Thread by @sovereignorigin

Some clarification w.r.t. #SuperHodl based on comments I've seen recently from the fam.

Short thread.

Zero Protocol is not the same as #SuperHodl:

Zero Protocol is a @RSKsmart smart contract that you can interface through @SovrynBTC's #DeFi platform.
It mints $ tokens (ZUSD) against your #bitcoin, and you are the counterparty. Therefore, 0% interest, no payback term.

#SuperHodl is a trading algorithm that leverages several @SovrynBTC platform products; notably Zero and a lending pool.

It:
- Takes out a $ loan against #bitcoin
- Puts the $ in a reserve to gain yield over time
- And computes every day if an action is necessary by the borrower

Action? Yes, you need to put in the work. Why? This isn't an automatic algorithm. Maybe for later.

The action is based on 2 things. Price, and collateral ratio. And a few minor details under the hood.

Price goes up, and we're past our target collateral ratio (CR) of 250%? Buy!
We take out more $ from the loan, and use part of it to buy more bitcoin and part of it to append to our reserve.

Price goes down and we hit risk territory (CR < 150%):
Oh no, let's put back some of the reserve into Zero to ensure we do not get liquidated.

What do you need to do? Well - those things.

If an action is necessary, I signal this in the daily dashsboard update. I aim to have this update for you by around 21-23PM CET. No guarantees, I do my besties.

So far, we had:
2X EXTEND + BUY signal
0X PAYBACK signal
62X DO NOTHING signal

As you can see it is mostly boring.

Let me know if you have more fundamental questions I can try to address.

Thanks for #HODL'ing on with me. #StaySovryn and strong hands everybody.