"Contango" refers to the futures market of an asset trading at a premium to the spot price.
This allows you to short the future while longing spot to generate an arbitrage APR.
Right now, SOL futures are trading at 2.5% premium.
If you used 40% margin (2.5x leverage) on the short and staked the long (6% APR) you'd be looking at 20% APR.
The reason I like this play is that it can handle relative size.
Sep 15 • 6 tweets • 2 min read
“A person can do nothing better than to eat and drink and find satisfaction in their own toil."
So, I built a calculator for all those folk doing the complex, but highly profitable, @ethena_labs 🤝 @aave strategy.
Let me explain the strategy 🧵👇
The play is very difficult to understand if you just read the details on Aave (no shade, @lemiscate, I love you guys).
Effectively, to qualify for the @merkl_xyz incentives, you need to be at least 2x leveraged, with sUSDe collateral mroe than or equal to your USDe collateral.
Aug 24 • 12 tweets • 5 min read
Here's how to avoid leverage and get >10% APR.
For the love of the game...
🚨A NON-LEVERAGED STABLECOIN THREAD🚨
🧵👇
1) @pendle_fi
This is a no brainer both because the yields are consistently over 10% and because you get a FIXED RATE return.
Right now, you can lock in 18% APR on a number of great options for over 80 days.
Aug 22 • 13 tweets • 4 min read
Protocols try to make money regardless of whether or not users make money.
They have innumerable tools to farm users or to fool users into paying fees for expected gains.
HOWEVER, with some diligence, you can avoid being farmed.
How to be the farmer, not the farmed 🧵👇
First, let's look at how users get farmed and lose money through simple lack of diligence or understanding...
Aug 15 • 10 tweets • 5 min read
Truth be told, the only way for me to keep track of all these stablecoins and their yields is to keep writing.
🚨BEST STABLECOIN YIELDS #14🚨
🧵👇1) Lend Aggregators
Lend aggregators are vaults that automate lending across major protocols to return the best lending yield to the end user.
I love these and think they're typically the best place for passive stables.
So, you could deposit into the vault and let MEV go get the yield for you.
But you have some other options as well:
1) Buy YTs: right now you can buy YTs at an IY of 10%, meaning you're getting more yield than you're paying for AND you're getting all those points for free on top.
Risk: If the actual yield goes under the IY (10.66%) that you purchased at, you can experience a loss.
2) LP on Pendle for up to 24% APY plus points
3) Leverage on Morpho
(20% net APR plus 10x the points)
May 12 • 10 tweets • 4 min read
BEST BITCOIN OPPORTUNITIES ISSUE #2
BTC is at $102K and there's so much to do with it.
Let's make your orange coin grow🧵👇1) @SolvProtocol 🤝 @InfraredFinance
TL;DR
► 36% PT-wstUSR on Ethereum
► 27% PT-USR on Base
Let's talk about @ResolvLabs & @gauntlet_xyz
...and @MorphoLabs's "Public Allocator"
...and @pendle_fi AMM oracles
🧵👇
The interesting thing about these markets, is that they have more available liquidity than the "Total Supply."
Here's how that works:
Liquidity can be reallocated into the market "just-in-time" via the "public allocator contract" which allows liquidity from other markets to flow into these ad-hoc.
I.E., so long as the interest rate is compelling for @gauntlet_xyz vaults, liquidity from other markets will be re-directed from their other markets to these.
Borrowers can therefore access liquidity outside of what is immediately provited.