Daily cryptocurrency income report, 2022-08-24

Daily #cryptocurrency income report, 2022-08-24: $23.71*

Another $20+ day; yay! 🎉 Sorely disappointed that the $ONE bleed-out is halving the value of returns all across Harmony.

*does not include auto-restaked yields nor x-token gains.

Bridging USTC onto and off of Harmony and Terra

#dedchain? What's that you say? "Harmony and Terra (classic) (and, tbh, Terra 2.0) are #dedchain"?

Huh: 'ded' for you is very much alive for me.

Let's bridge $USTC onto and off of both Terra (classic) and Harmony.

First, I show I have no $USTC on Harmony. 

Next, I ensure my Terra (station) wallet is on Terra classic, as evidenced by the bright orange bar at the top saying 'Classic.' If not, I can gear-shift it onto Terra classic.

So, yeah: Terra (classic), ... which is the only viable Terra for me. 

To transfer $USTC to Harmony from Terra Classic, we NEED $USTC. Where do I get $USTC?

$MIR yields from @mirror_protocol, of course.

@mirror_protocol has consistently got 100%+ APY through thick and thin. It's the best #cryptocurrency protocol, bar none. Sorry. #notsorry 

I also have some @astroport_fi yields to collect from the locked LPs, so: yay. 

Lock away tens of thousands of dollars, collect yields worth ... checks notes, ... $1.17.

GOOD DEAL! #sarcasm 🙄 

Swap-swap-swap. 

I swap the collected $MIR, $MINE, and $ASTRO to $USTC on @astroport_fi, which has a better swap than @loop_finance (I checked for each).

Then I bridge that $USTC to Harmony using https://classic-bridge.terra.money/. 

Let's go to Harmony and generate some $USTC, by generating $ONE.

Where? https://www.reflectaverse.one/staking

The $ECHO price continues to fall, but the yields match the price-fall, so... I'm losing my principal for yields?

Ugh.

I collect $ECHO yields and swap that and other assets to $ONE.

This is the state of the Reflectaverse self-funding experiment.

Interesting note, I had LESS $ECHO yields if I collected yesterday but it was worth the SAME as the $USD value I collected today.

The $ECHO yields are dead-in-the-water to the $ECHO price-fall.

Not good. 

Now, let's get that $USTC off Harmony. What $USTC?

• We SWAP the $ONE to $USTC on @DefiKingdoms 

• We BRIDGE the $USTC to Terra using https://classic-bridge.terra.money/

• and, ... voilà! We have the $USTC on Terra now. 

What happened to the $USTC I bridged to Harmony back at the beginning of this thread, 1 hour, 19', 27" ago?

I don't know.

It hasn't shown up on Harmony.

Anybody know how to revert a bridge-transaction on https://classic-bridge.terra.money/ that's stuck?

tx_id

Okay, it's been a while.

Busy day.

I BRIDGE the $USTC from Terra to Avalanche; this $USTC is targeted for my $BTC.b self-loan pay-down.

On Avalanche, 

• I SWAP the $USTC to $BTC.b on @traderjoe_xyz 

• then SUPPLY that $BTC.b to @BenqiFinance, paying down my self-loan. 

... which brings our $BTC self-loan pay-down on 2022-08-10 to the following. 

Before we call it a night, there are some $QI yields from the QI-AVAX staked LP to collect. 

My plan for these $QI yields is to

• SWAP 50% for $AVAX on @pangolindex 

• SUPPLY the $AVAX and $QI to the @BenqiFinance 

The supplied $AVAX pays-down my self-loan. 

The chart's burn-down doesn't look impressive, ... now, but as we build momentum, you'll start to see impact. 

The @BenqiFinance net asset allocations, 2022-08-10.

HARMONY: $ONE -> $stONE Arbitrage

Okay, let's explore the $ONE -> $stONE arbitration.

Is there one? How do you know? Then: what do you do if there is one?

So. Step one. Collect your $ONE from your 'infinite $ONE well' on @tranquil_fi. (I'll explain the term later.)

Next, let's understand $stONE. Go to @tranquil_fi $stONE page. You see it has a multiplier. What does this mean?

It means $stONE is worth 1.015, or whatever, times more than $ONE. Always, and the multiplier ALWAYS increases.

Remember this: $stONE is MORE than $ONE

Why is it important that $stONE is worth more than $ONE (ALWAYS)?

Because, sometimes, not all the time, but sometimes, the $ONE - $stONE peg goes kurfluffernutters, and you can swap, say, 100 $ONE for 101 or 102 $stONE.

"nbd," you say. Maybe. But let me explain.

To explain, let's open the 'Unstake'-tab on the $stONE @tranquil_fi page, or what I call the 'Burn'-tab ('burning' is a more general technique than unstaking).

What happens here is you burn $stONE to $ONE? This process takes about 7 days.

That's a GUARANTEED trade, folks

Okay, so, you've got the idea, right? You have $ONE, if you can trade that for MORE $stONE, you win.

That's called arbitration (well, one kind of arbitration), and it's as simple as that, so what remains is:

1. The Mechanics (and Mike, too) lol
2. What if there's no arb?

The Mechanics

How to see if there's an arb? Easy-peasy! Go to @SushiSwap and (simulate) a swap from $ONE to $stONE. If you get more $stONE out, you have the arb. SWAP! SWAP NOW! SWAP FOR ALL YOUR WORTH! HURRY!

I'm not kidding. Arbs can disappear in an instant.

Is there an arb now? Yes, 1014 $ONE -> 1015 $stONE. It's a little arb. A little, tiny arb. But do I take it?

YES!

In a heartbeat. Why? because usually the swap is something like 1000 $ONE -> 995ish $stONE. 

You BET I'm taking this tiny arb. It's WAY better than negative

I can hear your disappointment: "All that work for 1 $ONE? That's 0.1%!"

No, it's not. Remember the multiplier? When you burn the $stONE to $ONE, you get back MORE $ONE!

How much more? For this trade:

81% annualized more.

Arbitrage computation.

Let's do this burn! Go to $stONE page on @tranquil_fi and open the 'Unstake' tab. Burn ('unstake') all 1015 $stONE, and you see the output: 1030.68 $ONE in 7(ish) days, or an 81% annualized gain.

Two words:

Dude. 😳

That's an 81% gain of $ONE yield, GUARANTEED.

Let's check our burn. Go to the 'Claim'-tab. And, behold, you see what I call the 'infinite $ONE well':

I have a rotating pipeline of $ONE to be claimed, which I swap, then burn, then put right back on the pipeline.

I'm making 80%+ annualized gain on $ONE, infinitely 😎

The No-Arb Path

Okay, all the above is the 'Happy Path': when there's an arb on @SushiSwap. But what if there isn't an arb? Do we cry? (yes) Do we stomp our feet and throw tantrums? (yes)

But we can do something much more constructive, given we've set up ourselves for this eventuality.

This is the 'Sad Path': when there is no $ONE -> $stONE arb on @SushiSwap. To prepare for this eventuality, I've established $ONE and $stONE collateral positions on @tranquil_fi marketplace.

Why?

1. Why not? 🤪 but seriously:
2. Feeding the infinite $ONE well pipeline

With these position, when there's no arb, I make a daily call: do I borrow $stONE (yes: they're paying me to do so), or do I take $stONE out of collateral? (I've done that, too).

Either way (borrow or reduce collateral), I grab 1000 $stONE, and 7-day burn that to $ONE.

Why burn $stONE to $ONE, when $stONE is always worth more?

1. The arbitrage, when it happens, is $ONE -> $stONE. I've NEVER seen $stONE -> $ONE arbitrage. I ALWAYS want $ONE at the ready to arb, AND they both collateralize at the same rate; and,
2. If there IS no arb, I can use my $ONE bag as collateral to BORROW $stONE (which they pay in NET POSITIVE yields for me to borrow!) if I don't have $stONE collateral that I'm willing to part with.

A $ONE bag has no down-side.

Post script: I mentioned leverage, obliquely, a couple of times. You don't have to borrow $stONE to make this work. Ever. Just wait for the arb and accumulate an $stONE bag in reserve. You do you. I do leverage, and I'll cover leverage on @tranquil_fi in a future post.

Post-post script: alternatively, you can SWAP back to $ONE for an instant gain, albeit less. A conundrum.

14 e-coin recommendations for 2021-09-24

14 e-coin recommendations for 2021-09-24. We'll analyze Harmony $ONE and $RVN. 

$ONE buy-recommendation. Eh. $BTC dipped. $ONE dipped. Is it recovering? Maybe? HODL. 

$RVN buy-recommendation. Nope. $BTC dipped. $RVN dipped, but the new $RVN renaissance is on hiatus now. Prove me wrong, but: HODL.