BC CRYPTO
Saved by @Shubham51ngh

We're in the phase of the market where there's a lot of retail inbounds but not enough education about the Ethereum ecosystem and DeFi.

So, let's break down the basics of some of the top protocols.

First on deck: Aave (@AaveAave), an Ethereum-based money market protocol.

A 🧵

 TL;DR: Aave is a protocol through which any user anywhere in the world can take decentralized loans by collateralizing their assets.

Aave also allows those will idle assets to earn a relatively safe return on capital from lenders, whose rates are determined by a curve.
1/ For years, most crypto assets had no indirect or direct utility.

Users would hold BTC, ETH, and other assets (including many ERC-20 tokens) with no expectation of a native yield or dividends.

ETH, for instance, was long just an asset for transaction fees, as was Bitcoin.
2/ If users wanted to borrow against their assets, they were relegated to centralized platforms—which were few and far between years ago.
3/ Aave, formerly ETHLend, is a protocol allowing users the ability to lend and borrow on-chain, without KYC and untransparent fees.

Users can deposit a variety of assets as collateral, then use that collateral as ammo to borrow other assets to be used in DeFi or beyond.
4/ Today, Aave supports a handful of Ethereum-based assets, including but not limited to stablecoins (USDC, DAI, USDT), Ethereum itself, DeFi blue chips (UNI, YFI, SNX), Wrapped Bitcoin, and a number of other assets.

Loans are *overcollateralized*.
5/ There are two core buckets of users of Aave:

1. Those looking for steady, relatively safe yield on idle assets.

2. Those that want to leverage their assets by borrowing against their holdings, then trading and spending the loan to achieve utility beyond the rate they pay.
6/ For those in the first bucket, the user flow is:

- Find idle assets that can be lent out on Aave
- Deposit said assets
- Earn a per-block, pro-rata interest paid for by those that borrow your assets (assets are pooled, then used) from the protocol
7/ For those in the second bucket, the user flow is:

- Find inactive, useless asset
- Deposit it into Aave
- Enable it as collateral
- Borrow desired assets from protocol
- Use borrowed assets for trading, yield farming, spending, etc.
8/ There are a few use cases with borrowing on-chain. Let's explain a few.

Shorting:

A user can borrow an asset from Aave, sell it, buy it back when the price is lower, then pocket the delta.

This works because the loan is denominated in the asset(s) borrowed.
9/ Earning a yield on any asset:

ETH natively does not produce yield.

It can be used as collateral to borrow assets that *can* earn yield.

Assuming you can earn 15% on USDC and borrow @ 5%, borrowing USDC at a 200% collat. ratio will allow for an effective yield of 5% on ETH.
10/ Spending:

Say a user is holding Wrapped Bitcoin and wants something on-chain or IRL, though doesn't want to get rid of their WBTC exposure.

A user can collateralize their WBTC, buy what they want, then pay back the loan with income or other assets to reclaim their WBTC.
11/ Now that we have some use cases out of the way, let's take a look at flash loans.

Aave pioneered flash loans, a concept where anyone can borrow any amount of capital within a single block for a number of use cases.

Did a thread here in the past.

https://t.co/FRn5Pj2TFk
12/ Due to inefficiencies in the market, users can borrow large chunks of capital from Aave within a block, to balance the price of assets between different exchanges, along with other use cases.
In the above transaction:

- A user borrowed 2,048,000 USDC from dYdX

- Traded that USDC for 2,028,367 DAI in Curve's Y pool

- Traded that DAI for 2,064,182 USDC in Curve's sUSD pool

- Paid dYdX back + 2 wei

All in one block...

Profit: 16,182 USDC
Cost: $60 in gas
13/ Now, a look at a few of the mechanics of the protocol to help contextualize how Aave works.

I'll cover:

- Interest rates
- Terms
- Liquidations
- aTokens
14/ Interest rates: Aave's rates on the lender and borrower sides are determined by a curve.

The more an asset is utilized, the higher the rate lenders earn and borrowers pay.

The borrow rate is always above the deposit rate.

Here's the borrow rate model for USDC / USDT.
15/ Aave has the added component of a "stable" borrowing rate.

To mitigate unexpected spikes in utilization affecting the rate one pays on their loan, users can lock in a fixed rate, so they can manage risk properly.

This rate can readjust based on market conditions.
16/ Terms:

Aave has a number of loan terms that dictate how much one can borrow, at what point they are liquidated, and how much they pay when they are liquidated.

These terms are determined by a risk team, who assess market conditions to minimize risk to protocol collateral.
17/ Liquidations:

Unlike traditional loans, Aave loans are liquidated autonomously when a user's loan-to-value ratio falls below certain values.

A large enough drop in the value of one's collateral will allow users to bid the collateral, sell it, then pocket a bonus.
18/ aTokens: Users that deposit assets into Aave are granted an aToken representing their deposit (USDC -> aUSDC).

aTokens are yield-bearing assets that accrue interest in real time, allowing one to watch their deposited assets grow by block.
19/ These basics aside, Aave, at the end of the day, is a core money lego.

It can be used by other developers to build interesting applications and use cases.

For instance...
20/ @BasketDAOOrg: BasketDAO deposits assets under management into Aave, which creates a yield-bearing index

@APWineFinance: APWine allows users to trade unrealized yield

etc.

aTokens, flash loans, etc. can all be used in tandem with other contracts to create use cases.
Fini/ As always, none of this is investment advice. Please take caution when interacting with protocols on-chain and understand all risks before doing so.

As I said at the start of the thread, this is the first of many.

More to come.

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//Bitcoin \U0001d575ack \U0001f410
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@BTC_JackSparrow
Slow and steady wins the race

Bitcoin is often critized for being slow in everything

But here is the thing: the more you complicate a design early on, the more you push it down a specific road

Get your assumptions wrong, and it's off-road

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0/ The Great Crypto Reversal

Key difference between the '17 and roaring 20s in crypto is that back then everyone was aping a16z and Naval.

Today everyone apes 3AC wanting to be the next Degen.

'17 was an idealistic *saving the world* kind of thing
20s is *me against the world*

1/ The financialization of crypto means more volatility but pretty long ascend to the top.

Multi-year bull and an ATH surprising even to the biggest bulls as the infinite Cantillon "wealth" is pumped into crypto

Crypto becomes the ultimate Cantillon insider circle-jerk.

2/ This will be one the most iconic ideological reversals in history, comparable to Google who was firmly against advertising but turned into the most powerful ad company ever.


3/ This scenario reminds me of the 90s privatization period in the post-socialist countries.

The regime transition allowed the communist party elite to benefit from the wild west form of "capitalism" that ensued, transferring (and multiplying) their wealth into the new regime.

4/ We are far from Satoshi's original vision . But words and intentions of *prophets* were used to manipulate and corrupt all throughout human history and this time it is no
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Vitor Const\xe2ncio
Vitor Constâncio
@VMRConstancio
Tesla just announced that it had bought 1.5 billion dollars of bitcoin and could in the future sell cars in bitcoins. Since this morning both Bitcoin and Tesla are going up in the market. Maybe there is afterall something in the saying that“Bitcoin is Tesla without the cars”1/ 20

Musk is seen as a genius, a true Midas, by many investors and millennials. For them he can never go wrong. He became recently the richest man in the world dur to Tesla stock valuation (+353% yoy). He moves markets and today´s announcement is “kind of legitimise “ bitcoin 2/

Tesla shares attained $870 which represents a Price/ Earnings ratio of 1.747 (!) on the basis of last year´s profits. Apple is at 37 and the S&P firms average is 23 (against a historical average ≈16). Future profits would have to increase a lot to justify a more normal ratio 3/


Tesla has a good product but the question is if it will sell enough cars to get such profits in face of coming fierce competition. However, this is not the question I want to comment upon. It is also not about what may interest the SEC and market conduct…4/

It was not disclosed when Tesla had made this investment. In December, Musk said that Tesla could buy bitcoin, and this was followed by many statements that he supported bitcoin. Bitcoin kept going up & Tesla investment has appreciated. The SEC will look into this 5/
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Meltem Demirors
Meltem Demirors
@Melt_Dem
1/ crypto VC is going through an explosive 🧨 phase

there are big funds (>$500M AUM), a lot of small funds (<$50M AUM), and *tons* of prop firms + angels

i’ve done 15 deals in the last 3 months as an angel + small fund @CoinSharesCo VC.

observations + implications... 👇🏾

2/ the big firms need to deploy in size - $5M checks and up

a $250M fund could do a $5-10M deal every month for two years and still be under-allocated

and there aren’t enough companies raising series B / C / D rounds!!!

every deal i’ve done lately is under $50M valuation

3/ so we see firms competing to take down entire rounds.

a recent series A financing had two firms competing to take down the ENTIRE ROUND, and it eventually got upsized, a LOT.

if a company is putting up user acquisition / growth and a revenue story, it’s highly competitive

4/ most projects and co’s don’t need money tho - why would a founder take 20-40% dilution when they’re banking cash and crypto? so they do 5-10%

so the valuations go up, but available allocations go down, resulting in an even bigger squeeze on allocators who *need* to deploy

5/ add in the onslaught of non-crypto M&A that’s coming, which is culling the herd of investable unicorns

add in the wave of SPACs and direct listings taking later stage opportunities out

there just aren’t enough places to put capital in size rn

what’s a fund to do?
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Rachel "The Doc" Bitecofer \U0001f4c8\U0001f52d\U0001f34c
Rachel "The Doc" Bitec...
@RachelBitecofer
1. IMP ANNOUNCEMENT

I want to let you know when I made the decision to launch @StrikePac & directly get into electioneering I realized I wasn't going to continue issuing "race ratings" & "forecasts" each cycle- OBV that's a conflict of interest!

The hostility & sexism of

2. that world, I have to be honest, makes it very easy to walk away- the misogyny in the top tier of the election analysis community outside of @Center4Politics folks who are awesome & also more accurate than anyone else is intolerable. I'll still analyze politics, political

3. events, issue commentary, write articles, run the pod, go on TV, and generally succeed in ways that drive those men nuts but no, I won't be putting out ratings or "forecasts" anymore. Now, lots of people are asking me "what's going to happen in 2022?" The Midterm Effect, the

4. the long standing pattern of the president's party losing seats in the Midterm happens virtually every single cycle. I believe there are 2 recent exceptions: post-9/11 in the 2022 midterms and 1998 post-Lewinski gate. What I'm trying to do in building @StrikePac is completely

5. redesign/overhaul/modernize & reshape the way that Dems currently approach electioneering. I want to build a new organization with the funds capable of coming into cycle's like VA's 2021 cycle and the 2022 midterm cycle and start to deploy these new methodologies into the
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(1/n)

-Trade timing after 9:45

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It’s underremarked upon that stablecoins accomplish basically all of the original design goals for Bitcoin qua a transactional mechanism (instant free value transfer anywhere), but that nobody cares about this because nobody ever cared about that part of the pitch.

“Why do people care about stablecoins then?”

A mix of “they encourage dollar-denominated liquidity in the cryptocurrency ecosystem and discourage withdrawal of the same” and “they’re good for money laundering.”

“But they make value transfer between exchanges much faster!”

This was a solved problem in traditional finance, too, mostly through the extension of credit. (It doesn’t matter how long settlement takes if there is sufficient trust to enable credit.)

The Bitcoin ecosystem is *positively allergic* to credit, so you have to call it a coin for them to accept it. And after you call it a coin they ignore everything the world has learned about credit, like risk management.

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Joey Tawadrous \U0001f1ee\U0001f1ea
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Big companies can take months/years for even the smallest of pivots.

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Four hours south of Aswan in Lower Nubia, right by the Nile, is a region dotted with temple complexes built more than 3,000 years ago. Some like the temples of Amada, Derr, and Beit el-Wali go as far back as 1500 BC.


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A little further south, not far from the border with Sudan, is another complex dedicated to Ramses II, Hathor, and Nefertari in the village of Ipsambul, better known locally as Abu Sunbul and internationally as Abu Simbel. These go back to the 13th century BC.


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Djeser-Djeseru, also known as the mortuary temple of Hatshepsut in Upper Egypt also dates to 1400 BC. Over 500 years older is the nearby Mentuhotep II, also a mortuary temple. Both were dedicated to the cult of Amun Ra, besides their respective pharaohs.


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5/102
Dating from the same period are the limestone megaliths of Ħaġar Qim and Mnajdra, both said to have once hosted ritualistic sacrifices as part of the same fertility cult worship as found in the Ġgantija complex. Malta has some of the oldest temple complexes in Europe.
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@HiteshAwasthi89
Bhu Varaha Swamy Temple

Bhu Varaha Swamy temple is a Hindu temple, located at Srimushnam, in the South Indian state of Tamil Nadu. Constructed in the Dravidian style of architecture...


the temple is dedicated to Varaha (Bhu Varaha Swamy), the boar-avatar of the god Vishnu and his consort Lakshmi as Ambujavalli Thayar.

The temple had contributions from Medieval Cholas of the 10th century with later expansions by Thanjavur Nayak king Achuthappa Nayak.


A granite wall surrounds the temple, enclosing all the shrines and the temple tanks. There is a seven-tieredrajagopuram, the temple’s gateway tower.

Six daily rituals and three yearly festivals are held at the temple, of which the Chariot festival....


celebrated during the Tamil month of Vaikasi (April–May), being the most prominent. The festival also symbolises Hindu-Muslim unity in the region – the flag of the chariot is provided by Muslims; they take offerings from the temple and present to Allah in the mosques.


Source & Pic credit : Anusri
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