The Cryptocurrency Trading Journal

Sprout said:
Curve.fi uses a basket of deposited stablecoins and algorithmically harvests yield by auto-rebalancing the liquidity pools.

Yearn built on that by giving one the option of depositing those yPool LP tokens into Yearn instead of Curve so that one could also generate earnings via fees of transactions into and out of the yearn vaults: CRV->yCRV. Yearn was harvesting the yield generated by Curve. Curve distributed the yield through a governance token. Yearn sold off these tokens to generate yield for yCRV. There is also a small performance fee.

So any deposits into the vaults are worth more when withdrawing due to the accumulation of fees.

So now one has a vault of stablecoins generating earnings via Automated Market Making via the various liquidity pools as well as any arbitrage opportunity that comes from price distortions across venues.

Yearn has built the infrastructure to develop rapidly and has done so. It’s also why it spawned so many copycats.

So with the whole food farming craze, it really focused on the idea of giving incentives in the form of a native token paid as ‘interest earned via APY’ for being willing to provide liquidity. The high APY’s are there to incentivize participation as well as offset the impermanent loss that a LP will incur being an early provider of liquidity.

It’s not bad if the liquidity pair are correlated but if one is much more volatile then one has more of the less-desirable asset when they go to withdraw from the pool.
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How much can you earn in your stablecoins when you factor in the the returns+bonus tokens?
 
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The amount of huge news for bitcoin just keeps increasing, BNY Mellon is now into crypto custody, Amazon is rumored starting some kind of crypto payment thing in Mexico, just more and more good news

They are so many I plan not to include them here anymore. Its pointless. 2021 Bitcoin will go mainstream in a way that was unthinkable a year ago. Looking at historical indicators like Google Trends or overbought oversold indicators makes no sense anymore, history is no longer a good guide of what is about to happen. I will sell when Bitcoin goes to the front cover of a major mainstream magazine with a history of being a contrarian indicator AND the price action is parabolic, otherwise I will hodl on
 
Just bought SNX (Synthetix) which was missing from my DeFi basket. Pretty cool what they are doing with these synthetic assets, there is even oil in their exchange. All synthetic.
They also have sDEFI, which is like an ETF, but you give up your staking rewards that certain coins have, I THINK
 
Daal said:
history is no longer a good guide of what is about to happen
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I completely agree with this point. The other day someone posted about how some Warren Buffet metric was off the charts. During dotcom bust, I think the value was 150%, and now its at 200%, as if a crash if coming. But there are too many different parameters now. Interest rates are vastly different. Government spending is unlimited. Debt is orders of magnitude worse. So any models these days are pretty much useless.

But I still think its important to note that these companies getting involved are putting in just several percent into BTC, if that. For the average investor with lets say 100k, that would be a small fraction of just 1 coin, so make like 2k or 3k.

I cannot ignore the tail risk that BTC has. It could be something as simple as hacking, stolen coins from the exchange where they are parked if you don't hold them in cold storage, policy shifts from governments, sentiment shifts to other coins, some new and huge technology jump that makes BTC irrelevant very quickly, etc. So maybe it makes sense to hold a few percent of your net worth in BTC and accept that you might lose it all, but any more than this gets quite worrisome unless you watch it like a hawk and are prepared to bail at any moment. But this would prove that its not a store of value and you're just waiting for the greater fool to cash out to.
 
NoahA said:
I completely agree with this point. The other day someone posted about how some Warren Buffet metric was off the charts. During dotcom bust, I think the value was 150%, and now its at 200%, as if a crash if coming. But there are too many different parameters now. Interest rates are vastly different. Government spending is unlimited. Debt is orders of magnitude worse. So any models these days are pretty much useless.

But I still think its important to note that these companies getting involved are putting in just several percent into BTC, if that. For the average investor with lets say 100k, that would be a small fraction of just 1 coin, so make like 2k or 3k.

I cannot ignore the tail risk that BTC has. It could be something as simple as hacking, stolen coins from the exchange where they are parked if you don't hold them in cold storage, policy shifts from governments, sentiment shifts to other coins, some new and huge technology jump that makes BTC irrelevant very quickly, etc. So maybe it makes sense to hold a few percent of your net worth in BTC and accept that you might lose it all, but any more than this gets quite worrisome unless you watch it like a hawk and are prepared to bail at any moment. But this would prove that its not a store of value and you're just waiting for the greater fool to cash out to.
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I would recommend you read the book Mastering Bitcoin and as well as articles on multisig capabilities. If you setup a multisig BTC address with 2-3 hardware wallets with proper backups, I can assure you, no one is hacking you. Someone might steal coins with a gun, but the same can be said about anything, including bank deposits, in my country kidnapping to get bank cash happens all the time.
As far as government risks goes, the more corporate america joins BTC, the less the chance US Federal Gov will ban it. Lobbying is strong in the US. The time to ban BTC was back during 2009-2016, now its getting harder everyday
 
https://panteracapital.medium.com/what-gamestop-says-about-decentralized-finance-d23f732ed81e

Pantera Capital Letter. He is super bullish on DeFi

And I love the Andressen quote

“The track record of old white men who don’t understand tech crapping on tech they don’t understand still at 100%.”

— Marc Andreessen, CoinSummit in San Francisco, March 25, 2014

Sorry skeptics, your gurus have let you down. Its sucks to admit you have being mislead by supposedly 'smart' people but you have, the sooner you admit that mistake, the sooner you will correct these mistakes
 
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