Home Economy Bitcoin : Podcast 4: Tips and good behavior for DeFi Bitcoin : Podcast 4: Tips and good behavior for DeFi September 5, 2020
The universe of DeFi is very vast.We have already had the opportunity to treat it on Cryptoast, since its birth in 2019, until its most spectacular news.
But, while it is already complex to understand how Bitcoin and blockchain work, taking your first steps in the DeFi universe seems even more complex.Especially for small carriers, who quickly expose themselves to the limits of the Ethereum network, and its exorbitant transaction fees, destroying any hope of wealth creation for those who wanted to invest a few hundred euros in this new fashion.
Whether it is by buying fresh tokens on Uniswap, or by participating in the many farming operations.
But it’s just as frustrating as being in the right place at the right time and not being part of the general good atmosphere.Tokens that multiply their prices by 1000, protocols that generate several hundred percent per year were the lot of the summer.
This Bonus podcast, in the company of Philippe Denoyer, aims to explain to you where these returns come from, how to find the right plans and participate in them, and understand the risks and limits of the system, taking the YAM as an example.
Good listening.We talk about it in the podcast: The vaults of Yearn Finance
How to get there?
Go to the Yearn.Finance website and connect your wallet:
Select the vault according to the tokens you want to deposit.Here in the podcast, we’re talking about the stable CRV coin, at almost 90% APR.Please note, these APRs are calculated since the creation of the vault.It is possible that when you deposit your funds, the interest will be a little different, going up or down.
Here, you must especially pay attention to the push notification that will be sent to your wallet, which has the funds you want to delegate to the Vault; the fees of the ethereum blockchain will be displayed there.
If you want to deposit 100 euros, to “test”, and your transaction costs are 60 euros, the interest of the investment is very limited.
This is why, as Philippe says, investing in DeFi for a small carrier (less than € 2,000) is less attractive at the moment given the transaction costs, but not necessarily to be excluded.The Curve yCRV
To get your yCRVs, you have two choices.
Buy them, on Uniswap for example.Or deposit your USDC, DAI, USDT, TUSD stablecoins, to get your yCRVs.
To do this, go to the Deposit tab of Curve.fi.You can swap your tokens there against this precious yCRV, which generates CRVs once stake, and which currently earns around 90% annual interest.
Again, watch out for transaction fees.Stabilize a portfolio and take advantage of returns on his side
You will have understood how to stabilize a portfolio thanks to this podcast.A quick word about the iETH rates.
Since few people are willing to have them in their portfolios given the performance of the asset, since iETH is an equivalent of short of the ether asset, interest rates are high.
This is why the Mintr platform is willing to give a lot of its token, the SNX, to those who block it on the platform.And if you follow Philippe’s trick, by creating your own stabilized wallet, you won’t have to worry about the price of ETH, either way.All you have to do is take advantage of the returns, provided that your initial investment is sufficiently higher than the transaction costs.What about Maker DAO’s collateralized debt?
Secured debt can be a good idea to keep assets while still having liquidity.
Let me explain.You have 1 ETH, amounting at time T of € 400.The Maker Dao platform offers you to put this ETH as a guarantee for the creation of 200 Dai (or less).
In this case, you keep your ETH, which will be returned to you upon reimbursement of these 200 Dai (you therefore benefit from its upside potential), and these Dai can be invested elsewhere.In our example, 100 Dai in iETH, and 100 Dai in sETH.Note that in our example, and given the current transaction fee charges, this is not cost effective, but you understand the concept.And the potential.
Be careful, however, to the risks of liquidation, in the event of a drop in your collateral … A word about Furucombo
Small bonus.If you have a little imagination, and a lot of knowledge in finance and trading, you can use the Furucombo website, to benefit from Aave Flash Loans.This is an instant loan, which the Aave platform makes available to you without collateral.
For example, you can borrow 100 ETH without consideration, as long as you return them in a single transaction, for a 0.09% fee.And that’s what Furucombo allows, without developer knowledge.What to use arbitrage power 1000, for example … Take out 405k loan.Use 45k + 405k loan to swap 450k usdc for 492k usdt.Pay back 405k loan.Profit 42k – 2k transaction fee.
Nice start to the week.
https://t.co/IMljUaVJPH pic.twitter.com/MibHFiJF6y
– Ceteris Paribus (@ ceterispar1bus) August 10, 2020 Important links in DeFi
DeFi Pulse; Bankless.Substack; TokenBrice; Decentralized finance.io Twitter accounts to follow (not exhaustive):
@TokenBrice; @BanklessFR; @coingecko; @pscltllrd; @aaveaave; @cryptoastblog
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About the Author : Valentin Demé Passionate about Blockchain technology and crypto currencies, I am the voice of the Cryptoast podcast.I also work alongside the editorial staff of Ouest-France, as a culture correspondent.All articles by Valentin Demé.
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