Terra and Migaloo money markets

Let's go to @terra_money and ... Migaloo.

So, @TeamKujira ORCA is all well and good, but ...

But...

There are other protocols out there that do similar things on Terra, namely: @CavernProtocol, @solid_capa, and on Migaloo: @ginkou_io.

Let's take a look at all three.

1. @CavernProtocol: lend $ampLUNA, borrow $axlUSDC. You can do $ampWHALE, too, but let's hold off on that.

2. @solid_capa: provide $ampLUNA to mint $SOLID, their stable.

They also allow $SOLID minting from $wBNB, $wBTC, and $wETH, and, at much higher LTVs than @TeamKujira BLUE, which is at 30% LTV, or 25% for some assets like $STARS. 

3. @ginkou_io on Migaloo

Again: $ampLUNA, and $ampWHALE, but they also allow minting from $ampWHALEt, ... which is what? We'll get to that, discussing LSDs. But they also allow minting from $ampROAR, so $ROAR now has a use-case for me.

Now, let's discuss the differences of these money markets on Terra and Migaloo to the protocols on @TeamKujira.

Their advantages are:

1. better LTVs (loan-to-values)
2. allow $LUNA, $WHALE, and $ROAR LSDs as collateral

They all share the same disadvantage: they are fused. That is to say this:

@TeamKujira has 

• BLUE for minting
• Ghost for money marketing
• ORCA for liquidation bidding

The Terra and Migaloo protocols are all-in-(w)on(e)ders, meaning that it's much harder to compose with them.

The disadvantage may sound meh to a user, but the impact is far-reaching.

@TeamKujira built their protocols for builders: you compose them or to them to get their services, simplifying app development.

This makes developing easier for protocol devs, encouraging rapid growth.

It could be argued that both Terra and Migaloo strive for this easy development through composability, but their money markets, and dexen as well, are self-contained and difficult to interface with.

You want to use their apps, you inherit ALL their functionality.

"So what?" you, as a user, ask.

Recall I said the impact is far-reaching?

Let's look at TVLs (total value locked)

• Kujira: $7.21M

• Ginkou: $953k

• Cavern: $385k

• Capapult: $205k

@TeamKujira has 5x the TLV of the other three protocols, ...COMBINED! 😱

"Go where the liquidity is."

Q.E.D.? Pretty much. @TeamKujira started over from zero, like these other protocols did, but because of their tool-simplicity – one protocol does one thing – their pace of BUIDL'n is staggering to behold, and their TVL reflects this and will continue to reflect this going forward.

Wait.

I was supposed to be talking about these other protocols, not tooting @TeamKujira's horn, right?

I actually am. I'm simply caveating these other protocols: what are their long-term prospects?

You, as an investor into their protocols, should know what you're getting into.

We've looked at the protocols, now let's look at the minters. We have @BackBone_Labs and @eris_protocol, and in one case, @stride_zone, which I will ignore, because $stLUNA isn't a viable option for me. 

So, @BackBone_Labs treasury is impenetrable, $3k? How much $bLUNA is there?

Wait. Found it. The TVL of the $LUNA and $WHALE locked is ~ $3M for @BackBone_Labs. 

The LSDs on @eris_protocol are readily available. Just the $ampLUNA, $ampROAR, $ampWHALE, and $ampWHALEt LSDs put their TVL around $6.5M. 

The APRs for both @eris_protocol $ampLUNA and @BackBone_Labs $bLUNA are comparable.

$ampWHALE and $bWHALE's APRs aren't, as $bWHALE has no APR listed. $ampWHALE's 6% APR is meh, but then there's $ampWHALEt's APR:

63% 😳💥💥

$ampWHALEt is $ampWHALE, staked on @terra_money. 

So, it's up to you which LSD-collateral-type you choose, of course. I'm going to demonstrate the @eris_protocol-approach, because I have $ampLUNA, already, and that $ampWHALEt's APR is too juicy for me to ignore.

First thing: I stake $LUNA to $ampLUNA.

Not on @eris_protocol, of course, because @astroport_fi returns A LOT more $ampLUNA to me.

This is a technique in itself: swap $LUNA (not liquid-stake), slow burn, swap that claimed $LUNA, retire in comfort on that arbitrage.

Fortunately, I need rely on neither @ginkou_io nor on @tfm_com to swap $WHALE to $ampWHALE: I have @WhiteWhaleDefi DEX. Its rate is SLIGHTLY worse than @eris_protocol, so I simply stake with Eris. 

Then I immediately swap to $ampWHALEt, this I do using @WhiteWhaleDefi DEX.

Let's provide liquidity to these money markets!

I provide all the $ampWHALEt to @ginkou_io 

For the $ampLUNA, I apportion a third to each protocol, @CavernProtocol, @solid_capa, and ...

... well, first I have to bridge the $ampLUNA to Migaloo, which I do, via @tfm_com. 

Okay, the $ampLUNA successfully transfers to Migaloo, but then, when I go to provide that $ampLUNA to @ginkou_io, I get a "transaction failed." When I select "details," it shares no details. I try providing less than maximum, the transaction still fails.

@ginkou_io: fix this. 

I continue this discussion on a youtube HOWTO. 

2024-01-12 ETHBTC-THANG! Day 229

Let's do the ETHBTC-THANG!

I record the $ADA price from @Indigo_protocol and the $ETH and $BTC prices from @Levana_protocol 

The EMA20s are interesting. 

Definitely a $ADA -> $ETH is favored, but there's no call on $ADA <-> $BTC.

This tells me to HODL for today.

2024-01-12 Indigo portfolio

incept date: 2023-08-06

invested: $4,465.58

$iBTC: 0.01228 $526.40

$iETH: 0.7104 $1,792.41

$iUSD: 2,963.58 $2,963.58

value: $5,282.40

total fees $55.017

total yields $617.129

net yields $562.112

APY: 27.19%

ROI: 30.88%

APR: 66.69%

Analysis

I'm not doing anything on @Indigo_protocol today. The transaction fees require a minimum of 250 $ADA to do anything and the accumulated $INDY isn't there yet, not even close, so the report (PT) is to track the portfolio flowing along with the underlying synthetic price-movement.

2024-01-12 ETHBTC-THANG! Day 229

The ETHBTC-THANG! 

• swap 0.27887 $ETH

After swap:

ETH: 4.67007 BTC: 0.0534

Total: $14,073.00 TVL EMA-20: $11,515.78

n.b.: TVL EMA-20 indicates that ETHBTC, itself, is cruising!

ROI: 5.22% APR: 8.33%

The BTC -> ETH swap

This is the role-swap that took FOREVER to come about, but now we're FINALLY, FINALLY swapping $ETH back to $BTC.

I do have enough-...ish $ETH to do a swap, but I have something even better that that, and that is: I have two $BTC -> $ETH swap IN PROGRESS that I can swap back.

The canceled transactions net me

129 $axlUSDC (0.059 $ETH) and

200 $USK (0.12739 $ETH)

That's not ... QUITE enough $ETH for the 0.27887 $ETH -> $BTC swap, so good thing we have some, you know, ACTUAL $ETH from trades that did complete, to wit:

0.04 $ETH from a $MNTA swap, ...

... and the remaining $ETH I need to trade (0.06 $ETH), I withdraw from Ghost lend, earning 10%,

which is a shame, until I see the APR on $BTC: 

22%

HOLY MAMA MEATZA BALLSAH! 😱😱😱

So, I have three disparate assets:

... wait.

I also have some $wstETH from $wETH I'm picking up, as well, should I decide to mint $USK with that wrapped-staked-$ETH.

Let's claim that FRIST! 

Given that I'm trading 0.28 $ETH at a pop, I may as well start arb'n back to $wETH from $wstETH. I do exactly this by placing a sell order at some Godly ratio of 1.3-oh-yaz-pleeese-me! 😎

If the $wstETH sells, it'll be a helluvan arb!

If it doesn't, I make the staked APR. 😎😎😎

So, as I was saying, I have:

• 200 $USK: I bid $BTC immediately on FIN

• 130 $axlUSDC: I bid $BTC immediately on FIN

• 0.1 $ETH: I swap to $KUJI, as that's the highest $wETH-sell-price, then I'll figure the best path to $BTC when that order fills.

I need 0.01641 $BTC in total.

One more thing: I had borrowed 0.05 $BTC against 1.5k $KUJI to arb on @Levana_protocol. That borrow is getting a wee bit tight, so I pay down some of that borrow.