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30 Jul, 7 tweets, 4 min read
Wow. I wasn't aware of this but it seems I might have contributed to the crypto history by writing the first comprehensive thread on $OHM and @OlympusDAO long before it became trendy :)
Although I covered it in early March before the project launched, the mechanics of staking and bonding are still up to date and the thread is, imo, a pretty good explanatory read on $OHM and @OlympusDAO:
I should probably collect clout on such a tremendous foresight I had with $OHM but the truth is I was lucky to learn about the project early thanks to @Fiskantes.
I was also lucky to (3,3) before (3,3) meme was created when I first realized that $OHM community was very unique.
It gave me conviction to (3,3) and not to take profits too early.
Not all my predictions came true though. I expected a brutal contraction at some point and we just had a "mild" correction in May from $164M to $39M MC.

Wait... Actually it wasn't that mild as I thought. 76% down from ATH was quite rough, wasn't it?
Combination of luck and conviction played out very well in my $OHM adventure. But be aware that you usually only hear success stories. If I had failed, you would probably not read this thread now, according to my #CryptoTwitterManual:

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More from @korpi87

korpi Profile picture
2 Aug
EIP-1559 is scheduled to go live this week and I still see a lot of wrong takes on its impact. Remember:

- It doesn't make $ETH deflationary by default.
- It doesn't reduce $ETH supply by 90%, referred as "triple halving".
- It's still very bullish for $ETH.

Why? 🧵👇
1)
 EIP-1559 is one of the most important upgrades in Ethereum's history. Its purpose is to improve user experience on #ETH by changing how transaction fees are estimated and how the network reacts to surges in usage.
2)
 It doesn't lower gas fees in the long run because it's not a scalability improvement. However, it may help users not overpay for transactions due to a better fee estimation process. It also smooths out gas prices between blocks thanks to variable block sizes. https://thedailygwei.substa...
Read 9 tweets
korpi Profile picture
28 Jul
There is a common misconception that due to concentrated liquidity on Uni v3 liquidity providers (LPs) earn substantially more trading fees. This is what the original v3 announcement suggests but it's not exactly how it works. Let's find out why! 🧵👇
$UNI
TL;DR:
- Concentrated liquidity on Uni v3 increases capital efficiency but not necessarily Fees APR for LPs.
- Fees APR is dependent on the competition between LPs.
- LPs are incentivized to provide liquidity on narrow price ranges which amplifies their risk of impermanent loss.
1) To begin with, a short reminder where the fees for LPs come from.

When traders swap on AMMs they pay a trading fee which is dependent on AMM/pool:
- Uniswap v2: 0.3%
- Sushiswap: 0.3%
- Uniswap v3: 0.05%, 0.3% or 1%
- Bancor: from 0.1% to 1%
Read 28 tweets
korpi Profile picture
1 Jul
Dear users of @zapper_fi,
I hope you are fully aware of the misleading and often unrealistic "ROI" in the "Opportunities" section for Liquidity Pools.
I hope you realise you can still underperform simple "hodling" even with "ROI" of 100%+.

If not, let me explain to you why. 🧵👇
TL;DR:
- "ROI" on @zapper_fi is based on the fees from the last 24hrs & ignores IL which makes it an unreliable approximation of future returns.
- Toolkit from @ApyVision is a must for LPs in IL-exposed pools.
- IL-protected pools from @Bancor are the best place for passive LPs.
1) Before I start, I want to make it clear that this is not a rant on @zapper_fi. It's a great tool and I use it a lot. But I think the Team could do a much better job when it comes to informing users about certain risks which can result in financial loss.
Read 27 tweets
korpi Profile picture
28 Jun
Do long-term liquidity providers (LPs) to AMMs earn passive income? What is their ROI when the impact of impermanent loss (IL) is included?

I compared LPing on Uniswap and Bancor to check if IL-protection from Bancor is a useful feature for LPs.

See 🧵for more alpha!

$UNI $BNT
TL;DR:

- LPs on Uniswap often end up with less money than they would have by “hodling”, while LPs on Bancor always outperform a buy-and-hold strategy when full IL protection is achieved.
- IL protection is a killer feature for passive income generation.

korpi.medium.com/understand-ban…
1) LPing involves investors lending their idle assets to an AMM in anticipation of passive returns from trading fees. Although trading fees do generate a revenue stream for LPs, it’s not always guaranteed passive income. It would be, were it not for the infamous impermanent loss.
Read 26 tweets
korpi Profile picture
4 Jun
1) I've noticed many people think that Uniswap v3 $UNI solves the problem of impermanent loss (IL). It doesn't. Actually, it's just the opposite. Concentrated liquidity substantially increases the risk of IL. Let's quickly break down why it happens.
2) I think this common misconception may have been unwillingly originated by @haydenzadams. He wrote:

Uniswap v3 provides the only possible "solution" to impermanent loss and price impact

But he didn't use quotation mark ("solution") without a reason.
3) In fact Hayden's long thread (worth reading!) explains exactly the trade-off between IL and price impact. The "solution" he meant is that v3 offers liquidity providers (LPs) a possibility to choose their preferred level of exposure to IL.
Read 22 tweets
korpi Profile picture
2 Jun
1) Would you take a loan with negative interest rate (you are paid for borrowing) with zero risk of liquidation? I would and I did. It's (temporarily) possible on @RulerProtocol on a few collateral types: $BDI, $ibBTC and $NEAR. How does it work? 👇 Image
2) Let's say you have $BDI and want to borrow DAI (you can also choose USDC and USDT). For each BDI deposited as collateral, you are currently able to borrow 150.39 DAI. At the same time, you will only have to repay 150 DAI. You are paid 0.39 DAI which corresponds to -3.34% APR. Image
3) The more you borrow, the higher your borrowing APR becomes. For 100 BDI of collateral, you can borrow 15024 DAI and you will need to repay 15000 only. It's still negative borrowing APR of -2.06%. It becomes positive when you borrow more than 40.5k DAI. ImageImage
Read 6 tweets

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