Experiment α(2): Benqi AVAX self-loan to Anchor

Experiment α(2):

We have @anchor_protocol humming along.
We have @BenqiFinance on Avalanche humming along.

Let's loan myself $AVAX from @BenqiFinance to @anchor_protocol and see how long it takes the $ANC yields to pay-down the loan.

We will 'create' $AVAX from $ANC here.

To self-loan $AVAX, I need $AVAX.

I have 9.9 $sAVAX, so I'll swap that for $AVAX on @pangolindex (edging out @traderjoe_xyz at the moment).

So, now I have $AVAX. Before I loan myself $AVAX, I'll establish 2 new δneutral positions on @BenqiFinance, before finally loaning myself the borrowed $AVAX.

Why?

Because: LEVERAGED yields, folks. Or, as I call it:

Yields using Other People's Money.

Don't mind if I do. 😎

So, step 1: 

we fund our @BenqiFinance market ("Be your own bank") by supplying $AVAX.

Step 2: we go to the @BenqiFinance 'overview'-tab to see which are the viable δneutral positions.

Besides $AVAX, itself, $USDC (NOT: $USDC.e) and $WETH.e are net-positive yields (in $QI) on both supply and borrow sides.

Step 3: we establish our δneutral positions.

Let's start with $USDC, as it collateralizes at 80%.

We BORROW $USDC – I'm borrowing at 70% – 

then we immediately SUPPLY all of that borrowed $USDC.

Thus, we establish our $USDC δneutral position: our supply covers our borrow.

I do the same thing to establish the $WETH.e δneutral position:

BORROW $WETH.e,

then immediately SUPPLY that borrowed $WETH.e 

Now that I have my diversified δneutral positions establish, I'll borrow $AVAX to self-fund my @anchor_protocol position over on Terra Classic (which we'll get to, eventually).

Please note the net APY: 3.34%.

You may be grumbling right now, saying two things:

1. "Net 3.34% APY???" and
2. "You started with 10 $AVAX and now only have 1.4 $AVAX? How are either good things?"

Good questions! Let's address both concerns.

We started with 10 $AVAX (~ $250); now we have 1.4 $AVAX.

But, look at the @BenqiFinance market I've established for myself:

$460.35 supply-side

$236.61 borrow-side

earning a NET 3.3% interest.

I started with $250, I'm earning interest on ~$700.

This is LEVERAGED yielding.

Not only is this LEVERAGED yielding (and I'm yielding on ~$450 of Other People's Money!), but it's relatively SAFE leveraged yielding.

• As the markets go up, the supply goes up, covering the increased borrow value.
• Same for as the markets go down.

(relatively) SAFE, CAPITAL-PRESERVING LEVERAGED YIELDING.

This is the beauty of what δneutral yield-farming is.

So, δneutral has all those advantages (safe, capital-preserving, leveraged), but it's not going to get you anywhere quickly.

Let's get somewhere quickly, ... on the Terra Classic blockchain.

To get there we need to bridge our 1.4 $AVAX there.

But we can't. I don't see how to bridge $sAVAX anymore, either. Bummer.

But we can bridge valueless (?) $UST.

Not so valueless, anymore, eh?

First we swap the $AVAX for $UST.

Then we bridge the $UST over to Terra Classic using https://classic-bridge.terra.money/...

... after a moment, we see the funds on Terra Classic. YAY! 

I just loaned myself some money.

I need to track the loan and the repay.

Do you know what that means?

SPREADSHEETSZORXEN!

Yeup.

I just created my "Anchor Self-funding Experiment"-spreadsheet. 

So now I want to convert my $UST to $sAVAX.

It turns out I don't want to do that, after all. The price impact on @astroport_fi is 10% for that swap. But I can swap to a different, viable, collateral:

SWAP 2120.32 $UST -> 0.021129 $bETH

And now we provide that $bETH as collateral.

Hm. Only a ~30 $UST borrow gain. Oof.

But what just happened?

I converted (indirectly) my $AVAX to (bonded) $ETH, increasing my $ETH supply from 0.49 to 0.51.

I'm 'creating' $ETH from $AVAX now, folks. 

el geophf, wizard. 😎

To finish up:

• I BORROW 16 $UST on @anchor_protocol,

• then I immediately SUPPLY that 16 $UST on the EARN-side

Earning ~2100% $ANC yields and a net 11% $UST yields.

Sweet!

As I earn the $ANC yields, I'll repay my $AVAX self-loan (but that's for another day).

The. End.

Linear Programming to balance Cryptocurrency stakes

Let's say you are staking an asset ($ANC), both in single-stake, because you believe in it, and in an LP (because ... you ... don't? Anybody who puts an asset into an LP and watches the asset's PRICE is cray, IMO), and you want those two positions always in synch? WAT DO?

LINEAR PROGRAMMING TO THE RESCUE! And how do I do LINEAR PROGRAMMING (all caps, obvie): SPREADSHEETS! 

BECAUSE I'M ME! 

AND I GOTS TA BE ME!

Let's walk through an example.

n.b.: It's not something you can just plug a few numbers into, however: this requires work.

So, let's to this.

Exercise:

• STEP 1: enter your singled-staked asset amount (A6)

• STEP 2: enter the asset's portion of your LP (cell B6)

The system computes the Average for you, so skip that cell, so, next

• STEP 3: enter the amount of the asset to be distributed (cell D6)

• STEP 4: enter the quoted price of the asset (cell E6)

So, we have a row #. Go to that row in the linear program.

1. HIGHLIGHT that row in GREEN.
• note: the staked (L) and LP (M) positions should be the same-...ish number
2. HIGHLIGHT the to_cells (H, I, J) in RED 

THOSE are your distribution amounts. So: go invest those

... and that's what I do, every day I distribute my yields to various investments that I want to keep in balance using LINEAR PROGRAMMING! and SPREADSHEETS! YAY!

Here is the crypto linear program spreadsheet.

14 e-coin recommendations for 2021-12-03

14 e-coin recommendations for 2021-12-03. $ANC, of course, and: about time! ... but also $ORION, $SUSHI, and $ALGO ... we'll analyze those tokens today.

The day-after results show how independent each token in the #cryptocurrency markets is, and how they totally ignore that old, out-dated, fuddy-duddy coin $BTC, completely. *ahem* 🙄 

10 e-coin recommendations for 2021-08-12

10 e-coin recommendations for 2021-08-12. I'll be looking at the highlighted ones tonight, after returning home from Pennsylvania. 

First up, the $ADA RSI (https://www.investopedia.com/terms/r/rsi.asp) sell-recommendation.  Nupe. There has been a settling of price, but there's buy-pressure. HODL. 

Next, $FIL RSI (https://www.investopedia.com/terms/r/rsi.asp) sell-recommendation. Yup. Falling price and sell-pressure. SELL. 

Next, $RVN RSI (https://www.investopedia.com/terms/r/rsi.asp) sell-recommendation. Eh. It's not hot, but it's not 'not.' HODL. 

Lastly under review, $ZRX RSI (https://www.investopedia.com/terms/r/rsi.asp) sell-recommendation. Falling price but buy-pressure. HODL. 

So, from the above-reviewed coins, $FIL is the one to be sold, but sold for what? $MIR. It has a falling price-trend, but buy-pressure, and can be farmed at 50%+ on the Terra blockchain.

$300 $FIL -> $MIR 

Day-after results.

• $300 $FIL -> $MIR
• $200 $UMA -> $MIR

Then I farmed and staked $125 $MIR then swapped the rest to $UST when I then converted to $LUNA and $ANC.

• net gain of converting vice HODL'ing: $5.05.

I'll take it.

Day-after analysis of recommendations. It was a bullish day, so most of my sell-recommendations were wrong. Since I decided to #HODL, anyway, I could not be more pleased. Indicators aren't automatic for me (yet)