https://twitter.com/mcuban/status/1405306497257586688
The above Tweet is Mark Cuban saying he got hit in the Iron.Finance rug just like everyone else. But instead of running around to regulators trying to whine and cry, he did something about it. Because he stayed on his toes, he was able to secure profit, or at least that's what I'm gathering from the Tweet.
By the way, I was caught in the same rug. Exploit, actually. The stablecoin lost its peg and whales started arbitraging on Sushiswap, driving the price of Titan (the shitcoin) to 0. People lost their ASS. Iron.finance was the darling of the degen community for a few days, skyrocketing from $2 to $60 within days.
The dump took hours. But that's how it goes. The trick is to make so much going up that the small loss on the way down doesn't hurt. And I lost money in the arbitrage dump as well. But I was well in profit because I stuck to the rules I laid out in this post.
Most importantly, Cuban took his lumps like a man and didn't go calling for regulation in the fucking defi space like a lot of you noobs. And that's sad. Because Cuban actually has connections to those dipshit regulatiors. If he said something, they would probably look.
And I'm not saying Cuban won't punk out and start bitching to regulators to occupy the defi space, but I sure hope he doesn't. In the meantime, learn how to navigate crypto before you start putting your life savings in it. Even billionaires get rugged.
As for little old me, how did I keep from losing everything in the debacle? I'll share a strategy I use.
For projects like Iron with a degen pool and a stablecoin pool, I start in the degen pool. So I actually buy the shitcoin, unlike the strategy that most people say to use, which is farm the shitcoin. My thing is this: I'm also considering the contract's technical risk. There's no way I'm putting my hard earned BTC or DOT into a new protocol because it's "safer" not to be exposed to the shitcoin. Bullshit. If you buy the shitcoin, and start in the shitcoin LPs, you expose a lower part of your portfolio value to technical risk.
Because I'm buying the shitcoin, I make sure I get the best buy in price I can. If the shitcoin starts tanking on me, I cut and run. Wait for a new entry or just go into a new project. This is essential — get a good buy in and be ready to cut at any moment.
As the shitcoin goes up, I'm pulling out rewards into the stablecoin pool. I'm also slowly moving my degen pool LPs to the stablecoin LPs. So when Titan hits $50, I have maybe 10% of my degen pool LPs left. Final results: I scored like a 2.5X when the entire move was like a 60X. That's fine with me. I'm not trying to capture the whole damn thing, because I know eventually it's coming down.
And that's exactly what happened. Titan dumped and Iron lost its peg, and the project came crashing in on itself. Fortunately, I survived the Titan dump because I wasn't in the Titan pool by that time. I was chilling almost fully in the stablecoin pool.
After I saw the stablecoin lose its peg, I got my LPs out of the project entirely and closed the trade.
So a few people got a 60X; good for them. A lot of folks got rekt going for that moonshot or thinking that Titan was just going to go up forever. (Saw one pimply faced teenager Youtube channel spell out how Titan was going to make him a millionaire in three months. Did the calculations and everything. Not 6 hours later, that shit was in the trash. LOL) That's why I tell you not to follow these idiots. They do this for every new farm, yelling about it like it's going to last forever.
I'm happy with my 2X because I'm going to exercise the same due diligence on the next trade I put in. I'm not trying for a moonshot. I'm getting my money, not getting greedy, and playing the long game. That's how you profit even in the middle of rug pulls, whale scams and bad contracts. Don't run to regulators like all these dummies on Twitter. Regulate yourself.
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