I'm kinda just starting in all of this so I'm really not sure which direction I'm leaning. I just have a bunch of ETH sitting in my Trezor and was wondering if I should be putting it to use instead

Wow, I keep hearing about these crazy yields and am trying to learn and figure out the risks. Do you have any videos or other resources to help me get a better idea? I also have some cash just sitting in the bank that I need to do something with. Guys in the other thread were mentioning Yearn and I've been looking at Anchor Protocol just to get what looks like maybe a "lower risk" 20% yield. Any tips would be greatly appreciated

There's "risk"

Here's a video. It's not good. Someone just sent it earlier and outlines some of the principles. Just search for videos on curve, yearn, yield, etc. and follow people on Twitter.

General principle to follow: higher the yield = higher the risk.

https://youtu.be/K5eDVE2eXTY

Thanks for the video House, that helped dumb it down to this noob

https://www.youtube.com/watch?v=xqGOeeEfJJI

32.30 is discussion of yield farming etc.

Should be called ponzi hopping.

Defi like Compound make sense.

**** like in the video is just pure ponzi. You give them 50k, they don't actually give you back 25k, they give you 25k of some **** coin called alUSD which it appears you can't even trade for anything. So how the **** are you suppose to be able to buy a boat with it? This is the stupidest **** I've ever seen in my life. PONZI HOPPING, not yield farming. 100% APY looks great, guran****ingtee it doesn't last a year and therefore you lose when you lose 100% of your ****.

$2500

And right on through it too.

I love just hitting refresh and having more money.

You can trade alUSD for DAI, USDT and USDC on crv.to, there's $417m of liquidity. You can see people doing swaps here - https://etherscan.io/address/0x43b4f...bd875c5fc83f8c
From there you could send it to whatever exchange and cash it out. Bit of a hassle, but possible.

Fully agree that there's a lot of scams/vapourware out there right now, and that the APY on alchemix won't last, but imo it's a legit project.

If you think about it, giving people advances on money they have yet to make is kind of the whole industry of banking. It's just a proof of concept right now with only 1 type of collateral, only 1 method of generating yield etc etc, but in time I think it could grow into something pretty big. Or of course it could all blow up and go to 0

I'm not super deep in this space, and yes the video is an extremely stupid explanation which is going to backfire, but I'm kinda fascinated with defi and with alchemix in particular.

Okay, so they most likely take the USDC you gave them, give you back half of their **** coin. Then they "provide liquidity" on crv.to to earn a trade fee and sell you back your USDC for their **** coin back, and you feel like there must be a market for their **** coin because someone just allowed you to trade it for USDC.

So now they have half your money with a promise to pay insane yields with a very vague description of how they get those yields. They point to Compound as being the base layer of all this stuff which pays a much much lower return and then just let you use your imagination on how they are suppose to pay much higher yields. Insanity. You're being very naive if you think this is some sort of project.

You don't know how it works.

Your intuition is on point, brother. Alchemix is the real deal. I followed Alchemix before it even came out. Almost went big on the launch. One of my minor crypto regrets.

Compound is awesome and top-level, super safe DeFi that will easily 10-20x over the next three to four years imo, but you are also being aggressive considering you don't seem to know very much about the ecosystem at all.

this

not a big fan of alchemix in general and their marketing is cringe, but... do some research before commenting.

LMAO. I have.

COMPOUND FTW.

Good luck to you putting your money into something magical like "Alchemix" where they can turn lead to gold. I mean for ****s sake, the name of it even implies they are doing the impossible! SMH

Name reads very important in crypto imo

You have no idea what you are talking about. The surest way to confirm this besides that what you're saying is mostly wrong is you say "they're most likely... <doing things>" when you don't actually need to speculate what their contracts are doing. You can confirm with certainty what happens onchain. Read the whitepaper, click around on etherscan, and figure it out. Moving on...

First, I currently have no money in Alchemix.

Second, I recently wrote this thread urging caution in thinking the yields were guaranteed. They are not. The yield you get is the result of what happens within the Yearn v2 DAI vault. It has historically been low double digits, but fluctuates and of course could collapse to 0, or have a bug causing loss of all principal.



This picture shows what is happening within the Yearn v2 DAI vault, which is where your money is going when you put it in Alchemix.



The primary source of yield for this strategy is trader demand for leverage, as well as protocol token subsidies. Listen to episode 23 of "Uncommon Core" if you in earnest want to learn more. Or don't, but please stop making things up and yelling at people who are much more knowledgable than you about this.

So long as your principal is SAFU, it's not the end of the world if the yield dries up and you get no return, unless of course you're borrowing your principal, then you're losing. Or if you're a pool2 ape and although your funds may be SAFU you're getting crushed by IL.

There isn't much risk in Alchemix imo. 73% yield is decent.

Since it launched my favorite recently has been Liquity. It's going to be interesting to see if anything unexpected happens on April 19 when redemptions are unlocked.

Alchemix pool2 apes are crushing man. Look at the chart vs ETH the last few months. The vote to shift more ALCX to ALCX stakers/pool2'ers was very strong ponzinomics :shrug:

Liquity was structured like such a ponzi. They charge .5% fees on both ends, but then those fees get redistributed pro-rata to stakers. Earliest stakers -> most coins -> highest share of fees -> literally the people who deposit last pay the people who deposited before them.

Tokenomics are also awful (giga-unlock after t=launch+1year, small overall % to community vs team/investors/advisors etc).

Anyway, it does have several things about it that are interesting relative to Maker. I imagine you'll see TVL go down and early stakers happy, since you can barely sell your tokens anyway due to no liquidity.

Thread on Uniswap v3. Amazing power in creating your own curves to reflect your preferences, and get paid trading fees as the price moves. Few.

Yes pool2 always crushes until it doesn't. Pool2 has great apy until token price tanks and you get crushed by IL. Picking the right pool2s to participate in is the real art...and when to get out.

Or you are staking SNX to mine DHT and are on a gold mine.

That sushi pool2 has been fantastic since inception. Best advice is only pool 2 if you deeply understand the math and only then if you actually want to own the thing you're farming. Most people don't have a very good grasp on IL and fear it as some sort of boogeyman.

Hope to win the Nobel Prize in economics someday for Optimal Pool 2'ing