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Also, read about yield farming, difficulty bomb delay and Vitalik’s thoughts on blockchain technology’s use cases beyond non-financial applications.

Guneet Kaur
and
DeFinn
Jun 17
1
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By now, you’ve probably heard about Three Arrows Capital insolvency rumors, right? These rumors have been going around for a time now, and I personally believe that their liquidation might be done already, or almost done.

If you’re a retail investor, my tip for you is: stay calm. Take this time to do a proper risk management analysis on your portfolio and, specially, risk management related to leverage (longs or shorts!). Don’t try to hit tops or bottoms, stay away from traders if this is not your 24/7 job.

But….buuuut….if you work for a DAO, a want a minute from your attention for this update on 3AC news:

Twitter avatar for @thedefiedgeThe DeFi Edge 🗡️ @thedefiedge
3AC's Treasury Management 3AC gave an 8% APR guarantee on the treasury. So protocols would park the funds raised by 3AC + additional parts of their treasury. The protocols felt safe because well...it's 3AC.

June 16th 2022

44 Retweets401 Likes

Apparently, a few protocols that received investment from the hedge fund revealed that they’ve also received a proposal of treasury management services. Think this way: your emergency reserve money, the part of your portfolio that plays a strategic critical place in your risk management in case something happens, that will be the one responsible to keep your DAO running during the winter… you just handle it to someone else. What are you even doing in DeFi if your most critical reserve is being managed by a centralized entity? This is a practice kind of common in TradFi VC world where there is an extra value added by the venture company, but well, you know, it’s highly regulated.

From a New Mental Model for Defi Treasuries, by Hasu (strongly recommended), we’ve learned:

  • Native tokens are not assets (to be counted in the treasury);

  • Build a treasury that will last you 2-4 years even if the entire market collapses by 90% and stays there for some time;

  • DAO treasuries should understand their application-specific liabilities and hedge them.

DAO treasury management research and discussion will be brought to surface, and probably professional services and tools will arise….but for now I would recommend to keep control of your keys. - DeFinn

Don't Allow Other People to Hold the Key to Your Peace Ef Mind | Meme on  ME.ME
Hodl your keys

😳 Driving crypto and DeFi regulatory updates

  • NYC Mayor Eric Adams speaks out against PoW mining ban legislation

  • Lummis-Gillibrand Crypto Bill is here.

  • EU Nears agreement on crypto regulations, the report reveals.

  • Swedish Central Bank says Bitcoin mining should be banned.

  • Binance US faces court action for the sale of LUNA and TerraUSD

  • Russian Parliament to review Bill prohibiting crypto payments.

  • The Lithuanian government has approved a bill to tighten regulation of the cryptocurrency.

  • Ripple counsel slammed SEC for trying to bully, bulldoze, and bankrupt crypto

  👀 Regardless of the regulatory chaos, Ripple CEO Brad Garlinghouse gave a high-five to Draymond Green. Isn't it awesome to see that his “calling is higher?”

Twitter avatar for @charlieninja232022 @charlieninja23
Ripple CEO Brad Garlinghouse giving a high-five to Draymond Green. Glad he's enjoying life. $XRP let's go!!!!

June 14th 2022

697 Retweets4,060 Likes

 🎯 The Sector Pulse

Crypto market sentiment trough Scalara’s indices.

  • 📉 DeFi Pulse Index (DPI): $68.55 (-27.4%)

  • 📈 Inverse ETH Flexible Leverage Index (iETH-FLI-P) - $196.15 (+35.21%)

  • 👉 Also Read: What is the PONY stablecoin yield index??

  👀 Latest News you shouldn’t miss:

  • Railgun v1.0 is live on ETH, BSC and Polygon.

  • Near becomes MetaMask compatible.

  • Ethereum price entered ‘oversold’ zone for the first time since November 2018.

  • Goldman Sachs executes its first trade of Ether-linked derivatives.

  • Have a big blockchain idea? You could get $100,000 to develop it.

  • Splyt and Binance partnered to offer ride hailing services and experiences within the Binance app.

  • JPMorgan wants to bring trillions of dollars of tokenized assets to DeFi.

  • Gitcoin grants R14 has begun, and is live until June 23.


The difficulty bomb is delayed for two months😳: What does it mean for “The Merge”?

Twitter avatar for @TimBeikoTim Beiko | timbeiko.eth 🐼 @TimBeiko
@ethereum @dannyryan @parithosh_j @vdWijden @nethermindeth @HyperledgerBesu @ethnimbus @ErigonEth @ajsutton @ralexstokes @lightclients @tkstanczak In short, we agreed to the bomb delay. We were already over time, and want to be sure that we sanity check all the numbers before selecting an exact delay and deployment time, but we are aiming for a ~2 month delay, and for the upgrade to go live late June.

June 10th 2022

25 Retweets96 Likes

The difficulty bomb is intended to reduce mining profitability in order to dissuade miners from participating in the long-awaited Merge. According to Ethereum core developer Tim Beiko in a Sunday tweet, the delay was set to two months to "be sure that we sanity check all the numbers before selecting an exact delay and deployment time."

While Ethereum developers have not given a definite date for the Ethereum Merge, key engineer Preston Van Loon indicated August. Delaying the difficulty bomb, on the other hand, may cause more Merge delays. However, the Merge could happen before August 2022, according to the latest EIP-5133 proposal. Moreover, Ben Edgington, another core developer, tweeted that "We say it won't delay the Merge. I sincerely hope not." 

Twitter avatar for @ryanbozarth_Ryan Bozarth @ryanbozarth_
I listened to the Ethereum Core Dev Meeting so you don't have to. Mainnet merge readiness: • Next testnet will be Sepolia (~3-4 wks) • Discussed whether to delay difficulty bomb • D bomb delay has no impact on merge date • No commitment on merge date (soft target mid-Aug)

June 10th 2022

1 Retweet11 Likes

Okay, enough of the difficulty bomb delay stress! I hope that the following information will cool you down a bit 💧.

Twitter avatar for @matthewespMatt Esparza @matthewesp
I still love that @VitalikButerin created Ethereum out of spite because of World of Warcraft removed a stat from one of his items.
Image

December 28th 2021

1,617 Retweets10,593 Likes

Stay tuned for further updates in the DeFi Pulse's upcoming newsletters.

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Celsius pauses withdrawals: Is there any red flag here?

Twitter avatar for @ScottNoverScott Nover @ScottNover
Celsius froze withdrawals Sunday night, citing "extreme market conditions" amid a liquidity crisis. Celsius operates like an unregulated crypto bank, enticing customers with 17% yield on deposits. But you shouldn't bank with an unregulated bank. In @qz:
Why Celsius Network halted withdrawalsThe crypto-lender Celsius Network halted withdrawals and transfers citing liquidity issuesqz.com

June 13th 2022

4 Retweets20 Likes

All withdrawals, swaps, and transfers between accounts have been halted by Celsius Network. As a result, users' funds are effectively frozen, despite the company's pledge that "acting in the best interests of our community is our first concern." Amidst the crypto market chaos, Alex Mahinsky tweeted not to create FUD. But, is there any red flag here?

Celsius has taken out a DAI loan with a current collateralization ratio of 195.93% and $545 million in locked WBTC as security. They have a liquidation price that is 26% lower than the current BTC price, and if they hit it without adding more collateral, their whole stake worth over $500 million will be liquidated on-chain. The worrying part is that Celsius has already added collateral to the loan many times in the last few days instead of repaying it.

Another is that, just before they ceased withdrawals, the company moved $320 million to FTX without disclosing it or giving the public advance notice. Perhaps more concerning is the fact that the corporation has been completely silent since the announcement when all of its users are concerned about their ability to access their funds.


  • Ethereum crypto crash reason: Lido Staked ETH may cause a massive crypto crash
    TLDR: In the last 48 hours, the price of Lido Staked Ethereum (stETH) has deviated dramatically from the price of Ethereum (ETH). However, the stETH token is designed to be a 1:1 peg to ETH in theory;

  • Biggest Ether staking service has a centralization problem
    TLDR: The concentration of more than 4 million Ether deposited through Lido, or 32 percent of the total amount staked in the token, raises warning flags. Critics claim that a single entity with a large amount of Ether could pose a security danger to the network;

  • $500M of on-chain collateral will face liquidation if ETH falls
    TLDR: On June 12th, Glassnode announced that on-chain HODLers in losses have dramatically climbed. According to parsec finance, approximately $500 million in on-chain collateral will be liquidated if ETH goes below $1,150. Also, if wBTC does not have more than $300 million in on-chain collateral, it will be liquidated;

  • Vitalik Buterin: Where to use a blockchain in non-financial applications?
    TLDR: Blockchains are just immensely easy for inexpensive and reliable data retrieval, with data retrieval remaining possible whether the application has two users or two million; Vitalik mentioned this technology as one of the use cases beyond non-financial applications.


Risk DAO's bad debt dashboard checks all user debt and collateral regularly, and once user debt exceeds user collateral, it is added to the platform's overall bad debt (i.e. insolvent accounts). In addition, the dashboard keeps track of bad debt across all Compound protocols.

Image via bad debt dashboard

What is yield farming? A beginner’s guide to passive income in DeFi

Yield farming is a way for people to generate passive income by providing liquidity, i.e., cryptocurrency deposits, to DeFi liquidity pools or staking pools. In short, users lock up their money into a participating DeFi app, and in exchange for this service, the project automatically pays these “yield farmers” in crypto rewards over time.

Sounds exciting?

Read More


How to mentally survive a bear market

Twitter avatar for @0xRusowsky0xrusowsky | Ω ,🩸| @0xRusowsky
HOW TO MENTALLY SURVIVE THE BEAR MARKET A 3-phase approach to psychologically prepare yourself to survive these difficult times that we are all facing and that you will have to face during the upcoming months.
How to Mentally Survive a Bear MarketA 3-phase approach to psychologically prepare yourself to survive these difficult times that we are all facing and that you will have to face during the upcoming months.0xrusowsky.substack.com

June 14th 2022

33 Retweets85 Likes

Remembering the “raison d'être” of the decentralized movement

Our world is witnessing an unprecedented period of uncertainty, and its foundations are shifting so fast that even the most “trusted” institutions we know are showing cracks under pressure. All those tensions have spilled over into global markets and naturally this has translated into even more volatility in the crypto space. 

These are very difficult times to navigate, but without any doubt, it is during these times that the resiliency of open & decentralized systems we built over the last few years will emerge.

Let us not forget that we are here to build a fairer, more resilient and transparent digital economy where nobody gets left behind and let us all play our parts in getting there! - Nassim Ghorayeb (Partnerships @defipulse)

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All info in this newsletter is purely educational and should only be used as research. DeFi Pulse is not offering investment advice, endorsement of any project or approach, or promising any outcome. This post is prepared using public information (which does not account for specific goals or financial situations) and links provided to third-party sites are for informational purposes. Such sites are not under the control of DeFi Pulse, so DeFi Pulse or the author are not responsible for the accuracy of the content on such third-party sites. Be careful and keep up the honest work!

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