Thread by @HuckleberryDEX

1/ The followin' is part performance art, part important information.

Below, ol' Finn outlines how and why the launch of #Huckleberry's new lendin' platform, Thatcher's Reservoir, brings yield farmin' (and really all of #DeFi on @MoonriverNW) to the next level.

🧵/16

2/ Some things to keep in mind about yield farmin':

- Needs 2 tokens in equal ratio
- Tends to offer high APRs
- Subject to Impermanent Loss

Put 1000$ into yield farmin' and it's possible you end up with less (in a worst case scenario)

3/ Some things to keep in mind about lendin'/borrowin':

- Needs only 1 token
- Tends to offer lower APRs than yield farmin'
- No Impermanent Loss

Put 1000$ into a lendin' platform and you will always end up with more (even in a worst case scenario)

4/ So, even though lendin'/borrowin' might offer lower APRs than yield farmin', it still has its advantages.

First and foremost, you only need a single asset to start lendin', and you'll never have to worry about Impermanent Loss!

5/ Here's a detailed example:

You start with 1000$ and you love everything about $MOVR (who doesn't!).

If you lend, you can keep the whole 1000$ in $MOVR and earn even more by lendin' it out.

If you yield farm, you have to split your 1000$ between $MOVR and another token.

6/ This isn't always ideal. You might love $MOVR and your goal might be to have as much $MOVR as possible.

Similarly, if you think we're enterin' a bear market, maybe you want to protect yourself by holdin' on to stablecoins while still havin' the option to chase high Defi APRs.

7/ Some might argue that the difference between Lendin'/Borrowin' APRs (usually <10%) and Yield Farmin' APRs (usually >100%) is too great.

This doesn't have to be the case.

Combinin' a lendin' platform and a DEX like #Huckleberry lets you execute several high-level strategies!

8/ Another example!

Let's say you start with 1000$ again. You still love everythin' about $MOVR (who doesn't!). You have two options:

1) Hold 500$ in $MOVR and 500$ in $USDT and yield farm for 150%

2) Hold 1000$ in $MOVR and borrow against it to yield farm $MOVR / $USDT

9/ Before continuin' lets define some parameters:

- $MOVR / $USDT farm = 150% APR
- Collateral factor for $MOVR = 60%
- Deposit $MOVR for lendin' = 10% APR
- Borrow $USDT for borrowin' = 10% APR

(Let's ignore compoundin' for now)

10/ Option 1:

You start with 1000$ and yield farm for 150%. After 1 year, you expect to have 1500$.

11/ Option 2:

You deposit 1000$ in $MOVR in #Huckleberry's lendin' platform. This lets you borrow 600$ of $USDT. You trade half for $MOVR and start yield farmin' $MOVR / $USDT.

12/ After 1 year, you expect to have 1340$ with Option 2.

Breakdown:
- Depositin' 1000$ in $MOVR at 10% = 1100$
- Borrowin' 600$ in $USDT with 10% fee = -660$
- Farmin' $MOVR / $USDT with 600$ at 150% APR = 900$

13/ With Option 2, you earn 1340$ instead of the 1500$ you'd earn in Option 1, which is less. It's 10.67% less. But it's not a huge difference.

And just as importantly, Option 2 allows you to protect and hold the asset you really want to hold (in this case, $MOVR)!

14/ But what if, during this year, $MOVR goes from 180$ to 1800$.

Considerin' this, if you just yield farm, you expect to earn 4500$. But by leveragin' #Huckleberry's lendin' platform, you'll actually expect to earn 9000$!

15/ So your total earnings usin' Lendin'/Borrowin' would amount to 10,340$ instead of just 6000$ from yield' farmin'.

That's 72% more when you combine #Huckleberry's DEX and lendin' platform.

And that's without considerin' additional yield farmin' risks like Impermanent Loss!

16/ This is the power of Thatcher’s Reservoir, and why ol' Finn thinks it's launch marks the dawn of a new era for #Huckleberry.

Huckleberry is now the first and only platform on @MoonriverNW to offer a fully-fledged, in-house DEX and lendin’ protocol!

- Finn