2022-10-28 Benqi Finance AVAX loop APR report

2022-10-28 @BenqiFinance $AVAX loop APR report

APY 8.52%
APR 13.12%

2022-10-27 Benqi Finance AVAX loop APR report

2022-10-27 @BenqiFinance $AVAX loop APR report

APY 9.75%

APR 14.98% 

The yield-collection kicking in yesterday goosed the APR/APY? idk. Let's see how these return rates settle over time. 

Math AVAX Looping APY pop quiz answer

My first daily @AaveAave $AVAX Loop report answers the math APY pop-quiz. Under looping, 4.36% APY becomes 37.45%, however the $AVAX borrow is growing faster than the yield, at the rate of -0.88% δAPR.  

Math APY quiz for AAVE

APY quiz

Poor @AaveAave doesn't handle liquid staking well. It says my net APY is -24%? Let's find the real APY from the ScamMoon(s) conversation:

1. sAVAX grows at 7.2%

2. sAVAX supply APY is 4.36%

3. AVAX borrow rate is 9.72%

sAVAX supply: $41,246.73

AVAX borrow: $34,862.45

• (answer)

Daily Mirror protocol APY/APR/Asset report, 2022-10-09

Daily @mirror_protocol APY/APR/Asset report, 2022-10-09

2 shorts ($mFB, $mGOOGL (grandfathered)), 12 long LPs

incept date: 2022-09-30

Invested: 21302.1 $UST
Mirror valuation: 20616.2 $UST
Accumulated yields: 53.29 $MIR

$MIR quote: 6.21 $UST

net APY: 139.89%
net APR: 9.31%

Analysis

What does this report mean?

Well $MIR price took an 8% hit, and that's an ouchie, but the APR/APY says that the investment is KEEPING ITS VALUE ... AND ... yielding at a REAL 140ish%

And that, my friends, is a super-yum investment for me. 😎

Daily Mirror Protocol APY/APR/Asset report, 2022-10-07

Daily @mirror_protocol APY/APR/Asset report, 2022-10-07

2 shorts ($mFB, $mGOOGL (grandfathered)), 12 long LPs

incept date: 2022-09-30
Invested: 21302.1 $UST
Mirror valuation: 20616.2 $UST
Accumulated yields: 14.54 $MIR

$MIR quote: 6.75 $UST

net APY: 24.03%
net APR: -143.87% 

Analysis

What does this report mean?

The increase in $MIR price is nice, but that's offset by the falling $UST-value.

And then: somebody cut the farm APYs by a factor of 2x - 3x, and that's not very nice. 😤

Daily Mirror protocol APY/APR/Asset report, 2022-10-06

Daily @mirror_protocol APY/APR/Asset report, 2022-10-06

2 shorts ($mFB, $mGOOGL (grandfathered)), 12 long LPs

incept date: 2022-09-30

Invested: 19252.1 $UST

Mirror valuation: 18611.0 $UST

Accumulated yields: 65.04 $MIR

$MIR quote: 6.65 $UST

net APY: 136.66%

net APR: -65.93%

Link to the SPREADSHEETSZORXEN where I calculate APY and APR of Mirror assets

Daily Mirror Protocol APY/APR/Asset report, 2022-10-04

Daily @mirror_protocol APY/APR/Asset report, 2022-10-04

2 shorts ($mFB, $mGOOGL (grandfathered)), 7 long LPs

incept date: 2022-09-30
Invested: 9802.1 $UST
Mirror valuation: 9748.7 $UST
Accumulated yields: 22.78 $MIR

$MIR quote: 6.39 $UST

net APY: 135.51%
net APR: 85.82%

Analysis

What does this report mean?

APY and APR are still positive and still better than what most of the rest of the markets can offer.

These are real, calculated, back-tested values. 

AND MORE farms are 300%+ APY:

I continue to move liquidity from HODL'n $LUNC to @mirror_protocol LPs.

HOWTO

Following the procedure outlined in http://logicalgraphs.blogspot.com/2022/10/mirror-lockd-farms.html to farm lock'd @mirror_protocol LPs:

• I SWAP $LUNC for $USTC on @astroport_fi

• I ENTER a Mirror LP vault on @SpecProtocol using $USTC

• I WITHDRAW the Mirror LP from @SpecProtocol

• I STAKE the LP on @mirror_protocol

Daily Mirror Protocol APY/APR/Asset report, 2022-10-03

Daily @mirror_protocol APY/APR/Asset report, 2022-10-03

2 shorts ($mFB, $mGOOGL (grandfathered)), 6 long LPs

incept date: 2022-09-30
Invested: 7802.1 $UST
Mirror valuation: 7772.8 $UST
Accumulated yields:15.64 $MIR

$MIR quote: 6.52 $UST

net APY: 159.02%
net APR: 113.34%

Answer to Rust quiz 4: computing goals from real APY

The answer for Rust problem 4: using real APY to compute investment goals is here. 

LOOPr: Looping assets on money markets

Okay, first of all: what is looping?

We loop an asset when we borrow, say $USDC, then 'loop' that borrow to the supply-side, which frees up the borrow-side, which we borrow, then use that borrow to supply.

Thus we ... [wait for it] ... LOOP!

Okay, but: how much are the looped asset worth?

Shocker: ... the looped asset is worth nothing.

The looped asset is both supplied, but then borrowed, δneutral. right? So the borrow cancels out the supply and the net asset value is 0.

That's why I have rules about δneutral and looped assets.

Rule #1: say goodbye to the looped asset.

It's not yours anymore, you've just looped your asset out of existence.

So, ... why would you do such a thing?

...

Okay, for those who missed this 🧵:

https://twitter.com/ScammoonR/status/1570337281269207041

Great narration on looping, what it is, cautions, and guidance.

BUT DOES THAT MEAN THIS THREAD IS DONE?

HA!

Olde el geophf has one more trick to point out here.

....

Okay, and that 1 more trick is: what if you have a really low collateralization, but you don't have assets to pre-fund your borrow? Wat do?

We borrow anyway, then loop the borrow to en-δneutral-ify the position. Let's watch this play out.

Step 1: I superfund my $sAVAX position.

Now, also, or step 2: I have a TON of $USDC lying around, instead of looping it all, I'm going to convert all but 1000 $USDC to $AVAX to fund the QI-AVAX LP farm (so, also 50% of the $AVAX is swapped to $QI).

Why not the whole amount? 🤔

Because I have ... planzzzzz! 😈

Leaving the planzzzzz aside for the moment, after supplying $sAVAX and staking QI-AVAX LP farm, this is our 'ground zero':

• 67.6% LTV ('loan to value')
• Supply: $29,886.73
• Borrow: $15,619.72

Now, I want to maximize LTV (why?) and minimize risk of liquidation.

Loop fits this well.

So, we loop. What is the loop?

borrow-swap-supply

• I BORROW 95% $USDC (lowest borrow rate for highest distribution rate)

• I SWAP ONLY 1000 $USDC to $DAI.e on @traderjoe_xyz (to keep slippage tolerable)

• I SUPPLY that $DAI.e to @BenqiFinance 

Repeat 2 and 3 until all borrowed funds are supplied.

Note two things on the SWAP to $DAI.e then SUPPLY.

1. Why $DAI.e? At 85% collateralization, the highest of any token, even losing $12 in the swap (WHICH REALLY HURTS!), means I'm GAINING MUCH MORE in collateral-coverage

2. Note how net APY INCREASES as I BORROW/SUPPLY! 

But, yes: the net APY is getting nicer at 1.59% now 

... but ...

the REAL APY on your underlying funds is getting:

NIZE at 8.38%. 😎

This is the power of leverage, folks.

Real APY calculator available here.

The last part of the SUPPLY, and where do I stand?

LTV: 67% -> 77% SWEET!

... and that's why I borrowed 95%, because, from experience, I know refunding on supply brings me back down to ~80%.

net APY: 1.68%, REAL APY: 6.79% SWEET!

Leverage: $46k -> $57k WOW!

One more thing. Perhaps two.

So, I shipped ~10 $sAVAX to my alt. wallet to experiment on looping, but this thread addressed that, so I'm shipping it back and SUPPLYing it here on @BenqiFinance 

The second thing is a learned a good, hard lesson about stable coin swaps on @CurveFinance.

So, I SUPPLY ~100 $DAI.e to @BenqiFinance money market to return my stable coin positions to δneutral.

And with that, we settle our @BenqiFinance position on 2022-09-15 thusly.

"Thusly," is actually a word.