I checked out the @ResolvLabs market on @eulerfinance because of the high (57% organic) lending APR on USDC.

Usually, a high lending APR is because either there are incentives flowing, or it's thin and totally utilized liquidity.

Here, it's neither. The liquidity is surprisingly deep (>$10M).

But it is nearly fully utilized (97.05%).

Which made me question ...why?

Weekly @ethena_labs APR Update

TL;DR
☙ 21.2% APR ❧
► Brought in >20M USDe
► 3.2M transferred to Reserve Fund
► 17.88M transferred to Staking Yield Distributor
► 85.44% APR leveraged on @MorphoLabs
► Use @Contango_xyz to auto-leverage The Reserve Fund

This distribution period, 3,191,713 USDe was transferred into the Reserve Fund.

This is the first time in 133 days Ethena has transferred money into the reserve fund.

The reserve fund "acts as an additional margin of safety behind USDe to provide a source of capital to pay for periods of negative funding"

It's mostly comprised of $BUIDL and Uni V3 positions.

Read More:
docs.ethena.fi/solution-desig…

DeBank:
debank.com/profile/0x2b5a…

There are a million copycats in DeFi.

So here are a the most unique yield protocols that are undervalued and will be around for a while

Bookmark this🧵👇 1) @pendle_fi

This one's pretty obvious.

Moat: Rate Swapping
Major Value Add(s):
► Fixed Rate / Fixed Date Yields w/ Size
► Yields on same-delta LPs
► Leveraged exposure to points / airdrops
► Hedging interest rates
Asset: $PENDLE
Link: pendle.finance

Explaining @ethena_labs's APR conundrum.

A short 🧵 The Problem:

Ethena calculates their current yield at 29%.

I calculate it at 21%.

Both are incredible for stablecoins.

But the difference is substantial.

🚨Secret Tiny Minnow Yield w/ Huge APRs🚨

Right now, the @reserveprotocol "Reserve Prime" market on @eulerfinance is seeding liquidity with wildly high incentives.

Up to 1,800% APR

But here's the really wild part🧵👇 Half of the APR is paid in eUSD.

That means half of the APR is realtime, standard, vanilla, WYSIWYG, emission yield.

And the $rEUL can be realized immediate at an 80% haircut or fully vested over six months.

app.euler.finance/?market=reserv…

Wake up, babe; new staked $TANGO numbers are in.

The average staker on @Contango_xyz is getting around 403% APR at current volume numbers.

Mini Explainer (w/ some alpha) 🧵👇 First, the basics.

• $TANGO generates fee revenue
• 100% of that fee revenue goes to stakers
• ~85% of volume comes from correlated pairs
• ~15 of volume comes from directional trading
• Correlated pairs have a 0.05% fee on the notional
• Directional trading has a 0.25% fee on the notional
• Contango consistently has ~100M in weekly volume

That means Contango would generate about $4.2M in fees annually.

Fluid (@0xfluid) figured out how to turn $1 of liquidity in $39 of liquidity.

I have no affiliation with Fluid, but I love DeFi innovation, so let me try to explain how this works.

👇🧵 The Absolute Basics

Fluid is a fancy borrowing and lending platform.

It now has "Smart Collateral" and "Smart Debt."

These turn collateral and debt into liquidity.

LRT² ($LRT2) fixes everything.

• Stops ~40% of $EIGEN sell pressure
• Prevents AVS tokens from being auto-sold by LRTs
• Value aligns all modularity participants
• Acts as a Modularity Narrative Index (MNI)
• Creates arbitrage opportunities for defi nerds
• Also, there's going to be an airdrop

This asset will change the way we think about emissions.

It desperately needs an explainer, so let's dive in 🧵👇 What is LRT² (Ticker: $LRT2)?

In short, LRT² is tokenized restaking emissions.

For example:

Let's say you're restaking BTC on @ether_fi.

You might get:
• Eigenlayer Tokens
• eOracle Tokens
• Lagrange Tokens
• ARPA Tokens
• Symbiotic Tokens
• Babylon Tokens
• Lombard Tokens
• etc

Which would be a huge pain in the arse .

What is $eBTC?
Why is $eBTC?

And should the implied APR just for holding it be 20%?

Let me make a detailed case...

A thread 🤌 $eBTC is @ether_fi's restaking BTC derivative.

It's almost entirely backed by @Lombard_Finance and @symbioticfi BTC derivatives.

In a sense, it is a derivative-backed derivatives.

debank.com/profile/0x657e…

Vitalik is right. Partially.

Current DeFi is gamified finance where skilled users extract money from less skilled users.

This doesn't scale.

But there are solutions 🧵👇

https://twitter.com/VitalikButerin/status/1827642283560144916

The term "tuition" in DeFi refers to losses taken that users learn from.

I.E., if you get liquidated (like me) for over-leveraging an LST using a market rate oracle, those losses become "tuition," and you'll (probably) only leverage with exchange rate oracles in the future.

Most successful defi users (i.e. "winners") have paid their fair share of tuition to reach their current level of experience.

The problem is, almost everyone who's paid their tuition graduates and competes for the same job of "winner."

DEFI MATH EXPLAINER: Health Factors

Health factors on money markets give the user a sense of how close they are to liquidation.

A health factor of 1.15, for example, typically means a 15% increase in debt will lead to liquidation.

But how can you quickly figure out your health factor and liquidation points given various variables?

GREAT QUESTION, let's do some math 🧵👇 Getting your health factor on protocols is easy.

Here's the base formula:

(𝙲𝚘𝚕𝚕𝚊𝚝𝚎𝚛𝚊𝚕 * 𝙻𝚒𝚚𝚞𝚒𝚍𝚊𝚝𝚒𝚘𝚗 𝙻𝚃𝚅) / 𝙳𝚎𝚋𝚝

But how you use that formula will vary depending on what starting variables you have or want to use.

For example, if you want to use leverage to determine health factor, it's very simple:

(𝙻𝚎𝚟𝚎𝚛𝚊𝚐𝚎*𝙻𝚒𝚚𝚞𝚒𝚍𝚊𝚝𝚒𝚘𝚗 𝙻𝚃𝚅)/(𝙻𝚎𝚟𝚎𝚛𝚊𝚐𝚎 - 𝟷)

Here's an example with 5x leverage and a liquidation LTV of 90%:

Breakdown:
► 1 part principal collateral
► 4 parts debt
► 5 parts leveraged collateral

Formula:
= (5 * 0.9) / 4
= 4.5 / 4
= 1.125 Health Factor

That means, if your debt increases by 12.5% relative to your collateral, you get liquidated 💀

ALL YOU NEED TO KNOW ABOUT ORACLES

aka how to avoid liquidation
aka how to leverage responsibly
aka how not to be me during the last crash

A thread 🧵👇 WHAT IS AN ORACLE?

I'm embarrassed to admit "oracles" intimidated me for a long time, since they seemed like esoteric backend functions that only developers could understand.

So, I was happy to learn they're not some fancy or clandestine mechanisms, they're actually really simple.

An oracle is a price feed. That's it.

It's the data source for the price of an asset. And these feeds are used by protocols, especially borrowing and lending protocols that rely on external price feeds for things like liquidations.

Common oracles are sourced from @chainlink, @redstone_defi, and @PythNetwork.

ETH Down / Yields Up

BEST ETH YIELDS MEGATHREAD

for the culture 🤌

🧵👇 Let's start easy.

Protocol: @beefyfinance
Yield: 15%-57% APR
Difficulty: Very Easy
Beefy has CLMs (concentrated liquidity manager) pools where, like Gamma and Arrakis, the ranges are managed for the depositor.

This means a user only has to deposit their assets (they can also just zap in) and the rest of the work is done for them.
These have been consistently between 15% and 40% APR recently and many of them are also generating points for LRT airdrops.

ONE THING TO REMEMBER is that for many of these vaults, users must also deposit their receipt token into the "Active Boost" in order to get the additional incentives.

Ultimate Arbitrum LTIPP Yield Almanac

@arbitrum LTIPP grants total around $30M and most programs run until September.

Here are the yields I'm actively looking at 🧵 @FactorDAO

Most of the boosted strategies are LRT @SiloFinance leveraging strategies or LRT @Penpiexyz_io LP strategies.

The yields range from 65% to 165% BUT Factor is relatively low TVL, so do be mindful of dilution and SC risks.

Yields: 65%-165%
TVL in Vaults: <$2M

Nine years ago, sitting in a hotel room in Budapest, my girlfriend of just a couple weeks found out she was pregnant.

I was twenty-three and had just begun traveling the world. I hardly knew her and she hardly knew me. The night before, we were supposed to go out on a true European bender with a friend from my college days.

At the time, we were working in Saudi Arabia -- no real access to alcohol or any other party favors.

So you can imagine I was excited, as was my girlfriend, to do some serious drinking et al.

However, we never made it.

Why I'm so bullish on Christianity:

First, I compared secular / non-secular market data.

Virtually all major indicators showing the Long Religion/Short Secular pair trade as one of the best this century:

1. +4% single-year ROI in mental health gains for weekly churchgoers vs -13% decline for non-churchgoers.

2. Highly religious traditional marriages sill best play in long term satisfaction market.

3. The young flourishing demographic biased "very religious".
This indicates adult bullish-flourishing correlation.

Once I knew I wanted to go long "religious," I compared religions.

For this, I was mostly thesis-driven.

Buddhist thesis is short attachments, assuming they're the cause of suffering.

I've seen this thesis play out on New-Age maximalists, and almost all of them actually saw growth in suffering YOY when longing Buddhism.
Also, I had a bias for western thesis suggesting suffering was directly correlated with proximity to the divine as a function of sin-debt, not attachment itself.

I decided to "go with what you know" and research the Abrahamic market.

Judaism, Christianity, and Islam had similar fundamentals, but dramatically differed on CAS (Christ-As-Savior).

In the past, Virtue Ethics was one of my best performers by being long beta on Eudaimonia (human flourishing resulting from virtuous action); so the Jewish and Islamic idea of good works being the foundation of salvation appealed to me.

However, Judaism was supposed to have a massive launch of Messiah, and Islam and Christianity already had a Messiah launch -- so I decided to look at the launch details.

Judaism's Messiah is set to be a massive failure by its own investors, which wasn't particularly bullish.

However, he would die for our transgressions, which is a great swapping mechanism (I'm perma-short transgressions), so I was pretty bullish Judaism again:

But then I looked into Islam's messiah, which turns out was Isa (Esau, I.E. "Jesus") which I know Christians are max-long on.

(Quran 43:57-64)

The arbitrage thread.

How kings are made. Arbitrage is the trading of mispriced things

Ex:

Imagine you buy pencils from Jim in Math class for $0.10

However, you can sell them to Frank in English class for $0.15

By buying from Jim and selling to Frank, you're arbitraging the price inefficiency between the two classes.

Let's talk about $PENDLE.

• Up 1,891% this year
• Up 71% in the past month
• Many upcoming tailwinds

But I'm not a trader. I'm a farmer.

So what can I do with @pendle_fi's asset?

That's the question that haunts me. First, Tailwinds:

• Coming to BSC
• Coming to OP
• Over three Liquid Lockers
• 25% of Circulating Supply Locked
• Hyper-Competitive Yields on ETH LSTs
• Rate Swapping is a >$4.5tn industry in tradfi

It's been a slow, down-only week in DeFi.

Here are some fun delta neutral plays to protect your capital while we wait for smoother seas. $pNEAR

Platforms: @LinearProtocol, @MEXC_Global
Instructions:
1) Long/Short on MexC
2) Send NEAR to Near Wallet
3) Bond on phoenixbonds.org for 77% APR

Total APR: 62.5% (2x Levered Short)

Note: You can also LP pNEAR-NEAR for 80% APR.

I've been training my whole life for this moment.

Delta Neutral Ponzi Season.

Let's talk about @RektARB. Similar to my post on $AIDOGE, this strategy:

• Avoids all buy/sell/swap fees
• Is considerably degen
• Utilized @MEXC_Global to neutralize delta

https://twitter.com/phtevenstrong/status/1648748488614633473?s=20

Okay okay, last time I'll promote @MEXC_Global.

But they literally allow you to 20X leverage USDC against USDT.

And the current funding rate is 200% APR.

Affiliate Link: promote.mexc.com/a/CalculatorGuy

Let's talk about a few strategies. 1. Neutral Play: Cash and Carry

Buy USDC spot on Arbitrum
Short same value on MexC

Annualized Yield @ 4x Leverage: 156%