🧵 The RealFi Carry Trade — how to earn a 2-7% spread on your $ADA while keeping full custody and staking rewards.

Here’s the play 👇

#Cardano #DeFi 2/ Borrow against your ADA at 8% using the DeFi Kernel’s non-margin credit market.

Then deploy into RealFi which is expected to yield 10-15%.

Pocket the spread. That’s the carry trade.

🚨 DeFi Protocols vs DApps 🚨

At one point, "protocol" and "DApp" meant the same thing. But now they don't...

"DApp" has now come to mean "company on a blockchain". It has a token, a DAO, and possibly its own treasury.

DeFi Protocols are different.

1/14 By "protocol", I literally mean protocol. Like the WiFi protocol.

The key thing that separates a DeFi Protocol from a DApp is what happens if the team behind it walks away?

If the creators of WiFi vanished, would your phone stop connecting to WiFi? Probably not.

2/14

𝐇𝐨𝐰 𝐭𝐨 𝐁𝐨𝐨𝐭𝐬𝐭𝐫𝐚𝐩 𝐚𝐧 𝐄𝐜𝐨𝐧𝐨𝐦𝐲 🧵

It's not a chicken or egg problem. There is a clear process for getting a new economy going. You start with the foundation.

The foundation of EVERY economy is the credit market. The majority of which is NOT based on margin! Current DeFi ecosystems are mostly comprised of margin loans - including Cardano.

Characterized by margin calls (aka liquidations), they are almost exclusively used to speculate with leverage!

Borrowers can't think long-term when short-term volatility can wipe them out!

2/7

𝐔𝐧𝐥𝐨𝐜𝐤𝐢𝐧𝐠 𝐏𝟐𝐏 𝐎𝐫𝐝𝐞𝐫-𝐁𝐨𝐨𝐤 𝐃𝐞𝐅𝐢
There are wide-spread misunderstandings of how eUTxO order-books work. Even prominent #Cardano DApp developers get it wrong. I'm tired of seeing these 𝙢𝙮𝙩𝙝𝙨 get repeated so here is a 🧵 to set the record straight... eUTxO order-books don't have a UX concurrency problem! For an ADA -> DJED swap, create a limit order that offers ADA for DJED with an "arbitrage fee". Bots will compete to match the swaps to profit from the fee! Higher fee => more bots competing => faster order completion