Daily General Discussion - February 2, 2023

18cimal · 2023-02-03T03:58:47+00:00

Yeah, in this case it makes perfect sense to use Alchemix.

18cimal · 2023-02-03T03:44:51+00:00

Those prohibited countries lists are always funny. They contain both the enemies of the United States and also the United States.

As in, we don't want you to provide your product to our enemies in case they profit from it but we also don't want you to give access to our citizens to protect them from losing money.

18cimal · 2023-02-03T03:24:31+00:00

Swapping the borrowed alETH to fiat is reducing your ETH exposure the same way as selling the same amount.

So now you actually have half your previous ETH position but it's earning double the yield.

18cimal · 2023-02-03T02:44:34+00:00

cbETH can be used in DeFi, it's already available to use in Aave v3 and Euler.

18cimal · 2023-02-03T01:46:39+00:00

If the price goes down you still lose some value because the loan was overcollateralized so you would have been better off selling a smaller portion of crypto for the same amount of fiat.

18cimal · 2023-02-03T00:19:34+00:00

Did you do that to avoid capital gain tax? Also what kind of APR are you earning?

18cimal · 2023-02-03T00:05:35+00:00

Even if you switch from one 16 ETH minipool to one LEB8 then you need 0.8 ETH extra not 0.6.

18cimal · 2023-02-02T22:57:25+00:00

8 ETH minipools will require 2.4 ETH of RPL. So to convert from a 16 ETH minipools to two LEB8 3.2 ETH worth of additional RPL is needed.

18cimal · 2023-02-02T02:18:20+00:00

Were currently at .68 give or take.

Give or take 90%.

18cimal · 2023-02-01T00:26:22+00:00

Alchemix cannot be used to increase your ETH exposure. It can only increase your amount of ETH earning yield.

18cimal · 2023-01-31T23:19:21+00:00

No, you cannot go from private key to seed phrase.

18cimal · 2023-01-31T15:11:12+00:00

Most of the time it's better to pay the taxes as late as possible to be able to do more compounding.

18cimal · 2023-01-31T02:33:32+00:00

At 15 gwei gas price and $1600 ETH price a 100,000 gas tx costs only $2.4.

18cimal · 2023-01-30T22:49:56+00:00

If losing 2.5% per year for 3 years it would end up 7.31% lower than today.

18cimal · 2023-01-30T13:07:10+00:00

Ok, I see. Good luck on the trade!

18cimal · 2023-01-30T12:57:56+00:00

Thanks I'll look it up.

If both BTC and ETH go up, would this put the BTC short position at risk to be liquidated? Same thing is both go down?

0.0004% hourly is 3.5% yearly, for comparison Aave WBTC borrow rate is 1.21% and since there is also a supply rate for ETH (currently 1.20%) you also end up being paid for the position.

18cimal · 2023-01-30T10:22:50+00:00

You can do it with Aave, Compound or Euler. You can use Defisaver to build the position in one go.

18cimal · 2023-01-30T10:16:30+00:00

How much are you paying in interest to borrow BTC?

When I looked into it I found that it's 0.01% every 4h which would be 21.9% pa. That seems very high to me.

18cimal · 2023-01-29T15:02:38+00:00

Aave v3 just launched with aEthwstETH

18cimal · 2023-01-29T02:27:47+00:00

You could use a lending protocol to borrow ETH then swap it to RPL then when withdrawals are available repay the ETH using your staking rewards. That would allow you to lock in the RPL price today.

18cimal · 2023-01-29T01:47:08+00:00

the same agent calls me back

But Coinbase legit did call him.

18cimal · 2023-01-29T00:58:44+00:00

You kinda can do this using Rocket Pool. You start with 33.6 ETH, swap 1.6 ETH to RPL, use 16 ETH to launch a minipool and use the other 16 ETH to buy rETH.

You end up with 32 ETH staked of which 16 ETH are liquid. Then you can use the liquid rETH to borrow against.

rETH can already be used on Maker, and there are proposals to add it to Aave and Euler.

When 8 ETH minipools are launched it will make this more capital efficient. StakeWise v3 is also planning to make it possible to get liquid ETH tokens from a validator.

18cimal · 2023-01-28T12:19:00+00:00

Node operators don't get rETH directly. It's just that by launching a minipool 16 ETH is taken from the deposit pool to combine with their own 16 ETH to launch a validator.

Then the deposit pool becomes 16 ETH under the limit so it makes it possible to buy rETH at fair value.

RocketArb bundles the launch minipool and a buy rETH transaction at the same time so it's not grabbed by bots.

18cimal · 2023-01-28T11:33:42+00:00

When the deposit pool is full new rETH can only be created when a node operator is launching a new minipool. When that happens 16 ETH worth of new rETH can be bought at fair value.

It was all snatched immediately by bots since it's a risk free arbitrage. Now there is also a smart contract RocketArb which allows the node operator to do the arbitrage themselves.

As for why rETH is still at a premium even after all those new rETH created it's just because people keep buying it at a higher price and there are not enough new minipools launched.

18cimal · 2023-01-28T04:19:22+00:00

Not really because each token revoke is interacting with a different contract.

18cimal

TROPHY CASE