Harmony: the AAVE conundrum

@AaveAave is incentivizing $ONE collateral with a 20% bonus. 

CHOICE! ... right? 

Here's the thing, m8s. It IS CHOICE, compared to any kind of $ONE yield on @tranquil_fi collateral or borrow.

And, you who offer me the @AaveAave-alternative do do that comparison.

It's a no-brainer, right? Nothing or negative percent on @tranquil_fi to 20+% on @AaveAave supply-side. And you can loop it to get ~26%.

NOICE! ... right? 

(you are about to get hammered by me. *spoiler*)

There's a couple of snags on the @AaveAave-side, or on any side that entails borrowing to leverage.

1. AAVE's borrow-side is trash: you pay ~6% for the privilege of taking a loan.
2. There is a chance, if you're inattentive, that your collateral can get liquidated.

"Butbutbut doesn't @tranquil_fi have the exact same problems, geophf? TOUCHÉ, BISH!" 😤

Yes. Leveraged yield farming has the same problems.

But that's why I'm not going to do leveraged $ONE yield farming on @tranquil_fi.

I have something better.

Much, MUCH better.

What is the arb right now for $ONE -> $stONE? The annualized return? Anyone wanna hazard a guess?

162.338 $ONE -> 159.593 $stONE -> 1.0259 multiplier on 7-day burn -> 163.7264587 $ONE

44.60% annualized gain

What was your LEVERAGED, that is: AT-RISK, yield on @AaveAave again? 

These arbs aren't fly-by-night. These $ONE -> $stONE arbs are a regular thing.

Do one of these arbs a day, and after 7 days, you've funded your own 'infinite $ONE well,' yielding EXACTLY (NOT ESTIMATED) between 20% to 200% annually per arb.

HOWTO.

So: go. Go to @AaveAave. Their ghost-icon is cute 👻 and @AaveAave is so aave-ish. #borin 🙄

Me: I'm gonna stay over here on @tranquil_fi. I'd rather yield at least 2x what you're yielding on @AaveAave, without even having to monitor leverage.

Good night, fam. God bless you.

Mirror: Nolo me Tangere

We've talked before about when @mirror_protocol yields and @anchor_protocol earn are close.

But what happens when you're overcollateralized (by a lot), but the Mirror yields are way below Anchor earn.

I call this: 'Nolo me tangere'

It ('it' being @anchor_protocol EARN) is called 'nolo me tangere' because nothing can touch it for now. If you're getting ~19.5% return on $UST? Go for it, I say.

So, when your yields are less than Anchor EARN, adjust the collateral. It's automatically returned to Anchor EARN.

But! Caveat! @anchor_protocol EARN isn't going to stay 19+% forever, and @mirror_protocol has already made its adjustment to yields to be sustainable for 2-3 years.

So, when yields return above @anchor_protocol, move that collateral back into @mirror_protocol for δNeutral gains.