Terra/Migaloo Money Markets, cont.

Let's continue the Terra/Migaloo money market-stufphen from yesterday.

Capapult ($SOLID)

Since I deposited $ampLUNA into @solid_capa yesterday, I mint $SOLID.

Note that Capapult doesn't have an EARN-tab.

Odd.

What, then, is the use-case for $SOLID, other than bidding?

Here's a problem:

@solid_capa lists $wBNB and $wSOL as collateral, but on their dashboard does not have $wBNB NOR $wSOL TVL.

@solid_capa, please list on your dashboard $wBNB and $wSOL provided total values.

Here's another problem, their UX-design is consistent, yes, but it sucks, consistently.

I select a premium rate, ... how?

By selecting the rate on the chart? no.

By entering the percent? no.

By a [redacted] slider. Only.

TF?

I enter my bid by entering the numbers? no.

TF?

Here's another problem on @solid_capa:

How many $ampLUNA tokens did I provide?

I have a dollar value. Nowhere do I see the actual number of tokens I've deposited. So, I'm Canadian, or European, and you give me USD amounts?

Their UX does not provide essential information.

The UX on @solid_capa seems out-of-place for money markets across blockchains, and their entry for liquidation bids is clunky, ...at best.

You make your UX incomprehensible and difficult, you create barriers to entry for potential investors who will take their money elsewhere.

Further, a money market that doesn't have a depositary for their stable token?

I mint $SOLID, but you don't let me earn interest on it?

@ginkou_io has that.

@CavernProtocol has that.

@TeamKujira has that.

@solid_capa – WHO RENAMED THEMSELVES TO THEIR OWN STABLE! – does not.

Now, @solid_capa may argue they've incentivized an LP or two on @astroport_fi.

But guess what other LPs are incentivized there?

$axlUSDC.

Guess what other stable has depositaries on every other money market? 

$axlUSDC.

@solid_capa: please incentivize HODL'n $SOLID, ffs. 

I place liquidation bids for $ampLUNA, $wBTC, $wETH, and $bLUNA on @solid_capa.

My asset allocations are as follows.

I still have (a lot) of $SOLID remaining after placing liquidation bids on @solid_capa (HATE their rebranding).

WAT DO?

I withdraw $axlUSDC from @CavernProtocol EARN-tab and provide liquidity to @astroport_fi SOLID-axlUSDC LP. 

Ginkou

Terra/Migaloo Money Markets, conclusion.

I wuz gunna conclude with @ginkou_io on Migaloo.

But look what happens when I go to borrow against provided-collateral.

'Transaction failed.'

No details. No explanation.

@ginkou_io why is borrowing not working? Please fix. 

Fortunately, for me, I don't need to borrow $axlUSDC tokens to bid on liquidations on @ginkou_io.

Meaning: I don't need @ginkou_io's borrow facility, at all.

I can mint $USK on @TeamKujira BLUE, then swap that liquidity to $axlUSDC on FIN.

When I claim that order, I'll bridge.

It's actually @noble_xyz $USDC, so after some bridging, and bridging back, and swapping, I now have liquidity on @ginkou_io to bid on liquidations.

I do that. 

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.