$$$ KPO and CZM $$$: DeFi
Showing posts with label DeFi. Show all posts
Showing posts with label DeFi. Show all posts

Wednesday, May 4, 2022

Retiring using Anchor Earn + Crypto.com Visa Card

Regular readers will know that CZM has retired already and the bulk of our passive income comes from crypto (specifically Anchor Earn). One of the most common questions I get is how to off-ramp and spend those digital money/profits, hence this will be a step by step guide on how we are doing it :)

We are doing 2 types of off-ramp:
1. If we are planning to off-ramp >US$10k, do it through FTX. Convert everything to USD and wire out to bank account.
2. Off-ramp smaller amount for daily expenses. This is harder because fees will make it not worth the time/effort. However, one can actually use the Crypto.com Visa Card to bypass/cut down on the fees.

1. Withdraw money from Anchor (UST 1,000) 


2. Get your "Deposit" address for UST from FTX
Technically you can use any exchange that accepts both UST and USDC. If you are wondering why USDC, that's because that's the only stablecoin accepted by Crypto.com now.


Again, I can't stress this enough - always make sure you are transferring to the correct network, address and memo. Memo is your unique identifier when you are transferring to exchange. You can probably still get your crypto back without the memo but it is going to be a very painful and long process. 


FTX: We will receive 25.00% of your trading fees and you will receive a 5.00% fee discount on all of your trades.

3. Send UST from wallet to FTX


You should get the UST in your FTX account almost immediately (<1 min).


4. Sell the UST to USD (FTX recognizes 1 USD to 1 USDC)


The more cost-effective way is to use a limit order and wait but most of the time, I will just use market order and move on with life. lol.


5. Get your "Deposit" address for USDC from Crypto.com
Go to either "Accounts" then "Crypto Wallet" or find USDC under "Track".


Select "Transfer" followed by "Deposit".


Select "External Wallet".


Select "SOL" (Solana) and take note of the address. Transferring from Solana should be the most cost-effective way.

Crypto.com: Sign up using our link, stake SG$500 worth of CRO and we both get US$25 in CRO

6. Send USDC from FTX to Crypto.com


Select "Withdraw" for USD followed by "Withdraw USDC".


Paste the Solana address and ensure that the withdrawal method/network is Solana too. In this case, there is no memo which means that the wallet itself is unique for each user. Sending to the wrong address will mean the fund is almost irrecoverable. Anyway, I will typically send a small amount to test because if it goes through, there is no need to worry about a bigger amount.


The transfer is relatively fast as well (<5 min) unless the whole Solana network goes down. lol.


7. Top up the Crypto.com Visa Card


Select "Top Up".


Top up using USDC.


Done! I admit that this might be slightly troublesome for now but I guess we just got to be patient and wait for Crypto.com to accept UST deposit :)


Based on my experience, this is probably the most cost-effective way to off-ramp and spend those small crypto profits. I have even tried the IBC (osmosis and crypto.org) route but this is the preferred way cause we are using stablecoins throughout (no volatility while transferring). Let me know if you are doing it differently/better. 


The google rate as a reference but given that it is almost impossible to get that rate, let's use the rate from DBS.


As you can see, the exchange rate provided by Crypto.com is actually quite competitive.


I know that Crypto.com recently cut the cashback and remove the staking rewards but honestly, I don't really care. I just like the convenience/ability to spend our Anchor Earn interest/crypto passive income :) 

What's stopping you from exploring crypto? If Mark Lee (李国煌) can DeFi, so can you. lol.

Anyway, I have blogged about different ways to leverage crypto to build wealth for people with different risk appetites:
Retirement Hack
- Retiring using Anchor Earn + Crypto.com Visa Card

If you are interested in the platform I am using, do sign up using our referral links for some bonus :)
BlockFi: Deposits US$100 or more into your BlockFi Interest Account (BIA), you will earn US$10 in BTC and we will earn US$10 in BTC too.
Celsius Network: Earn US$50 in BTC with your first transfer of US$400 or more and we will earn US$50 in BTC too.
CakeDeFi - Deposits US$50 or more into your CakeDeFi account, you will earn US$30 in DFI and we will earn US$10 in DFI too.
Gemini: We will both receive US$10 of bitcoin after you buy or sell US$100.
Crypto.com: Sign up using our link, stake SG$500 worth of CRO and we both get US$25 in CRO
FTX: We will receive 25.00% of your trading fees and you will receive a 5.00% fee discount on all of your trades.

On a side note, Futu's moomoo app is giving free SEA share for their sign-up promotion. Do read the T&C here for more information. If you have yet to open an account, you can do so using our referral link :)

Accidentally clicked on the annoying ads? Let me thank you in advance as you are indirectly doing good as we will be Donating 100% Ads Revenue Going Forward!

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)
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Thursday, January 20, 2022

2021 Net Worth

We dabbled in crypto in early 2021 with the plan to allocate just a tiny 1% of our net worth into it. However, I fell deep into the rabbit hole, discovered LUNA/Terra and eventually persuaded/convinced CZM to screw/ignore the 1% allocation. lol. Now it is taking up close to 50% of our net worth.

Our WhatsApp group chat

In addition, I started exploring DeFi with my friends (some of you can probably tell why it was named that way. Hint: BSC. lol) and eventually we started a crypto business with just US$3k capital. It is currently generating conservatively a few thousand dollars of passive income monthly (probably not that passive for my friends because they are doing the heavy lifting/coding. lol). It is a crazy amount for us because this was achieved in months as compared to our dividends portfolio which we spent years building.

Besides crypto, another factor that contributed to the growth of our wealth is the use of leverage.

Debt/leverage breakdown:
Stocks - SG$271,199
Crypto - US$75,269 (~SG$101,433)
House - SG$350,538

Total: ~SG$723,170

I believe the amount of debt we have taken might make some of you sleepless but it isn't really that much. If you think about it, anyone buying a private property without investing would have taken on much more debt but grow their wealth much slower (just my opinion). Anyway, we borrowed ~SG$372k to invest and it has exceeded our mortgage of ~SG$350k. Once again, leverage isn't for everyone and most importantly, never put yourself in a position where there is a high chance of being liquidated/margin call.

Let me introduce the concept of net worth and its importance once again for the new readers.

Net worth can be calculated by taking all the assets and subtracting away all the debts/liabilities. This is the classic comic where everyone is actually poorer than the beggar who has a net worth of $2.73. Your friends/colleagues may be living in a huge condominium, driving some fancy car but it could all be financed by debts. There is absolutely nothing wrong with that as long as their income allows so but anything can happen! Do not be the The "Poor" Pilot With Multiple Properties. You can refer to the following article on the importance of net worth by InvestmentMoats - Don’t Track Your Expenses or Budget First. Plot Your Net Worth Instead. 

Cash
This is all the money we have in our savings accounts. Regular readers will know we are investing aggressively that we hardly keep/hold onto cash. No emergency fund as well which I do not recommend since it is personal finance 101. We felt that there's no need for it at the moment, will probably work start saving when CZM retires?

Our Cash: ~ $25,000

CPF
Every month, I will try to show CZM her net worth in order to motivate her to work harder towards financial freedom. However, she would always say I inflate her net worth because I included CPF. lol. I am sure some of you may have the same mentality but like I always tell her, CPF is our money and should be included as our retirement planning.

Our CPF: ~ $380,000 (OA + SA + MA)

Investment - Stocks/TradFi
The return through the use of leverage is not being captured and should be higher. Anyway, our overall time-weighted return is 18.01% and XIRR is 6.99%. The majority of our portfolio is tracked using StocksCafe except for Endowus which is about 35k and we have about 271k of leverage/debt. You can refer to Portfolio - December 2021 for the detailed breakdown.

The screenshot was taken after 2021 so numbers will not tally

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a longer trial period :) Refer to our Referrals page for more information.

Our Investment: ~$756,000

Investment - Crypto/DeFi


The majority of our crypto investments are in Terra. You can refer to Portfolio - December 2021 for the detailed breakdown.

What's excluded:
- Crypto Business


I minted/purchased our first NFTs last year September. It costs about 3 LUNA or US$123 then. I sold one for 118 LUNA (~US$4,838 then or ~US$9k now) and kept the remaining 2. One of them (#10902) has a silver crown with a floor price of 250 LUNA or ~US$20k and the other (#9868) is a top 5% glitch punk. Both of them are much rarer than what the floor is trading at but conservatively, they could be sold/valued at a minimum of ~US$40k in total. Of course, the most conservative valuation is 0 which is why they were excluded :)

Our Investment: ~$1,073,000

Property
I believe that property should be included in the computation of net worth. If one excludes the value of the property, the money (cash/CPF) you use to pay for the loan/mortgage will be no different as disappearing into the thin air or throwing it into the sea. Hence, I will be valuing the property based on the total payment (interest + renovation cost) till date. This ensures that our money will not "disappear" and act as a floor/minimum amount (total payment + remaining loan + markup/profit) to sell in the future.

I can imagine people selling their house at market value + markup, thinking that they made money from the sale but it is totally possible that market price + markup < total payment + remaining loan. Does this make sense or is it too confusing? lol.

Anyway, the cost of our HDB + the payment made so far is ~520k and the current outstanding loan is 351k.

Our Property: ~$168,000

Total


Our Net Worth: ~$2,404,000

Here you go! Our net worth pie chart, it looks pretty yummy to me :) 


Oh, we also have about 465k miles which are just as valuable/useful as our NFTs at the moment and are valued at 0 dollars as well. lol.

Are you tracking your net worth?


On a side note, Futu's moomoo app free AAPL share sign-up promotion is back for this month. Do read the T&C here for more information. If you have yet to open an account, you can do so using our referral link :)

Accidentally clicked on the annoying ads? Let me thank you in advance as you are indirectly doing good as we will be Donating 100% Ads Revenue Going Forward!

You might be interested in these blog posts too:
- 2017 Net Worth: ~$510,000
- 2018 Net Worth: ~$640,000
- 2019 Net Worth: ~$886,000
- 2020 Net Worth: ~$1,107,000
- 2021 Net Worth: ~$2,404,000

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)
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Thursday, November 25, 2021

DeFi 2.0 - Protocol Owned Liquidity (OlympusDAO, Wonderland and Euphoria)

Let me introduce you to the latest hype or the grandest "ponzi" scheme in crypto DeFi today. lol. All these were started a few months back by some of the brightest minds from OlympusDAO. The idea was to solve some of the existing problems of DeFi 1.0 - liquidity farming/mining. Currently, the protocol/application will have to provide incentives (farm tokens) for users to provide liquidity to the various LPs (liquidity pools e.g. providing BTC-USDT, CAKE-USDT to earn CAKE) but there are often no incentives for the users to keep/hold the farm tokens, hence there will be constant selling pressure.

The screenshot is taken from Olympus FAQ

OlympusDAO introduced the concept of having the protocol own their liquidity which will ideally remove the selling pressure based on game theory. Assuming if there are 2 people holding the OHM token, the most beneficial move for the both of them is to stake the token. Bonding/minting more tokens will be beneficial as well but not as much as staking while selling is the worst move. As long as both of them do not sell at the same time, all will be good but if that happens, the protocol/"ponzi" will break/fall apart and there will be a "bank run" where the token value might go to 0. In my opinion, this scenario is less likely to happen (I will elaborate further below) for the more established protocol where they have a loyal community/supporters such as OlympusDAO and Wonderland. The success of OlympusDAO has demonstrated that protocol owned liquidity works and is being termed as DeFi 2.0.  As a result, there are many forked versions of it appearing on different chains and I have decided to ape/participate in 2 of them (TIME and WAGMI). OlympusDAO is not an option for me because it is on the Ethereum network.

If you are a more visual person, I will recommend this youtube video by Whiteboard Crypto - What is DeFi 2.0? How Olympus and TIME actually work.

I shall not bore you further with how bonding/minting works and let's take a look at why the hype. If you head over to Wonderland on Avalanche, you will see these metrics and the one that stood out would be the yield of ~82,000% APY. 

Wonderland (TIME): https://app.wonderland.money/#/dashboard

The other interesting metrics would be "Backing" and "Runway". Backing simply means for every 1 TIME token, it is backed by $1,590 worth of other assets (AVAX and MIM - Magic Internet Money. Sounds like a total scam now. lol.). In stock/equity terms, that would be the NAV and buying 1 TIME now means buying it at a premium/PB of ~5.39. This is why I mentioned that the token is unlikely to go to 0 because the protocol does own other assets that provide a backing/floor value which should grow over time from liquidity/minting fees. Runway is the number of days the staked token emissions can be sustained at a given rate (Lower APY = longer runway). 


So why is the yield so high? Auto-compounding through rebasing. Once you stake the TIME token, you get MEMO which is just staked TIME and the MEMO will rebase/compound every 8 hours at 0.6152% (much more realistic? lol). To put things into perspective, the investment will be compounded 1,095 times a year as compared to what the banks/CPF is doing - just 12 times a year. Anyway, I have staked for slightly more than 2 weeks and my profit is about US$500 with a capital of US$2.2k.


There is even a calculator for one to simulate your potential return. Assuming everything stays constant (unrealistic), I will have 10 lambos worth US$2.2 million after a year with a capital of US$2.2k. lol. 

The screenshot is taken from OlympusDAO

If we were to reference and look at how the yield of OlympusDAO changes over time, it went from an all-time high of 180k% to ~7k% today. Hence, it is obvious that the yield of Wonderland will not remain at 82k%.


In a semi worst-case prediction, assuming the yield of Wonderland falls to 7k% and the price of TIME falls to the backing/floor value, I will no longer have any lambo but US$191k is still pretty decent. lol. The actual worst-case scenario will be the project fails and I lose all my capital of US$2.2k. In my opinion, that's definitely worth the risk - limited downside with unlimited upside. On a side note, the founder (Daniele Sestagalli) has plans to give the TIME token more utility through games so let's see how it goes :)

Euphoria (WAGMI): https://app.euphoria.money/#/dashboard

The next one which I aped is Euphoria in Harmony. Check out the crazy high APY ~760,000%. They are created/forked by the ViperSwap team and is relatively more reliable (IMO).


Let me just elaborate slightly on the minting/bonding process. One can provide those assets on the left (WAGMI-DAI LP, BUSD, etc.) in exchange for minting new WAGMI tokens at a discount. This is how the protocol owns the liquidity (WAGMI-DAI) as compared to you owning the LP. For simplicity, it makes sense to mint when the discount is higher than the 5 day ROI from staking. That is because when one mints the token, it has a vesting period of 5 days. Anyway, I started Euphoria about 2 weeks back with a capital of ~US$400 and it is worth ~US$1.1k now.

OlympusDAO (OHM): https://app.olympusdao.finance/#/dashboard

Anyway, OlympusDAO has much better metrics and dashboards compared to Wonderland and Euphoria. Almost 90% of OHM is being staked and there is even a breakdown of the treasury assets.

As you can see, I allocated very small capital for such risky play. Given that the APY is so high, there isn't a need to risk too much money as a small capital should do wonders too (if it works). Technically, one can leverage further using MEMO and MIM but I am not planning to do it for the same reason - not going to take on more risk.

Hopefully, this will be an eye-opener for those not into DeFi and that it has piqued your interest. There are so many articles and youtube videos for one to learn about DeFi. Before you dismiss crypto as a scam/ponzi, take some time and spend some effort to understand it and you will be rewarded. Stay safe and huat ah!

Anyway, I have blogged about different ways to leverage crypto to build wealth for people with different risk appetites:
The safer approach using stablecoins
Risky approach but more hassle-free
Highest risk and you are on your own
- DeFi apps on Binance Smart Chain (BSC) such as PancakeSwap and PancakeBunny
- DeFi 2.0 - Protocol Owned Liquidity (OlympusDAO, Wonderland and Euphoria)

If you are interested in the platform I am using, do sign up using our referral links for some bonus :)
BlockFi: Deposits US$100 or more into your BlockFi Interest Account (BIA), you will earn US$10 in BTC and we will earn US$10 in BTC too.
Celsius Network: Earn US$40 in BTC with your first transfer of US$400 or more and we will earn US$40 in BTC too.
CakeDeFi - Deposits US$50 or more into your CakeDeFi account, you will earn US$30 in DFI and we will earn US$10 in DFI too.
Gemini: We will both receive US$10 of bitcoin after you buy or sell US$100.

On a side note, Futu's moomoo app sign-up promotion is slightly different every month (AAPL shares, cash coupon, etc. Do read the T&C here for more information). If you have yet to open an account, you can do so using our referral link :)

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)
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Sunday, October 17, 2021

DeFi - Terra Pylon Protocol Lossless Investments

I have blogged about Anchor Protocol which is a savings account giving ~20% interest and Mirror Protocol where one can implement Delta Neutral strategies to earn ~30-40%. 


Today, I am going to share another extremely innovative product/application on Terra - Pylon Protocol where one can make lossless investments (capital guaranteed) with yield/return >100%. Yes, you read that right. The only tradeoff is the vesting period which I will show/elaborate on further. You can probably get a rough idea of how it works from the above screenshot and this is only possible in Terra due to Anchor Protocol. Anyway, Pylon aims to do a lot more but let's just focus on Pylon Gateway for this article.


Pylon Gateway is a token launchpad for Terra projects. In traditional finance terms, it is a platform for companies to IPO/raise capital and issue shares. Within Gateway, there are 2 products:
1. Pylon Swap
2. Pylon Pool (lossless investments)

Why is Pylon Swap cool? Those that have been in crypto for a bit/while will know that there isn't any fair token launch no matter whatever new project/application claim their launch to be fair. This is a known issue/feature due to how the liquidity pool works. Shall not go into the details but basically, when a new token is launched, bots will always be the first to buy/drain the majority of the token's liquidity resulting in the price of the token shooting up. Typical users who use the UI will never be as fast as the bots, hence will be buying at a much higher price. In another word, users can almost never buy newly launch tokens at their launch price. Pylon Swap solves this problem by providing a platform where one can "swap" tokens at a fixed launch price which is unheard of in my short crypto journey. By getting tokens at launch price, it is almost guaranteed that one will be making money.


An example - I swapped US$1,500 for 150,000 Psi tokens at a fixed swap rate of US$0.01 on 5th Oct. 25% of them will be unlocked on 11th Oct (DEX listing = liquidity pool) and a 3 month vesting period for the remaining 75%.


Look at the long green candle on the 1st day of listing. The launch price is supposed to be US$0.01, it went to a high of US$0.161 (1,610% return) and the current price is US$0.121 (1,210% return). Using the current price, my initial investment of US$1,500 is worth US$18,150 :)

So far, there has only been 3 Pylon Swap and we can take a look at the return:
1. MINE swap price US$0.01 vs current price US$0.167 (1,670%)
2. Nexus swap price US$0.01 vs current price US$0.121 (1,210%)
3. Valkyrie swap price US$0.10 vs current price US$2.329 (2,329%)

Having said that, it looks like easy "guaranteed" money but swapping has become pretty competitive as well and unfortunately, I failed to swap for Valkyrie as it was gone in 16 seconds. Yes, due to bots. On the bright side, one will not be buying at a high price due to low liquidity and as a result, lose money. After the Valkyrie swap incident, Pylon is aware of those bot activities and will be making a few changes to future launches to make it fairer/ideally bots free which I am looking forward to.

Next, let's take a look at the Pylon Pools which are lossless investments (capital guaranteed). For each project launch, there will be 3 pools with different vesting periods/returns (the longer you locked your deposit, the higher the APR/return):
- Pool 1: 18 months, rewards claimable after 9 months
- Pool 2: 12 months, rewards claimable after 6 months
- Pool 3: 6 months, rewards claimable after 3 months

Let me explain why is it lossless/capital guaranteed. When one makes a deposit to any of the pools, the deposit will be routed/deposited into Anchor Protocol which gives ~20% interest. The interest from Anchor will be used to swap/exchange for the respective token. At the end of the vesting period, one will be able to withdraw the initial deposit, making it lossless/capital guaranteed + whatever tokens that were issued/awarded based on the size of the pool. The higher the total deposit, the lesser the number of tokens one will get which is why the APR gets lower eventually. You can take a look at this article which goes into more details - Pylon Pools – how much are you paying for the tokens?


Similarly, let's take a look at an example. The above is a screenshot back in August when Loop Finance decided to offer Pylon Pools before listing their token on a DEX (technically the token has no price/value because it is not traded yet). Let's just assume the swap price per LOOP token is US$0.035 based on the article above. When it went live/listed on a DEX, the price of each LOOP token was around US$1 and the current price is US$0.887.


With the new price, the APR of the pool shot up. If you are still following, this is essentially an ultra high interest fixed deposit equivalent because it is lossless/capital guaranteed with vesting periods. Based on the 5 launches on Pylon so far, no one has/can actually make a loss which is just mindblowing. In my opinion, this is probably one of the safest crypto dapp where it is almost impossible for one to lose money (probably only due to rug, smart contract bug) but still offer the opportunity for unlimited gains. Anchor would be the safer (insurance coverage) but the potential upside is just ~20%.


~553% for an 18 month fixed deposit. Anyone? lol.

Screenshot taken from MoneySmart

Oh. Not safe, you prefer fixed deposits from banks. Sure sure. We all have different risk appetites right :)

Anyway, I have blogged about different ways to leverage crypto to build wealth for people with different risk appetites:
The safer approach using stablecoins
Risky approach but more hassle-free
Highest risk and you are on your own
- DeFi apps on Binance Smart Chain (BSC) such as PancakeSwap and PancakeBunny
- DeFi - Terra Pylon Protocol Lossless Investments

If you are interested in the platform I am using, do sign up using our referral links for some bonus :)
BlockFi: Deposits US$100 or more into your BlockFi Interest Account (BIA), you will earn US$10 in BTC and we will earn US$10 in BTC too.
Celsius Network: Earn US$50 in BTC with your first transfer of US$400 or more and we will earn US$50 in BTC too.
CakeDeFi - Deposits US$50 or more into your CakeDeFi account, you will earn US$30 in DFI and we will earn US$10 in DFI too.
Gemini: We will both receive US$10 of bitcoin after you buy or sell US$100.

On a side note, Futu's moomoo app sign-up promotion is slightly different for this month (from SGD 200 stock cash bundle to iPhone and AAPL shares. Do read the T&C here for more information). If you have yet to open an account, you can do so using our referral link :)

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)
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Saturday, August 21, 2021

DeFi - Terra Mirror Protocol Delta-Neutral Strategies

I was telling my friends/"business partners" about Terra which I blogged here - DeFi - Terra (LUNA) & Anchor Protocol (20% Interest) and they got interested in Mirror Protocol and the delta-neutral strategies it offers despite the risk of liquidation. Before I knew it, I was convinced by them that it is actually relatively safe. lol. I guessed I got traumatized by my previous experience when my leveraged CAKE farm got liquidated in Alpaca Finance (BSC) which I mentioned here. 

The main difference for Mirror is that the underlying assets are mostly mirrored stocks called mAssets compared to various crypto coins in Alpaca. It is less likely to be liquidated in Mirror because stocks do not swing as much. Let's take a look at a few examples:
- Apple Best Day - 9.3%
- Silver ETF Best Day - 10%

Basically, if I were to open a short position in Mirror at a 200% collateral ratio (liquidation happens at 150%), the underlying stock will have to increase by 33.33% before I get liquidated. It is highly unlikely for stocks especially those with the highest market capitalization to increase by >30% overnight which was my initial concern - getting liquidated while I am sleeping. I have opened a few positions for a few weeks and it looks pretty "stable" (no risk of liquidation). With the main risk out of the picture, let me share more about the strategy.


Delta-neutral simply means you earn/profit regardless if the underlying asset increases/decreases in price by owning and shorting the asset at the same time. This can be executed in 3 different ways in Mirror:
1. Short farm the mAsset, buy the equivalent number of mAsset that was shorted and hold (easiest to execute but typically the lowest yield as short farm yield fluctuates a lot)
2. Short farm the mAsset, buy the equivalent number of mAsset that was shorted, provide liquidity with an equivalent amount of UST (LP) to long farm (highest yield with some exposure to impermanent loss)
3. Borrow the mAsset, provide liquidity with an equivalent amount of UST (LP) to long farm (exposure to impermanent loss)

Let's take a look at an example of strategies 1 and 2 using mAAPL with an initial capital of 10k UST.


0.15 UST to open this short position

1. I provide $5,000 UST worth of collateral in aUST (which is an interest bearing asset earning 20%. One can get aUST by depositing UST into Anchor) to borrow the mAAPL shares to short. The money from shorting will be unlocked after 2 weeks.


1.52 UST to buy the mAAPL shares

2. Immediately open another position by buying the equivalent number of mAAPL shares which I shorted above.


At this point in time, my position in mAAPL is delta-neutral and I will be earning a 21.21% yield on my short farm of ~$2.5k UST as well as 20% on my $5k UST collateral no matter if the price of AAPL goes up or down. This is strategy 1. 


1.62 UST to provide liquidity to long farm

3. Provide liquidity with an equivalent amount of UST (mAAPL-UST LP) to long farm


With that, my position in mAAPL is still delta-neutral and I will be earning a 21.21% yield on my short farm of ~$2.5k UST, 33.53% on my $5k UST worth of LP on the long farm as well as 20% on my $5k UST collateral. This is strategy 2.


As usual, I have created a spreadsheet if you want to check it out further. There is another spreadsheet made by some CEO that is actually incorrect where it is calculated/instructing one to pledge collateral to both short and borrow the mAsset. If you truly understand it, you will know that's not a delta-neutral position at all. lol.


After 2 weeks, you will be able to claim the money from shorting the mAsset which lowers the capital to just 7.5k UST to farm in Mirror.


Meanwhile, the collaterals are growing at 20% (you can compare with the above screenshot when I first opened the short position by pledging the aUST) which also lowers the risk of liquidation.

The world of crypto is just mind-blowing. With the above delta-neutral strategies, I am getting 30-50% yield with minimum risk (liquidation). Where can we find this in the world of traditional finance?

On a side note, I have moved most of my crypto in BSC, Polygon and Fantom over to Terra. The plan is to move everything to Terra in the next few weeks/months with the majority of our funds invested into LUNA. Oddly, our crypto portfolio is very concentrated and not diversified at all. lol. Stay tuned to our next monthly update for a more detailed breakdown :)

To the moon!

Anyway, I have blogged about different ways to leverage crypto to build wealth for people with different risk appetites:
The safer approach using stablecoins
Risky approach but more hassle-free
Highest risk and you are on your own
- DeFi apps on Binance Smart Chain (BSC) such as PancakeSwap and PancakeBunny
- DeFi - Terra Mirror Protocol Delta Neutral Strategies

If you are interested in the platform I am using, do sign up using our referral links for some bonus :)
BlockFi: Deposits US$100 or more into your BlockFi Interest Account (BIA), you will earn US$10 in BTC and we will earn US$10 in BTC too.
Celsius Network: Earn US$40 in BTC with your first transfer of US$400 or more and we will earn US$40 in BTC too.
CakeDeFi - Deposits US$50 or more into your CakeDeFi account, you will earn US$30 in DFI and we will earn US$10 in DFI too.
Gemini: We will both receive US$10 of bitcoin after you buy or sell US$100.

On a side note, Futu's moomoo app sign-up promotion is now slightly different (Pfizer and Haidilao shares are given with deposit and 3 trades each on US and HK markets. T&C here) and has been extended to 19:59 hrs SGT, 31st August 2021! As part of the collaboration, I will be giving away 5 moomoo 'neck-fix and chill' pillow (not for sale but can be redeemed in the app) to 5 randomly chosen readers who signed up through our referral link for this month! More information can be found here - Futu's moomoo August Campaign + Merchandise Giveaway!

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)
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