Let's open a @Cardano @Indigo_protocol position.
This will be a fun little tour/HOWTO.
Please see @technologypoet deep-dive into Indigo.
To invest into @Indigo_protocol, I need liquidity on @Cardano.
There are several ways to get liquidity to Cardano. I have liquidity on @avax, so I'll transfer from there via @coinbase.
I transfer $AVAX from my Avalanche-wallet to Coinbase, swap to $ADA, then transfer to Cardano.
So, buying $iETH. There're 2 ways to do this:
- Mint $iETH with $ADA (staked, even, as @Indigo_protocol allows this). Here, however, is a risk of liquidation that doesn't interest me, as I'm not interested in keeping the $ADA, as others of you may be, if so: choose this option.
- Instead, I choose to swap my $ADA for $iETH, which I do.
This option has a risk. If $ADA skies, I miss out on that rocket-train to the Moon (and, yes: I just said 'rocket-train').
When I become an $ADA-maxi, I'll (also) incorporate the first way into my investment strategy.
Next, I go to stake my $iETH to start earning those sweet, sweet $ADA-yields (which I don't care about, at present, but maybe I'll stake the $ADA-yields to mint $iETH? to stake the $iETH to earn $ADA-yields)
I'M NOT A DEGEN! I SWEARSIES!
Narrator: liar.
me: 😤
I get the surprise of my movin' body, however, when I go to stake: I'm informed that my wallet collateral is 'missing' and I must authorize it before I can stake.
There is nothing in the @Indigo_protocol documentation about this problem, so I paste the error into @startpage.
Come to find that this is a Cardano-ism. You send your own address 5 $ADA to make this problem go away.
Hey: don't look at me. I don't make the rules.
Once I send 5 $ADA ... to myself (?) 🙄 I'm able to stake that $iETH and start earning those sweet, sweet $ADA-yields.