Logical Graphs LLC: Nolus: leasing assets

Thursday, August 17, 2023

Nolus: leasing assets

Okay, I reached back to the @NolusProtocol-team, and they reached back to me, so I understand leasing a bit better.

Or I think I understand leasing a bit better, and it's all about the confidence with which one holds onto one's beliefs, isn't it?

ANYWAY, I made some money.

HOW did I make money?

I THINK it's all beginner's luck, but we'll walk through what I did, and I'll let you decide that.

So: leases.

You lease some asset. In my case, it's $OSMO.

The collateral for the lease is locked AS WELL AS the leased asset. @NolusProtocol puts that in a long position FOR YOU. You lease it. You don't get to determine the course of the asset: they do.

That gives me a problem: how to close the lease?

With a standard long position, in a market upturn, you close the long, the collateral pays for the asset, and you get to keep the rest.

This is not how @NolusProtocol does business, fam.

(pictured: $BTC long on @GMX_IO)

Given this @NolusProtocol-style to repay the least, this means I need to send some more liquidity to @NolusProtocol.

Yes, sir. Yes, sir. Three bags full.

I send $axlUSDC from @TeamKujira to @axelarcore, then pull that into @NolusProtocol.

It shows up on the dashboard.

Great! Let's close out this $OSMO-lease.

I go to the lease-tab. I say 'repay' ... it defaults to $OSMO, but @NolusProtocol told me I can switch assets in the drop-down. I do that, and repay with $axlUSDC.

When I repay, I repay for ALL THE $OSMO LEASED ($100-worth).

There is, however, one more step I need to take in order to claim the unleased $OSMO. That is to say, just because the $OSMO is now unleased, it's not yet in my wallet. I need to claim it, so I do.