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macrocephalopod
macrocephalopod
macrocephalopod
@macrocephalopod

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macrocephalopod

@macrocephalopod

Paul Allen, Vice President M&A, Pierce & Pierce (Sie/Hir) | Vegan | Silence is Violence | Women’s Rights Are Human Rights | ACAB (Assigned Cephalopod At Birth)

Joined December 2020

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    1. macrocephalopod‏ @macrocephalopod 16 Jun 2021

      macrocephalopod Retweeted Quantian

      My understanding (dumb, incomplete) is there are three sensible ways to make money in DeFi and then a bunch of “other stuff”. All the sensible ways are providing a service/compensation for risk.https://twitter.com/quantian1/status/1405173556317769733 …

      macrocephalopod added,

      Quantian @quantian1
      I still do not understand DeFi. My best guess is some variant of: 1. You send me $100 (real money) 2. I send you 1 QuantCoin (USD peg) per month 3. After 1 year, I send you back your $100 4. If someone redeems QC, I pay them out of the profits on... idk buying BTC with the $100? https://twitter.com/TheStalwart/status/1405088101450539009 …
      Show this thread
      2 replies 3 retweets 57 likes
      Show this thread
    2. macrocephalopod‏ @macrocephalopod 16 Jun 2021

      1. The money you put in is lent out to leveraged traders, collateralised with whatever they buy with it + a haircut. Prevailing rates are like 5-30% depending on time period and currency. You are taking credit risk

      1 reply 0 retweets 15 likes
      Show this thread
    3. macrocephalopod‏ @macrocephalopod 16 Jun 2021

      2. You deposit two or more tokens into a pool which is used to provide on-demand liquidity. You have adverse selection risk but you are compensated by the equivalent of spread/commissions

      1 reply 0 retweets 12 likes
      Show this thread
      macrocephalopod‏ @macrocephalopod 16 Jun 2021

      3. You stake your tokens in blockchains which operate on proof of stake, so you are contributing to transaction processing and you earn the equivalent of mining fees.

      3:24 PM - 16 Jun 2021
      • 10 Likes
      • bookdepth Sampat Volatility Surface Appreciator Robert Martin Orazio Burns Elmo's Pudgy Penguin Fund (🐧, 🐧) Anthony Lee Zhang
      1 reply 0 retweets 10 likes
        1. New conversation
        2. macrocephalopod‏ @macrocephalopod 16 Jun 2021

          For all of these you can additionally earn governance tokens for participating, which confer voting rights (and sometimes other benefits) and could be valuable because of that. Usually the price of governance tokens is super volatile though.

          1 reply 0 retweets 7 likes
          Show this thread
        3. macrocephalopod‏ @macrocephalopod 16 Jun 2021

          Most of the “other stuff” is variations on the above, usually by adding extra risk or extra leverage.

          2 replies 0 retweets 7 likes
          Show this thread
        4. macrocephalopod‏ @macrocephalopod 16 Jun 2021

          Finally, and hopefully this is obvious so goes without saying, you can do all of the above but put it in THE TRANSMUTER.

          1 reply 0 retweets 9 likes
          Show this thread
        5. macrocephalopod‏ @macrocephalopod 16 Jun 2021

          Someone who knows this please come and correct me @TheStalwart @SBF_Alameda @AlamedaTrabucco @EvgenyGaevoy @0xElm0 @roshunpatel @aaronlammer @tackettzane @dfauchier

          2 replies 0 retweets 9 likes
          Show this thread
        6. End of conversation

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