What's beautiful (and kind of scary) about DeFi is that we can see everything that happens on-chain and connect addresses to identities and firms.
Here's a breakdown of the known Ethereum addresses of Three Arrows Capital, Polychain Capital, and Jump Trading.
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Three Arrows Capital (1/2):
One of the biggest Compound suppliers, with $100m in WBTC, $50m in ETH, and $6m in DAI.
3AC is also supplying 275 YFI and $13m in LINK to Aave and is farming SUSHI with 1.5m *recently-acquired* SUSHI.
3AC acquired 351k LINK during recent dip.
3AC (2/2):
With the collateral, 3AC is withdrawing stables and sending them to FTX. We've seen millions upon millions sent to an FTX address.
It is unclear what happens to the funds once they're there but 3AC is often on the profit + volume leaderboards on FTX.
Polychain Capital (1/2):
Polychain Capital has been the biggest YFI buyer over the past few weeks.
They've acquired 570 YFI (~2% total supply) over the past five weeks at an estimated cost basis of $12~14k.
They also own 48,000 ETH and 1,315 MKR on this address.
Polychain Capital (2/2):
This is one of Polychain's many addresses.
One of their addresses that received all of the early-stage investments of the previous cycle that held millions in GNT, MKR, ZRX, REP, and other tokens made a bunch of txes in 2018 and it's really convoluted.
Jump Trading (1/3):
Bit of context first since some in the space may not recog the name. Jump Trading is a massive prop trading firm based in Chicago. They're big on crypto, even though they don't advertise that per se.
They're big investors in Ethereum tokens as well.
Jump Trading (2/3):
They hold 39,000 ETH - $18.5m. Much of this was accumulated over the past days with incoming txes from Gemini and Huobi. And they hold a ton of alts.
Biggest positions in Serum, Compound, Keep Network, and HXRO.
None of these postions were acquired in bulk.
Jump Trading (3/3):
Smaller positions in Numeraire, Orchid, Maker, and Huobi Token.
The ~$5m in stables in the address are being regularly sent to exchanges and seemingly swapped for altcoins.
Jump is an accumulation machine.
$100k+ incoming txes every few hrs.
There are a bunch of other funds in the space with publicly-known Ethereum addresses.
Will have to cover those at a later date.
While I say I would say it's unwise to copy trade these addresses, take stock of where the smart money is going every once in a while.
And thanks for 2k followers btw - the support has been insane. I'm up like 700 followers in the past two days.
Will continue posting high-signal content when I have the time.
Y'all are nuts. Thanks again for the support.
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Tranches in finance are when a financial product/vehicle is split up into separate baskets to divvy up risk and yields to appeal to different investors.
There are junior tranches, which carry the most risk. If there is a default/crash, junior tranche holders take most losses.
To acquire Saffron Finance's governance token, SFI, users must deposit ETH-SFI Uniswap LP tokens or deposit into the two supported tranches, the "S" (senior) tranche and the "A" (junior) tranche.
- S tranche gets 71.25% of emissions
- A tranche gets 3.75%
- Uniswap LPs get 25%
Hands down one of the coolest DeFi products I've seen in recent months is Alpha Homora by @AlphaFinanceLab.
The product has seen a lot of attention over recent days as investors seek higher yields on Ethereum yield farming and liquidity mining.
Let's take a closer look.
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To put it simply, Alpha Homora allows users to obtain leverage on Ethereum yield farming.
It also automates the yield farming process, even if the user does not want to take leverage.
This is similar to what the @zapper_fi team did in its early days with Zaps.
When you want to LP one ETH into ETH/WBTC on Uniswap, you swap 0.5 ETH into WBTC, then supply both to the pool. Cool.
But let's say you want to collect more in trading fees or in UNI (if rewards are voted back in), you can take leverage of up to 2.5x (used to be like 3x).
Bitcoin is resilient around $13k, Ethereum hit $420, and DeFi TVL is at an ATH at $12 billion.
As DeFi continues to grow, decentralized exchanges will remain pivotal.
Here’s a thread on the outlook of the AMM market (Uniswap, Balancer, Sushiswap, LinkSwap, DODO).
Before we get into it, a brief explainer of automated market makers.
AMMs are a type of decentralized exchange where users pool liquidity, then trade with the coins in the pool. AMMs price liquidity with a formula (often x * y = k), algorithmically matching purchases and sales.
AMMs are starting to overtake centralized exchanges.
Uniswap alone did more volume than Coinbase in September. AMM liquidity pools can sometimes be deeper than centralized exchanges, sans trading fees (see image #1).
AMM also enable-chain arbitrage, a massive market.