sigmab_
367 posts
sigmab_
@sigmab_
a software writer / liquidity provider / $BTC $HYPE holder
Katılım Ocak 2022
1.1K Takip Edilen1.3K Takipçiler
$90B DeFi sector has been killed by
*checks notes & squints profusely*
"KelpDAO"
Sure thing bro, great thesis 👍
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@TraderNoah What’s a good example of an equity equivalent token in the mid to large cap range? None?
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Token debates back en vogue: tokens are just a reg arb for representing equity at an early stage. Blockchains allow for utility properties to be conferred to tokens in addition to equity.
Utility tokens, etc... are valued based on their utility, which for the most part is demonstrably $0. No point anchoring to sample sizes of <5, or price action from 2021 to steelman why this isn't the case.
No point in tiptoeing around what could make these instruments valuable. I have 0 interest in investing in anything outside of equity equivalents, and same is true for almost all serious investors.
Not interested in debating whether tokenized equity at early stages should exist, but its a reasonable follow up question.
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@AresGodOlympus @TheCryptoNexus relax, it's a copypasta from a linkedIn guy
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@TheCryptoNexus Hard to imagine the pain of being as sidelined as you are
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@SofiaCryptoVibe @solsticefi fact that most of you are farmers with just different size. this fee is simply final extraction, lets see at tge
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People are calling @solsticefi out for charging ~$6.5 to register for the airdrop.
Here's the reality:
~1.4M wallets are eligible. But only ~50K actually put real capital into the ecosystem.
That means >95% is sybils, farmers, low effort wallets.
If you run a "free airdrop" here, you already know the outcome:
→ rewards get diluted
→ real users get crumbs
→ everyone dumps anyway
We've seen this playbook too many times.
So what is Solstice doing differently? A small one. ~$6.5. Not big enough to stop real users. But big enough to break sybil economics at scale.
Unclaimed allocations don’t disappear. They get redistributed to those who actually register.
$6.5 might be the cheapest filter between you and a much larger allocation.
AND I LIKE IT !
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@LuffyJournal @infinitybanyan @DeriveXYZ exactly, you can choose to either use leverage or not. it's your choice
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@sigmab_ @infinitybanyan @DeriveXYZ So it’s the same as rysk with leverage to use if you wanted to and more premium without using leverage. That just sounds like an easy choice.
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I'm a @ryskfinance power user. Saw this post and decided to take a look at @DeriveXYZ . If i was getting hosed on pricing/yield I'd be more than happy to switch, it makes no difference to me.
I went and found a mutual strike for a put to sell to compare yield - $28 $hype on April 24.
For 3k HYPE, Rysk quoted me $406 in yield for the period.
Went over to Derive to make the same thing. They don't have the liquidity for that trade in the open market so I went to RFQ.
Advertised mark price was $.45, a yield of $1,350 for the period. >3x that of rysk. However, when I submitted the RFQ, the quote did not get filled. No mm was accepting it.
For Rysk, if it's on the site it gets filled.
So time passed... 6 mins. 10 mins. after 12 mins i submitted an additional RFQ for 1000 HYPE, thinking they may fill smaller orders.
After 30 min the first quote expired. No offer. They could not fill 3k hype.
1/3
KoolKrypto@koolkrypto223
I'm going to keep making this PSA, but selling vol through @ryskfinance is ALWAYS negative expected value regardless of the result of your trades. Calling it "no risk" to sell puts on a 80+IV asset is just irresponsible too. To sell 300 $33 $HYPE April 24 puts, Rysk is paying you $242, or $0.81 per. $HYPE has a 30d realized volatility of 82%. Plugging the Rysk premium offered into Black Scholes options pricing, they are paying you as if $HYPE were a 58% implied vol asset (close to BTC). If this paragraph made no sense to you, probably don't sell options. On @DeriveXYZ you can execute the exact same trade and get paid $410 in premium, or around 77% implied vol. You also need 1/5 the initial capital to do it. If you are bullish $HYPE, just buy $HYPE now, or set limit orders at $33 in case we wick down there. You are not getting "paid to set limit orders" because you have none of the upside if it does wick $33 and bounce. You're just getting farmed for selling cheap vol (usually at ~40% discount) if you use @ryskfinance.
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@LuffyJournal @infinitybanyan @DeriveXYZ if you put 100 HYPE as collateral for a call of 100 contract, then no liquidation
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@sigmab_ @infinitybanyan @DeriveXYZ If you put 100 HYPE for a call of 100 contracts wouldn’t there be no liquidation risk it would be the same because there’s no leverage used? Or you have to use leverage?
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@infinitybanyan @LuffyJournal @DeriveXYZ "No liq risk for rysk." - agree, but your capital will be locked up and much less premium.
no right no wrong, just active vs passive position management
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@sigmab_ @LuffyJournal @DeriveXYZ No liq risk for rysk. But yes HIP-4. Is that really launching soon or ppl just speculating
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@infinitybanyan @LuffyJournal @DeriveXYZ it's still, because at same strike, same expiry, we face same price risk but I collect doube premium than you
anyway, upcoming hip-4 will give us an interesting options setup, might no longer need to use neither rysk or derive
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@sigmab_ @LuffyJournal @DeriveXYZ If you’re happy with either outcome of the option it’s not possible to be -ev no matter what they tell you
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@infinitybanyan @LuffyJournal @DeriveXYZ yeah, I think rysk is easier for newbies, while derive is more for pro that offer a lot better pricing and flexibility
I guess after you understand options, you will realize that trading on rysk is -EV since they quote like a half price, that spread is a part of their profit too
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@sigmab_ @LuffyJournal @DeriveXYZ Jfc yea I didn’t need to add liq risk on top of my capital and contract risks im not a pro trader glued to my comp
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@infinitybanyan @LuffyJournal @DeriveXYZ i can even put that 70 hype into lending protocol, or whatever
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@infinitybanyan @LuffyJournal @DeriveXYZ only 30 hype still there, 70 hype is outside in my wallet, just to be ready to top up if needed, otherwise, no need
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@infinitybanyan @LuffyJournal @DeriveXYZ for reference x.com/sigmab_/status…
this is my favorite setup, I only need to keep portion of capital in derive (and add if needed). plus I can close position earlier, so that no lockup
sigmab_@sigmab_
most of time i will let it expire, unless I change my view and position is in good profit to close ealier. I don't get your next question, but lets say you wanna setup a covered call on 100 HYPE, you can just deposit about 30 HYPE to derive & sell 100 call contracts and keep 70 HYPE outside for safety
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yes, you need to monitor your margin and add if needed (same as trading perpetual)
and yes, if price moves to $35, you might need to top up collateral to keep position healthy. sometimes if theta decay enough, your position is still in profit (even at $35) and you don't need to do anything
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By liquidated you just mean at expiry if price is above/below where needed you lose it or do you actually need to monitor liquidity and potentially add margin while the trade is ongoing?
Like if I sell at put at $30 for end of April and price is $37 currently if it moves to $35 and I had a high collat ratio am I at risk of liq even though price is nowhere near?
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most of time i will let it expire, unless I change my view and position is in good profit to close ealier.
I don't get your next question, but lets say you wanna setup a covered call on 100 HYPE, you can just deposit about 30 HYPE to derive & sell 100 call contracts and keep 70 HYPE outside for safety
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@infinitybanyan @DeriveXYZ btw $HYPE is still a niche market, $BTC and $ETH are quite comparable vs CEX
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@sigmab_ @DeriveXYZ Interesting would’ve thought short dated to be more liquid.
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@LuffyJournal @infinitybanyan @DeriveXYZ it's leveraged, that's why it's much better capital efficiency vs rysk.
and yes, you will get liquidated if price against you, so need monitoring
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@sigmab_ @infinitybanyan @DeriveXYZ Is that leveraged or fully collateral 2k Hype? Do you get liquidated?
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@infinitybanyan @DeriveXYZ yes, long dated is alot more liquid and much better IV (100% vs 70-80% on short dated), I can quickly fill with 500 hype each order
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@infinitybanyan @DeriveXYZ I have been using derive to trade, my size is around 2k HYPE size, you gotta split into small orders to get filled, plus long date option is more liquid
whatever I agree that their discord is suck
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side note, for the @DeriveXYZ team - i genuinely hope you take what i'm about to say to improve UX.
no liquidity on your app, can't make trades.
I tried to withdraw after complete usage failure, was taking way too long so i went for help.
your discord is literally nothing but scammers falling over one another to get you to click on links, dming you. none get banned/removed. one genuinely almost got me, he posed as a team member and was polite and knowledgeable, and had a half decent explanation for a fake solution to get my PK. if I was a noob i 1000% would've got drained.
your docs (withdraw escape hatch function) are outdated, incomplete, and unhelpful.
it's been 7 hours and still no answer on a discord support ticket your team, or from your website's live chat (which says, "usually responds within 10 min").
my entire experience in your ecosystem was complete dogshit, top to bottom.
Meanwhile I can dm the Rysk founder on tg on a whim and he answers (thanks @DanDeFiEd 🙏)
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@delucinator just wonder why not run delta-neutral to collect funding fees on Hyperliquid?
With Portfolio Margin enabled, return is good, and you can lock in yield via Boros too if you're worried about funding fluctuation
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I'm lazy and tapped out, would like some help in keeping up to date
Is there any farm that isn't risk correlated with Ethena? Would like the answer with/without Aave<>Ethena risk and amongst the ones that have that risk what looping strategy has the highest net yield atm
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