For those that follow me on twitter, you would have noticed I have been posting some cross-chain stuff, today we hit a rather big product milestone that we will be rolling out over the next few weeks, so I wanted to finally take a pause, and take some time to explain what this stuff actually is.
Lets start with wrapped BTC (wBTC). wBTC is cross-chain BTC. You deposit BTC on Bitcoin to a wBTC custodian, once the wBTC custodian receives your funds, they can mint wBTC and send it to you. That simple. Send BTC on Bitcoin to party A…
I did not understand tranches. I’ve heard about them, I know people are excited about them, but I did not understand them (I’m still not 100% sure I do), but having spent some time researching and reviewing Saffron Finance, I wanted to do a write up, to both articulate my understanding, and if by some miracle I am right, then hopefully help others understand it as well.
Yearn blazed the path for community run and developer first open collectives that acted as Badgers blueprint. With the acceleration of our core product, Sett Vaults reaching $2B in total value locked, we need be moving in lockstep with protocols like Yearn.
Today we’re excited to develop a partnership that will bring our teams together to further accelerate best in class BTC vaults for the industry. This is a step to further secure users funds as we continue to introduce more Yearn developed, maintained and secured vaults to our users.
For Badger it’s imperative that we continue to introduce more…
It has been almost a year since the first time I wrote these words. Any industry has its good and its bad. You leave an industry when the bad outweighs the good. I’m still here, so don’t get me wrong there is good. The purpose of me writing this follow-up is to rant, which I find therapeutic. And also, to let other developers know, its okay, it can be shit. And maybe even, it will be shit. This is only the bad, not the good. Take it in context.
Development takes time, much longer than even you, as a developer…
Single sided exposure, and impermanent loss mitigation. I started down this path with yswap originally. Back then, the idea was simple, introduce a transfer token that represents the USD value of the assets being deposited.
If you deposit 1 ETH it mints 1000 USD and supplies them to the AMM. While in practice this seemed simple, it led to a myriad of potential problems and economic exploits.
7 months later, and roughly ~14 revisions, from yswap, to stable credit, and now Single sided exposure and Impermanent Loss mitigation, or sil.
The core concept is still the same as the original…
First, lets look at the current liquidation landscape. There are two core things;
Most simplistically put, when
debt > collateral a liquidation occurs. So to keep things simple, lets use 100% values.
If you provide 1 ETH as collateral (and for the sake of this article, lets assume 1 ETH = 1000 USD), you can borrow 1000 USD.
If the value of 1 ETH falls to 900 USD, you are a liquidation candidate since
debt > collateral
The mechanism of liquidation can vary significantly from system to system.
In a margin based system (or any system where the…
There are a few mechanisms that can be used for peg management. In this article I will explore some existing solutions;
1:1 Deposit & Redemption (USDT, USDC, TUSD, etc)
Arguably the simplest solution.
Deposit 1 USD
mint 1 USDT.
Burn 1 USDT
withdraw 1 USD. If 1 USDT > 1 USD, minters deposit USD and sell USDT earning profit. If 1 USDT < 1 USD, arbitrageurs buy 1 USDT and burn for 1 USD.
Collateral (DAI, sUSD, etc)
Create a debt position off of collateral and mint.
Deposit 1 ETH
mint 700 DAI. As long as
sum of collateral ≥…
We have released our third iteration of Stable Credit. As we continue to build upon the protocol we have some interesting observations to document.
Instead of continuous interest rates, the protocol collects fees on every deposit, borrow, or repay event. All these fees are taken in the Stable Credit currency. The net result is aggregated yield across all supplied pairs.
Since all collateral is automatically supplied to make the stable credit market, this inherently means that all collateral earns trading fees. Trading fees are collected over and above minting yield.
Interest free protocol loans
Disclaimers: yCredit is experimental. yCredit is not a speculative token. yCredit can be economically exploited.
Built off of the original stable credit, yCredit allows users to deposit ERC20 tokens and receive a 99.5% USD based credit line represented via the yCREDIT ERC20 token.
If you deposit $100 worth of AAVE, you will receive 99.5 yCREDIT. If you burn 100 yCREDIT you will receive your AAVE.
Every deposit, trade, swap, borrow, or repay incurs a 0.5% fee. These fees are distributed to any user that stakes yCredit in the yCredit contract.
yCredit above peg
If yCredit is above peg, users…
Not sure how many of you out there have put together a business plan and tried pitching to VCs. One of the key questions (other than who the team are), is “who is your target demographic?”. This is such an easy question to use to weed out who are serious and who are fake. The “fresh out of college with an idea” answer is, “everyone”. …