0xWaterfall

tranche the world. tranche your mother if you want to tranche. ok i'm sorry - maybe just defi first. @waterfalldefi $WTF #DEFI

[0xWaterfall @Waterfall0x]

@Waterfalldefi Still hodling #BNB ? These are great BNB yields without the need to put your hard earned crypto in questionable protocols as we only put them in Alpaca and Venus vaults! Extra one off yield for those who deposits them into our junior tranche!

[0xWaterfall @Waterfall0x]

@Waterfalldefi Still hodling #BNB ? These are great BNB yields without the need to put your hard earned crypto in questionable protocols as we only put them in Alpaca and Venus vaults! Extra one off yield for those who deposits them into our junior tranche!

[0xWaterfall @Waterfall0x]

We hope this thread has helped you understand the risks involved in crypto and how to protect your investments. You can read our medium article for a deeper dive: https://t.co/FXos0H2VP9

[0xWaterfall @Waterfall0x]

hello there! While we've been silently building amid a defi winter, the crypto credit contagion serves as a harsh reminder that risks are an inherent part of investing.

So how can you protect your funds in the volatile world of crypto? Here are five tips.
🧵👇

[0xWaterfall @Waterfall0x]

5) Use protocols like @Waterfalldefi for risk tranching.

Risk tranching is a way to divide your crypto portfolio into different layers of risk so that a single loss doesn’t ruin your overall investments.

learn more here https://t.co/IaYlTfxmnn

[0xWaterfall @Waterfall0x]

something we technically have right? @Waterfalldefi $WTF

[no bullshit bitcoin @nobsbitcoin]

NYDIG: A post-mortem on Terra, a pre-mortem on DeFi, and a glimpse of the madness to come

- The only sustainable source of yield is sustainable economic return, which in turn depends on the positive-sum game of employing capital to meet consumer needs … https://t.co/Dvr0ziGVmj

[0xWaterfall @Waterfall0x]

at least we fit into 2 of the aforementioned category! @Waterfalldefi

[David @EffortCapital]

This bear market you should be accumulating projects that hit core ideas:

Abstract away the blockchain (Web 2 UX/UI)

Undercollateralized real world lending

MEV resistant and batch execution trading

Decentralized derivatives

Fixed income products

Privacy

App-chains

[0xWaterfall @Waterfall0x]

@tier10k translation: boomer ratings agency tries really hard to stay relevant

[0xWaterfall @Waterfall0x]

We love for users who havent tried tranching, and wanted to learn more about our products, this is a great opportunity to head to our telegram channel and our website to learn more!

@Waterfalldefi

https://t.co/9m8nDoJX5M
https://t.co/40Qh4ijiEl

10/10

[0xWaterfall @Waterfall0x]

As Junior tranche is exposed to first loss risk, their return is higher (variable), as all the yield generated from the portfolio, net of the fixed yield that needs to pay the upper tranches, are distributed to junior users.

8/10

[0xWaterfall @Waterfall0x]

In markets like these Senior and Mezz tranches that once regarded as (too safe) of a choice is now reaping the benefits of having the seniority protection with fixed yield payout.

9/10

[0xWaterfall @Waterfall0x]

This means in the case of any loss of capital from the portfolio, junior tranche users would be the first ones to absorb the risk while protecting the tranches above it. How much they can absorb depends on how "thick" (size) the lower tranche is.

7/10

[0xWaterfall @Waterfall0x]

I myself have experienced quite a number of rugs during our defi journey, with some significantly wiping out a large % of my savings. I had to learn the hard way of intellectually and mentally trying to not make the same mistakes again.

2/10

[0xWaterfall @Waterfall0x]

users who choose to Senior (or Mezz) tranches would get a fixed yield, and junior tranches would get a variable yield, where Senior / Mezz tranches yields are lower because they have the subordination benefit from Junior Tranche.

6/10

[0xWaterfall @Waterfall0x]

with tranching and diversification, at @Waterfalldefi we create products that compose of different yield farms/pools of the same underlying (i.e $BUSD lending on Alpaca and Venus pool), and we would then "cut" it up into different sections representing different seniority.

5/10

[0xWaterfall @Waterfall0x]

This is where #tranching and portfolio diversification can help. Diversification is self explanatory; tranching, on the other hand, is a financial engineering technique where risk and rewards are paid out based on seniority.

4/10

[0xWaterfall @Waterfall0x]

One of which relates to the concept of #riskmanagement . This is exactly why I have decided to create @Waterfalldefi with my team. Defi moves so fast with so many opportunities, many lose sight of the risks that comes with it, as much as you try to outsmart the market.

3/10