Naomi
@afrochicks
guys i have been in crypto for 3 years and things are still TOO complicated please let me test your products and give honest feedback on how to make it at least sound simpler cos i have an actual crypro use case which i know your products can solve but im tired of feeling stupid all the time here π
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Naomi
@afrochicks
APYS and staking i have USDC sitting in my wallet which i earn on automatically with coinbase but i know i could earn more with apps like morpho but i dont actually understand what is actually happening and idk if its risky or not so i havent tried it
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m_j_r
@m-j-r.eth
may be butchering this... so the market is gaining capital efficiency by very temporarily making your solid value a relatively dependable, expanded value for someone else (e.g. flashloans https://aave.com/docs/concepts/flash-loans) morpho is legit, I've put some of the Warpcast rewards in, also there are other savings games like @pooltogether that are the same structure.
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kugusha π¦
@kugusha.eth
hey! @morpho is a decentralized landing protocol, so there're 2 sides - lenders and borrowers. As a lender you deposit your asset to one of the vaults. Each vault is exposing your asset to a different set of collateral assets (when borrower wants to take a loan, they must deposit a collateral). Your asset then will be lent out to a borrower and they are paying interest on the loan. You, as a lender, get this interest + any additional rewards (e.g. we reward lenders with $morpho for using the protocol) linking a recent podcast with @paulframbot (Morpho co-founder) if you'd like to get more context https://youtu.be/smvV7Ax3bdE?si=7MVslTxVHKK9JVLU
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kbc
@kbc
I trust the team. My understanding: put money in a vault. Owner of vault lend that money to others. You get βinterestβ back. @kugusha.eth knows more. Staking is simpler: here take my money and give it to validators to make sure the l1 remains secure
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gFam.live (UrbanGladiator)
@gfam
Be super, super, super careful with APYs and staking. Think of it like bank interest. If you put money in the bank and they give you 3% interest on that - that means that they are investing that money and trying to make way more than 3% on their investments. That's how they make money. When crypto products offer huge APYs or staking rates, that often means they are printing more of their tokens to pay the APY rates, which will devalue the overall token (or they're straight up doing a Ponzi scheme). As with anything in crypto, don't invest what you can't afford to lose entirely. 9000 $HUNT
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Catch0x22
@catch0x22.eth
tagging @kugusha.eth for dis one
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AJ
@awedjob
I tried my first bit of a liquidity pool position when $LUM was created by to ai agents. I cast about it looking for help and someone replied that what I was doing was DCA. Dollar Cost Averaging. Basically trading $LUM for $USDC but over a longer period. Whenever someone wanted LUM they spent USDC for it and my little pool helped keep the price from fluctuating wildly since it was a long term position.
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Joshua Hyde γ
@jrh3k5.eth
Moonwell and Compound are both reliable ways to lend USDC, in my experience (I use both). I like them because they issue *over-collateralized* loans, where someone can only borrow against something like 80% of the value of the ETH or other asset they provide as collateral. It exposes lenders like us to less risk from people defaulting on the loans since the liquidated asset is more easily able to cover the loss.
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