Next up, @Cardano.
Before I get into the numbers on this blockchain, @Indigo_protocol has two proposals up, concerning distribution and allocation of treasury funds, one for staking with Easy1 the other for new i-Asset LPs on @SundaeSwap.
They don't have iETH-iBTC LP proposed.
Next on @Cardano, you see I have a lot of $INDY rewards and liquidated $ADA to claim on
@Indigo_protocol.
Before I do that, let's run the numbers on the EMA20s of $ADA, etc. which will help me determine how to deploy these yields.
Now, deployment of capital on @Cardano is via $ADA and happens in two ways:
- $ADA-arbs using $SNEK as pivot
- $ADA -> { $iETH, $iBTC }, only in the direction of the synthetics, as this is an ETHBTC HODL, not trading, portfolio.
- The SNEK/ADA-EMA20 calls for BUY.
The ADA/BTC is HODL, but the ADA/ETH is SELL ...
DING! DING! DING!
... with an EMA20 21% δ from the ADA/ETH-ratio.
So we have two reasons to spend $ADA:
- for $SNEK (in $ADA-pivot-arb) and
- for $iETH, to stake on @Indigo_protocol.
Okay, so there's a reason to collect the $INDY rewards and the liquidated $ADA.
HOWEVER, there are (hidden?) fees associated with staking i-Assets. What I bought and staked is now different that what remains in my @Indigo_protocol stake.
Let's study the staked gains vs. losses.
First up, I collect the $INDY rewards on @Indigo_protocol and swap them to $ADA on @MinswapDEX.
Staking Analysis
Here's the analysis of the liquidations, per synthetic asset.
iBTC
For $iBTC: I had staked
- 0.01361 $iBTC
but @Indigo_protocol charged, over time, so that now my stake is:
- 0.00960 $iBTC
That's @Indigo_protocol charging me:
- $246.54 of $409.29 invested
to stake on their protocol.
Of that $246.54 syphoned from my $iBTC stake, I claimed $281.190 in liquidated $ADA.
So, you say, I netted $34, right? That's good, right?
But do you see what @Indigo_protocol is doing?
They are (indirectly) swapping your staked synthetic assets ($iBTC in this case) for $ADA.
"nbd!" you say. "Just swap the claimed liquidated $ADA back to the synthetic asset and stake back, right?"
Do you see what a terrible idea that is if your aim is to HODL these synthetic assets to create steady income from sustainable yield farms?
Your yield-farm isn't sustainable if it's consistently being drained.
On top of this is the fact that it's not $281 in yields, at all! It's $34 net in yields, with $246.54 IN PRINCIPAL LOSSES!
Losses? ... in what @Indigo_protocol calls a 'stability' pool? How is that stable?
iETH
Let's continue the inquiry: $iETH
A total of 0.108 $iETH has been charged against my
0.71 $iETH staked, or
$322.84 in total has been charged against $1,256.29 invested
Today's claim is 545.265841 $ADA or $251.01 against a fee of 0.0732 $iETH or $218.68
net claim: $32.33 $ADA
Finally we turn to the $iUSD 'stability' pool:
A total of 324.58 $iUSD has been charged against a net $2,079.73 invested.
Today's claim is 466.059152 $ADA or $210.233 against a fee of $137.39 $iUSD
net claim: $72.84 $ADA
The above leads me to conclude that if you think you're 'investing' your synthetic assets by 'staking' them into @Indigo_protocol 'stability' pools, that's not what you're doing at all.
You are bidding on liquidated $ADA using your sythetics as bids.
You also get $INDY yields.
Worth it?
In that light that you're bidding your synthetics for liquidated $ADA, is it worth it?
A resounding maybe.
- It's worth it in that my ROI: 5% / 30% APR
- if you're willing to trade i-{BTC, ETH, USD} for $ADA (???)
- It's NOT worth it that I'm arb'n $ADA at ROI: 30% / 450% APR
I have serious problems with @Indigo_protocol 'stability' pools. The whole point of an ETHBTC HODL strategy is to ACCUMULATE (synthetic) $ETH and $BTC. The 'stabilty' pools do the OPPOSITE of accumulate these synthetics, so run counter to my ETHBTC HODL-strategy.
My other serious problem is that the 'stability' pools conflate
- staking to earn $INDY rewards WITH
- bidding for liquidated $ADA.
Both are great! ...separately.
Therefore, I recommend @Indigo_protocol create SEPARATE staking pools and bidding markets.
Don't mix purposes!
Now that's a big ask – a reasonable ask, but a big one.
A simple thing @Indigo_protocol protocol could do to clarify for the 'investor' (who is more of a 'liquidation trader') what the trade is by adding one line to the stability pool:
"Traded 137.39 $iUSD for 466.059152 $ADA"
So, I HAD favorable $ADA -> $SNEK and $ADA -> $iETH swaps, according to the EMA20 indicators, but that was yesterday. I have to (re)compute the EMA20s to see which swaps are (or aren't) favorable now, so, let's start a brand-new day, shall we?
2024-05-08 ETHBTC HODL
incept: 2023-07-27
0.0096 iBTC $589.81
0.6365 iETH $1,902.61
iUSD $2,058.04
3257.53 ADA $1,498.46
270864 SNEK $263.55
fees $101.86
yields net $1,325.62
37.75% APY
invested: $4,465.58
value: $6,312.47
net: $1,846.89
ROI: 41.36% 52.60% APR
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