MENSA report 2024-03-10

Next up, MENSA! 

We've already determined in prior 🧵 that the LP KUJI-ATOM with its xyk-algorithm depresses the value, vis-à-vis HODL'n the tokens separately

LP KUJI-LUNA

Same for LP KUJI-LUNA?

• LP KUJI-LUNA invested: $133.426
• LP KUJI-LUNA value: $536.102

great, but...

... but this worth is computed on

KUJI: 62.465 and LUNA: 253.538

My original provisions were:

KUJI: 100 and LUNA: 144.

Those values today would have been: $581.250

I've lost ~$50 by letting the LP manage my assets.

So, I take back my assets, thankyousoverymuch.

I place half my $KUJI and half my $LUNA onto the @TeamKujira FIN KUJI/LUNA order book, arb'n both ways.

The other half of each asset I lend to Ghost.

LP MNTA-KUJI

A similar for analysis for LP MNTA-KUJI:

invested: $131.829 (205 $MNTA - 94 $KUJI)

current value: $548.631 at 303 $MNTA - 64 $KUJI

Great!

However, with the original amounts, my valuation would've been: $586.3398

So I'm down ~$38 if'n I'd kept my asset separate.

I withdraw the liquidity from the LP MNTA-KUJI on @TeamKujira BOW, 

then take half that liquidity and place orders on the MNTA/KUJI FIN order book.

The remaining liquidity I lend to Ghost. 

Mensa portfolio 2024-03-10

incept date: 2023-09-26

invested $535.50 / current value: $2,319.51

ROI: 333.15% / 732.52% APR

Conclusion

Talk about the value of HODL'n! --^ 😱

Or, as my financial advisor tells me: "Time in market."

Mm-hm!

Mensa daily report, 2024-02-29 LEAP DAY!

Let's do the MENSA-thang!

"What's the MENSA-thang!?" you ask.

Great question.

It's my way of trading LP tokens as tokens

First of all, I closed my ROAR-LUNA LP on @terra_money @astroport_fi.

2024-02-04

invested: $61.95

value: $172.05

ROI: 177.70% / 73.03% APR

SWEET!

2024-02-29 KUJI/LUNA-THANG! row 18

KUJI/LUNA-THANG! 

• no swaps: gathering 20 rows of data FRIST! #FRIST

KUJI: 0.00000

LUNA: 0.0000

LP: 108.310

TVL: $443.88 TVL EMA-20: n/a

PRISM "explained."

ROI: 210.87% APR: 503.05% ... WOW!

2024-02-29 MNTA/KUJI-THANG! row 18

• no swaps: gathering 20 rows of data FRIST! #FRIST

MNTA: 0.00000

KUJI: 0.0000

LP: 134.487

TVL: $572.99 TVL EMA-20: n/a

ROI: 331.88% APR: 791.74%

KUJI/ATOM-THANG!

Now, onto the KUJI/ATOM-THANG!

The KUJI/ATOM-thang! has some complications, because: not only is it the LP, but I also have yields-from-stake to claim as well as a KUJI/ATOM trade fulfilled.

I collect both. 

Now: let's look at the value-proposition of the LP.

I started with a ~$136 investment and it's now worth over $500.

That's good, right? Great, in fact, right?

My answer there is: dunno, ... maybe?

Let's analyze at the measures.

When I started this LP, I had 106.407 $KUJI and 10.127 $ATOM worth, at the time, $139.894.

Now the LP is 57.753 $KUJI and 22.147 $ATOM, worth, today, $501.083.

Those are some NIZE GAINS! 😎

... but ...

What if I had the original amounts? What would they be worth today?

• 106.407 $KUJI * $4.35 + 10.127 $ATOM * $11.282 = $577.125

Meaning: If I had just HEDL the original amounts, and not provided them to the LP, I would have ~ $70 more than I do now with the LP.

Bollucks! 😤

This, however, is the price of LP-ing your funds. YOU provide the liquidity, OTHER PEOPLE trade back and forth, and you make the trading fees.

Except, of course, you don't. You make 1/nth of the trading fees, and, as you see: the value-proposition just isn't there, for anyone.

Some people may disagree with my conclusion, including younger me, when I was making $1,000s of incentivized yields AND gains on those good ol' @DeFiKingdoms $JEWEL LPs, earning 1,500% APY.

That was a special time for LPs back then, when $JEWEL went from $1-per to $20-per.

But the @TeamKujira BOW LPs are nothing like the @DeFiKingdoms LPs, and, although the yields for the LP KUJI-ATOM may be "20% APR," I still am down 50 $KUJI for 10 $ATOM, and that just doesn't make good math.

The trader in me feels a wee bit ill.

There was this j-random on the twitters who parachuted into one of my @TeamKujira 🧵s and said: "Invest in the BOW LPs: it's a no-brainer."

I wish that person were here now.

The 'no-brainer,' I'm thinking, was that guy.

Does that mean LP = bad? Am I saying "LP = bad"?

Yes?

It really depends on your investment approach. Really.

@KPeruggi used some LP-investing to multiply $KUJI and other paired assets during a market-upheaval, but that's SMART and VIGILANT investing with LPs, my frenz, m'kay?

I'm not smart nor vigilant (and many of you may grumble: "Dude, you're the smartest, most vigilant investor I know! How can I win if it's too hard for you?") (fair question) (which I'll get to right now), so, then, what works for me?

The EMA20 indicator and order book trading.

I mean.

LOOK at this THANG! this KUJI/ATOM order book on @TeamKujira FIN. It's a thing of beauty once you manage it properly.

Say I start with

1. 10 $ATOM. I buy $KUJI with it, 29.1 $KUJI, in fact.
2. I take that 29.1 $KUJI and sell it 12 $ATOM.

I just arbed a 20% gain, folks

Or, I could start the other way 'round with

1. 30 $KUJI which I would sell for ~13 $ATOM
2. which, when that order fills, I then buy 37.78 $KUJI with the claimed $ATOM.

That closes in on nearly a 30% gain there, folks. 

"Yes, geophf, but how long would that take?"

Hm. I've HEDL this LP for 153 days. I could have both those orders fulfilled multiple times in that period. How do I know this? Because you've seen me execute trades like that on FIN over, and over, and over, again.

Now, the LP does the same thing (kinda), except that its goals are different, as its goals are xyk, meaning that it strives for parity and balance for each trade (that is: xyk).

I, as trader, strive for gain for each trade.

The LP and I: we are not the same, my frenz.

I place both a buy- and sell-order on @TeamKujira FIN KUJI/ATOM, then I rend the LP on BOW and move that liquidity to Ghost (lend). The additional $KUJI and $ATOM I am treating as reserve for trades using the KUJI/ATOM-ratio, guided by its EMA20 indicator. 

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. 

Trading LPs as tokens using EMA20

Do you want to hear something ... weird?

An indicator exists that tells you should trade an LP and how much you should trade. Take LP KUJI-ATOM:

1. 1 LP token has a USD-value
2. both $KUJI and $ATOM have USD-values

So 1 LP token ... IS a token! just like $KUJI or $ATOM.

Here's the thing.

I'm tracking the prices of $KUJI, $ATOM, ... AND LP KUJI-ATOM, daily, on my PRISM SPREADSHEETSZORXEN! 

I'm doing this to trade between $KUJI and $ATOM using KUJI/ATOM-ratio vs EMA20 as a trade-indicator.

EMA.

But! I could, with those data I'm collecting, just as easily ratio, say:

• LP KUJI-ATOM/ATOM vs EMA20 or
• LP KUJI-ATOM/KUJI vs EMA20

These indicators would tell me whether to swap the LP for $KUJI (or $ATOM) or vice versa.

We have that, already, with the 0 volume FIN boards.

Here's the first 'weird'-THANG!:

Given I already have the $KUJI, $ATOM, and LP KUJI-ATOM, ... I don' need no steenkin' FIN boards.

• When I 'sell' the LP, I simply break the 'sold' part apart, giving me $KUJI and $ATOM.
• When I 'buy' the LP, I provide liquidity.

I'm the trader.

So, ... this applies anywhere and everywhere where an LP exists.

That means I could do this with the ETHBTC-THANG!:

• trading LP ETH-BTC against $ETH and $BTC

...as I grow my ETHBTC-bag.

Speaking of which: ANYONE KNOW WHERE I CAN FIND A GOOD LP ETH-BTC??? *cough* @TeamKujira 

Here's the second weird thing.

• 'ratio vs EMA20' is 'simply' a mathematical construct.

I can make any ratio I so please, e.g.: ETH/BTC, KUJI/ATOM, LP KUJI-ATOM/KUJI

but ... how about:

• LP KUJI-ATOM/MNTA?

Can I do that?

I just so happen to be measuring $MNTA, too, so: YES!

Wai-wai-wai-wai-wai-waitaminit, geophf! What does 'LP KUJI-ATOM/MNTA' even mean?!?

RIGHT??

It means, simply: I can trade LP KUJI-ATOM for $MNTA (or vice versa) BASED OFF THE PRICE OF $MNTA (and the price of LP KUJI-ATOM, of course).

I'm trading THREE TOKENS AGAINST EACH OTHER!

My hat's off to @TeamKujira for floating the FIN LP KUJI-ATOM/ATOM and LP KUJI-ATOM/KUJI boards.

Genius move.

Genius.

But that hasn't even scratched the surface (see PT).

How about:

• LP MNTA-KUJI/ATOM or
• LP KUJI-ATOM/LUNA or
• LP KUJI-LUNA/USK or
• LP ETH-BTC/USDC

HUH???

So, recap:

1. First weird thing: I'm the trader, so I can trade, regardless of the volume on the FIN boards, given I have the LPs and tokens to do so (and LPs ARE tokens, recall?)
2. Second weird thing: I can trade LPs against tokens REGARDLESS OF THE LP-COMPOSITION!

WHAA?? 😱

So, ladies and gentles, ...are you ready for the third weird thing?

The Beethoven protocol on @FantomFDN (where I lost all my liquidity on a bridge-hack) (no, I don't want to talk about it), has the Late Quartet LP composed of:

• $ETH - $BTC - $FTM - $USDC

See where I'm going?

Where I'm going is here:

1. recall that LP tokens ARE tokens.
2. I am measuring LP ROAR-LUNA price on @terra_money 

What's to stop me from trading:

• LP ROAR-LUNA/LP MNTA-KUJI or
• LP ROAR-LUNA/LP KUJI-ATOM or
• LP MNTA-KUJI/LP KUJI-ATOM?

Answer: absolutely nothing at all.

What does this mean? Given the prices and the EMA20s of the above tokens, or any tokens, for that matter, I can trade one token against the other, and if one or two of those tokens are two tokens (i.e.: LPs)

I can be trading four tokens, against each other, algorithmically.

Wow.

"But, el geophf! This too hard! I no have ur genius🧠!"

Nobody has my genius🧠, 'cept me, so I agree.

But that's where protocols like @BlendProtocol, when it goes live, or @CALC_Finance come in. You set up the strategy or blend, then fire, and forget.

If that's your cuppa thé.

The point of this🧵is that you can do one, or any, of these weird things: you're the trader.

The point of this🧵is to provide you with this way of seeing trading LPs: that they have utility outside of providing liquidity AND that you can measure their value against other tokens.

Here's another point to this🧵

How did I come up with these weird ideas?

1. By standing on the shoulders of giants: @TeamKujira FIN's LP KUJI-ATOM/ATOM and /KUJI boards opened up a world of possibilities to me. @Prism_Protocol refracted 'tokens' which I translated to LP-trading.
2. By measuring.

I can't stress this enough.

• Measure what you have.
• Measure your strategies.

Then, take a step back, and let the data speak to you.

You'll see things in the data when you measure them. When you have these insights, YOU have market-advantage.

I love you.