Investors want the yield, but not the commitment

The recent "dip" made crystal clear what type of stablecoin yield alternatives will take over during this cycle

A 🧵
2/ When the market starts getting rowdy, whales tend to exit high-risk positions and look for safer alternatives in order to protect their funds

What do you think becomes the most attractive alternative?

Bingo!

Stablecoins💲🎯

Stablecoin farming, staking, and lending.
3/ Stablecoin farming tends to be the most attractive alternative, since it usually yields higher APYs

Nevertheless, it carries more risk than the latter alternatives. Users might have to swap to get a 50-50 allocation (exposure to fees, maybe slippage, & impermanent loss risk)
4/ "How would they be exposed to Impermanent Loss? Stables don't move"

False.

They don't move *that much*, but when talking about millions/billions of dollars, a $0.001 change in one of the stables can change the pool's composition & ur token's too, creating exposure to IL risk
5/ Luckily, platforms like @Platypusdefi and @hummusdefi came in and COMPLETELY changed the game

What are they?

Single sided AMMs: they provide single-sided liquidity provision features, allowing LPs to provide liquidity with zero IL and traders to swap with minimum slippage
6/ Historically, LP tokens represent your share of a pool with 2 or more tokens in it, meaning that the composition of your LP tokens might change between deposit and withdrawal (not gud)

In the new model, each LP token represents your share of a single token in the pool (No IL)
7/ Now, the big question:

Are APYs higher than those of traditional stable LP farms?

Well, they can be😏

Both platforms have governance tokens that can be staked to generate veTokens

The more veTokens you have, the higher yield you get on your stables🤤

BUT!.. There's a but
8/ If you unstake ANY amount of staked governance tokens, your whole veToken stack gets slashed (its gone)

This token stack wasn't really worth any money, but your "higher" or "boosted" yield its gone.

You went back the "starting yield" & the cycle starts again
9/ This is a great incentive to get users to lock their governance tokens for longer and don't ever think about unstaking them.

Although, it certainly is a hassle for those who do want to be able to move their funds freely

Other protocols know this as well
10/ This leads to 2 potential outcomes:

🔹Secondary protocol steps in (the "Convex") and stakes #PTP or #HUM forever, offering users to stake stables in the secondary protocol & enjoy the boosted yield, since its a higher APY than they'd get by themselves

🔹Full on Curve Wars
11/ @Platypusdefi already resulted on the first outcome: The Convex

@vector_fi was exlusively created to acquire Platypus TVL & yields

It offers single sided stable LPing, and #PTP staking

@vector_fi then stakes #PTP for #vePTP and offer users boosted APY for their stables
12/ Since @vector_fi has a way bigger stack of #vePTP, they encourage users to stake stables and earn Vector's boosted yield without the commitment

Users can get the high stable yield w/o having or locking #PTP

Investors love it!

They get the yield, but not the commitment😎🤝
13/ How do I know investors love it?

Here's some data regarding @avalancheavax

1. Only major chain in green all across the board
2. TVL didn't move during the dip even tho most of its major protocols were in red
3. ALL the TVL went to @Platypusdefi & @vector_fi during the dip
14/ Besides, if we look closely, @vector_fi literally captured over 1/3rd of @Platypusdefi's TVL already
15/ This Platypus & Hummus model is pretty sweet, since it:

🔹Provides whales an exit from volatility w/o withdrawing their funds from the network
🔹Allows traders to swap stables with close to 0-slippage
🔹Maximizes Capital Efficiency

Funds would flow IN during volatile dips!
16/ @hummusdefi & Platypus have very similar models, but Hummus adds one key additional feature:

Builder Mining Rewards🛠️📈

The BMR could allow @hummusdefi to not only offer a higher yield, but offer a MULTI-TOKEN yield🤯

It'd be INSANE to earn #METIS by providing stable liq🥶
17/ @hummusdefi will be launching Tuesday, so there's no "Convex" yet. This sets the stage for Full On Hunger Game type of Curve Wars

No LP pairs. No Impermanent Loss

@MetisDAO would benefit hugely from this new model.

Whales, users, dApps: the whole ecosystem🌎
19/ To sum it up:

🔹Stablecoin high yield alternatives are KEY for any chain's sustainability
🔹Stablecoin high yield alternatives w/ no locking period will drive adoption
🔹Single-sided stable LP will be the new standard
🔹Investors want the high yield, but not the commitment
20/ If you enjoyed the thread or found it informative, don't forget to hit me with a follow and Like/RT🤝

As always, any additional that could complement or challenge any of the mentioned claims is more than welcome. The end goal is being well-informed:)

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More from @josefabregab

Apr 12
BIG day for DeFi & NFTs

🧵Thread on why @MetisDAO could change the DeFi and NFT layout forever while also alleviating @ethereum's congestion

(1/18)
2/ @MetisDAO just launched their Decentralized Storage Today, nuking gas fees to $0.02/tx and $0.17/swap

I'm sure you know this is good for the network, since it might incentivize a larger tx volume, but have you taken in consideration the potential upsides for NFTs and DeFi?
3/ DeFi Excellence

As you may know, Farming has evolved into what is now known as "Vaults".

Vaults are farms that do the Harvesting & Reinvesting themselves, in order to save you time & work, while also maximizing ROI

This involves A LOT of tx fees
Read 16 tweets
Mar 12
Wassssup CT and Capital Efficiency Maxis

What ALL OF YOU have been been waiting for... is FINALLY HERE🥵⌛️

Want to get Hermes exposure but don't know how?

I gotchu, anon

🧵Brief Step-by-Step on how to play the Hermes emissions🧵
2/ How to start?

First thing we do is go to hermes.maiadao.xyz/#/swap

If you don't have any of the eligible tokens yet(weird), you must first swap tokens in order to get equal monetary amounts of both tokens

Once we've done this, we move on to the next step
3/ Before our next step, it's important to point out that you might see multiple fees for what looks like a simple tx (Supplying Liquidity), but it is because it consists in:

1 tx to spend your 1st token
1 tx to spend your 2nd token
1 tx for the LP tokens

Now, let's keep going!
Read 12 tweets
Mar 6
18/ DeFi Sauce in @MetisDAO

@netswapofficial has been overlooked lately while being the first native DEX in @MetisDAO and having a monster potential with only a $12M MC

@netswapofficial has some VERY tasty farms and allows you to stake $NETT for $METIS rewards👀
19/ DeFi Sauce in @MetisDAO

@beefyfinance is also a DeFi monster in @MetisDAO

In the thread attached a few tweets ago, u can see the different optionsthat @beefyfinance offers

Keep in mind @beefyfinance is a Yield Optimizer, so you could find the same farms w better APYs
20/ DeFi Sauce in @MetisDAO

@picklefinance BABYYY

@picklefinance is a Yield Aggregator that compounds yields accross various chains. I'll do a thread on it later this week or next, but Today I'll just say...

THERE ARE FARMS PAYIN +100% REWARDS IN $WBTC & $METIS...
Read 13 tweets
Mar 6
14/ Access Routes to @MetisDAO

Now that we know wassup with $METIS and we know that @MaiaDAOMetis is a gigabrain play for 2022...

I'll share the bridges I use to transact between Fantom and Andromeda
15/ Access Routes to @MetisDAO

@relay_chain is the fastest one and has a fixed bridging cost of $10. Assets supported are $WFTM, $MIM, $WBTC and $RELAY

@TheBoringDAO is also very good, has a $10 bridging cost(if doing $25,000 or up it goes to $20ish) and supports $USDC & $USDT
16/ DeFi Sauce in @MetisDAO

I don't even know where to start😂

@tethysfinance has INSANE yields that can go up to +2000%, besides $HERMES exposure

EVEN BETTER. They just launched V2 of the $xTETHYS staking pool😱😱

Currently paying almost TRIPLE DIGITS w/ NO IL risk!!
Read 5 tweets
Mar 6
Centralization is a dangerous word

A decentralized network represented by a single face is still subject to a single point of failure, & recent events have made this very clear

🧵Thread on what happened Today in DeFi, the current scenery, & the upcoming role of @MetisDAO

1/29
2/ On this thread we'll cover:

#andrecronje quitting $FTM & what (possibly) led 2 it
• What's on the plate for $FTM
@MetisDAO
• Fits like Cinderella's shoe
• Access routes to @MetisDAO
• DeFi Sauce in @MetisDAO
@MetisDAO NFT Collections

Get some 🍿and lets go👇
3/ #andrecronje quitting DeFi & what (possibly) led to it

Andre Cronje, most prestigious Fantom dev & the person behind @iearnfinance and $SOLID, went MIA a few days ago when his account became deactivated

Speculation surged to ATH type shi & Today @AntonNellCrypto confirmed it
Read 14 tweets
Mar 4
Metisian Farmer helps Metisian Farmer🧑‍🌾🤝🧑‍🌾

🧵Short thread on some tasty farms in @MetisDAO with VERY nice APYs that us farmers can take advantage of🚜📈
2/ We'll cover farms and vaults from:

@beefyfinance
@starstreamfin
@tethysfinance

Feel free to add any farm or vault with them juicy APYs at the end of this thread

There's a few alternatives w/ high yields which I won't cover due 2 lack of avble info/audits online
3/ I won't even cover $sMAIA's super yield in this thread bc if you're not staking in @MaiaDAOMetis already......... What are you even doing, anon?
Read 18 tweets

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