Tour: Levana

Hey, ho, all! It's a lovely 55°F / 13°C here in September-y VIRGINIA! 😤

A catch-all buy-order hit on @TeamKujira FIN for $OSMO on a down-spike!

I COULD take 10% profit on @osmosiszone (not @Shade_Protocol, as the swap is unfavorable), ... 

Or, I COULD trade it for $ATOM at a ratio of 16 $OSMO per $ATOM, at these prices that's [computes]: $5.54-per-ATOM.

A fine price, but look at the history.

I would buy 1.6 $ATOM, ...

... then wait 3 centuries to buy the remaining 8.5 $ATOM.

Ugh. 

I mean, ... it is a play? 

Or, I COULD lease an asset, say $wBTC, on @NolusProtocol, with $OSMO.

But that assumes:

• $OSMO retains its value or goes up in price or
• $wBTC goes down in value.

I'm not willing to take either bet at present, ... because I'm not stupid.

Narrator: You're not?

me: 😤

... and I could be totally wrong on this "Don't lease $BTC with $OSMO"-call. It could be that I want $OSMO to go down and $BTC to go up on a lease-play, idk.

I'm just too new to this leasing-thing. I'm not (yet) willing to explore plays other than $USDC collateral.

At any rate, I have $55-worth of $OSMO from a 50 $USK catch-all, which is even better, as axlUSDC/USK is now > 1. YUS!

So, let's short $OSMO on @Levana_protocol.

A tour.

I bridge my claimed $OSMO to @osmosiszone (where @Levana_protocol) then set the short at 3x.

Straight-away, the transaction fails to commit.

@Levana_protocol is an interesting take on perpetuals. You long- or short- positions using the same token as collateral! 😱 Now, this isn't new for perpetuals, but it's new for me.

But there's another interesting twist here.

The twist is this: most perpetual exchanges ('PEX'???) have insurance to cover their positions. @Levana_protocol doesn't need it. Why?

You're required to select a 'take profit' value, that comes set in ranges that @Levana_protocol can cover with EXISTING FUNDING!

So, after I 'jiggle' the 'Take Profit'-slider, I get a green value there and the transaction completes.

I don't like that. @Levana_protocol should adjust that automatically to a safe-zone, particularly for first-timers, comme moiself. Failing a transaction is bad Juju. #BadJuju 

Here's another thing I don't like. On the dashboard, I can't see the vitals my positions at a glance, they're hidden by a slider, or I have to click-thru.

"NBD," sez you.

Sez I: Oh? When the market skies or tanks, you don't have time to click-thru every one of your positions.

Here's the third thing I don't like:

The SECOND I placed my $OSMO 3x short, the price feed went absolutely haywire, slamming up the price to 46¢-per THREE TIMES IN A ROW!

This is WAY above liquidation price. What? I set a short, and I can be insta-liquidated by the price feed?

Now, if I believed $OSMO retains value well, I would set up a δneutral position by placing $OSMO into the stability pool on the 'Earn'-page, funding the protocol as well.

BTW, confusingly: "OSMO / USD" IS NOT an LP pair! It's a single-stake $OSMO-only pool of liquidity.

However, I believe the opposite. I have seen $OSMO lose a tremendous amount of value over the past two years, and all I hear is talk-talk, and all I see is 📉.

For now, anyway.

I'm shorting $OSMO like a fomo mofo. If price spikes, I lose $50. If it stays flat, I make fees.

But what happens as the price of $OSMO (continues to fall)?

Here's what @Levana_protocol does: as the price falls, THEY ADJUST THE COLLATERAL UP TO COMPENSATE! 😱

On a 3x-short, I profit 3¢-per each 1¢ $OSMO's price falls.

My SPREADSHEETSZORXEN tells me 31¢-per is a 10% gain.

So, do I cash-out at 31¢-per $OSMO?

That's one option, ...

geddit? 'option'? on a perpetual? GEDDIT?

Narrator: we get it, okay? 🙄

Another, ... [dare I say?] ... option, is to keep the short, continue to collect fees, and ride that gravy train to, in this case, 17¢-per.

So, this is my introduction to @Levana_protocol to myself. After I get the feel of this short, I'll explore how to set up an, e.g.: $BTC or $ETH δneutral position on this protocol.

k, fam, 143 means 'I love you!'