Deus Ex DAO

Crypto investment community and advisory.

Early-stage venture, tokenomics, product & strategy consulting.

Newsletter:

[Deus Ex DAO @deusexdao]

1/ Deus Ex DAO: Who we are and what we do.

Small 🧵

We're an curated community of ~22 blockchain natives with vast backgrounds ranging from blockchain executives, startup founders and operators, TradFi experts and full-time traders.

[Jim Bianco @biancoresearch]

1/8

Spot BTC ETFs update

tl:dr
* Inflows now outflows
* Holders have record losses
* Advisors <10% of holdings (boomers never came)
* Avg trade size now <$12k.

It's not an adoption vehicle. Instead a small tourist tool and on-chain is returning to Tradfi.

See posts #4 and #8

[Deus Ex DAO @deusexdao]

▶️ Providing DEX liquidity

🌊 Pool
• IPOR-ETH on Camelot

💸 Rewards
• Trading fees
• ARB

Current APR: 288%

[Deus Ex DAO @deusexdao]

Triple rewards are live on @ipor_io

How can you make use of it?
• LP ETH and create a high-yield version of Ethena (50% on IPOR vs 27% APR on Ethena)
• Trade interest rates or the ETH staking rate
• Provide DEX liquidity

Strategies 🧵

[Deus Ex DAO @deusexdao]

▶️ Trading USDC interest rates and ETH staking rates on IPOR

🌊 Pools
• wstETH
• USDC

💸 Rewards
• ARB (25,000 ARB in total)
Your rewards are based on your share of the total trading volume, calculated by notional volume * tenor (duration of the swap e.g. 1 month, 2, 3 mo)

[Deus Ex DAO @deusexdao]

50%+ real APR on your capital, low risk and a hands-off summer and beyond?
Amazing trade idea leveraging @ipor_io on Arbitrum, you can generate over 50% APR on synthetic USD. ! #staking #yieldfarming #DeFi #staking $IPOR

[Nicolas | Gallet Capital | The Trading Alpinist @TradingAlpinist]

#Tradeidea fur June 2024: generate over 50% APR building a Synthetic USD position using @ipor_io (very low risk quasi delta neutral position) using the wstETH mining function powered by IPOR staking on Arbitrum

As I am about to take my fat summer holiday, I am looking at diversifying my delta neutral positions for easy, safe and high APR while not looking much at the screens.
And it is raining yields currently on IPOR.
Liquidity mining on IPOR V2 using Arbitrum currently provides amazing opportunities, boosted by IPOR's LTIPP summer campaign distributing 112,500 $ARB, Lido incentives of 4 $wstETH and 142,000 $pwIPOR.

The trade I am about to describe is similar to Ethena synthetic USD in its logic but the return is much higher and most importantly certain, it embeds a great upside for even higher return, and importantly the centralization risk divided by 4 in comparison to Ethena. In more details, in this trade you will earn cumulatively :
the power of IPOR staking,
the ETH staking rate,
ETH contango rate,
LTIPP ARB incentive
Lido wstETH incentive
pwIPOR incentives

This is for education purpose only, I will make it simple, up to you to decide if you are a Ethena crowd moron or a smart DeFi user.

My current portfolio of passive yield generation includes Pendle PT positions on uniETH and rzETH, Spot vs dated futures basis, opportunistically spot vs perps in GMX (synthetic decentralized USD) and the whole portfolio currently runs at around 43% APR daily. In short the bar is high for diversification, but this trade idea fits the league and will likely stay in the portfolio for the coming year.

The problem: finding the right allocation of $IPOR to delegate against a $ETH staked position (zapped in $wstETH )and hedged by $ETH dated futures to enjoy a delta neutral position on ETH and an extra premium on the basis between spot and dated future.

I have computed the best capital allocation that minimize volatility of the portfolio.
my finding for a capital of $10k
$2310 or 23.1 % in $IPOR to be staked in delegated pwIPOR
$5380 or 53.8% in $ETH to be zapped in staked ipwstETH
$2310 or 23.1 % in $ETH to place as collateral in Deribit
a short position of $7690 in 26jul deribit future contract

in another words, a portfolio composed of 23% IPOR and 77% synthetic USD for at least 50%APR

You do not need to go to a staking platform to generate your wstETH using your ETH, IPOR does it for you using their Zapping function. And that s a blessing, as the whole trade would be tedious to put in place on your own. I have just adjusted the cursor on their dashboard for the desired USD equivalent balances of ipwstETH and pwIPOR after zapping.

Obviously a directional position on $IPOR is inevitable, but
1/each IPOR upgrade is a major support for its ecosystem, and IPOR FUSION looks like a major disruptive innovation in the Asset management space.
2/ when your capital allocation in IPOR is 23% while the APR is over 50% on your capital, it does not really matter where $IPOR is going, I will still secure a fat return even if $IPOR underperform. Nevertheless, optimizing the risk/rewards of such a position still makes sense. The volatility of the trade is diluted enough, such as using a z-score model, the probability to lose money from the direction of $IPOR over the coming year is near zero.
3/ The beauty of the IPOR tokenomics lies in the virtuous circle embedded within the model. While I do not claim to possess the same brilliance as the minds behind it, my implementation of numerous trades based on empirical modeling has shown that the proportions are usually similar, with 20 to 25% in IPOR tokens supporting a delta-neutral position. This low percentage effectively dilutes the risk of the entire high-yield strategy, significantly enhancing the token's utility in generating such yields. Thus, the model inherently supports a virtuous circle.

To create the synthetic USD position, I have neutralized my $ETH exposure by selling futures value 26july on Deribit for the same ETH notional with a x3 leverage. The contango (difference between future price and spot price) is really amazing right now at 16% APR without leverage. A more conservative leverage would not affect the potential of the trade, but x3 leverage for such a shot tenor on futures is fine, i expect in fact this spread to widen more in the short run, so I will probably roll against the next futures dates opportunistically later on. [ note: When @cvex_xyz will go live, I will be able to do the whole strategy fully in DeFi, avoiding the CEX risk. The Synthetic USD will be fully decentralized at that point, i will not rely on a Bahamas or Seychelles moronic traders to sit on those massive derivatives positions praying they understand what risk and collaterals mean, it will be finally programmatic]

I optimized the proportions of my engaged capital (IPOR + stETH + collateral on Deribit) against the volatility of such a portfolio. As usual I use annualized ATR as a less conservative estimation of real volatility. Generating roughly 50+% with a return/risk ratio of 3.3
I am probably a bit aggressive on my weights ratio, emphasizing on the virtuous effect of the IPOR tokenomics. A safer statistical bet (higher risk reward ratio) would eventually favor a lower proportion of IPOR in your combo (17% of IPOR allocation for risk reward of 4.25 and minimum return of 48%). I attached my model results to adjust the IPOR allocation to ones risk appetite
I made the assumption that 25% of the ARB incentive and 100% of lido incentive will be dedicated to that pool. And still I did not factor in my computation : the pwIPOR inventive as an extra bonus on top, and the few extra percent from ETH staking rates. 50% looks like a base case

As usual, get your parents guidance and surveillance

#APR #passiveyield #IPOR #liquiditymining #Staking #iporfusion #wstETH
If you like this post, please share, follow, comment, retweet, DM

[Nicolas | Gallet Capital | The Trading Alpinist @TradingAlpinist]

#Tradeidea fur June 2024: generate over 50% APR building a Synthetic USD position using @ipor_io (very low risk quasi delta neutral position) using the wstETH mining function powered by IPOR staking on Arbitrum

As I am about to take my fat summer holiday, I am looking at diversifying my delta neutral positions for easy, safe and high APR while not looking much at the screens.
And it is raining yields currently on IPOR.
Liquidity mining on IPOR V2 using Arbitrum currently provides amazing opportunities, boosted by IPOR's LTIPP summer campaign distributing 112,500 $ARB, Lido incentives of 4 $wstETH and 142,000 $pwIPOR.

The trade I am about to describe is similar to Ethena synthetic USD in its logic but the return is much higher and most importantly certain, it embeds a great upside for even higher return, and importantly the centralization risk divided by 4 in comparison to Ethena. In more details, in this trade you will earn cumulatively :
the power of IPOR staking,
the ETH staking rate,
ETH contango rate,
LTIPP ARB incentive
Lido wstETH incentive
pwIPOR incentives

This is for education purpose only, I will make it simple, up to you to decide if you are a Ethena crowd moron or a smart DeFi user.

My current portfolio of passive yield generation includes Pendle PT positions on uniETH and rzETH, Spot vs dated futures basis, opportunistically spot vs perps in GMX (synthetic decentralized USD) and the whole portfolio currently runs at around 43% APR daily. In short the bar is high for diversification, but this trade idea fits the league and will likely stay in the portfolio for the coming year.

The problem: finding the right allocation of $IPOR to delegate against a $ETH staked position (zapped in $wstETH )and hedged by $ETH dated futures to enjoy a delta neutral position on ETH and an extra premium on the basis between spot and dated future.

I have computed the best capital allocation that minimize volatility of the portfolio.
my finding for a capital of $10k
$2310 or 23.1 % in $IPOR to be staked in delegated pwIPOR
$5380 or 53.8% in $ETH to be zapped in staked ipwstETH
$2310 or 23.1 % in $ETH to place as collateral in Deribit
a short position of $7690 in 26jul deribit future contract

in another words, a portfolio composed of 23% IPOR and 77% synthetic USD for at least 50%APR

You do not need to go to a staking platform to generate your wstETH using your ETH, IPOR does it for you using their Zapping function. And that s a blessing, as the whole trade would be tedious to put in place on your own. I have just adjusted the cursor on their dashboard for the desired USD equivalent balances of ipwstETH and pwIPOR after zapping.

Obviously a directional position on $IPOR is inevitable, but
1/each IPOR upgrade is a major support for its ecosystem, and IPOR FUSION looks like a major disruptive innovation in the Asset management space.
2/ when your capital allocation in IPOR is 23% while the APR is over 50% on your capital, it does not really matter where $IPOR is going, I will still secure a fat return even if $IPOR underperform. Nevertheless, optimizing the risk/rewards of such a position still makes sense. The volatility of the trade is diluted enough, such as using a z-score model, the probability to lose money from the direction of $IPOR over the coming year is near zero.
3/ The beauty of the IPOR tokenomics lies in the virtuous circle embedded within the model. While I do not claim to possess the same brilliance as the minds behind it, my implementation of numerous trades based on empirical modeling has shown that the proportions are usually similar, with 20 to 25% in IPOR tokens supporting a delta-neutral position. This low percentage effectively dilutes the risk of the entire high-yield strategy, significantly enhancing the token's utility in generating such yields. Thus, the model inherently supports a virtuous circle.

To create the synthetic USD position, I have neutralized my $ETH exposure by selling futures value 26july on Deribit for the same ETH notional with a x3 leverage. The contango (difference between future price and spot price) is really amazing right now at 16% APR without leverage. A more conservative leverage would not affect the potential of the trade, but x3 leverage for such a shot tenor on futures is fine, i expect in fact this spread to widen more in the short run, so I will probably roll against the next futures dates opportunistically later on. [ note: When @cvex_xyz will go live, I will be able to do the whole strategy fully in DeFi, avoiding the CEX risk. The Synthetic USD will be fully decentralized at that point, i will not rely on a Bahamas or Seychelles moronic traders to sit on those massive derivatives positions praying they understand what risk and collaterals mean, it will be finally programmatic]

I optimized the proportions of my engaged capital (IPOR + stETH + collateral on Deribit) against the volatility of such a portfolio. As usual I use annualized ATR as a less conservative estimation of real volatility. Generating roughly 50+% with a return/risk ratio of 3.3
I am probably a bit aggressive on my weights ratio, emphasizing on the virtuous effect of the IPOR tokenomics. A safer statistical bet (higher risk reward ratio) would eventually favor a lower proportion of IPOR in your combo (17% of IPOR allocation for risk reward of 4.25 and minimum return of 48%). I attached my model results to adjust the IPOR allocation to ones risk appetite
I made the assumption that 25% of the ARB incentive and 100% of lido incentive will be dedicated to that pool. And still I did not factor in my computation : the pwIPOR inventive as an extra bonus on top, and the few extra percent from ETH staking rates. 50% looks like a base case

As usual, get your parents guidance and surveillance

#APR #passiveyield #IPOR #liquiditymining #Staking #iporfusion #wstETH
If you like this post, please share, follow, comment, retweet, DM

[Deus Ex DAO @deusexdao]

For deeper insights listen to the episode on

Youtube: https://t.co/MRPhUNaIG8
Spotify: https://t.co/x2ZYpxRO5l

Make sure to like and subscribe to stay up to date.

Thanks to our hosts @ape_rture and our guest @david_enim
from @autonolas

[Deus Ex DAO @deusexdao]

🚨 New podcast alert 🚨

Into The World Of Autonomous AI Agents With Autonolas

We cover:
🔵 What is @autonolas
🔵 How @autonolas helps users
🔵 Speculating on the future of Autonomous Agents

🎧 https://t.co/x2ZYpxRO5l

[Deus Ex DAO @deusexdao]

For deeper insights listen to the episode on

Youtube: https://t.co/jyJaDeDj7c
Spotify: https://t.co/BxdvakFc90

Make sure to like and subscribe to stay up to date.

Thanks to our hosts @ape_rture and our guest @EmilyCryptoJobs
from @Web3Recruit

[Deus Ex DAO @deusexdao]

🚨 New podcast alert 🚨

How To Get A Job In Crypto With The Crypto Recruiter

This episode is for anyone looking to work their way towards their dream job, right through to how to sell and build your brand within the industry.

It's a must listen!

🎧 https://t.co/BxdvakFc90

[Fusion (by IPOR) @ipor_io]

Announcing IPOR Fusion ⚛️, the next stage of development for the IPOR Protocol in becoming the Credit Hub of DeFi.

A meta DeFi aggregation, execution, & intelligence engine, Fusion introduces a unified liquidity framework for on-chain asset management.

[Minswap Labs @MinswapDEX]

Minswap 2024 Report Unveiled! 📊🔥

@deusexdao , a group of tokenomics and strategy experts, have delved into Minswap's liquidity, emissions, and treasury from 2023.

Key insights are below & The Full report in the last tweet ⬇️

A 🧵

[Deus Ex DAO @deusexdao]

We are going nuclear here!

Lets see what the scientist from @ipor_io will send into the cosmos.

[Deus Ex DAO @deusexdao]

Ayo, that's us!

We are always cooking on tokenomics. Great to show some insights off to the public.

[Minswap Labs @MinswapDEX]

Ever heard of @deusexdao ?

➡️ A group of experts specializing in tokenomics and strategy🧠

For the last 3 months, @ape_rture worked on a report for Minswap delving into:

✅ Emissions
✅ Liquidity and Capital Efficiency
✅ Strategy

Set to unveil next week, don't miss out! 🫡

[Deus Ex DAO @deusexdao]

DAOs and syndicates are taking investments into crypto projects more seriously, with more focus on having a legally sound structure or using the right investment setups.

In our latest article we look at how @JoinOdin can help structure pre-sale deals

https://t.co/snvYeaRASh

[Deus Ex DAO @deusexdao]

For deeper insights listen to the episode on

Youtube: https://t.co/PBMwV8hWz7
Spotify: https://t.co/Oa0PsBKLCB

Make sure to like and subscribe to stay up to date.

Thanks to our hosts @ape_rture and @0xCerberus, and our guest @connor_enso from @EnsoFinance

[Deus Ex DAO @deusexdao]

🚨 New podcast alert 🚨

In this ep we cover:
🔵 The working of the intent-focused API from @EnsoFinance
🔵 The complexities of DeFi aggregation
🔵 Holding solvers accountable for quoting best prices

and more!

🎧 https://t.co/Oa0PsBKLCB