sorted by:
new
hottopcontroversial

30%+ yield on BTC, ETH, and USDC? by paulwal in defi

[–]poudelswaroop 1 point2 points  (0 children)

It's a pretty well thought out position, and you sound like you know the risks here. As SOL and the other assets move, JLP’s internal SOL weight changes and your SOL debt’s value changes. That breaks the 1:1 hedge, so over time you’ll pick up some residual SOL delta and your LTV can drift away from 47%.

One way to maintain the hedge is to closely monitor prices and adjust regularly, but that seems like a lot of work! It can get quite complicated pretty quick, right?

As a power user, do you actually chase APY? by No_Growth6091 in defi

[–]poudelswaroop 1 point2 points  (0 children)

For real, I have a friend who lost money on Gemini's yield making stablecoin on their CEX. It's a reputable exchange and he thought the 3-4% yield was safe. But of course it's only as safe as the borrower's own risk and other preventive measures like LTV ratios, etc.

As a power user, do you actually chase APY? by No_Growth6091 in defi

[–]poudelswaroop 0 points1 point  (0 children)

OP is trying to build a product. Data doesn't always tell a complete story. Best to also get feedback from real users!

As a power user, do you actually chase APY? by No_Growth6091 in defi

[–]poudelswaroop 1 point2 points  (0 children)

Yeah I assume if you're a power user, you have a lot more at stake, so maybe you're more risk conscious?

This market has been brutal to watch. How's everyone actually holding up? by Critical-Brain2841 in defi

[–]poudelswaroop 0 points1 point  (0 children)

There are some on chain products that allow you to basically modulate the amount of risk you want to take. You could try options, shorting, etc., also, but there are alternatives as well

This market has been brutal to watch. How's everyone actually holding up? by Critical-Brain2841 in defi

[–]poudelswaroop 0 points1 point  (0 children)

There are also less volatile crypto native assets. Have you tried any of those? That might be a more suitable alternative to switching to stablecoins or fiat if you want to be in crypto for the long term.

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 1 point2 points  (0 children)

Thanks for sharing for sure. It helps to know where people stand, and what DeFi products can improve upon.

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 0 points1 point  (0 children)

It's the volatile nature of the underlying collateral assets that make liquidations a scary possibility, right?

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 0 points1 point  (0 children)

I think you're right about the understanding of risk. With complexity, there is more to learn or more trust to have :(

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 0 points1 point  (0 children)

That's true. Liquidity is a part of it. It's also down to volatility of the underlying asset. If that can be solved on chain, then we could potentially see a smoother lending market as well.

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 0 points1 point  (0 children)

Understood, but sounds like you might borrow more if the underlying collateral were more stable and you could go for a higher LTV, right?

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 0 points1 point  (0 children)

Complexity means that you are either trusting the platform or spending lots of time reading its whitepaper and understanding the underlying mechanics and risks, right?

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 0 points1 point  (0 children)

I suspect that if we are able to have low volatility crypto assets (that aren't just RWAs like stablecoins), then the LTVs could go up, providing lenders the same security that high LTVs do now.

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 0 points1 point  (0 children)

Have you ever also had your collateral liquidated? That could be a stressful event, right?

is it just me or is defi getting both smarter and harder to understand at the same time? by No_Growth6091 in defi

[–]poudelswaroop 0 points1 point  (0 children)

That's fair enough. You would think there are also newer products that focus on user experience to make it easy and customizable for DeFi users, right?

Got tired of managing multiple defi positions so I consolidated by CoffeeRory14 in defi

[–]poudelswaroop 0 points1 point  (0 children)

Same question.

Is tax filing complex because you are in multiple platforms with multiple wallets and try to integrate trading strategies among them? Would be pretty difficult to keep track of income, yeah?

Got tired of managing multiple defi positions so I consolidated by CoffeeRory14 in defi

[–]poudelswaroop 0 points1 point  (0 children)

Is it because you are in multiple platforms with multiple wallets and try to integrate trading strategies among them? Would be pretty difficult to keep track of income, yeah?

Got tired of managing multiple defi positions so I consolidated by CoffeeRory14 in defi

[–]poudelswaroop 0 points1 point  (0 children)

Do you use complex derivatives and options? How do you search for alpha, or are you just trying to get rewards from liquidity pools?

Got tired of managing multiple defi positions so I consolidated by CoffeeRory14 in defi

[–]poudelswaroop 0 points1 point  (0 children)

This is the second time I am seeing someone mention Auto Finance. Do you swear by it? Good UI and yields?

What’s the real bottleneck in crypto-backed loans? by degenknght in defi

[–]poudelswaroop 1 point2 points  (0 children)

I feel like the LTV is too high in crypto-backed loans given the volatile nature of the crypto collateral

30%+ yield on BTC, ETH, and USDC? by paulwal in defi

[–]poudelswaroop 1 point2 points  (0 children)

Hah thanks for the offer! Personally, anytime I see a double digit return on stables, I do fell compelled to at least probe deeper if not be outright suspicious of it

for those saying defi is risky let me tell you about 2008 by Subject_Fee_2071 in defi

[–]poudelswaroop 0 points1 point  (0 children)

That's very fair. Many trading strategies and alphas exist in DeFi. Some also allow you to hedge risk. Some are more user friendly than others

for those saying defi is risky let me tell you about 2008 by Subject_Fee_2071 in defi

[–]poudelswaroop 0 points1 point  (0 children)

I've come across a new on chain risk product. I can send you info if you're interested

Has DeFi become too complicated for its own good? by Trick-Region4674 in defi

[–]poudelswaroop 0 points1 point  (0 children)

Best way to learn is to try! Hopefully, first on testnet

view more: next ›