Today was a very good day for the $ReFi farming portfolio. We will v soon be close to 165 ETH. A casual stream of thoughts before bed...
1. I'm much more comfortable with how our risk buckets are spread across farming strategy types. For those that haven't read it - check out our medium articles and how we go about allocating YOUR funds (based on 14d and 30d realised volatility)
2. Can't be too (short-term) outcome-focused in this long term game, but I am glad we listened to some of our advisors and parked some USDC stables into hundred.finance, since the majority of the (high) APY is paid in native token incentives.
3. Yes - farming advisors. As nice as it is to be some kind of 'hero' farmer, such titles create problems down the line (key man risk/ego etc). We are very open to listening to DeFi professionals on where to park capital and will continue to do so.
4. I'm really happy we took some profits and bought and staked $LQDR pre xmas. Liquid driver gives us leveraged exposure to the bullish #Fantom ecosystem whilst earning a great APR in various tokens from the revenue sharing wallet.
5. Our broader investment process starts with identifying macro narratives and then placing our bets with strong conviction. This has been the case with $NEWO ever since we had @rektfoodfarmer on the first podcast.
6. In particular, we like the narrative that $NEWO is fundraising and incubating new DeFi protocols such as $BTRFLY, and operating in a truly revolutionary manner. Yes the token unlocks are worth keeping an eye on, but the 800-1000% APY on providing LP is worth the IL risk.
7. As we grow our network in the DeFi community we look forward to getting EARLIER access to new launches and are happy to allocate a very small amount of capital (say 2-3 ETH) with the chances of exponential returns (50-100x). The alpha on exclusive discord groups is insane.
8. Some have asked about our spot and staked $YFI and $CRV. Yes these are higher risk directional plays but are taken due to a deep understanding of the tokenomic revamps and utility and we only purchase on market corrections (e.g. we bought $CRV sub $5)
9. We're very happy with the FTM-TOMB vaults on reaper.farm that have made us over 15 ETH of profit. We've trimmed a bit just so that we never have too much portfolio exposure in any one vault.
10. I'm really LOVING the crowdsourced farming interactions with our community.
Today alone I've discussed:
a) wFTM>yvmFTM>MIM,
b) bentCVX
c) MAI+av3crv
with different $ReFi investors. Wisdom of the crowds baby! discord.gg/H8uCvZdb
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1. We put on our largest single ticket trade today by purchasing 812 $LUNA ($75.5k) and staking it in the Terra ecosystem. After several weeks of discussions with leading professionals in the DeFi space, we have high conviction in this.
2. This is in addition to the 8 ETH of $bLUNA that we acquired at $54 and $72 (now $92), which we already have as collateral for UST deposits and are utilising the slow burn process. Credits to our podcast guest @shivsakhuja for the graphic
3. We added a higher risk strategy by purchasing worth of $HND at an average price of $2.50. Already +57.6%. We put this on because a) we already have stables on hundred.finance and b) we spoke to a number of people v close to the protocol about their plans.
1. Bought 10ETH of $CVX, converted to bentCVX > single side stake it for 200%+ APY. We'll also be claiming and staking those $BENT rewards periodically.
2. Deposited 5 ETH as collateral on abracadabra.money, borrowed $MIM against it at 0% interest. Deposited $MIM into the MIM+3Crv pool on curve.fi and then staked mimCRV to earn Bent on top of Convex's native rewards at over 30% APY.
3. Added to our USDC supply vault on tarot.to, earning 17.8% APY + farming $TAROT, with a view to moving some of it to the leveraged USDC/fUSDT LP once the APR's make it worthwhile
Beyond the "Curve Wars" narrative, another reason we like $BTRFLY is because of the yield enhancement strategies they apply to their treasury assets (CRV, CVX and gOHM)...
1. First you need to understand that all big DeFi protocols (@MIM_Spell, @FantomFDN, @CreamdotFinance) are playing a game -> they want as much VOLUME (TVL=total value locked) as possible. Why? cos fees init bro. At the same time, guys like me want the best % return on stables.
2. That's where Curve ( $CRV ) comes in - it's THE dominant marketplace for stablecoin swaps (managing treasuries etc). Curve is where ALL the action takes place. There is no second best.
It's a sentiment check for greed/fear. Red = market vulnerable (expensive to go long) and frothy. Green = people scared to long. I also want to pay the least to be long.
2. Set "stink bids" i.e. trigger orders to open if the market suddenly drops a few %. These happen when whales want to grab liquidity lower and stop out the little guy. I'm happy having no position when needed. Patience is a virtue.