With Wonderland we have been working on restructuring the Governance Framework, Treasury Management framework and full rebranding. New token too… to allow a smooth transition into building utility for it.
The Orderbook DEX is one of our long-term projects in stealth. We have been working on a new, innovative design that will allow users to have a completely chain-agnostic DEX, built on an order book model. We think this could revolutionize how we all trade crypto.
One of the most exciting parts about JIT is that it can be paired with Fragola range adjustments to further reduce IL. Doing so will help minimize trade slippage, which will ultimately boost Fragola performance. More APY!
The prototype for our JIT engine has already been developed, and we’ve been testing it for several months. Before pushing it to production we want to make sure everything is working as intended, but expect it SOON™.
Two ideas that have captured our attention: Just-in-time (JIT) LPing and Orderbook DEXs. These two products will be the topics of future threads, but let’s dive in briefly.
(if you don’t know about JIT, you should) coindesk.com/layer2/2022/02…
Limone hasn’t yet found product-market fit and we’re continuing to experiment. DEXs are consolidating and farming opps have dwindled during the 🐻. We will continue to release new pools, but will begin focusing on new ideas and ways to make@PopsicleFinancee stronger.
We want to double down on Fragola. Right now, its biggest weakness is PnL tracking. It’s difficult for users to break out gains and losses from IL, rewards, and swap fees. We need your help! If you know of an analyst who can help us track Fragola returns, drop a comment.
Last summer, new DEXs were popping up every week. As fragmentation grew, users had to manually move LP tokens from DEX to DEX to take advantage of farming incentives. Limone fixes this. Our contracts let us deploy user LP to the highest yielding DEX without any intervention.
Uni v3 is an exciting innovation but one that is overshadowed by the additional complexity that LPers face around setting LP ranges. Fragola fixes this. We use strategies to automatically optimize LP ranges that maximize your yield.
A deep dive 👇🏻twitter.com/0xDanger/statu…e8
Much of DeFi is still unsustainable, relying entirely on new money coming in (ponzi) or inflationary tokens that will run out before the next cycle. It’s easy to sweep these flaws under the rug during a bull market, but they’re impossible to ignore in the bear market.
Going forward, we will adjust our take rate based on the yield we produce vs. competitors, the underlying risk, and the cost of pegging $MIM. For Stargate, we are taking 50% commission. This may seem high, but with 20x leverage on an 8% USDT strategy, users still net 80%.
When $UST collapsed, we were left with $12M of bad debt on our balance sheet. Lesson? Our prices did not reflect the underlying risk we were taking. We should have been charging more during the good times so that we are able to survive the bad times.
When we launched the $UST strategy, users were farming with 100%+ APY. Cauldron top-ups were instantly snatched up by bots and degens. This was a sign that demand was much higher than supply. Lesson? Our prices had to be adjusted to find balance between supply and demand.
Abra continues to produce the most incredible yields in DeFi. Yesterday, we refilled our Stargate USDC and USDT cauldrons. Both were depleted within an hour.
This reminded me of our famous (now infamous) $UST strategy. Some lessons learned and changes we’re making 👇🏻
The MIM-3pool is currently sitting at slightly more than $150m in TVL (66% MIM, 34% 3crvs), and $MIM is trading at $0.999. We will be increasing the allowances on a handful of cauldrons, starting with Stargate USDT and Stargate USDC.
While many are choosing to FUD, we are choosing to build.
Our devs have been working behind the scenes to roll out an upgraded cauldron smart contract that lets us adjust interest rates on the fly. We can now incentivise users to repay their loans faster if $MIM depegs.
One important lesson we have learned through these depeg events is that our loan parameters must be dynamic with respect to the $MIM peg. The farther away $MIM is from $1, the more these parameters, like interest rate, will need to be adjusted.
In the last year, the $MIM peg has been tested several times, but each time, the arbitrage mechanic has worked to push $MIM back to $1.
We can also see that these events were caused by an imbalance in the MIM-3pool liquidity due to an increase in market uncertainty.
This creates a natural arbitrage mechanic for borrowers on Abracadabra. When the price of $MIM drops, it becomes advantageous to repay borrowed $MIM. For example, if $MIM trades at $0.95, then swapping 95 $USDT gets you 100 $MIM, and pushes $MIM price up while doing so.
As people borrow $MIM and swap it for other stablecoins, the $MIM price will decrease relative to its natural $1 peg.
On the other hand, as people swap stablecoins into $MIM (to repay their loans), the $MIM price will increase.
The price of the $MIM stablecoin is decided by the market and, most of the time, fluctuates slightly around its natural $1 peg.
The main $MIM market is currently the MIM-3crv pool on Curve finance, where $MIM is priced against 3crv tokens i.e $DAI, $USDC and $USDT.
2022 is shaping up to be one of the most turbulent years for crypto and especially for DeFi.
Optimism across crypto has evaporated and trust is at an all-time low.
Despite all the chaos, $MIM has shown huge resiliency and has proven that our product works.
A 🧵 on $MIM👇🏻
The number of DMs I got about this 😂
Lads MIM isn’t UST it’s backed and tons of it is minted against like eth and stables
It does not have the best mechanisms to hold peg but it’s not going to 0 or anything like thattwitter.com/crypto_condom/…H
This is a 💩 take so Im calling it out. First, I dont own $SPELL, but@MIM_Spelll is sound & I still use it.
Let's fact ✅:
1⃣ Abra has $480M TVL to $300 MC
2⃣ Bad debt is $12M per@parsec_financee
3⃣ Even if you're an idiot you should know this means insolvency isnt happeningtwitter.com/AutismCapital/…hT
@AutismCapital treasury has more money than the debt and $CRV are valuable for the protocol. You can spread FUD try to recover your losses from shorting a bit but this strategy won't do good to your capital. We had issues with analytics for a while before this. Plus Luna airdrop . Byee