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DMH Profile picture
DMH
@DeFi_Made_Here
@alphabethcap | Analyst @Instadapp | Head of Growth new tg: @iam_dmh The approach is not to limit the choice, but to provide a broader choice.
7 subscribers
May 3, 2024 • 8 tweets • 3 min read
1/🧵 To my surprise, a lot of users were confused by this post

People were asking in DMs how it works and claiming other lending markets use different formulas (no, most of them use the same formula for the last 7 years)

Let's understand how Net APY is calculated on @0xfluid:
Image 2/ Net APY is the percentage that a position would earn on its Net assets (Total Supplied - Total Borrowed) after one year at current supply and borrow rates.

Net APY is calculated as:

(Total Supplied USD * Supply APY - Total Borrowed USD * Borrow APY) / (Net Assets USD)
Feb 27, 2024 • 12 tweets • 4 min read
1/🧵Ethereum adopted rollup centric roadmap in 2020 and since then

There are 80+ Rollups, all requiring Data Availability as the base layer that lets them adapt to any modular stack

Avail combines DA, Aggregation, and Shared Security to solve fragmentation in the ecosystem
Image 2/ The end goal for Ethereum is to become the financial layer for global coordination by utilizing rollups

However, too many rollups lead to fragmentation of liquidity and user experience.

Avail unifies the Web3 ecosystem by providing a fast and secure data and consensus layer.
Feb 19, 2024 • 20 tweets • 6 min read
1/🧵 Thx for playing and leak dis non-fungible ERC404 nuts

404 standard innovated the NFT space and has a lot of use cases but it doesn't solve the main NFT problem - the liquidity issue

Here's why me and @ax1vc think @b0rder1ess NAP can forever change the NFT market shape: Image 2/ First, let's talk about what ERC-404 has changed and what it hasn't.

404 brought fractionalized NFT ownership to the space

One would say that fractionalized NFTs have existed since a long time ago and would be right, but
Feb 14, 2024 • 19 tweets • 7 min read
1/🧵 Perp DEXes have a lot of challenges to assure

• Fair pricing
• Deep liquidity
• LP protection
• Scalability

Here is how @Aark_Digital is fighting these challenges and why I believe it has the best design among perp DEXes Image 2/ I raised the liquidity pricing issue a while ago.

Liquidity providers have to be fairly compensated for the risks they take.

As a perp DEX, there are 2 ways to overcome this problem:

• Having your own LOB
• Replicating others' LOB
Jan 25, 2024 • 19 tweets • 7 min read
1/🧵 A while ago I made a Key Metrics analysis on popular perp DEXes

Now I decided to compare single-sided LP performance

Get a 32% return in 1 month or lose 73% of your deposit
Image 2/ I have deposited into 10 different vaults to compare actual returns instead of relying on the APR numbers on the UI.

I deposited into the projects that allow single-sided LPing because multi-asset basket LPs do not perform well and hardly compete with just holding an index.
Image
Jan 17, 2024 • 18 tweets • 6 min read
1/ A small 🧵 on a complex topic of Liquidity Provisioning, Liquidity Pool models, and Liquidity Pricing

And a list of alternatives for passive Liquidity Providers and single-sided market making. Image 2/ Multi-asset LPs such as GLP and later GM pools were introduced by GMX (and then forked by everyone)

And were considered to be very attractive for the liquidity providers during the bear market - LPers were getting protection through the acquired yield.
Jan 8, 2024 • 25 tweets • 9 min read
1/🧵 $CRV is a ticking bomb

The Curve ecosystem is in the hands of "questionable people/entities" and Mich's ability to service his debt which grows $1.7M/month.

I will explain why I see a light at the end of the tunnel and how @0xSifu is playing this game. Image 2/ Back in August Mich had ~50% of the $crv circulating supply which he could not sell (no liquidity, bad image, etc)

So he was borrowing against illiquid tokens to get hard cash.
Dec 13, 2023 • 13 tweets • 4 min read
1/🧵 The Volatility Index tells you the market’s expectation of volatility and you can take advantage of it if you know how it works.

Rephrasing the old adage: "CVI is high - time to buy. CVI is low - time to go."

Read this thread to become a Crypto Volatility trading expert. Image @official_CVI 2/ What does the Crypto Volatility Index tell us?

The CVI tells us the market’s expectation of volatility, rather than current or historic market levels.

Because of this, it is considered a leading indicator for the crypto market.
Nov 23, 2023 • 14 tweets • 4 min read
1/🧵 Back in March, I prepared a 22-page report for the investment firm about @pendle_fi

At that moment $pendle MC was 200x less than $uni MC, now the difference is only 12x

Let me explain why I bet on Pendle and what type of projects I am interested in for investing. Image 2/ DeFi has thousands of projects with hundreds of them in each category, how to choose the right one to invest in?

How can you pick the "right" perp DEX to invest in when dozens are launching monthly? Image
Oct 30, 2023 • 15 tweets • 6 min read
1/🧵

9% on stables
20-50% on stables with $ipor exposure
40% quasi DN yield
20% on $eth with no downside

All of this is possible with @IPOR which is becoming one of the most interesting places for farming and running high-yield sophisticated strategies in DeFi. Image 2/ LPing and running yield farming strategies on top of Ipor became much more attractive with the launch of v2.

Some whales realized it and moved their stables from the underlying protocol to Ipor to get extra swap fees + $ipor mining incentives.

(eg this whale with $650k $DAI) Image
Oct 12, 2023 • 18 tweets • 5 min read
1/🧵 @instadapp launched @0xfluid - the biggest innovation in the DeFi space since Uni v2 to Uni v3 transition.

It combines concepts of the

• @Uniswap v3
• @MakerDAO vaults
• @AaveAave pool-based liquidity
• @CurveFinance LLAMMA Image 2/ First of all. I want to mention that my thoughts are based on the public information shared by the protocol and it is not live yet

So I couldn't test it and might be missing some technical nuances.

Now let's see how it works.
Oct 6, 2023 • 17 tweets • 6 min read
1/ An ongoing thread about the @arbitrum STIP proposals voting progress

aka governance ve33

(the thread will be updated on a regular basis, keep it bookmarked) Image 2/ First, and the most important that I haven't realized until today is:

To succeed, eligible applications must receive a greater than 50% majority in favor of the proposal and exceed the 71.51 million ARB vote quorum outlined in the STIP proposal.
Sep 25, 2023 • 10 tweets • 3 min read
1/🧵 High interest rates in TradFi are one of the reasons why DeFi TVL and stablecoin MC are in down-only mode.

People get almost a 2x yield in "risk-free" US treasuries than they get on Aave.

However, bringing RWA on-chain can help DeFi to sustain itself through this period. Image 2/ According to @DefiLlama RWA category has $2.4B ($1.8B is in $stUSDT though)

While Bank of America is predicting asset tokenization will exceed $16T in the next 5-15 years.
Sep 4, 2023 • 11 tweets • 4 min read
1/🧵 Recently, @BankofAmerica released a report predicting asset tokenization will exceed $16T in the next 5-15 years,

And cited @Avax Subnets as one of the key platforms driving the future of transferring value globally. Image @BankofAmerica @avax 2/ First, why Subnets and not L2?

L2 is a great scaling solution that alleviates the stress on the L1, by handling transactions off-chain.

However, L2s are general-purpose chains and might not fit every project, especially high-demanding ones such as trading platforms.
Jul 26, 2023 • 31 tweets • 9 min read
1/🧵 On-chain Derivatives sector is the most competitive in DeFi with dozens of protocols live and many new projects about to launch.

Follow this thread for the Key Metrics analysis on $GMX $SNX $GNS $PERP $LVL $MUX and more Image 2/ While perp DEX volume is only 2% of CEX trading volume, decentralized exchanges are making billions in daily volume combined.

This might not sound like a lot, but perp DEX space was pioneered by @dydx only 2 years back. Image
Jul 19, 2023 • 15 tweets • 4 min read
1/🧵 Instadapp announced a new product utilizing @Uniswap v4 hooks

But first, let's understand current @instadapp products:

• Pro: DeFi Smart Accounts
• Lite: Leveraged ETH staking
• Avocado: AA wallet with blockchain aggregator
• Avocado Multisig: Unified address & gas Image @Uniswap @Instadapp 2/ Instadapp is one of the biggest projects in DeFi but many (including myself until recently) don't know what is it about.

Jun 27, 2023 • 24 tweets • 6 min read
🧵 @reserveprotocol announced a $20m investment into the @CurveFinance ecosystem

Can Reserve's platform that allows the permissionless creation of assets become a marketplace for asset-backed currencies? @reserveprotocol @CurveFinance 1/ In this thread I will cover:

• What is Reserve Protocol
• How it works
• Reason for investment in Curve ecosystem
• Reserve goals
• Limitations
• Conclusion
Jun 21, 2023 • 16 tweets • 7 min read
Ethereum yield curve is inverted, its economy is in recession

But don't panic, it can be actually a bullish sign

Thread 🧵 Image 1/ First, let's clarify what I mean by the Ethereum bonds market.

In traditional markets, investors are buying sovereign bonds with an agreed maturity date to get a "risk-free" interest.

It is actually not totally risk-free, because the government can default on its debts.
Jun 14, 2023 • 11 tweets • 15 min read
1/ I support the @gauntletnetwork proposal

The $CRV market is dangerous for @AaveAave and simply does not make any sense.

Out of 306M $CRV tokens, 289M $CRV are deposited by @CurveFinance founder and he borrowed $63M stablecoins against it.

Wondering why? Keep reading 👇 Image @gauntletnetwork @AaveAave @CurveFinance 2/ Borrowing against own token is the best way of taking the profit:

• $CRV price does not go down
• "Founder is not dumping"
• Less slippage compared to dumping on the open market
• If the price goes up, you can borrow more
Jun 13, 2023 • 22 tweets • 16 min read
Every successful project had its 0 to 1 moment

Enabling @CurveFinance LPs as collateral might be the one for @SiloFinance

But it wouldn't make sense without introducing $XAI first

Let me explain how Silo changes the money market landscape

Thread 🧵 Image @CurveFinance @SiloFinance 1/ First of all how Silo is different from traditional lending protocols?

Lending protocols like Aave and Compound create a single pool lending market for all token assets.

Meaning that if you deposit $ETH, others can borrow it with any collateral listed on the platform.
Jun 12, 2023 • 7 tweets • 10 min read
1/ 40th Alpha Issue is live:

It is hard to monitor new projects that are launching daily, but I got you covered.

The market does not look promising, find out more in the Newsletter.

Please Follow/Retweet to support :)

👇 Image 2/ Projects included:

@KTX_finance - an on-chain decentralized derivative and social trading protocol with up to 50x leverage.

@ArgusLabs_ - web3 Gaming startup