*** OFFICIAL Going FULL RETARD On DeFi Thread ***

[Rick Sanchez]

Oh and if anyone cares, I'm in for $16.1k and started a couple days ago. Currently up +$1.2k

[Rick Sanchez]

absolutely fucking glorious and thank you for any / all wisdom you can dish out about this. very, very interested.

I am still very much a noob myself, but here are the broad strokes as I understand them:

1. This particular flavor of DeFi is on the Binance chain. This means that instead of all of the tokens being based on ETH and being expensive as fuck to transact, they're based on BNB. About 12 cents per transfer today.

2. Each exchange (such as Pancakeswap and Bunny) have their own tokens. You are generally incentivized to use these for swapping, staking, providing liquidity, etc.

3. You will also pay a small fee to the exchange for swaps. But you can also "be the bank" and collect these fees if you provide liquidity. For example you can add BNB and CAKE (has to be equal amounts of each) to the pool, and receive a % of all BNB<->CAKE fees. The more you pool, the higher this % is.

4. These pools will naturally be rebalanced by arbitrage seekers. There are no market makers here offering prices, the coin pairs are simply kept proportional. Because of this you always lose (relative to just holding) if either coin goes up in value relative to the other. This is called impermanent loss.

5. Impermanent loss is (hopefully) compensated for by the rewards and fees you collect.

6. There is no impermanent loss on single-token vaults, you're just collecting interest and riding the waves of price fluctuation

This is probably not the most helpful way of describing things, but I'm happy to point to resources if anyone has questions about any of the above

[simp2]

google translate : crypto talk --> english

[sonatine]

absolutely fucking glorious and thank you for any / all wisdom you can dish out about this.  very, very interested.

[Rick Sanchez]

The yield farming APYs are currently as follows:

CAKE-BNB: 85.74%
WIN-BNB: 283.94%
PNT-pBTC: 671.01%

The CAKE vault on Pancakeswap is 139% at the moment, which as you can see is strictly worse than the 207% available on Pancakebunny. I discovered that later, and will reallocate after the vesting clock expires tomorrow.

[Rick Sanchez]

After many tragic misadventures on the Ethereum Mainnet, outrageous gas fees, and minimal research, we're finally up and running in the wild west of decentralized finance.







To be continued...