Thread by @Consigliere_nm

Why partnership between
➡️@GyroDAO , @enreach and
➡️@blackmagicmoney could be revolutionary for DeFi and why these projects have x100 potential?

#ETH ➡️#BSC

$OHM ➡️ $GYRO
$SPELL ➡️ $VOODOO
$MIM ➡️ $CIM

About $OHM (Olympus):
$OHM is token backed by treasury reserves gained through bonding process - bonding is buying $OHM at discount with specific asset such as $OHM LP tokens.
Ex: Current price of $OHM is 350$ but if you swap $OHM- $USDT LP tokens for it, the price is 330$

These LP tokens are held in reserve for:
➡️backing $OHM tokens
➡️generating profits - portion of all trades as liquidity provider

Crucial fact is that LP is owned by protocol so:
➡️no need for LP incentivising
➡️liquidity is secured - no risk of huge liquidity withdrawals

These mechanisms ensure huge APYs for $OHM stakers. Current APY is ➡️5,294% - if you initially had only 1 $OHM, in one year you would gain 52.94 $OHM.
Price, in the other hand, is speculative so you could theoretically be in loss even with increase of x50 in token number.

In simple words (3,3) strategy is working best when there is as much as possible of the asset STAKED so the main metric used in evaluating is % of staked supply.

If you want to learn more about $OHM, prisoner dillema and (3,3) check out this video:

So what is $GYRO?

$GYRO is the exact copy of $OHM, except it is operated on #BSC and it has much smaller market cap and much bigger APY:

MC: $GYRO $11M < $2.57B (x233)
APY: $GYRO 48,190.57% > $OHM 5,294%

Learn more about $GYRO here:
gyro.money

Okay lets move to second project- $SPELL:

$SPELL is a token that enables its stakers to earn share of fees payed by $MIM borrowers.

$MIM is $ pegged stablecoin that can be withdrawed as loan after there is suficient collateral deposited on the platform. docs.abracadabra.money/intro/lending-…

For example:
➡️User deposit $UST as collateral
➡️User borrows $MIM (lets say 50% of $UST value)
➡️User can then do whatever he wants with $MIM - trade, farm, LP
➡️When user repays $MIM, he receives $UST collateral back

Every action incrues a fee that goes to $SPELL stakers.

The same system is being built by @blackmagicmoney:

$SPELL ➡️ $VOODOO (earning interest and borrowing fees)

$MIM ➡️ $CIM ($ pegged stable issued after collateral is deposited)

What is (9,9) strategy or looping?

It' is YIELD LEVERAGE:
➡️Stake an asset that earns yield- $GYRO or $NRCH
➡️Deposit that asset as a collateral
➡️Withdraw $CIM (0-74% of collateral value)
➡️Buy the same asset ( $GYRO/ $NRCH)
➡️Repeat the process for more yield/risk

Looping enables yield farmers to farm with up to 300% boost - like you have x3 your money. Theory is that collateral value is growing all the time (reducing risk) - as yield generating tokens are used as collateral such as wsGYRO and ygNRCH (staked versions of normal tokens).

System produces revenue through interest (time-related) and borrowing fees (one time fee) on $CIM loans.

For looping, the main metric for success of the strategy is % of staked and % of looped supply.

More staked + more loops = higher price

More staked = more stability

@blackmagicmoney will release the system like this where:

BlackMagic ➡️ issues $CIM, $VOODOO stakers earn fees
Gyro➡️used as collateral
Enreach➡️used as collateral, $NRCH platform #YAGGR will be used as collateral reserve bank

Huge benefit of this system is that #YAGGR platform will manage looping mechanism - this means looping will be done only when there is enough supply staked.
#YAGGR will practicaly manage the risk by looping or unlooping depending on % of supply staked.

$GYRO combined with (9,9) $CIM strategy could produce some serious gains.

For ex. looping only 1 time and only 30% of staked $GYRO could bring $2M of new buy pressure.
Imagine more loops and more staked % looped - exponential growth.
Combined with current APY of 48,190.57% 👀

The same story relfects on $NRCH that can be used as collateral for $CIM loans.

This table shows predicted price dinamics and treasury balance for whole system.

All in all, @blackmagic and @GyroDAO mechanics are already battle-tested on #ETH network by @OlympusDAO and @MIM_Spell. Now it is time to combine these two mechanics on #BSC network.

HUGE f*ckn potential IMO.

P.s. Learn more about $NRCH here:

https://twitter.com/Consigliere_nm/status/1462090983416475654?s=20