Thread by @nmgrm

@peterthiel_priv @JohnJevereux part 1/n:

you can be a LP (liquidity provider) on any uniswap-style exchange by entering a collateralized position 1:1 on both sides

for example for the YFI/ETH pair you would to deposit an equal amount of ETH and YFI

@peterthiel_priv @JohnJevereux however, you need to (or, well, should) understand what impermanent loss is because your position is going to change as the price does, and if the pair experiences substantial price changes you might come out with a loss - here's a le reddit link reddit.com/r/UniSwap/comm…

@peterthiel_priv @JohnJevereux however, as an LP you also are entitled to %0.3 of all trade value on the pair, divided by how much of the pool you are contributing

@peterthiel_priv @JohnJevereux this is true for any ERC20 token on ethereum - any of them can be traded on uniswap-style exchanges, and any of them support you becoming an LP

@peterthiel_priv @JohnJevereux YFI itself is a meta contract on top of an ecosystem of LP-accepting contracts

@peterthiel_priv @JohnJevereux so it will enter and exit LP positions that maximizes the return to anyone who deposits a position into the various YFI products

@peterthiel_priv @JohnJevereux YFI as a token gives you governance rights on the contract that controls the whole thing, it's like being a shareholder in a hedge fund

@peterthiel_priv @JohnJevereux and in fact YFI itself, as a token, can be deposited into YFI

@peterthiel_priv @JohnJevereux any time you see APY/ROI or whatever anywhere in degenerate finance, what that means is that fees generate from swaps on platforms like uniswap, or lending platforms, or whatever is *using* the liquidity will pay out at that rate (currently)

@peterthiel_priv @JohnJevereux you can do a bunch of frankly fucking whacky things by holding it:

- you can vote on the actual protocol itself here ygov.finance/vote - the governance, if this wasn't clear, is on chain
- you can deposit it into the yYFI vault and earn interest

@peterthiel_priv @JohnJevereux - you can enter as an independent LP on to uniswap-style exchanges (remember you have to collateralize both sides of the swap so you'll need an equal $ amount of eth or whatever pair you are entering on)
- you can get a loan with it on aave or other lending platforms...

@peterthiel_priv @JohnJevereux ... which you could use to buy more YFI

all of these things have risk, this is degenerate finance do not listen to me i am wrong

@peterthiel_priv @JohnJevereux like imagine that holding goldman sachs stock meant that you actually got to directly vote on their trading strategy, whether to issue new shares, how much they charge clients...

@peterthiel_priv @JohnJevereux lastly, there are mechanisms for you to use your yearn to collect the fees the platform generates

it's hilarious how undocumented everything is considering it's worth a billion dollars