Daily state-of-Terra (classic) report, 2022-07-31

Daily state-of-Terra (classic) report, 2022-07-31:

1 $USTC: 0.034888 $USDC

1.9M $LUNC: 5262.2 $USTC

... which is 182.286 $USDC off-chain, down 2% from yesterday

Answer 2 to the supplying QI pop-quiz

Answer 2 of our supplying $QI pop-quiz is a new tab, 'Borrow AVAX,' in our SPREADSHEET!

total QI gained: $1,094.96

total AVAX gained: $1,458.87

total gain: $2,553.83

If you compare this to the other tabs, our total value is more, but are yields are MUCH less: $800 less, due to the borrow accumulation. 🤬

This is not how I WANT leveraged yielding to work, but, as SUPPLY and BORROW APYs on $AVAX are net-the-same, leverage on $AVAX cancels out.

Good to know! 😅

SPREADSHEET!

Also, to note here: The risk of the earlier approaches is that I trade all my $AVAX for $QI.

In this approach, I KEEP my $AVAX (as SUPPLY), BORROW $AVAX, then swap THAT to $QI.

The δneutral leveraged position MITIGATES the $QI-risk AND preserves my capital investment.

So: yeah.

But, also note that we're generating much more $QI ($1k, or $400 more) than the prior solutions, too.

Hm. The goal is to generate $AVAX, not $QI.

I'm not jazzed about exchanging making less for less risk and more $QI. Let's see if the exercises following give better outcomes.

Answer to Exercise 1 of Supplying QI pop quiz

Answer to Exercise 1 of Supplying QI pop quiz:

1. 74% * $x = $21,000
2. (1/74%) * 74% * $x = $21,000 * (1/74%)
3. $x = $21,000 * (1/74%)
4. $x = $21,000 * (1/74%) * (100% / 1)    'cancel %
5. $x = $21,000 * 100 / 74
6. $x = $28378.38ish

... before, when $AVAX collateral factor was 70%, the answer was $30k, so: ... cool!

Daily state-of-Terra (classic) report, 2022-07-30

Daily state-of-Terra (classic) report, 2022-07-30:

1 $USTC: 0.0356 $USDC

1.9M $LUNC: 5292.7 $USTC

... which is 186.732 $USDC off-chain, up 2% from yesterday

POP QUIZ: Supplying QI

POP QUIZ!

You recall, the previous pop quiz focused on growing an $AVAX-bag from supplied $QI.

Well, how do we supply $QI?

That's the focus of this pop quiz.

Okay, let's say you have $21,000.00 of $AVAX.

You convert that all to $QI and start earning 11%+ $AVAX, which, the previous pop quiz, shows various results: $23K - $26k total at the end of a year, depending on your reinvestment strategy.

There is risk in this approach, however.

And the risk is this: you're swapping the protocol token, ... of the frikk'n AVALANCHE BLOCKCHAIN ffs, $AVAX, ... for a protocol token of @BenqiFinance, $QI.

• $AVAX is lookin' good rn.
• $QI ... never has?

Why sacrifice $21k $AVAX to earn $5K $AVAX from $21k of ... $QI?

WAT DO???

How do we get $QI?

1. Well, we can swap for it, swapping $21k $AVAX for $21k $QI, on, say, @traderjoe_xyz or @pangolindex.
2. Or: we can supply $x of $AVAX to borrow $21k, but not of $QI (you can't borrow $QI on @BenqiFinance), but another token, say, ... $AVAX? (or the token of your choice)

Exercise 1

At a 74% collateral factor for $AVAX, how much $AVAX (in $USD-value), would you need to SUPPLY to be able to BORROW $21,000 of a token of your choice? 

What does exercise 1 do for us, other than cost (a lot) more to fund $21k of $QI?

That's Exercise 2

GIVEN you SUPPLY $x of $AVAX to BORROW $21K of (well, whatever token).

How much, in $USD, are you yielding in $AVAX and $QI from that SUPPLY and from your BORROW per annum?

There are several approaches to maximize yields on @BenqiFinance.

a. Convert the borrow 💯 to $QI, then SUPPLY

That's the first pop-quiz I did, so I won't revisit it here, but, we have other options, ...

Another option is

b. Borrow $AVAX, convert SOME (how much?) to $QI to stake, SOME to $QI to supply to the QI-AVAX LP

We're going to be looking in depth at this option for this pop-quiz.

c. Dealer's choice [meaning: you come up with a better $AVAX-yielding strategy than mine].

But there are also (at least) two more options:

d. Netflix 'n chill 😎

e. none of the above

Which option, or optionSSSSSSsssz, will you take this year? And, what are the results of taking (each of) those options? Measure and report your findings. I'm interested!

Okay back to option b. The following exercises assume you have $21K $AVAX BORROW, some you'll SWAP for $QI SUPPLY to @BenqiFinance, the rest you'll STAKE as QI-AVAX LP on @BenqiFinance.

We'll look at various measures in the exercises below.

Exercise 3 [easy]

GIVEN $21K $AVAX BORROW:

• 50% SWAP to $QI as @BenqiFinance SUPPLY
• the other 50% becomes QI-AVAX LP as @BenqiFinance STAKE 

FROM the $QI-yield, if you SUPPLY 50% $QI and STAKE 50% $QI as QI-AVAX LP, what are your annual returns and totals of $AVAX and $QI?

Exercise 4

a) Exercise 3 generates a lot more $QI than $AVAX, yes? no? How much more $QI than $AVAX do you generate in exercise 3?

b) How much do you invest into $QI supply vs. QI-AVAX LP to generate THE SAME ($USD) AMOUNT of $QI and $AVAX, percentage-wise to each instrument?

Okay: b) was 50% $AVAX-yield/50% $QI-yield, but I want c)

c) what percentages go into $QI SUPPLY vs. QI-AVAX LP STAKE to to get a 66% $AVAX-yield/33% $QI-yield.

Why?

I want to keep 50% of the $AVAX for myself, not for reseeding the LP, because the $AVAX bag is the aim, not $QI

... but you need $QI to generate $AVAX, so: maximize $QI?

Um, no.

Exercise 5 [hard?]

Find the optimum percentages of $QI SUPPLY and QI-AVAX LP STAKE on @BenqiFinance that

a) generates the maximum (combined) annual yield; or,

b) generates the maximum $AVAX yield; or,

c) both.

Avalanche: QI-yield experiment

I'm going to commence a little $AVAX-experiment on @BenqiFinance with ... well: $AVAX, and their $AVAX-producing protocol token, $QI.

But, before we do that, let's learn how to stake $QI to produce $AVAX and $QI, first, shall we? 

I have both $AVAX and $QI-yields accumulated.

There are several, many, ways to make $AVAX with $AVAX: 

• You can STAKE it as $sAVAX and have that embedded x-token growth that we all know and love ... you do know this, right? That's 7%ish.

• You can SUPPLY it on @BenqiFinance, that's ~3%

• You can leverage it as a BORROW.

Okay, but we know this... and YOU know even better than me this.

Now, let's turn to $QI.

How does $QI make $AVAX.

You supply it to @BenqiFinance for a ... [wait for it] ... whopping 11.5% yield.

Hello? Please sign me up! *geophf enqueues.

The problem with this $QI golden goose is that, granted: it yields $AVAX better than any other supplied asset, but it does not self-produce.

How do we produce $QI ... to produce $AVAX (our goal)?

Any SUPPLIED or BORROWED asset on @BenqiFinance does that, of course, but ... then we come right back to the @BenqiFinance rewards-tab:

The QI-AVAX LP farm on @BenqiFinance is producing $QI at a 66% clip.

Which is nice.

So, let's provide liquidity to, then stake QI-AVAX on @BenqiFinance.

An HOWTO. 

Step 0: claim $QI and $AVAX yields from the @BenqiFinance marketplace.

Incidentally, this transaction, today:

https://snowtrace.io/tx/0x0cf267b1be3653caedf8b7786a68ec7c07930f81e62373869a1ebec9ea3acce2

is the first time IN MY LIFE that I've collected yields from a protocol on Avalanche.

Mark your calendars when you start making money.

I do.

Also, incidentally, but no: to the point, you see that the transaction fees (0.02 $AVAX) is LESS than 1% of the yields.

If a transaction fee eats into your yields, you don't have yields, you have fees.

As a rule, I only collect yields that are at least 100x the transaction fee.

Step 1: provide $QI and $AVAX as liquidity to the QI-AVAX (@pangolindex) LP.

You see for my Step 1, I provided the @BenqiFinance marketplace yields.

Which means I get this $QI-yielding LP ... FO' FREE!

I'm not complainin' 😎

Step 2, and importantly, so I'm glad @BenqiFinance provides this step immediately following Step 1, is this:

STAKE your QI-AVAX LP onto @BenqiFinance to start earning those sweet, sweet $QI-yields, fam! 

Step 3: We're in business!

@BenqiFinance very kindly tells you the amounts of the QI-AVAX LP you have staked, and, momentarily, you see your accumulated $QI-yields.

YAY! 

Of course, this LP, as well as any LP, has inherent risks. I suggest you read my article on LPs if you've concerns.

If you can't stomach losing even 1% of your $AVAX (or... okay, your $QI? I don't judge.) (judge. judge. judge), don't put your $AVAX into an LP. It's that simple.

Link to my article on how LPs work, called ... [wait for it] ... "Impermanent Loss, the conversation."

Fair warning: buckle up, buttercups. If you have feelz, they gon' get hurt reading this article. 

Okay, we now know how to create and to stake the QI-AVAX LP for those sweet $QI-yields! YUS! 👏

Now we're ready for some $AVAX and $QI experimentation.

POP QUIZ TIME!

Even me. Even you.

I started in #cryptocurrency with $0 in to prove that somebody with no money could make it, could make this thing work.

If I can do this thing, starting with nothing, you can do this thing, too, by gum!

When I recover, when I prevail, it will show something else, perhaps something even better:

If somebody as STUPID as me, who lost everything, not once, but TWICE, can make it in this thing, this crazy cryptocurrency-world, then, by gum! you can, too.

You can make it, too. 

'Feelz'

Terra ('Classic' ffs) crashed.

That was a thing. That happened.

Do Kwon stood up Terra 2.0 as a rescue-effort, that did absolutely nothing except to make Terra to crash harder with the $LUNA-$LUNC hack.

Harmony crashed.

That was a thing. That happened.

Tse was going to print 5 BILLION $ONE for a recovery plan, because inflation has been shown to work so well to help the hardworking masses who've lost all their retained worth.

Yeah. That.

I had 50% of my assets in Terra; 50% in Harmony. You know: to make sure that if one golden goose ... 'ungoldenified,' I'd have the other one. Diversification, you know, to protect assets, ... you know? 

All my money. All of it. Gone.

Both blockchains were doing so well. Both of them just worked. Both had solid business cases. Both of them had an amazing, devout community, you know?

All the indicators of good, healthy, productive investment instruments were present. I was a water-walker, and I was walking on Sunshine. Whoa!

Then: boom.

So, Tse posted he was going back to the drawing board after the universal disdain his 'print 5B $ONE' proposal received. Yes, I saw Tse' post. But remember: facts don't matter in the face of the feels of an angry mob. #facts 

As for me: 

• angry mobs don't matter
• Tse's 'back to the drawing board' doesn't matter. He floated proposals to 'fix this'; he'll float new ones.

The measurements matter. Harmony will, or will not, recover; I have vested interest that it does.

But in the end: what I do with these measures matters.

Not what I 'feelz.'

Do Kwon, Tse, angry mobs, the 'Dark Web,' the Illuminati, good intentions, bad calls, ...

It's what I do that directs my future, not them: me.

Daily state-of-Terra (classic) report, 2022-07-29

Daily state-of-Terra (classic) report, 2022-07-29:

1 $USTC: 0.036343 $USDC

1.9M $LUNC: 5235.9 $USTC

... which is 182.9 $USDC off-chain, (still) up 1% from yesterday

Daily state-of-Terra (classic) report, 2022-07-28

Daily state-of-Terra (classic) report, 2022-07-28:

1 $USTC: 0.036611 $USDC

1.9M $LUNC: 5064.6 $USTC

... which is 180.5 $USDC off-chain, up 1% from yesterday

Harmony AAVE daily reports discontinued

"Fun" fact: @AaveAave on Harmony has disabled SUPPLY $LINK withdrawals, so: daily reports are now moot until withdrawals are re-allowed. 

Daily Aave LINK self-funding experiment report, 2022-07-27

Daily @AaveAave $LINK self-funding experiment report, 2022-07-27:

Day 14

Invested: 39.29066368 $LINK
Goal: 74.36176567 $LINK
balance: 41.81212842 $LINK

APY% (measured): 447.30%

$LINK earned/day (average): 0.1743310786
Self-funded in: 180.7 days

Daily state-of-Terra (classic) report, 2022-07-27

Daily state-of-Terra (classic) report, 2022-07-27:

1 $USTC: 0.03583 $USDC

1.9M $LUNC: 4955 $USTC

... which is 178.1 $USDC off-chain, up 5% from yesterday

Harmony hack numbers

The breakdown of what 100M $USD stolen looks like.

The $1USDC de-peg is obvious in this light. But this also shows which tokens hold their values across blockchains. Source, linked proposal in https://twitter.com/harmonyprotocol/status/1552097233692069888 

Daily state-of-Terra (classic) report, 2022-07-26

Daily state-of-Terra (classic) report, 2022-07-26:

1 $USTC: 0.042 $USDC
1.9M $LUNC: 5116.8 $USTC

... which is 167 $USDC off-chain, down 7.5% from yesterday

Really? Ouch! 

Perspective

I complain that I have 'only' $167 worth of $LUNC on Terra Classic, but I need to have perspective.

• I bought 4M $LUNC for $200.00 after the crash.
• 2M I invested into @mirror_protocol which is now 53k $USTC, now worth $1,600! WOW!
• The other 1.9M $LUNC is worth $167.

I win. 😎

Daily Aave LINK self-funding experiment report, 2022-07-26

Daily @AaveAave $LINK self-funding experiment report, 2022-07-26:

Day 13

Invested: 39.29066368 $LINK

Goal: 74.36176567 $LINK

balance: 41.5569677 $LINK

APY% (measured): 463.48%

$LINK earned/day (average): 0.1743310786

Self-funded in: 188.1752711 days

Bonus-bonus answer to Benqi Pop-quiz

BONUS-BONUS answer to Benqui $AVAX / $QI / $sAVAX pop-quiz:

Is $sAVAX better or worse reinvestment  as SUPPLY than $AVAX on @BenqiFinance? 

Better. Slightly better. Very slightly better.

• $AVAX reinvestment annual returns were: $26,284.54
• $sAVAX conversion then reinvestment annual returns were: $26,323.95

or $40 better