On the Treasury Budget for Ecosystem Stablecoin Liquidity.🧵1.I have a lot of respect for what what @ElderM is doing and I think that the use of treasury funds to provide stablecoin liquidity is a great “decentralized” alternative to VC that other chains employ.

There are very nice APRs on @MinswapDEX stableswaps provided by @Indigo_protocol and @wanchain_org . I’m looking at you iETH SP stakers (24% vs 4%).

Are you taking advantage of these stableswaps? Should @Indigo_protocol and @wanchain_org continue incentivizing these pools?.

The best aggregator on Cardano is still @SteelSwap.

I challenge you to find a better, less risky, and more reliable yield in crypto.

If a proposal requires making every protocol create custom rules in order to make special accommodations for treasury funds then that’s just a way to cherry pick winners by setting the rules based on what accommodations the preferred protocol(s) can easily make that others can’t.

I have to agree. It’s odd to me that many of the same people who claim USDA/USDM is superior to USDC because Circle could freeze funds (preferential treatment for governments) are the same people calling for special treatment of treasury funds.

RT @iNyorok: 🚨 $iUSD interest rate just hit the minimum: 5% 🤯. @Indigo_protocol algorithmically updates rates every epoch based on protocol….

Maybe give @IndigoPWG a follow.

Split a single user across 500 different accounts and have them trade against each other on the open market with a targeted net buy/sell amount. Now where have I seen this before? Oh yea, the excellent BrainTruffle video on market manipulation!.

People like talking about the sustainability of their favorite protocol. @Indigo_protocol has consistently been on top for revenue generation on #Cardano since they launched v2.

Who saw this one coming?.

Damn, Wanchain’s Cardano bridge is almost 2 years old!.Also, did you know wanUSDC is @liqwidfinance most supplied/borrowed asset outside of ADA and the POL?.

It’s sad how easily everyone follows the red herrings when it comes to drama.

There are a lot of unique stable opportunities on Cardano right now. One is that with the slight over-peg this can be a great low risk entry point to mint and supply iUSD. As the pool balance shifts you can exit some of that position with a bit of extra iUSD.

Going with $USDC bridged from @wanchain_org allows Cardano to leverage the deep liquidity and infrastructure elsewhere that Cardano’s native fiat backed stables simply don’t have. Also, no Wanchain bridge has ever been hacked.

🧵15.then there are options available via @Indigo_protocol that minimize risk which aren’t as readily available for the other stables. For example, consider a variant of this delta neutral strategy, but pairing iUSD with another stable as a LP.

🧵14.stables. It isn't a giant portion of the budget, but it seems excessive for what could be rather minimal work (posting a few limit orders, depositing into an LP) if most everything was done on-chain. If we do want to get into actual management strategies for risk mitigation.

🧵13.limit orders or many small market orders which have little to no price impact. Aside from wording against the bottom 3 stables, a management structure is outlined costing $168k/year (~0.5% of the total budget. every year) which is largely only necessary for fiat backed.

🧵12.If liquidity is the primary goal then why not deploy most everything at once? Little to no long term management needed in that case. If the goal is to minimize the “risk” by DCAing over 1 year then discussions about price impact become largely moot points. You can place.

🧵11.never need to happen. Is this a “loan” meant to be repaid over time? If so, it’s in ADA and not USD so holding reserves in stables puts you at risk of not being able to repay the ADA amount if ADA increases (i.e. the program is successful).