Logical Graphs LLC: 2024-01-17 ETHBTC-THANG! Day 234

Thursday, January 18, 2024

2024-01-17 ETHBTC-THANG! Day 234

Let's do the ETHBTC-THANG!

I record the $ADA price from @Indigo_protocol and the $ETH and $BTC prices from @Levana_protocol.

The EMA20 indicators agree that both { $ETH, $BTC } -> $ADA are a good swap.

I'm not going to do that. But this does tell me that $ADA is now a good buy.

I'm not going to trade away my $iETH nor my $iBTC. They're both staked (1) and (2) my aim with this portfolio is to accumulate $ETH and $BTC (synthetic or not), not to trade it.

But I do have a reserve of $iUSD I bought on the play of a large liquidation that never came to pass.

Do I care about $ADA? I never have up to now, but should I? That is: should I, in the context of the ETHBTC-THANG!?

I think the answer is now a resounding YES!

Why? I buy $iETH and $iBTC on @Indigo_protocol protocol, swapping $ADA to one or the other as the indicators dictate.

Okay: $ADA is on sale. I have reserves. How do I buy this underpriced $ADA? Do I ape in?

Hellz, nah, fam. Aping has worked for me 0 times so far in this wonderful adventure of #cryptocurrency.

So, I'm going to DCA ('dollar cost average') my $ADA bag.

I know how much $iUSD to invest, but it's more complicated than that, as I have both $INDY-yields (which I always convert to $ADA) and $ADA-yields.

WAT DO?

What I do is,

[wait for it]

SPREADSHEETSZORXEN!

I compute the $INDY and $ADA yields and how much $iUSD to withdraw.

So! Let's put this plan into action. First things first, I harvest the $INDY-yields then swap to $ADA.

That takes care of 114 of the 444 $ADA I'm adding to my reserve.

Let's finish up the ETHBTC-THANG! from yesterday.

I withdraw $iUSD, then swap it to $ADA and got a very unpleasant surprise.

Premium on the swap is 30%+, ... across the board.

That means @Indigo_protocol is saying your $iUSD is worth $1-per, but you swap it at 70¢-per.

This says to me two things, no: three.

I was stupid for aping in with $3,000 $iUSD. That means I straight-up lose $1,000 on the trade-backs. Joy.
Minting now makes sense, because $iUSD is 70¢ everywhere, even in @Indigo_protocol
The only use-case for $iUSD is staking

So, I'm facing this dilemma. How to solve:

@Indigo_protocol COULD bring the value of 1 $iUSD to actually be $1. You know: because it's supposed to be stable synthetic, pegged to $USD.

You know?

What is the utility of $iUSD? If it doesn't have a solid peg, then: nothing.

What does this say for $iETH and $iBTC?

At present, I don't know. I do know the swap-rate to those synthetics are not fair nor favorable, as I've been buying and staking each, bit by bit.

Does that mean I'm exiting @Indigo_protocol entirely?

I don't know yet.

What I am saying is this: for @Indigo_protocol, watch the real value of these synthetics, on protocol and off. If there's no real world value, only mint and stake them for your long-term value protection.

WHY would I stay on @Indigo_protocol?

I'm thinking: are $iETH and $iBTC going to go up?

If yes, then I keep those synthetics staked and profit from yields, so my $1,000 backend loss is covered over by $iETH and $iBTC price-increase.

That's why I'd stay. ~30% APY is cozy.