Investing

The RFD - Cryptocurrency Mega Thread

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Dec 14, 2010
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deger wrote: Ok. I was going to hold this on Earn in crypto.com. Was more leaning towards depositing TCAD rather then USDC for this because of the bear sentiment on USDCAD exchange. I am splitting my investments on Cefi and Defi. For Defi I'd have to use USDC/DAI.

I did notice the super high DAI interest rates on yearn. I was trying to understand why is was so high with no luck last night. If DAI is deposited to the DAI vault then where is the ETH coming from that is loaned to get DAI. Sounds like the yDAI vault and yETH vault is integrated. I'll need to research more on yETH vault.

Eitherway gas prices are way to high for me to partake so just using cefi.
DAI interest is high because DAI is being minted in MKR using ETH as collateral. And then lent and borrowed further. But the sudden additional mint has bumped the numbers.

Btw, yeth deposits are now suspended until debt ceiling can be raised again. Biggest vault in mkr, huge success.


Rod
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Sr. Member
Sep 7, 2018
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deger wrote: I'll buy hardware wallet a soon as a make the earnings in defi to cover it.




What are the conversion fees that PayTrie have for USDC to fiat C$?
I am not so crazy about holding USDC due to the dropping USD value in short term of 1 to 2 years.


It's $100. Unless you're playing with $10 in crypto why would you risk your assets? Buy a ledger nano s or x
Newbie
Jan 1, 2008
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rodbarc wrote: DAI interest is high because DAI is being minted in MKR using ETH as collateral. And then lent and borrowed further. But the sudden additional mint has bumped the numbers.
I am still not getting this, but I guess the more important question is where did you get this information from because I tried to research this myself last night and couldn't find the info

I found this chart but doesn't show the curve strategy that Dai vault is currently under:
(Deleted image is huge)
Last edited by deger on Sep 3rd, 2020 8:31 pm, edited 1 time in total.
Deal Fanatic
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Dec 14, 2010
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deger wrote: I am still not getting this, but I guess the more important question is where did you get this information from because I tried to research this myself last night and couldn't find the info

I found this chart but doesn't show the curve strategy that Dai vault is currently under:
Image
For ETH vault, you deposit your ETH or WETH into the vault, the vault then puts it into a MakerDAO CDP/Vault, it then mint and draws DAI against this ETH at a 200% collateralization ratio, then it puts that DAI into Curve Finance’s Y pool in order to farm CRV + trading fees, and then recycles the CRV and trading fees into ETH by buying more of it on the open market.

Contract addresses:

yETH / yWETH Vault:
0xe1237aA7f535b0CC33Fd973D66cBf830354D16c7

StrategyMKRVaultDAIDelegate:
0x932fc4fd0eEe66F22f1E23fBA74D7058391c0b15

Maker Vault owned by the strategy:
https://defiexplore.com/cdp/1397


Rod
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Jan 1, 2008
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rodbarc wrote: For ETH vault, you deposit your ETH or WETH into the vault, the vault then puts it into a MakerDAO CDP/Vault, it then mint and draws DAI against this ETH at a 200% collateralization ratio, then it puts that DAI into Curve Finance’s Y pool in order to farm CRV + trading fees, and then recycles the CRV and trading fees into ETH by buying more of it on the open market.
I dug further by reading the contracts. The ETH vault puts the DAI into DAI Vault first. The DAI vault then lends the DAI out on COMPOUND, AAVE, DYDX, or FULCRUM, and returns yCRV tokens. And, so on as you mentioned.
Newbie
Jan 1, 2008
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rodbarc wrote: I'm already on Balancer, on YFI/USDC pool, and on mStable Earn on USDC/mUSD and WETH/mUSD Balancer pools. Adding to yycrv vault today (released today) and Curve Compound pool, to maximize my CRM farming further (20% interest on DAI+USDC plus 140% interest on CRV).
@rodbarc How about MTA 5/mUSD 95 pool rather then the USDC/mUSD pool? Due to the impermanent loss risk?
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Dec 14, 2010
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deger wrote: @rodbarc How about MTA 5/mUSD 95 pool rather then the USDC/mUSD pool? Due to the impermanent loss risk?
Correct, permanent loss risk there is higher. Balancer has been more attractive to their own tokens, so I’m on bal / weth pool and bal / weth / wbtc pool for > 200% interest.


Rod
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Jan 1, 2008
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rodbarc wrote: Correct, permanent loss risk there is higher. Balancer has been more attractive to their own tokens, so I’m on bal / weth pool and bal / weth / wbtc pool for > 200% interest.
I am looking to add an additional farming investment without speculating in non-stable coins. So far I only invested in Yearn Y Vault so I don't want to put more in Yearn or Curve to reduce risk. I guess investing in any pool with non-stable coin component gives you exposure to it. If MTA goes to 0 then the investment in the pool with MTA would go to 0.

mStable mUSD/USDC pool may reduce rewards by 1/3. This is from there discard.

chuckle17Yesterday at 4:04 PM
- The other question, however, is where to allocate MTA rewards if we reduce rewards to any of the existing pools.
It might be prudent to increase the rewards for the mUSD/MTA 95/5 pool in order to boost the TVL on mStable. Users will mint fresh mUSD to deposit into this Balancer pool (market buying MTA with 5% of their capital) which will have the additional effect of boosting the yield on the SAVE module.
In the current yield farming environment, a project needs large rewards in order to retain liquidity providers. While rewards for EARN pools on mStable are attractive, none of the pools can compete with the APY of new yield farming projects.

Increasing the MTA rewards by 10K (from 25K to 35K) on the mUSD/MTA 95/5 pool should boost the APY over 100% and attract additional liquidity providers.
We can transfer 5K MTA rewards from each of the USDC/mUSD and WETH/mUSD balancer pools in order to promote outsized awards for the mUSD/MTA 95/5 pool.
Hopefully, the yield farming craze will subside and the community can decide to reduce rewards for this pool and achieve better liquidity on a different Balancer pool soon.


Edit: The WETH/mUSD pool is showing 84% on Balencer plus 67% on mStable. This seems good given that WETH isn't likely to go to 0?
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Dec 14, 2010
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deger wrote: I am looking to add an additional farming investment without speculating in non-stable coins. So far I only invested in Yearn Y Vault so I don't want to put more in Yearn or Curve to reduce risk. I guess investing in any pool with non-stable coin component gives you exposure to it. If MTA goes to 0 then the investment in the pool with MTA would go to 0.

mStable mUSD/USDC pool may reduce rewards by 1/3. This is from there discard.

chuckle17Yesterday at 4:04 PM
- The other question, however, is where to allocate MTA rewards if we reduce rewards to any of the existing pools.
It might be prudent to increase the rewards for the mUSD/MTA 95/5 pool in order to boost the TVL on mStable. Users will mint fresh mUSD to deposit into this Balancer pool (market buying MTA with 5% of their capital) which will have the additional effect of boosting the yield on the SAVE module.
In the current yield farming environment, a project needs large rewards in order to retain liquidity providers. While rewards for EARN pools on mStable are attractive, none of the pools can compete with the APY of new yield farming projects.

Increasing the MTA rewards by 10K (from 25K to 35K) on the mUSD/MTA 95/5 pool should boost the APY over 100% and attract additional liquidity providers.
We can transfer 5K MTA rewards from each of the USDC/mUSD and WETH/mUSD balancer pools in order to promote outsized awards for the mUSD/MTA 95/5 pool.
Hopefully, the yield farming craze will subside and the community can decide to reduce rewards for this pool and achieve better liquidity on a different Balancer pool soon.


Edit: The WETH/mUSD pool is showing 84% on Balencer plus 67% on mStable. This seems good given that WETH isn't likely to go to 0?
Weth / musd gives eth exposure, so there could be volatility. But yes, won’t go to zero. Same with a btc pool. Look at curve, balancer and synthetix. Several options to earn interest on those pools. Or lend in Aave or Compound.


Rod
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Sep 10, 2007
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rodbarc wrote: Absolutely. When you can make money permissionless you can also lose it permissionless. Malwares like this are very common now. It’s paramount to always check initial address digits and final address digits. A hardware wallet shows the real address on the physical device so you can reject if it doesn’t match to where you intended to send.


Rod
Exactly. The very first thing I did after making the decision to buy any cryptocurrency, was to set up my ‘foundation’ by purchasing a hardware wallet first and setting it up before anything else. I wanted a place to immediately send my crypto (off the exchange) as soon as I made a purchase. This may seem like overkill to some, but I also check the entire address before sending/transferring anything. It only takes a few seconds anyway and I just feel more comfortable doing that.
pmb

"When your work speaks for itself, don't interrupt."
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Jan 1, 2008
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"a whole new ponzi, which is governance tokens"
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Dec 14, 2010
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deger wrote:


"a whole new ponzi, which is governance tokens"
Yes, governance tokens should be farmed, not bought. Their theoretical value is $0. They are meant to vote and drive the product, not traded. But there's a market to trade them. What really matters are the actual financial products that each one offers, and the strategies to monetize on them.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

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Nov 6, 2015
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Calgary
20% off Ledger sitewide using code backtoschool

Considering a Nano X...but do I need it if I'm parking my crypto with CeFis?
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Dec 14, 2010
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margincall wrote: 20% off Ledger sitewide using code backtoschool

Considering a Nano X...but do I need it if I'm parking my crypto with CeFis?
Do you see yourself using DeFi in the future? That would allow you to diversify centralization risk. You can earn interest like CeFi, with different risk profiles and interest rewards. You can mitigate some DeFi risks with insurance.

If so, a Ledger is the cost of diversifying your portfolio. Depending on the amount you are planning to invest, it can be paid off quickly.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.
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Nov 6, 2015
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rodbarc wrote: Do you see yourself using DeFi in the future? That would allow you to diversify centralization risk. You can earn interest like CeFi, with different risk profiles and interest rewards. You can mitigate some DeFi risks with insurance.

If so, a Ledger is the cost of diversifying your portfolio. Depending on the amount you are planning to invest, it can be paid off quickly.


Rod
Thanks.. bought one, will think later :)
I may dabble in DeFi once I get a better understanding...

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