Deposits and loans can be doubled, is it really possible to start with the Internet celebrity comp coin that doubles daily?
Editor's Note: This article comes fromHot Wheels Community (ID: FHBT18), Author: Pepe, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Hot Wheels Community (ID: FHBT18)
Hot Wheels Community (ID: FHBT18)
, Author: Pepe, reproduced by Odaily with authorization.
The exquisite gadget in today's first picture is called "magic wheel". The designer imagines that the ball on one side of the wheel is always farther away from the center of the circle, and the force arm is longer, which can constantly oppress the magic wheel and make it rotate forever go down.
This thing was first popular in the Middle Ages, but in today's currency circle, such small balls seem to pop up every year. Some of them look like cx, and some are packaged exquisitely and elegantly. We usually call them "token incentives" and "Behavioral Mining".
Hello everyone, I’m Pepe. One of the unavoidable topics in the past two days is the Internet celebrity defi platform-Compound. His family issued tokens, and launched a token distribution called "liquidity mining" in the early hours of this morning. The mechanism attracted countless funds to follow suit, and the loan volume of the platform increased by 50 to 60% in an instant:
Also, due to the extremely limited circulation of the initial tokens, platforms such as uniswap and matcha were also instantly hyped up. The comp whose mining cost was at most a dozen knives was copied to 500 knives, and the friends were shocked!
secondary title
Interpretation of loan mining mechanism
I also saw a lot of interpretations this morning. I don’t know if the people who eat melons have figured it out. In vernacular it is:
Money counts, if you have money, you can deposit DeFi, deposit and borrow money to earn coins, deposit and borrow, borrow and deposit, keep playing until hackers come to your door! (Please read in Tianjin dialect here)
The mechanism of Compound is like this, a total of 10 million tokens, except for the project party and the capital side, there are temporarily 4.2 million tokens left, which can be distributed to the public.
https://compound.finance/markets
This is less than 3,000 coins per day, and will be distributed to users who deposit and borrow in the network according to a certain algorithm mechanism. That is to say, if you deposit a sum of money, you will start to get a proportion of the entire network from the next Ethereum block. Shares accumulate until you withdraw.
The specific allocation of coins is currently 50% for deposits and 50% for loans. In addition, the deposit and lending rates of different targets will be different, and there will be a little difference. For the same value of money, the higher the interest rate, the more comp will be allocated.
image description
The picture above shows the deposit and loan amount and interest rate of various targets on the platform. Currently, U has the highest interest rate, so if you deposit or lend U, you will get a little more comp share correspondingly. This design also has Reasonable, because it is a DeFi platform, the interest rate of other companies can only be dynamically adjusted according to the supply and demand of the platform, and the target of an increase in the interest rate indicates that there is a lot of demand at this time, so increasing the incentive share can increase the supply, so as to balance supply and demand.
secondary title
How much can Comp mining earn?
According to the above principle mechanism:
Deposit income = platform deposit interest + the value corresponding to the share obtained by comp during this period
Loan income = value corresponding to the share acquired by comp during this period - loan interest
The picture above is a profit chart published by Mykey staff this morning. If you deposit 10000U, you can get almost 0.2COMP in addition to the interest of 1.73u this morning. If you calculate it at the current price of about 100U, it is still very impressive. .
http://www.predictions.exchange/compound/
This is just saving, and borrowing can get higher returns. The picture below is the estimate posted by another overseas brother this morning:
Calculated at the price of $60 at the time, the annualized rate of saving U was 180%, while borrowing U, even if the 19% interest was removed during the same period, there was still an annualized return of 196%, which was higher than that of depositing.
Of course, this annualization, just look at it, today is only the first day, not many people come to mine, there are some early bonuses, more and more funds will come in later, and more and more people will come to share the benefits If there are too many, the amount that each investor can get will gradually decrease, so the annualized income of deposits and loans will also be a process of gradual decay.
To calculate this income in real time, there is currently a tool overseas:
You just need to fill in the amount of deposit and loan, and then press the button marked by the red box in the above picture, and an approximate calculation will be given, as shown in the figure below is an annualized calculation for depositing 1000U:
Deposit 1000U, if the external conditions remain unchanged (actually it will change), you can get about 10.46 Comp a year, and the annualized rate is 105.82% based on the current price of $100. Similarly, you can also look at lending:
There is interest in lending 1000U. Converting this interest to each COMP is currently 7.7 knives, that is, if you lend out just to collect coins, when the market price of comp is less than 7.7 knives, your transaction is not worthwhile up.
Prepare two or more accounts, and do mortgage lending multiple times, because the share will be calculated by the system each time. For example, you can get 750 DAI by mortgaging 1000USDC, and then mortgage this DAI to get 562U, so the calculated share here is 1312U.
In this way, the same 1000U loan can obtain several times or even dozens of times the income compared with simply depositing and lending.
The above figure is still the most basic number of ways. In the third step, you can replace U with USDC and then mortgage repeatedly. It can be cycled 4-5 times. A third-party app overseas has already calculated this, and the maximum is four Double leverage, COMP's income is 21 times that of simple borrowing.
Of course, we don’t really recommend this maximization. At most, we can add a small leverage like the previous one. First, the above calculations are idealized. If the capital is small, the round-trip handling fee will eat up a lot of profits. , and the other is that even if it is a stable currency, adding leverage will not guarantee that there will be no risk of pin insertion, and the above mechanisms of this thing have also been seen. It is a job that needs to be put in it for a long time to be profitable.
secondary title
Comments on comp and liquidity mining
Based on the above, don’t look at this kind of popularity, but it’s actually not as big as it seems on the surface.
One is that the income of your comp gradually decreases with the increase of the amount of funds on the platform, and its interest rate cannot be exaggerated like the capital market, so that it will pay back in a few days in the early days. After a long time, the risk of borrowing and the risk of the price of comp falling are all to be considered.
The other is that many people say that it may be quite suitable for those who already have long-term positions, which is equivalent to 0 credits, but this depends on your trust in the project party, and the funds are all in smart contracts. This is different from centralized It's not the same. If there is any problem with the centralization, you can still roll back. If you are unlucky, you can really make a mistake and become eternal hatred.
On the other hand, the pot of Ethereum handling fees determines that it is not suitable for small funds. For example, as mentioned above, we can deposit DeFi when we have money. -1U handling fee, after one operation, you may lose one month's interest. Here, it is recommended to put more than 5000U-10000U at one time, and it must be spare money that is not distressed. I can only say that it is too difficult .
But back to the "perpetual motion machine" we talked about at the beginning, the key to the "perpetual motion machine" of COMP is that the income of the mortgage lending part is higher than the interest rate. With this arbitrage space, there will be capital inflow, and the inflow will be borrowed. As the demand rises, the deposit interest will be increased accordingly, prompting more investors to deposit interest, forming a positive cycle, especially the U of his family borrows without mortgage, and the supply and demand lead to high interest rates all year round.
secondary title
Just like there is no real natural "perpetual motion machine" in this world, because there is always some air resistance. If the game does not end up being zero-sum, it should even be said to be negative-sum (because there are gas fees), That must have an additional incremental market, such as real borrowing users or other needs.
secondary title
Are there real borrowers?
Now the increase is more concentrated on several stable coins, that is, through the mortgage arbitrage between several currencies mentioned above, the risk of liquidation of stable coins is relatively much smaller than that of borrowing ether, while normal lending is No one is stupid enough to mortgage 1000U to exchange for 750U of stablecoins, so there may be some illusory valuations on the data, so we need to be cautious.
If this COMP is dug out, it can directly participate in voting and participate in network governance. The following figure is the current voting ranking list:
epilogue
Although the top card is Celebrity Venture Capital, which looks very eye-catching, but the weight distribution seems to have been clearly arranged by the project party. How much do we have to dig to have a say? How many people mine to participate in governance?
Comp coins are hot right now, but look, maybe it will be grin in its first few days, or zec in November 2016. .
