This article analyzes how the introduction of THORChain synths affects the risk profile for liquidity providers (LPers). TD;LR Introduction of THORSynths effectively increases LPers’ exposure to RUNE. LPers enjoy profits if RUNE goes up, and suffer losses if it goes down. However, thanks to THORChain’s slippage-based fee, LPers enjoy an asymmetric…

Let’s say you provide 100 RUNE and 1,000 USDC, at the price of $10 per RUNE. After a while, RUNE goes to $60. You should now have these amounts of assets in your LP position: 100 / sqrt(6) = 40.82 RUNE 1000 * sqrt(6) = 2,449.49 USDC Your IL protection…

This article describes how to evaluate fee incomes generated by liquidity provision in Automated Market Makers (AMMs), such as THORChain, Uniswap, and Sushiswap. We take the data below, which came from a random user who participated in the THORChain RUNE/BTC pool, as a case study. Pool size To understand the mechanism of…

I am pleased to announce that my latest project, Hegic AutoStake, has been deployed to Ethereum mainnet, accepting deposits! Website: https://hegic.autostake.co/ Contract address: 0x7388992ADA8F45f92FAA8F439a3F68970fC8A013 For more info on this tool, please refer to my Twitter thread, Medium paper, as well as the website’s “READ ME” section. If you are considering…

Introducing Hegic AutoStake, a pair of smart contracts designed for @HegicOptions liquidity providers to effortlessly redeem & stake their yield farming gains. Motivation Liquidity providers of @HegicOptions are rewarded rHEGIC, an IOU token that can be redeemed for the real HEGIC token gradually over 6 months, once the milestone of $100M…