What is a good way to DCA into $ETH at prices lower than most can get?
- You should buy liquidations.
How to do it without a bot?
- Provide $LUSD into the Stability Pool in @LiquityProtocol and chill.
Tetranode bought $ETH at $849 yesterday. You could do it too.
Details: 🧵👇
If you are interested in how @LiquityProtocol works, check the thread below.
In short, it's like Maker but instead of DAI it issues $LUSD and only accepts $ETH as collateral which makes it fully resistant to centralization risks.
The Stability Pool in Liquity is a pool of $LUSD which is used to liquidate risky loans (when collateralization ratio drops below 110%).
It keeps the protocol solvent and allows LUSD depositors (Stability Providers) to participate in liquidations and profit from them.
When Stability Providers liquidate risky loans, they essentially buy discounted $ETH (~10% below market price) for their $LUSD.
It's like DCAing into $ETH at a discount when there is blood on the market.
If it wasn't good enough, Stability Providers also earn $LQTY on their deposits - it's an incentive to always keep a healthy amount of $LUSD to maintain the system solvency.
$LQTY APR sits at 18% now which is a really nice return in the current market conditions.
The average 7-day APR in the $LUSD Stability Pool which takes into account both $LQTY rewards and liquidation gains is...
People buy a token because they believe the price will go up.
Above "fundamentals" justify that $BLUR is undervalued.
Answering your questions:
➡️ I know there is a lot of wash trading to farm $BLUR
➡️ I know OpenSea valuation would be much lower today
➡️ I don't think it matters in the short term to propagate this narrative
$BLUR is a short term trade for me, not a long term hold (so far).
I don't consider myself as a good trader and I'm often wrong in the short term.
But I like narrative plays.
Check out the $BLUR investment thesis presented by better traders, like @Crypto_McKenna: