head of defi @3janexyz @yieldsandmore @cozy_fnf
Joined March 2023
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spotted this new oracle section by @Morpho in our new PT-USD3 / USDT market by @flowdesk_co
thank you to the morpho team for making oracle reading more intuitive for all users
here's why this works at scale:
there's > $10b of stablecoin supply-side liquidity on-chain
by taking on debt to fund capital calls, you're effectively generating commitment fees off a global balance sheet of supply-side liquidity
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ex:
post $7.5 initial margin (aave usdc), to back $100 commitment
hold $25 in reserve (monad aave usdc), knowing that either:
a) expected max call is only $25 over full commitment period
b) can lever USD3 4x to cover full commitment
APY before LCC: 5.6%
APY after LCC: 9.5%
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net 9.5% APY starting w/ @aave usdc
pt 2 of a series on LCC, showcasing the power of running your own shadow bank
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3/ in LCC, you're the insurer
3jane (the buyer) pays you a premium for promising to fund usd3 if ever called
you hold reserves to fund the promise
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2/ the simplest analogy: comparing LCC to insurance
an insurer collects a premium from insurance buyers for promising to pay if a claim ever comes
in the meantime, they hold idle reserves to pay claims
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1/ LCC pays you on money you've promised but haven't handed over yet
you post a small amount of margin and earn yield on a much bigger number standing behind it
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your usdc earns ~3.5% on @aave
with levered callable capital (LCC), the same deposit earns ~20%
pt 1 of a series on LCC, starting with an explanation of the mechanics
rates have been elevated for some time
get senior exposure to receivables financing along with $JANE incentives : o
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1,913
47% net APY + $JANE
$2m left to kink (though borrow rates have been varying heavily)
juicy incentives happening on USD3 / PT-USD3 morpho markets
get > 20% USDC APY & $JANE
i got absolutely blessed by 3jane @3janexyz
these chads deployed over $35m of our money into a diverse pool of > 17k loans
the senior tranche yields 7% and has 15% first loss protection!!
defaults dont break the book, rather they're already baked in to underwriting & pricing
I got absolutely rekt by Goldfinch @goldfinch_fi
These idiots mismanaged over $50M of our money. Out of 8 borrowers - 2 are in default and 6 in restructuring. Basically money is gone.
1st time I deposited in Sep 2021, then 2 more times in 2022. It's been fucking five years and I still haven't got my money back in full (and never will), let alone the promised 10% APY.
Dashboard on their website says total loss rate is 20% but in reality its closer to 70% now. Since I requested the withdrawal in August 2023 I received only 30% of my money back. Best case scenario is I get another 10% over the next 1-2 years.
They hired a CRO with a $400k yearly salary who is posting updates twice per month in discord and thats about it. Occasionally they may request $50k - $150k for various other needs. All this money is being taken from the treasury of course.
CT doesn't know about it yet but Goldfinch is closing down soon. There is "wind down" announcement posted in discord, soon it will be public. Their official twitter page is run by a reply bot anyway so who cares anyway.
$GFI token is -99% and imo will be delisted sooner or later because project is dead.
Prime example of how fragile DeFi can be.
net out 60% APY with $900k left to kink on USD3/USDC loop
no slippage since we allow 1:1 minting/subscriptions through USDC, just gotta pay for gas
not even accounting for the accrued $JANE which may add another four digits to APY
