Cryptocurrency pop-answer: Leveraged Loop vs. Infinite Well

#cryptocurrency pop-answer to the quiz pitting the infinite well verses a leveraged loop for $FTM.

The $FTM-difference between a leveraged loop and the infinite well is simply astounding, with the well returning 10x to 100x more.

Also, the well seems to be slash-proof, and the leveraged approach a slash is its Achilles Heel.

Huh. 

Upshot

So, what am I going to do?

You may find it surprising, seeing how quickly I act on things, but I'm going to play it cool here. I'm going to transition half the $FTM on @GranaryFinance into an Infinite $FTM Well, and see how both stack up against each other.

2023-04-14 @GranaryFinance $sFTMX loop

OOFDA!

The problem of LSDs ('liquid staking derivatives') is that they depend on their validators. A validator gets slashed, the LSD exchange rate goes down.

I talk about this problem here: http://logicalgraphs.blogspot.com/2023/03/liquid-staking-token-factor.html

@FantomFDN @staderlabs $sFTMX exchange rate just went down. 😢

2023-04-14 @GranaryFinance $sFTMX loop

incept date 2023-02-01

sFTMX leverage: 40273.22

sFTMX factor: 1.0849

FTM borrow: -30,389.08

net FTM: 13,303.34

net FTM δ: 355.349

days in market: 72

APR: 13.54%

APY: 5.35%

With $OATH at $0.19 , we average $1.50 collected/day.

Daily $FTM @GranaryFinance gain report, 2023-04-14

Did we gain?

Answer for today, no: net 37.3600 $FTM lost

OOFDA, indeed! 

Total $FTM gained since incept date: 355.349

4.94 $FTM gained/day (average).

Okay, these slashing events have happened here, have happened to $STEAK on Terra 2.0, ... how do I not get hit like I just did today.

I was actually thinking about this very thing, and other LSD-issues, this morning before I did this report.

Stay tuned!

2023-04-10 Granary Finance sFTMX loop

2023-04-10 @GranaryFinance $sFTMX loop

incept date 2023-02-01

sFTMX leverage: 40273.03

sFTMX factor: 1.0856

FTM borrow: -30,379.70

net FTM: 13,340.70

net FTM δ: 392.709

days in market: 68

APR: 15.80%

APY: 5.52%

With $OATH at $0.22 , we average $1.55 collected/day.

Daily $FTM @GranaryFinance gain report, 2023-04-10

Did we gain?

Answer for today, yes: net 1.4959 $FTM gained

Total $FTM gained since incept date: 392.709

5.78 $FTM gained/day (average).

2023-04-06 @GranaryFinance $sFTMX loop

2023-04-06 @GranaryFinance $sFTMX loop

incept date 2023-02-01

sFTMX leverage: 40272.64

sFTMX factor: 1.085

FTM borrow: -30,325.14

net FTM: 13,370.68

net FTM δ: 422.694

days in market: 64

APR: 18.03%

APY: 4.62%

With $OATH at $0.24, we average $1.30 collected/day.

Daily $FTM @GranaryFinance gain report, 2023-04-06

Did we gain?

Answer for today, yes: net 93.8863 $FTM gained

Total $FTM gained since incept date: 422.694

6.60 $FTM gained/day (average).

stOSMO-Loop, stOSMO-LP on COSMOS

The stOSMO-OSMO pool.

• earns 45% incentive on @demexchange, $120 24h-volume

• earns 75% $STRD and $OSMO incentive on @osmosiszone, quite a bit more 24h-volume

I'm unstaking my @demexchange stOSMO-OSMO LP.

The stOSMO/OSMO-loop value-proposition: borrows.

• $OSMO, 5.61% on @Umee_CrossChain 

• $OSMO, 12.47% on @demexchange 

I am establishing the stOSMO/OSMO-loop on @Umee_CrossChain. I already closed those positions on @demexchange a long time ago when borrow rates became unreasonable.

From the closed LP on @demexchange I converted all the $OSMO to $stOSMO on @stride_zone.

I transfer that $stOSMO to @Umee_CrossChain 

and fortify my $stOSMO supply, parse que c'est formidable, pas fort minable! 

asdf

2023-03-20 Granary Finance sFTMX loop

2023-03-20 @GranaryFinance $sFTMX loop

incept date 2023-02-01

sFTMX leverage: 40271.48

sFTMX factor: 1.0827

FTM borrow: -30,325.14

net FTM: 13,276.80

net FTM δ: 328.807

days in market: 47

APR: 19.23%

APY: 5.35%

With $OATH at $0.31, we average $1.50 collected/day.

Daily $FTM @GranaryFinance gain report, 2023-03-20

Did we gain?

Answer for today, yes: net 12.5784 $FTM gained

Total $FTM gained since incept date: 328.807

7.00 $FTM gained/day (average).

2023-03-17 Granary Finance sFTMX loop

2023-03-17 @GranaryFinance $sFTMX loop

incept date 2023-02-01
sFTMX leverage: 40271.30
sFTMX factor: 1.0822
FTM borrow: -30,317.386
net FTM: 13,264.217
net FTM δ: 316.229
days in market: 44

APR: 19.78%
APY: 5.51%

With $SD at $1.24 and $OATH at $0.31
that is $1.55 collected/day.

Daily $FTM @GranaryFinance gain report, 2023-03-17

Did we gain?

Answer for today, yes: net 8.9755 $FTM gained

Total $FTM gained since incept date: 316.229

7.19 $FTM gained/day (average).

2023-03-16 Granary Finance sFTMX loop

Granary Finance is launching $GRAIN. There's a pre-launch sale, of sorts, and NFT-acquisition, and stuff!

Go read about it here.

2023-03-16 @GranaryFinance $sFTMX loop

incept date 2023-02-01

sFTMX leverage: 40271.23

sFTMX factor: 1.0819

FTM borrow: -30,314.199

net FTM: 13,255.241

net FTM δ: 307.253

days in market: 43

APR: 19.68%

APY: 5.56%

With $SD at $1.12 and $OATH at $0.27

that is $1.56 collected/day.

Daily $FTM @GranaryFinance gain report, 2023-03-16

Did we gain?

Answer for today, NO! net 2.2041 $FTM lost

Total $FTM gained since incept date: 307.253

7.15 $FTM gained/day (average).

Analysis

Hm. This is our first net loss day.

I may need to consider unwinding this loop if losses continue.

This $sFTMX loop is hedged with "Lock, staked and two smoking Fantoms"-LP on @beethoven_x, per the Looped Liquid staking-article.

2023-03-15 Granary Finance sFTMX loop

2023-03-15 @GranaryFinance $sFTMX loop

incept date 2023-02-01

sFTMX leverage: 40271.14

sFTMX factor: 1.0819

FTM borrow: -30,311.904

net FTM: 13,257.446

net FTM δ: 309.458

days in market: 42

APR: 20.29%

APY: 5.62%

With $SD at $1.13 and $OATH at $0.25 that is $1.58 collected/day.

Daily $FTM @GranaryFinance gain report, 2023-03-15

Did we gain?

Answer for today, yes: net 1.9516 $FTM gained

Total $FTM gained since incept date: 309.458

7.37 $FTM gained/day (average).