Uniswap Liquidity Plunges as Sushi Migrates Successfully
September 9, 2020 8:09 pm
Do repost and rate:
Some guy is earning a London house or a nice lambo every single day by defi-ing across numerous dapps.
An initial deposit two months ago of 21,699 eth ($8.1 million) has been turned into total assets of $21 million with his net worth rising by $2 million in the past 48 hours.
We can’t easily see how his wealth has changed, but it’s of course all on the blockchain if you want to go through it manually.
There’s a portfolio manager however called Debank that gives some nice overview where we can see what he is currently doing.
You can see at the top the estimated daily interest earned is some $240,000 and he has to pay only $400.
That’s for a dai loan after collateralizing some eth, with half of his assets being in sushi of course.
Sushi was giving some 10% a dai in sushi tokens which had its own price rise and rise until recently.
The migration has been successful so he is now providing liquidity which still gives him sushi, but at a very reduced rate prior to migration.
The other half is in Swerve, Compound, Balancer and Uniswap, but on Uniswap it seems to be a joke amount for a meme token, with much of the rest on Swerve.
Swerve is a fork of Curve with it insta gaining some half a billion in liquidity maybe because Andre Cronje is behind it, or not, we don’t know, they all deny it.
The returns here seem atrocious really. If you put in $100 for example, you might get 0.1 SWRV in a day or two, that being about a dollar or so.
So about 1% a day. Nothing for small amounts, but quite a lot if you have some millions to play with.
Then on Compound we can see where he borrowed the dai. He seems to like living dangerously because the collateral ratio is just 170%, slightly a bit more than 150%.
However, he clearly has a lot more assets he can call upon if price moves against him and he may well have that automated with a bot potentially managing this.
It apparently took just a week to code yETH, so the solidity boys are the new wiz kids now, creating bot workers from nothing at their command to manage their wealth.
As with most coding languages, solidity is relatively easy to learn, but of course you won’t be able to learn it in a day, week, or month, to the level where you can just will a bot workers army.
You most likely can however with a year, and considering digital immutable code ordered investment management may well be the future, it is most likely the best investment you can make even if in your day course you study finance or literature or how to make burgers at McDonalds.
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