2023-08-12 ETHBTC-THANG! Day 76

Yesterday, I placed a sell limit order for $ATOM on @coinbase. It hit, so now I place a buy limit order for $ADA with that ($UDSC) liquidity. 

When that hits, I'll use that for @Indigo_protocol bag-engrowthification. 🤓

The $ADA buy limit order hits on @coinbase, so I transfer that liquidity to my Flint @Cardano wallet. 

Let us do the ETHBTC-THANG!

2023-08-12 ETHBTC-THANG! Day 76

The ETHBTC-THANG! 

• swap 0.0000 $BTC (no swap)

ETH: 5.34815

BTC: 0.00000

Total: $9,868.12

No ETHBTC swap, so I use the liquidity provided to @Cardano to buy $iETH with $ADA. I then stake the $iETH.

With the staked $iETH 'pays' me three-fold:

1. $ETH is at a discount vis-à-vis $BTC, so: anticipated growth.
2. $ADA yields
3. $INDY yields

2023-08-12 Indigo portfolio

Basis: $991.56

$iBTC: 0 $0.00

$iETH: 0.484033 $893.11

$iUSD: 0 $0.00

value: $893.11

total fees $10.328

total yields $3.712

net gain/loss -$6.615

APY -16.90%

ROI: -10.60%

APR: -241.71%

Analysis

Now, you may find me weird to be saying this, ...

Narrator: You'd be in very good company, too.

me: thx, Narrator. 🙄

... but am I 'excited' to have a negative APY and APR?

Oddly, ... kinda?

Let me explain.

The Upsides

I'm not jazzed at the neg APY and APR, per se, but that I'm BUIDL'n a portfolio that will use $ADA and $INDY to ... well: BUIDL my portfolio, yield'n more $ADA and $INDY, which can be swapped MOAR $(i)ETH and $(i)BTC.

50% APR/APY on staked $(i)ETH and $(i)BTC is nothing to scoff at, and, yes, these are synthetic assets, not the real deal, but here's the thing: they ... *ahem* 'mirror'* the underlying real assets.

*G-d, how I miss @mirror_protocol! 😭

If it walks like a duck,

and squawks like a duck, ...

then these synthetics give me the same (or 'same enough') benefits of their mirrored assets.

Sure, I'm staking $iETH and, eventually, $iBTC, but I get the same impact to my portfolio as if I were HODL'n $BTC and $ETH, and, on top of that, I'm earning $ADA + $INDY yields at 50%-...ish APR/APY, which I will to reinforce the synthetic asset stakes.

That's why I like @Indigo_protocol so much.

That's the upside.

The Downsides

What're the downsides? They exist.

1. stake and swap fees and slippage

Folks, I've invested ~$1,000 into this THANG! My portfolio's value is only ~$900

Some of that is due to price-movement, sure, but there are fees for every stake and every swap AND every swap is for $iETH ABOVE $2,000 when $ETH is only $1,845!

2. 'yield tax.'

@Indigo_protocol makes no bones about it. They take 2% of your yields and distribute them to $INDY stakers.

Which incentivizes me becoming an $INDY staker, sure, and 2% of 1.04 $ADA yield is meh.

But what does that mean when I make $100 in yield? $1,000?

It means that if I'm making $100/day, $INDY stakers pocket $2.00.

$1,000/day? They take a $20-bill and put it into their wallets.

What do I get for that $20?

At least kiss me before you fvck me like this, huh? Please?

Harsh(?) Evaluation

Why am I so harsh in my evaluation?

With 1. 'slippage' and fees and 2. 'yield tax,' @Indigo_protocol makes money both coming and going.

Sure, it's a sweet, little setup, giving you yields on (synthetic) OG, or blue chip, crypto assets, but they do take their pound of flesh.

So, wat do?

tl;dr: I'm in, but cautiously.

My current stake is 0.5 $iETH, or sized at 10% of my ETHBTC-THANG!

I'll be adding and accumulating to my @Indigo_protocol position and seeing, over the long-run, if the returns far outweigh these costs.

And I'll keep you posted.