Get started

DEFI

Yearn Finance: A World of Painthis is a "governance" token, with a paralyzingly high per unit value ($20,000 and up) the team has no regard for establishing traits to justify the YFI token to have any non-speculative value. solutions may involve: 1. revenue payments to YFI holders 2. token split - to normalize per unit price in context of other altcoin crypto assets 3. compensation of revenue per participation in governance decisions the software team building yearn finance are world class however the tokens are at face value nothing but monopoly bucks i see a massive dead cat bounce rally happening soon, followed by a very slow and painful 2022, and price never returning to the doorstep for $100,000
COINBASE:YFIUSD
by noam_chom
4
Impermanent loss challenges the claim DEFI Investors are often lured to DeFi by the four-digit APYs on offer, but in many instances, impermanent loss actually siphons away any potential profits investors might have accrued. Impermanent loss is one of the most recognized risks that investors have to contend with when providing liquidity to an automated market maker (AMM) in the decentralized finance (DeFi) sector. Although it is not an actual loss incurred from the liquidity provider’s (LP) position — rather an opportunity cost that occurs when compared with simply buying and holding the same assets — the possibility of getting less value back at withdrawal is enough to keep many investors away from DeFi. Impermanent loss is driven by the volatility between the two assets in the equal-ratio pool — the more one asset moves up or down relative to the other asset, the more impermanent loss is incurred. Providing liquidity to stablecoins, or simply avoiding volatile asset pairs, is an easy way to reduce impermanent loss. However, the yields from these strategies might not be as attractive. So, the question is: Are there ways to participate in a high-yield LP pool and at the same time reduce as much impermanent loss as possible? Fortunately for retail investors, the answer is yes, as new innovations continue to solve the existing problems in the DeFi world, providing many ways for traders to avoid impermanent loss. Uneven liquidity pools help reduce impermanent loss When talking about impermanent loss, people often refer to the traditional 50%/50% equal-ratio two-asset pool — i.e., investors have to provide liquidity to two assets at the same value. As DeFi protocols evolve, uneven liquidity pools have come into the picture to help reduce impermanent loss. As shown in the graph below, the downside magnitude from an equal-ratio pool is much larger than an uneven pool. Given the same relative price change — e.g., Ether (ETH) increases or decreases by 10% relative to USD Coin (USDC) — the more uneven the ratio of the two assets, the less the impermanent loss. DeFi protocols such as Balancer have made uneven liquidity pools available since as early as the beginning of 2021. Investors can explore a variety of uneven pools to seek out the best option. Multi-asset liquidity pools are a step forward In addition to uneven liquidity pools, multi-asset liquidity pools can also help reduce impermanent loss. By simply adding more assets to the pool, the diversification effects come into play. For example, given the same price movement in Wrapped Bitcoin (WBTC), the USDC-WBTC-USDT equal-ratio tri-pool has a lower impermanent loss than the USDC-WBTC equal-ratio pool, as shown below. Similar to the two-asset liquidity pool, the more correlated the assets are in the multi-asset pool, the more the impermanent loss, and vice versa. The 3D graphs below display the impermanent loss in a tri-pool given different levels of the price change of Token 1 and Token 2 relative to the stablecoin, assuming one stablecoin is in the pool. When the relative price change of Token 1 to the stablecoin (294%) is very close to the relative price change of Token 2 (291%), the impermanent loss is also low (-4%). When the relative price change of Token 1 to stablecoin (483%) is very different and far away from the relative price change of Token 2 to stablecoin (8%), the impermanent loss becomes noticeably larger (-50%). Single-sided liquidity pools are the best option Although the uneven liquidity pool and multi-asset pool both help reduce impermanent loss from the LP position, they do not eliminate it completely. If investors do not want to worry about impermanent loss at all, there are also other DeFi protocols that allow investors to provide only one side of the liquidity through a single-sided liquidity pool. One might wonder where the risk of impermanent loss is transferred if investors do not bear the risk. One solution provided by Tokemak is to use the protocol’s native token, TOKE, to absorb this risk. Investors only need to supply liquidity such as Ether to one side, and TOKE holders will provide TOKE on the other side to pair up with Ether to create the ETH-TOKE pool. Any impermanent loss caused by the price movements in Ether relative to TOKE will be absorbed by the TOKE holder. In return, TOKE holders take all swap fees from the LP pool. Since TOKE holders also have the power to vote for the next five pools the liquidity will be directed to, they also get bribed by protocols who want them to vote for their liquidity pools. In the end, TOKE holders bear the impermanent loss from the pool and are compensated by the swap fees and bribe rewards in TOKE. Another solution is to separate risks into different tranches so that risk-averse investors are protected from impermanent loss and that risk-seeking investors who bear the risk will be compensated with a high-yield product. Protocols such as Ondo offer a senior fixed tranche where impermanent loss is mitigated and a variable tranche where impermanent loss is absorbed but higher yields are offered. Automated LP manager can reduce investors’ headaches If all of the above seems too complicated, investors can still stick to the most common 50%/50% equal-ratio pool and use an automated LP manager to actively manage and dynamically rebalance the LP position. This is especially useful in Uniswap v3, where investors need to specify a range to which they want to provide concentrated liquidity. Automated LP managers conduct rebalancing strategies to help investors maximize LP fees and minimize impermanent loss by charging a management fee. There are two main strategies: passive rebalancing and active rebalancing. The difference is that the active rebalancing method swaps tokens to achieve the amount required at the time of rebalancing, whereas passive rebalancing does not and only swaps gradually when the pre-set price of the token is hit (similar to a limit order). In a volatile market where prices are constantly moving sideways, a passive rebalancing strategy works well because it doesn’t need to rebalance frequently and pay large amounts of swap fees. But in a trending market where price continues to move in one direction, active rebalancing works better because the passive rebalancing strategy could miss the boat and sit outside the LP range for a long time and fail to collect any LP fees. To choose the right automated LP manager, investors need to find the one that suits their risk appetite. There are passive rebalancing strategies such as Charm Finance that aim to earn a stable return by using a wide LP range to reduce impermanent loss. There are also passive managers such as Visor Finance that use a very narrow LP range to earn high LP fees, but are also exposed to more potential impermanent loss. Investors need to select automated LP managers based on not only their risk appetite but also their long-term investment goals. Although traditional equal-ratio LP profits could be eroded by impermanent loss when the underlying tokens move in very different directions, there are alternative products and strategies available for investors to reduce or completely avoid impermanent loss. Investors just need to find the right trade-off between risk and return to find the best-suited LP strategy.
BITSTAMP:BTCUSD
by monicaagrizzi9
FARMUSDT, We are in support zone areaHello everybody This analysis has been updated at your request, dear ones. According to chart and previous analysis, the correction exactly done and the price drop from 215$ to 90$ at this time because of the heavy bought and move upwards in sharp candle, the price made support zone area and we expect that the price can rise from here to reach to the target that we shown on chart. But guys, becareful because the market is unstable and everything can be happen and PUT YOUR STOP LOSS BELOW THE SUPPORT LEVEL LOWER THAN THE LOWER SHADOW OF HAMMER CANDLE. If you have question ask us Good Luck Abtin Previous analysis :
Long
by Abtin00
6
$XVS/BTC 4h (#BinanceSpot) Falling wedge breakout and retestVenus is pulling back to 50/200MA support and looks good for another leg-up after, short-term. Current Price= 0.0002292 Buy Entry= 0.0002301 - 0.0002203 Take Profit= 0.0002617 | 0.0002773 | 0.0003008 Stop Loss= 0.0001991 Risk/Reward= 1:1.4 | 1:2 | 1:2.9 Expected Profit= +13.81% | +23.13% | +33.57% Possible Loss= -11.59% Fib. Retracement= 0.5 | 0.618 | 0.786 Margin Leverage= 1x Estimated Gain-time= 3 weeks Tags: #XVS #XVSBTC #Yield #Farming #Lending #DeFi #BSC #BC #Launchpool Website: venus.io Contracts: #BEP20 0xcf6bb5389c92bdda8a3747ddb454cb7a64626c63 #BEP2 XVS-795
Long
by TradingOn
#HDRN added to my position on this dip :)What is Hedron; #Hedron (#HDRN) is a collection of smart contracts that live on the #Ethereum and #PulseChain blockchain(s). Hedron builds on top of HEX to allow stakers to mint and borrow HDRN tokens against their active HEX stakes. Hedron also allows stakers to trade their HEX stakes as #NFT tokens on any compatible NFT marketplace. Hedron has no admin keys and no kill switches. Just like HEX, Hedron is completely decentralized with zero counterparty risk. Increasing amounts of liquidity is coming in on this newly launched #Defi protocol Beware like most new airdrops there has already been lots of early dumpers I have been testing the liquidity with 5 figure sums and the slippage is quite reasonable around 2.3% currently Plenty of reasons to believe this protocol will be here to stay, more importantly with a 3-6 month time horizon these early day prices could prove quite profitable!
HLong
by BallaJi
Avalanche (AVAX) Big Resistance at $100Avalanche (AVAX) like most of the market has been in a slow steady downtrend since November of year. Since then Avalanche has been struggling getting back past $100 and has been trading under the 0.5 Fibonacci level between $60 - $95 since the beginning of this year so far. In terms of Total Value Locked (TVL) in DeFi Avalanche ranks 5th with a total of $11.22 Billion locked. Despite the market crash and volatility Avalanche has held over $10 Billion in DeFi locked since November 2021 and has remained pretty steady. There's a huge resistance for Avalanche at $100 and even though we've had some relief we're still not quite out of this downtrend for Avalanche until we can break past $100. Much peace, love, health, and wealth!
COINBASE:AVAXUSDLong
by peacefuljustin
RUNEUSDT, Its time to take decision ...Hello everybody We backed with another analysis, one of the most powerful project that is working of LP base and want to solve this problem of Defi. Its amazing project but ... According to the chart and previous serial analysis we shown on chart that the price was moving in downward trend and until its not get out of this downward trend the price can reach to the lower price and now at this time we impact to the resistance zone and the key point level if the price can break this zone and pullback to it and continue it movement the price can temporary move in upward trend and the target that we shown on chart is on our way but if the price can not break this resistance level the price can drop to re-test again the support zone and if its not support in there it can drop more . Previous analysis : Observe to you capital management and if you need any help send us messages, our team will answer you as soon as possible. Good Luck Abtin
Long
by Abtin00
6
GREATEST BUYING OPPORTUNITY FOR THORCHAIN! - $RUNE ANALYSISChart above us is what we call a Fifth Wave Extension Impulsive move. Basically a fifth wave extension impulse move has the fifth wave to be the longest of the 3 impulsive moves to the upside and wave 3 to not be the shortest, which leaves us with wave 1 being the shortes of the three At the End of a Fith wave extension move, Price usually retraces the entire move, i.e from the start of the fifth wave to the end of it, which means we can expect a 100% retracement. However, it also says that Wave 5 always retraces 61.8% which RUNE hasnt done so far and would have us our first buy orders at the 61.8 region before even dreaming of a bottom (tho i bought some at support on the dip) We can place orders at the 0.764 fib support region as there was a lot of volume traded there, and should hold as support and as a worst case scenario as seen below Note that in a fifth wave extension, it is very important that there is no overlapping. Should note also charts like this are a reason I'm still bearish on Bitcoin. check out the Bitcoin analysis below. If you agree, pls leave a like and share your thoughts in the comments. Feedback is always appreciated.
RShort
by RektMyMom
2