1/ Short or Long Farm on @Mirror_protocol? Maybe both? And how to integrate the volatile Short APRs in all of this? What happens if the mAsset goes up in price?
Due to the fantastic @terra_money community, we now have more clarity to answer all those essential questions.
🧵👇
Due to the fantastic @terra_money community, we now have more clarity to answer all those essential questions.
🧵👇
2/ @DrCle4n took my challenge and tried to find a better APY. He even squeezed out more yield on the given assumptions (stable mAsset, 60%/40% Short to Long FARM APR). 😍 Fantastic work & kudos to Cle4n! I call his strategy the "SUPER SHORT". :)
https://twitter.com/DrCle4n/status/1414799383053299714?s=20
3/ What did he do?
He took my proposal to wait two weeks to increase the asset efficiency (DELAY). However, instead of preparing to go long, he focuses entirely on his Short Farm. Thus, he can increase the value of his Anchor deposit and Short Farm.
He took my proposal to wait two weeks to increase the asset efficiency (DELAY). However, instead of preparing to go long, he focuses entirely on his Short Farm. Thus, he can increase the value of his Anchor deposit and Short Farm.
4/ In a nutshell: 1000 UST (100%) in Anchor. Then, after two weeks, he goes long with the locked UST to hedge (partly neutral). In my model, this gives up to 69% yield.
5/ What to take from this great idea? I think this brings us closer to make more with Mirror V2!
I compared the two strategies (DEGENLIFE and SUPER SHORT). I enhanced the numbers with an appreciating mAsset (30% and IL) and different Short APRs (against a stable 40% Long F. 👇
I compared the two strategies (DEGENLIFE and SUPER SHORT). I enhanced the numbers with an appreciating mAsset (30% and IL) and different Short APRs (against a stable 40% Long F. 👇
6/ "So, which strategy is now the true holy grail, mister danku_r?"
I think they both give us the chance to achieve even more yield on Mirror V2.
How? With both strategies, you can answer these two key questions:
I think they both give us the chance to achieve even more yield on Mirror V2.
How? With both strategies, you can answer these two key questions:
7/ (1) How to handle volatile Short Farm APR? (2) How to leverage different mAssets classes (blue ship like Apple against super slow-moving assets like gold)?
FYI: The DEGENLIFE moves in the channel created of the dashed lines based on the mAsset price (upwards).
FYI: The DEGENLIFE moves in the channel created of the dashed lines based on the mAsset price (upwards).
8/ The following Qs might help:
Do you expect the Short APR to be below or close to the Long? DEGEN LIFE seems fitting for appreciating assets.
Do you foresee the Short APR to stay high and do you think the stock will move slowly or even depreciate? Choose SUPER SHORT
Do you expect the Short APR to be below or close to the Long? DEGEN LIFE seems fitting for appreciating assets.
Do you foresee the Short APR to stay high and do you think the stock will move slowly or even depreciate? Choose SUPER SHORT
9/ Special thanks to @DrCle4n. What a great and strong community @terra_money has! :) More amazing protocols and community ideas are on the horizon for sure! :) DYOR & NFA
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