TIME (9, 9) and Looping with Abracadabra

hello i'm stephen the calculator guy and i want to talk about wonderland time nine nining and now finally looping uh so let's start off with what is time well you probably know what time is its reserve currency token similar to ohm that a rebases three times every day which means it accrues interest three times every day which compounds over time giving you some ridiculous apy like 91 605 and that apy increases when people bond a lot which just means people are contributing liquidity pool tokens to the protocol so they can make fees off of you know people swapping things back and forth now that we have that out of the way what is nine nine uh is the process of taking one of these cool rebase liquidity fancy reserve currency tokens like time or ohm or clima or z20 or uh exot or heck or there's so many spa or one dow uh all these tokens right um you take the token you stake it and you get a receipt token in uh in return you take that receipt token to another protocol and you collateralize it you borrow some money against that collateral you buy some more of the token you stake that token and you continue to do that process as many times as you want that's what looping is but nine-nining is just uh collateralize your receipt token buying more money getting more the token is staking it like that's that's nine nine at that point you've you've done the nine nine uh looping is doing that over and over and over again collateralizing and re-collateralizing and re-collateralizing and getting you know smaller and smaller borrowers every time but maximizing what you can stake in and therefore maximizing your apy so let's look at it right so on abracadabra good luck ever actually getting to borrow um if you if you uh go on twitter and my twitter always goes to david moss if you go to twitter uh there are two bots that can help you there is the mim replenishes and there's also the mem sniper or what is this snipe sniper is it i think it's mim sniper yeah also the meme sniper so if you if you follow this one uh it'll tell you when whenever someone repays their loan too so you can get your your rap meet really fast uh these are all you know you're seeing most of them are for the y-curve phantom but also you know some of the other ones uh yeah very rarely do we see anyone pay back their rap memo because it's a hold it's a hold and get the rebases right people aren't really doing dynamic strategies with that particular cauldron so anyways if you can borrow against your rap memo then here's what is cool about that so let's say you have one rep memo because you got some money like that right one rap memo is a hundred and thirty thousand dollars which is quite a bit um if you borrowed a hundred thousand dollars against that i don't think you'd be allowed to uh yeah ten thousand dollars um what you'll notice is that the liquidation price is 33 32.33 repeating uh 30 more than your borrowed amount what that means is that there's a 33 buffer um on this for liquidation so when the price gets so low uh that that the value of your collateral is within 33 percent of the value of your assets you are at risk of being liquidated there's a 10 liquidation fee so they really want to make sure that there's this buffer so that they can pay the liquidation fee uh that they can get their money back by liquidating your position um and that's that so that's just all that is so you'll notice the liquidation price is 30 above what you're borrowing that's because there were 33 buffer for liquidation and that's you know kind of important to know that all right so if you were to do just this basic strategy let's say we do 90 one two three ninety thousand right cool you could borrow ninety thousand you go take it over to uh to trader joe you buy some more time you stake it what's your um what's your new apy right we don't know well you can come over to this really fancy calculator that someone made i don't know who did that it was me and plug in some numbers right so with wonderland time the current no no with average money the current value of wrap memo is this so i'm just gonna ctrl shift v which is uh what that's not right did i miss a one i missed a one there we go that's what it should be let's put a dollar sign on that um yep okay liquidation buffer 30 that's true rebase rate 0.6248 let's type that in 0.6248 the amount of minting with this protocol is absurd i genuinely believe that there are some bots out there that are automating this process for uh wealthy investors and that's what's driving this consistent bonding processes i also know that penguin finance maybe is trying to create a system for this for retail investors so this is just i don't know what's going to happen i mean the the amount of minting that's happening is just really really high which means great for apy but also means a lot of new coins are being minted um at a really fast rate which is good because it's like consistent investment but man it's it's scary but cool like it's it's uncharted territory it's all i'm saying uh okay so i mean it's also increasing the treasury which is you know okay so anyways um do one collateralized right is that right one yeah all right so meme borrowed when we do ninety thousand one two three cool so uh one loop just means that you borrowed it you borrowed the 90 000 but you didn't reinvest it so at two then we see that you're almost immediately uh doubling your investment which is absurd so here's what happens with the second loop right once you start looping the second loop will take this 90 000 that you borrowed purchase time with it re-stake it take that memo wrap it re-collateralize it then against that collateral borrow at a in this case right now we're borrowing at a 0.7 wow maximize borrow okay at a maximized borrow so 1.7 and it will then reinvest that so it'll borrow 70 against that which is really that's the highest it goes 70 against that and then it will uh go buy some more time get the memo stake it get the memo wrap it and then re-collateralize it so that's everything that's happening there right so it's using this money and it's using this money to buy time stake it get the memo wrap it add it to collateral so that's that's why this is more than two times as much because you're not only getting the 90 000 reinvested you're also getting the second loop the 61 000 so you're getting 150 000 more or less reinvested which is why you go from one straight to 2.17 with with looping right if you loop only once nothing's happening you haven't you haven't put the money back in yet i think this is kind of a misnomer i don't think it's really a loop uh the first loop in my opinion is number 2x but hey maybe i just don't understand the nomenclature so anyways as you can see as you continue to loop what you're doing is you're just reinvesting the borrower meme back into time staking it getting the memo wrapping it collateralizing right that's that's the whole process over and over and over each loop that's happening over and over and over again um you'll see that you know the amount is going down every time because you're borrowing 70 against your borrow rate so it's it's going down by 30 that you can borrow every time uh but eventually right eventually you will have it like if you looped one against nine if you borrowed 90 000 against one and you looped that eventually at 10 loops you would have 3.22 wrapped memo essentially right that that's that's your leverage that's how much you've leveraged towards uh and you would be making a grand total of 294 thousand or 576 apy which is ridiculous right it's absolutely ridiculous uh and you just want to like see what loops you could type this in and you 265 absurd but even at two loops right which has the lowest liquidation price so pretty safe and not i mean non-negligible difference this is massive and so you know definitely consider just doing the two loops because it takes less uh borrow to do that right um so you have a higher chance of being able to access the second loop then again you know you want to add another literally a hundred thousand percent apy well you know go for the 10. uh but what i want you to notice is that the liquidation price here versus liquidation price here right location price here is actually higher than liquidation price here why is that well because you're adding more collateral you're consistently adding more collateral with the 10th loop you've added the last bit of collateral which makes this sort of safe now the numbers are going to be a little bit different here i think at 10 you have this is 2 000 more than what i'm projecting um that's because the fees are dynamic with avalanche and and they can calculate that in real time i can't calculate that in real time uh because you know gas fees are a little bit difficult for me to place but they have access to all that information so it's an imperfect calculator but gives you it gives you the basic idea i wanted to build this for an educational purpose uh which is how what what's going on with loops right so after each loop you can see the amount of borrowed meme when that's converted into this is your total mean bar at that point uh the mean that is then added are hmm no right with me i guess this isn't clear i think maybe the rap memo added is a bit confusing so what what this means is how much rep memo has been added from the original just one rap memo that you had so at 10 loops you're adding 2.2 rep memo altogether giving you a grand total of 3.22 and then your liquidation price so i think it's kind of cool that it shows you your liquidation price so base epy looped apy with two loops 10 loops wow amazing okay so that's pretty much it right that's the that's how looping works all a loop does is it allows the protocol usually through an access if you're in finance to go ahead and take the borrowed money purchase time stake it wrap it collateralize it right borrow against buy time stake it wrap it collateralize it it just does that again and again and again each loop right this is the highest i have seen the expected leverage one literally as high as it goes is 1.7 so i'm really amazed uh that it's that it's so high um i've seen that 1.36 before i've seen it you know so anyways really high leverage uh you can change this this and this will actually change your price or you'll change your expected liquidation because it'll give it less of a buffer so keep that in mind uh but let me just show you how to repay i want to look at the documents actually because it'll it'll make it a little bit more clear um so i know how to get there if i click this i'll go to the docs how the process works okay so when you want to de-leverage you can do it all at once right this is the cool thing about abracadabra is that you can click the d leverage button and you can repay everything and de-collateral de-collateralize everything all at once so it's not going to liquidate you you can unloop pay everything back all with one process which is really nice now you can do custom amounts but i think for most people most of the time when they're choosing to de-collateralize they're usually going to do a lot but you know choose the percent that you want to do totally up to you uh so click deleverage you may have to do um click deleverage and then choose the amount of meme you want to pay probably all of it choose the amount of collateral you want to remove maybe all of it i don't know it's on you but don't never remove collateral without repaying your meme again never remove collateral without repaying them in why because that will reduce your liquidation price very close or sorry it will increase your liquidation price very close to what you have um so like if there's a three percent change in the price you'll get liquidated um so always always repay if you're gonna manually do it always repay first then move collateral never remove cloudball first you can it'll let you do it but you're gonna you're really risking getting liquidated um so i recommend doing it with this automated process this deleveraging process because it just makes it so much easier so much easier so that's just over here um i can't i don't have anything linked out right now but you would see it here you would see a little d leverage button that you would click and then 100 on both of those to completely de-leverage all right so that i think that just about covers looping um if you want access to this calculator you know it's on my patreon i don't think this is a really like this was almost purely for education little purposes um but if you want it it's on my patreon you can go ahead and grab it if you're not a member of my patreon uh it's up to you you don't have to join um i would like to remind everyone that with my patreon there is no benefit between donating five ten dollars a month or a thousand dollars a month there's literally no there's no difference in benefits so everyone of every income size will get the exact same treatment that was intentional so again thank you guys so much for watching uh this was definitely one of the videos where i want to say be smart be safe be smart understand leverage understand your liquidation understand the liquidation buffer right uh and and act accordingly so it's really hard to access this one i think danny is hopefully ramping up more meme replenishes replenishes uh i also heard today in his podcast that he's looking forward to starting to replenish the ust um cauldron soon which is the the one where you can get 100 apr on stable coins apy um apr so look out for that one too if you're on the ethereum blockchain looking to do some stable coin yield farming or some stable coins staking with the djin box okay that's it thank you guys so much for watching have a wonderful rest of your day

Channel: The Calculator Guy

Views: 58,064

Keywords: 9 9, Abracadabra, Borrow, Loop, Looping, MIM, TIME, Wonderland

Id: Fle8dRoGKUY

Length: 16min 9sec (969 seconds)

Published: Thu Nov 18 2021

Reddit Comments

[u/lafn1996]

Anyone got a link to the calculator he's using?