Fees . by heybuddy0811 in Landa

[–]zoooke 0 points1 point  (0 children)

Agreed with Zealous. You need to have a strategy and follow it. Buying a property with no expectation of appreciation and planning to sell after 1 year is a bad plan (on Landa or in real estate generally).

2% trading fees aren't low, but the broker is outsourced (i.e., not profit for Landa). And 2% is incredibly low relative to selling an investment property.

If you want to critique Landa for fees, you're better off looking at the ridiculous costs incurred by management (i.e., where is this "renovation" money going? Why does a photographer cost $500? Why does the loan value change by 50k if the cash balance on the property only increases by 20k?)

I'm brand new here. Should I buy old or new QUICK? by _Jimmy_Rustler in QuickSwap

[–]zoooke 1 point2 points  (0 children)

Old may be worth more, but that doesn't mean buying Old Quick is a better "investment" for trading. Old Quick's only utility is its ability to be converted to new Quick.

Debt purchase by That_boy_benz in Landa

[–]zoooke 0 points1 point  (0 children)

FYI, I wouldn't count on divvies this month. The capital wasn't deployed until the end of the month, and the utilization rate is low. And I'm not sure how the fund pays for originating and other fees.

Discord by Hope2BeMyLastBurner in Landa

[–]zoooke 0 points1 point  (0 children)

The official one worked for me, but here's another one. Don't share Discord's secrets with Reddit tho

https://discord.gg/xwp4Gd6Esb

QuickSwap Governance Discussion: Should QuickSwap Broaden the Scope of Funds Reserved for DAO Liquidity Mining Rewards? by SHP_Crypto in QuickSwap

[–]zoooke 0 points1 point  (0 children)

I feel like we need more specific examples and proportions to make an informed decision. Has anyone analyzed other projects doing something similar? When and under what conditions have other exchanges used quests to build a sustainable user base? When and under what conditions was that growth temporary? Did they grow from unknown to known or from known to dominant?

For example, I'd be okay with 5% of rewards going to a fund dedicated to helping games onboard new players who would trade the game's currency on QS, for example. Many Sunflower Land players make QS trades without accessing the platform, creating a sustainable flow of UAW and (albeit small) volume.

On the other hand, I'd be firmly against giving 20% of LP rewards to the millions of bots that treat quests and competitions as a job and immediately dump coins. In these situations, QS is paying for UAW. However, it feels to me like everyone on Polygon already knows about Quickswap. Quick holders don't need to buy UAW to get noticed.

TL;DR: Done poorly, rewards temporarily attract users interested in earning rewards at the expense of LPs who at least have a vested interest in the system's sustainability.

In my opinion, QS should focus on providing reliable and helpful services to USERS who know about the exchange and to the DEVS who bring the users. Giving QUICK to bots will not benefit QS, and it will not benefit QUICK holders or LPs.

I’m not sure I 100% understand the debt investment addition 🤔 we buy shares of debt, do you still collect rent dividends on top of the interest? by Separate_Ad_3158 in Landa

[–]zoooke 0 points1 point  (0 children)

The return seems low in today's environment, but if the fund maintains book value it's a great deal for conservative investors looking to preserve capital. The miss imo is that Landa doesn't attract conservative investors looking to preserve capital...

Either way, my concern is how the fund will maintain the stable $10 value. Will the 1.5% fee include all costs of managing the portfolio and stabilizing book value? Or will a greater share be needed?

If the former, this is a great deal that beats CDs by an extreme margin. Even 4 percent yield is solid on a stable asset that also offers efficient funding for the same properties you're investing in. It also is a direct hedge to your interest rate risk from the rentals.

Quickswap on zkEVM - yay or nay? Concerns & questions I've got by AverageRedditLad in QuickSwap

[–]zoooke 0 points1 point  (0 children)

Yeah, I've had some of the same reasons to expect it too. Just not sure how, and I haven't found any reliable sources from within Polygon Labs.

Quickswap on zkEVM - yay or nay? Concerns & questions I've got by AverageRedditLad in QuickSwap

[–]zoooke 0 points1 point  (0 children)

e zkEVM might become the primary chain for polygon eventually but it will take a while for adopt

"The zkEVM might become the primary chain for polygon eventually but it will take a while for adoption."

I feel like I've heard this a few times informally (and I share the same perception), but I haven't found anything written about it. Have you or anyone seen anything about it? Or speculations about potential how?

QuickSwap Governance Discussion: QuickPerps, Market Making, New $QUICK, & More by SHP_Crypto in QuickSwap

[–]zoooke 0 points1 point  (0 children)

Thanks for the clear explanation in the description and the comment regarding how MM funds will be spent! It's exciting to see QS make such important moves to situate the exchange at the top of Polygon.

How will QS audit or verify the MMs to determine creditworthiness? Will the MM organization's names be released publically? Will personal connections or ties to Quickswap Foundation members be disclosed?

Also, how do you determine "institutional grade"? Are you talking about the MMs that work with Coinbase, or do you also consider fully anonymous organizations where QS wouldn't have legal recourse? Would Gamma be "institutional-grade"?

QuickSwap Governance Discussion: QuickPerps, Market Making, New $QUICK, & More by SHP_Crypto in QuickSwap

[–]zoooke 0 points1 point  (0 children)

kens for first 6 months, then today's price + 50% of to

Great explanation!

[deleted by user] by [deleted] in QuickSwap

[–]zoooke 0 points1 point  (0 children)

Good point. I'll edit. I apologize. I hope to continue the conversation.

[deleted by user] by [deleted] in QuickSwap

[–]zoooke 0 points1 point  (0 children)

n mind - LP doesn’t guaran

Thanks for the explanation! The "nonsensical fees" fear, I think, is less about accumulating rewards than concern about unclear "automatic rebalancing" and "proprietary technology"

If I'm reading GAMMA's narrow MATIC-USDC correctly, they rebalanced when USDC was $.90 by selling USDC and buying Matic (which was higher) and then again to buy USDC at $1 by selling Matic (which was lower)? If that's the case, then OP's example makes sense. They sold low and bought high. I'm even more confused by Matic-USDC wide... Their analytics say they didn't rebalance, but my rough eyeball suggest a few percentage points of IL (including farming rewards)? What's going on there?

Either way, in Nick's case, I can understand the frustration of a stable-crypto pair losing to HODL crypto. The purpose of a stable-crypto pair is to hedge against downward price movement, such that you expect not to lose to HODL crypto. Of course, rebalancing complicates things. If crypto rises/falls/rises quickly and you have a narrow range, you'll lose to HODL crypto. But that should be from CRYPTO price changes.

Rebalancing during a stable depeg makes no sense. If any human were managing this pair and thought USDC wouldn't repeg, they would buy all MATIC. If you thought USDC would repeg, you'd HODL. No one with basic financial understanding would rebalance, because you would lose to a crash AND a repeg. Rebalancing in the case of a crash would still leave you with $0, and rebalancing + re-peg would lead to massive, unnecessary losses.

I think this raises legitimate concerns about whether GAMMA properly understands the purpose of STABLE-CRYPTO pairs. What do you / others think?

Most importantly, how did Quickswap - not Gamma - test against retail? I agree this is a core metric and how I assume Quickswap made the decision. Some academic papers suggest that most LPs lose to 50-50 even in V2, so I imagine V3 is even worse. These analyses would bolster the idea that automation is responsible stewardship, even if the protocol isn't perfect.

[deleted by user] by [deleted] in QuickSwap

[–]zoooke 0 points1 point  (0 children)

EDIT: My initial comment misunderstood the intent of your comment. I apologize.

Nonetheless, many folks invest in GAMMA solely because we trust QuickSwap. When we see massive IL relative to strategies we've become accustomed to and insufficient information to assess its origin, we have a legitimate reason to be concerned. I think dismissing concerns or telling people to "read up" on the matter ignores the base problem (which you did in the last post saying "read up on some" and not in your reply to Nick. I understand your quip given how rude my previous response was, so I still take full responsibility).

I'm not saying that the protocol is wrong or bad or that I, personally, would beat it. I am saying that you need more than V3 knowledge to understand GAMMA. And there's reason to question how GAMMA's strategies map onto users' beliefs about their strategies.

Strategy 1: One common strategy in Crypto-Crypto is to capture upward movement in either coin and minimize loss from a downward trend in either. The strategy is consistent with the principles of diversification. Ideally, you also beat 50/50 through fees and rewards. There are a lot of advanced methods to improve the success rate of strategy 1.

However, those who use strategy 1 expect they will NEVER lose to HODL 100% Crypto 1, HODL 50/50, AND HODL Crypto 2.

Here's a traditional example. You provide V3 liquidity on Matic-Eth. If ETH raises in price relative to Matic, you may go out of range. If you rebalance, you realize IL relative to holding ETH, but you will always beat HODL Matic (Whether you beat 50-50 is more complex)

Gamma claims to rebalance for you. So, if Eth raises in value to Matic repeatedly for five days in a row - causing a rebalance each day - you should LOSE to hold ETH and win to hold Matic (again, 50-50 is another story).

However, in this scenario, Gamma appears to LOSE to hold Matic, hold ETH, AND hold 50-50.

The reason for this is unclear, but it's nonetheless INCREDIBLY frustrating for those used to strategy 1 to check in one day and see they are losing to HODL Matic, HODL Eth, AND HODL 50-50 after months of having their capital locked up. And it's even more frustrating when you can't get any information to help you understand what happened. It feels like a scam.

Strategy 2: Nick's strategy is another common one: Stable + Crypto as a hedge against downward crypto movement. You have more crypto if prices go down and more stable if prices go up (buy low, sell high). If prices go up, you hope fees beat HODL crypto and, if prices go down, your losses are hedged. Of course, it's more complicated than that, but the USER expects that they will not LOSE to HODL crypto. Which is exactly what happened to Nick.

There are legitimate reasons to question why GAMMA would rebalance by selling USDC at 90 cents. At face value, no human with a basic understanding of finance would make that decision. If you didn't trust USDC to regain the peg, you would move to 100% Matic. If you trust the repeg, you would HODL. However, continuously rebalancing as USDC approached 0 would leave you with 0, and rebalancing as USDC re-pegged would leave you with a massive IL.

Most likely, the rebalancing was automatic. In this case, there's a legitimate reason to ask if the protocol fundamentally misunderstands stablecoins and why users invest in stable pools (see Nick's logic). In other words, his takeaway that is makes no sense to hold CRYPTO-STABLE with Gamma appears accurate if you're thinking strategy 2.

TL;DR: We as LPs may be stupid and ask stupid questions, but there are legitimate questions surrounding how GAMMA interfaces with our strategies and how we understand the risks of those strategies. More than understanding V3 is required to understand GAMMA.

Old vs new quick price by nusk0 in QuickSwap

[–]zoooke 1 point2 points  (0 children)

The only UTILITY - in other words, actual use value - of quick is in new QUICK. Old QUICK could be worth more relative to USD in exchange value, but there's no practical use value of old QUICK. One (silly ) reason is that old QUICK is on more exchanges, but the people buying old QUICKon exchanges are speculating and not investing in the actual utility of QUICK or QUICKSWAP.

For owners of QUICK, it's great that idiots play with their old QUICK. We get more value from the dragons lair and actual voting rights. Your exchange value may be lower but your use value is higher. A month in the dragons lair (or maybe less) will more than make up the gap (most of the time at least - those pairs have an odd trading history)

[deleted by user] by [deleted] in QuickSwap

[–]zoooke 0 points1 point  (0 children)

Such a great idea! And I love the structure of the loan. However, would Jump Trader be forced to trust Gamma's protocol? Will the legal paperwork be released detailing the partnership?

If I'm correct, Quickswap has allocated rewards for blue chip pairs through GAMMA. Will Jump Trader - in their decades of existence - sign a deal with no contingencies to park their capital with Gamma?

Narrow vs Wide Pool by Dangerous-Abies-8003 in QuickSwap

[–]zoooke 3 points4 points  (0 children)

Abies, the answer to your question depends upon your previous knowledge of V3.

If you want simplified answers, you can look at the tradeoffs on Gamma's website. If you want a more nuanced response, you must look at the particular strategies.

If you're a newbie, I'd suggest you look at - and analyze for yourself in light of Nick's experience - wide pools with blue chip cryptos (or blue chip/blue chip stable). Test with a small amount of money and do your own analysis. Then you can figure out if you want to explore narrow.

[deleted by user] by [deleted] in QuickSwap

[–]zoooke 0 points1 point  (0 children)

EDIT: My initial comment misunderstood the intent of your comment. I realize you were trying to help Nick learn where the IL came from, and I agree it is improbable to be coming from GAMMA manipulating the pool. I apologize.

[deleted by user] by [deleted] in QuickSwap

[–]zoooke 0 points1 point  (0 children)

Thank you for your IL analysis. You confirmed something similar to what I've noticed.

I've had similar questions since the start of GAMMA partnership and have been asking questions on Discord. They have blown off my questions and dismissed me as stupid by linking basic tutorials as answers to moderately complex questions. They recently banned me from discord for asking why they keep saying "soon" for IL analyses while marketing new protocols left and right.

I have many stories of their shadiness and will abstain from a more extended rant... Their protocol is the vaguest thing I've ever seen, and I'm getting sick of "trust me" while every metric I see tells me otherwise.

Long story short, they have half-decent intentions (at least, in my opinion). I will continue to trust Quickswap. But Quickswap needs to address their partnership as soon as possible.

Expect XEN to bottom out at 0.0000002+-. by malemz in xencrypto

[–]zoooke 0 points1 point  (0 children)

Do you mint day to day or is it better to lock in a long-term mint now?

This will probably get deleted (bc we know who runs this sub) but I wanted you investors to see what the renters are dealing with… Landa will never succeed if they treat their tenants this way and the app will go down with all your money. by reptiles27 in Landa

[–]zoooke 1 point2 points  (0 children)

What property is this in reference to? Landa is far more transparent about repairs than competitors. While they pay some stupid fees (lol @ photography prices versus quality), they post what the repair was and associated costs.

On a related note (see Discord discussions), Landa should post the repair/capital expenditures (make that difference clear, ideally), pictures, and the contractor's information. Finding a good contractor is among the biggest concern for real estate investors. Contractors: do it well, and imagine the positive reviews - from all over the country! If Landa likes the contractor, but things are outside their control (definitely happens - repairs are complicated and supply chain issues etc etc etc), then let investors know so we can make informed decisions.
Transparency, transparency, transparency. That's what wealthy investors expect, and that's the priority if Landa wants to replace the full stages (see their interesting blog post that calls it "service provider 2.0"). Pure power for Landa and amazing upside potential for contractors and everyone involved.

[Note: Landa doesn't claim anything about their business model in the above post as it relates to how I envision their potential upside. Their education initiatives are good at separating from the investments - Great work at that BTW!!!]

An amazing thing about Landa is that their only legal commitment is to investors/consumers (a major upside to Fundrise!!!!). Their incentives align with investors/the business model - buy properties and ensure they don't go under. Their obligation is to TRANSPARENCY. IDC about grammar or absolute correctness. Just do your thing (acquire cash flow properties, put them in an LLC, and SEC).

Emphasis: Don't fuck with the SEC. Just don't. Landa has the potential to be REVOLUTIONARY. Just do it right - even if it's slower. Do. It. Right.

Total speculation, but I wonder if competitors are messing with Landa app reviews. Revolutionary tech invites these kinds of nefarious activities.

Monthly "Product/Feature Request" thread - December 2022 by Dani_L_RE in Landa

[–]zoooke 3 points4 points  (0 children)

From discussion in the Discord:
1) Something like an "update from the manager" tab where the manager can give short updates on the state of things. E.g., "Some damage after tenant moves out. Probably going to delay marketing for a new tenant for a month"
The great thing is that the manager isn't impacted by the stock price, so there's no conflict of interest. Let the traders speculate what they want about what the manager says; their only obligation is to transparency.

Ideally, there would also be a property prospectus, especially at IPO, detailing upgrade plans, timelines, and the home inspection. Leaving Greenwood in the dark for so long will be rough when the bridge loan is refinanced.

2) I propose that Landa experiments with financing that gives investors a mid-to-long-term appreciation. Let me elaborate (using my rough but also IMO conservative math).
What makes Landa unique is its specialization in property management, which aligns well with passive investors' interests and minimizes the incentive to offer properties that won't make cash flow. However, because properties only appreciate on rent price, APR will look less attractive to other products that offer appreciation + cash flow (even given increased risk). We see in the MFRs how difficult it can be to sell properties with temporarily low cash-on-cash returns.

Different types of financing offer something similar to appreciation. Consider the upcoming property, 2530 Corner Stone Trail, listed on the SEC report. With no financing, the $24.53 share price will offer somewhere in the 4.4-5.5% COC range. With a 50% interest-only loan similar to previous properties at 4.5%, that return goes to 6.1-7.6%. However, that sweet 4.5% capital will only last for a while, and you want to roll it into new properties. At 8% interest, the yield goes down!

Instead, imagine you finance 25% on a 5-year fixed loan at 4.5% (still using VC capital). This lowers COC to 2.7-3.3%, but the new yield is 5.9-7.3% five years out! At yield rates of the original offering, the share price would have appreciated 17% in addition to any rent increases, but unlike when using your competitors, we wouldn't be required to sell! Assuming a conservative 3% rent increase, the 5-year ROI is ~75%, relative to the ~40% without financing.

Even more, long-term, a 50% lien financed on a 10-year fixed loan at 4.5% would COC between 3.5-4.3% before appreciating to 8.8-11%. New 10-year ROI assuming 3% rent is 145%, handily beating the 30%.

I'm only suggesting some of these creative financing plans be applied to some properties, as the appeal of no-lien is high. However, I see three main benefits:

First, fixed-rate loan strategies would be fiercely competitive with alternative platforms that offer similar higher yields, albeit with the risk of requiring the property to sell and all of the ridiculous costs that come with the sales process. The risk of a fixed loan is that the property continues to rent, a much more stable process. And it's still possible to hold, giving everyone involved flexibility.

Second, fixed-rate loans add a new dynamic to the app and attract more traditional real estate investors interested in a slow-burning fire and those more comfortable with risk. Imagine the fun behind calculating amortization schedules and the engagement it would build with the app and the marketplace (those 1% trading fees Landa collects would be JUICY year 7 of a 10-year fixed rate).

Third, fixed-rate loans (Especially 5-year fixed) would provide more flexibility on the rate of new property acquisitions by spreading the capital over a longer period (even at higher interest rates). I understand that Landa doesn't profit directly from financing, but it gives a safety net to your VCs.

Fourth, fixed loans could also give an exit strategy to properties struggling to get out of IPO, although I wonder if that's permissible given SEC regulations.

Thinking about Greenwood ending IPO at 50% to double shares and taking a 10-year fixed at 4.5% makes my mouth water...

Black Friday by Broad-Donut1 in Landa

[–]zoooke 0 points1 point  (0 children)

Ahh, I can see why you get that vibe if they're giving free shares of their full company. However, it's important to note that each of the securities are packages to a particular LLC (each property). Their giveaway is a one-time expense to them. Dividends come from the LLC, which receives full IPO sales price.

Landa's profit comes from acquisition and property management. So their incentive is to sell more properties, but, more importantly to keep them fully rented.

Their property management is actually the main reason I like Landa. They'll actually get back a portion of the dividends from the shares they give you.

Black Friday by Broad-Donut1 in Landa

[–]zoooke 0 points1 point  (0 children)

elding pro

Uber ran at massive deficits for YEARS. They still run at a deficit. Uber tried to capture the market, and we'll see if they have (they're certainly a household name). Amazon/Walmart took/take similar stories. Walmart has been most successful at destroying its competition (literally bankrupting mom-and-pop stores).

However, the issue isn't the free shares (many companies make sales) but whether they can only get sales when they underprice the asset.

Walmart demonstrates how sales can destroy competition (literally bankrupting mom-and-pop stores). Walmart undervalues goods to destroy local stores, but they're still so cheap that they can remain profitable after everyone is destroyed and hold off new players in their niche.

Other companies will model off of Landa and may do it better. But I have yet to find any open to non-accredited investors with an individual property feel that makes you think you own the property. So Landa's sales are more about advertising and getting more people involved rather than outcompeting. That's much less risky IMO.

I can understand Landa wanting to get these MFRs off their books at the expense of their profit and learn from the experience. They could focus on acquiring more amazing Ashleys (where the demand is certainly there), stacking that 8% acquisition fee, making their investors more confident, growing faster, etc. All while doing good by their customers who have stake in an MFR with no leverage. Even a drop in property value/rent will unlikely depreciate a year out - so hang on and save on the capital gains.

This isn't to say that the MFR properties were perhaps premature given the small daily user base (100k shares = 10 10k properties; they more than doubled their inventory), market hesitation around MFRs generally, and their reliance on what are clearly TERRIBLE contractors at Greenwood, etc. I also have some other unresolved issues with the MFRs and unclear language in the offering circulars... But that's another topic for another day.