Leveraging pop-quiz 2

Leveraging pop-quiz 2:

You have 10 $AVAX. 

You want to KEEP 10 $AVAX.

You want to GROW THE VALUE of that 10 $AVAX.

1. Where is the best place to SUPPLY the $AVAX on @BenqiFinance: as $AVAX or $sAVAX?

With the above supply:

2. What is the best token to borrow, distribution-wise?

3. δneutral that token (that is: put all you borrow into supply). You now can borrow more. Do that. What is the point when borrow-supply diminishes?

4. You have a net APY of what? What is the REAL APY?

5. The more you borrow, then supply back, then borrow, etc. ... does the real APY go up? or go down?

6. Chart real APY at each borrow-supply step.

Solution to Rust pop-quiz 3: modules

Solution to Rust pop-quiz 3, modules: utils.rs winter.rs

Q. There's no `mod` at the top of utils.rs. How does Rust know what module it is?
A. The filename, and the directive `mod utils;` in winter.rs tells Rust which module to import.

Daily #cryptocurrency income report, 2022-08-30

Daily #cryptocurrency income report, 2022-08-30: $40.10*

You're going to see more of these yields, and more often, now that the @BenqiFinance marketplaces are starting to grow.

*doesn't include auto-restaked yields nor s-token gains.

Daily Terra ('classic') report, 2022-08-31

Daily Terra ('classic') report, 2022-08-31:

1 $USTC: 0.026027 $USDC
1.9M $LUNC: 11859.238942 $USTC

which is 303.534 $USDC off-chain, up 9.8% from yesterday

Rust pop-quiz 3: modules

Rust pop-quiz 3, modules

From what you've learned on Rust pop-quiz 2, Summer: 

Create a module utils.rs that exports 2 functions 

• get_args() that gets the command line arguments 
• get_nums() that gets the arguments as numbers.

Then:

Rewrite summer.rs, using get_nums()

Daily Terra ('classic') report, 2022-08-30

Daily Terra ('classic') report, 2022-08-30:

1 $USTC: 0.025899 $USDC

1.9M $LUNC: 10866.992278 $USTC

which is 276.798 $USDC off-chain, up 6.4% from yesterday

Daily Terra ('classic') report, 2022-08-29

Daily Terra ('classic') report, 2022-08-29:

1 $USTC: 0.024685 $USDC

1.9M $LUNC: 10284.700877 $USTC

which is 250.292 $USDC off-chain, up 6% from Friday

Daily Terra ('classic') report, 2022-08-26

Daily Terra ('classic') report, 2022-08-26:

1 $USTC: 0.027992 $USDC

1.9M $LUNC: 8761.494316 $USTC

which is 236.047 $USDC off-chain, up 15% from yesterday. Holy Shiiii-... um, oooot! 😱😱😱

Band protocol has discontinued support for @mirror_protocol  https://twitter.com/BandProtocol/status/1557680135222210560 

Fuzz.fi tour

Let's take a tour of @FuzzFinance on Harmony.

Why? What interests me here?

Fuzz was one of the few protocols (along with @finance_unite) that are sticking it out with Harmony and giving this Harmony-thing a go.

That takes guts in my book.

Good news/bad news first.

On 2022-05-22, $FUZZ was $0.01.

Now it's $0.00006

Ouch?

$FUZZ has been declining since ... well, forever.

But then there's today after they announced they would be staying on Harmony. 

Is this spike today sustainable?

No idea. Also: I'm not a forecaster/neuromancer: so, no idea, squared.

But it is a protocol that's says it's going to stick around with Harmony, so, at least I know where my funds are.

Speaking of funds ... the tour.

The @FuzzFinance splash-page, at https://fuzz.fi/, is the tour, actually. It takes us several places. 

We'll explore 4 of them:

1. validator

2. DEX

3. gaming

4. the price ... we're no actually going to GO to the price, we'll just look at it. And pray it goes up. More. 😅 

Validator

Let's BRIDGE $AVAX over to Harmony, then SWAP it to $ONE. 

Why? So I can STAKE 10,000 $ONE with @FuzzFinance.

Why? @FuzzFinance provides a 1% incentive for stakers less than 10,000 $ONE and a 5% incentive for those who stake in 10,000 $ONE tiers. 

Fuzz staking reward tiers. 

DEX

And, after you stake your 10,000 $ONE with @FuzzFinance, you see your delegation incentives show up on their LPs on the Producer page.

I think it takes an Epoch for these boost incentives to show up, so: DON'T PANIC and CHILL OUT for an Epoch, okay?

Sheesh. Kids these days. 🙄

Okay, WHICH @FuzzFinance LPs do we farm?

* ONE-USDS and FUZZ-USDS, obviously!

HOW do we farm these LPs? If you're new to LP farming, that's not so obvious. Let's walk through this step-by-step.

1. Go to Trade > Exchange page

2. SWAP $ONE for $FUZZ and $USDS

3. Go to Trade > Liquidity page

4. Provide liquidity for ONE-USDS and FUZZ-USDS LPs

These next steps are IMPORTANT to earning incentivized yields:

5. Go to The Producer page

6. STAKE your LPs

After you stake your LPs you start to see $FUZZ-yields accumulating in real time. 

Some caveats with staking @FuzzFinance LPs. 

1. $FUZZ price has fallen 10x since 2022-04-22. My $40 invested then is worth $5. I'm looking at principal invested as pure loss at this point. Caveat Farmer.

2. $USDS: a stable coin that has LOW liquidity so it ISN'T STABLE!

🚨🚨🚨

The last part of @FuzzFinance I'm covering in this tour is the #GameFi‌ page. This page allows you to place $FUZZ wagers or even to create them. You can see one such in progress currently.

How will @fuzz_fi do?

APYs are currently at 600%+, but the liquidities are so low there can be no expectation of maintaining producing yields at these rates, and, in fact, rates are down from 1000%+ 2 days ago.

I've invested $400 into @FuzzFinance and will monitor this protocol.

Leveraged APY quiz answers

These are the answers to the Leveraged APY pop-quiz. 

1. How much is principal: $7,463.98 

... you may have invested all the supply, but, at the end of the day the principal is what you have when you exit the protocol.

2. How much is leveraged? I think a more appropriate question is: how much money is this net APY paying on. That's the question. And the answer is: $26,948.76

3. My working definition of 'real APY' is: 'what is the realized APY on the principal?' as opposed the the net APY on the leverage.

The next answer may be a multiparter, just so you know.

4. What wasn't asked was: "what is the overall 1-year gain?" So: what is the overall 1-year gain?

$492.21

How was the distribution computed? We used the 'Pert'-formula.

new principal = principal * exp(rate x time)

'Pert'

Then we subtract the starting principal from the new principal to determine the distribution.

To compute the 'real APY' we use that distribution and the un-leveraged principal to compute the rate:

new principal = principal + distribution = $7,956.19

And plug everything into the Pert-formula, solving for rate to get real APY.

The real APY? 6.39%

D-mn. 😱😱😱

Now, recall, that @BenqiFinance reported my net APY to be 1.81%, but my REAL APY is 6.39%.

This, ladies and gentlemen, is the power of leverage: I'm getting paid distribution yields on borrowed assets, or, as I call it: "Other People's Money."

SWEET.

BONUS 

Pop-quiz, à la Rust!

Write a Rust program that takes Supply, Borrow, and net APY as arguments and returns the real APY.

SPREADSHEET (Leverage tab)

Daily Terra ('classic') report, 2022-08-25

Daily Terra ('classic') report, 2022-08-25:

1 $USTC: 0.027917 $USDC
1.9M $LUNC: 7347.813153 $USTC

which is 197.915 $USDC off-chain, up 3.5% from yesterday 😍

Last day before Band protocol discontinues Terra Classic support for @mirror_protocol  https://twitter.com/BandProtocol/status/1557680135222210560 

Daily cryptocurrency income report, 2022-08-24

Daily #cryptocurrency income report, 2022-08-24: $23.71*

Another $20+ day; yay! 🎉 Sorely disappointed that the $ONE bleed-out is halving the value of returns all across Harmony.

*does not include auto-restaked yields nor x-token gains.

Migrating Unite LPs to uDEX

Migrating your @finance_unite LPs.

Step 0: go to https://app.unite.finance/migrate page and approve the LPs you wish to migrate.

Step 1 @finance_unite migration: unstake your Venom Unite LPs. 

Step 2 @finance_unite migrate: migrate your unstaked Venom Unite LPs to the new uDEX LPs.

Okay, but why do you want to migrate? The old LPs are now earning 0% incentives; the new LPs will be earning new uDEX incentives.

Here's the blurbs from @finance_unite: 

Step 3 @finance_unite LP migration: approve new uDEX LPs.

Step 4 @finance_unite LP migration: once the new uDEX LPs are approved, you can now deposit (or stake) your uDEX LPs into Unite's farms. Do this step. It's important. 

Step 5 @finance_unite LP migration: check that your LPs are staked and earning those sweet, sweet APYs.

And: yes, I will be reporting on the returns and principal values are as I use these instruments.

For example: my initial funding was $1,278.77, which is now worth $67.22.

What does this mean for me (and perhaps you)?

Am I expecting a $1,200 refund in good faith? No

Do I not trust @finance_unite ? No

It means I'm starting over ... not from -$1,200 but from $0 and treating this as a new investment.

I'm restarting smol and will report.