OKAY! ONCE MORE! WITH FEELzSZORXEN!
@demexchange Nitro, but this time with $rATOM, so, we'll also be roping in a new blockchain: @StaFiHub_ !
Why?
We'll get to that.
OFT! we go, into the wild blue yonder! 🚀
To LOOP $rATOM, we have to GET $rATOM, ... but before we have THAT conversation, we need to get the protocol token, $FIS, to pay for gas.
We can do that by swapping $ATOM on COSMOS to $FIS on @StaFiHub_ on their Fee Station.
The mint max is 20 $FIS, so I mint 10 $FIS.
Now I can mint $rATOM.
How this is done? Have $ATOM available on COSMOS.
- Select Stake Atom from the rAssets page on @StaFiHub_
And BOOM! you now have $rATOM.
It takes you to the dashboard page after your $rATOM is minted,
...and you can see all your assets in the rAssets page.
Now we have $rATOM, ... on @StaFiHub_. How do we get that $rATOM to @demexchange?
Actually, that's pretty easy to do. You go to the "Balances" section of your account, select "deposit" for the $rATOM asset, and you're in business!
(trans: $rATOM is bridged to @demexchange)
Let's supply some $rATOM, and here we see WHY we want to supply $rATOM.
If you look at the $rATOM row on the @demexchange money market, you see they've incentivized $rATOM supply with $FIS, yielding at 188% APY.
OKAY, THEN!
So, I supply $rATOM.
How much $rATOM can I borrow?
There's a trick to it, but this is a weakness on the @demexchange money market: it doesn't tell you what the max cap is (it should) nor what the collateralization ratio is (it should)
Dear @demexchange, would you please add these indicators? Thanks
The trick is to select "Details" for the asset you'd like to borrow against.
It opens a page that has, ... well: the details of that asset, including market cap and, importantly, LTV ('loan-to-value'). There's your borrow ratio.
For $rATOM, it's 50%, with liquidation at 55%.
Now, you see I supplied 6 $rATOM. The LTV is 50%, so I borrow 3 $ATOM.
That's on the conservative side (... too conservative?), but I like to play it safe and smol when I'm starting an adventure on a new protocol.
So, I have 1.something $rATOM that I didn't supply and 3 borrowed $ATOM. Now I hedge. Why?
The way I hedge is to have an equivalently-...ish-valued LP in the wings, the s- (in this case r-) token - token LP.
I create the rATOM-ATOM LP.
Now I have my rATOM-ATOM LP as hedge to my supplied $rATOM and borrowed $ATOM: I'm in business.
I'm supposed to loop now, but the LTVs are super-conservative on @demexchange, so I'll need (a lot) more assets to make looping viable.
This is fine: I'll build my bags, safely! 😊
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