAT AND MUNIFICENT el GEOPHF! I DUNNO HOW TO ARB! WHAT SHALL I DOOOO???"

Easy:

1. Go on more about my greatness. That helps. 😎
2. Follow me on the twitterz. You'll see my arb-tweets.
3. Keep tabs on the trade-page on my blog.

... or do what @DeFinalFantasy recommended on his AMA. When a participant said: "I don't know anything about crypto, how do I get good at it?"

He replied: "Watch every youtube and read every book you can find, then YOU'll be the expert and teach ME!"

Yes. That's how I did it.

But I must add: "not knowing," for me, is not about 'not knowing.'

It's about fear.

I'm afraid to do something I haven't done before.

The way to overcome fear is to cut through it and just do the thing.

Once you've done it once, it's easy to do it again.

Crypto, I mean. 🍆😎

Are we done?

Yes, we're done.

These are advanced techniques in crypto. So, how do you do them?

• start smol
• follow somebody who's doing this, and doing it well, like @ScammoonR or myself, but only if you're willing to learn.

But what does 'willing to learn' mean?

1. be humble: you'll make mistakes and lose money. Instead of getting down, learn from the mistakes. Don't repeat them. 
2. You'll be called stupid.

Accept that.

You are.

Learning is going from a stupid state to a less stupid state.

I won't sugar-coat this: if you're not willing to admit that you're wrong and that you're the stupid one, you won't learn.

I WANT to be told I'm wrong. If I'm wrong, I can fix it, but I can't fix what I don't know I'm doing wrong.

Be wrong. A lot. Learn. Change. Grow. Win.

That's why I blocc so often.

"Why don't you do it this way?" 

That way I've lost money. I'm not as stupid now, so I do it this way. 

You question me to learn, or, if you know better, show me your trades.

I do.

If you can't handle truths, backed by hard data, get off my TL.

'Assurance'

Okay, one last(-last(-last?)) thing.

Why 'assurance'?

When you take money out of your pocket, and put it somewhere else, that money is gone. Bye-bye! Have a nice life!

Wave because you must accept you'll never see that money again. Ever.

And that's why 'assurance': there's no sure way you're keeping, well, anything.

Inflation of fiat erodes money in your pocket.

Money out of your pocket is at the whim of the markets.

You must choose where to make the best use of your money then: be resolved in that choice.