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Placehodler
@placehodler
what are the most interesting defi projects addressing retirement?
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Monteluna
@monteluna
I am not your quant. I actually deeply believe traditional retirement markets are completely broken and are doing a disservice to Americans, while crypto aligned people who can manage keys, are reaching escape velocity to early retirement. The opportunity cost between managing your own money with your family and not can easily be seen below. There are a number of AMMs that are constant value with little concentration, like Balancer or full range constant product AMMs, that consistently return 20% APY with little to no impermanent loss. Families pay $20K in insurance premiums over the course of 20 years for life insurance. If you have $20K in cash early, below is a picture if you set it and forget it in an AMM paying 20% APY. By year 20, you surpass $1M. Also included is a graph of just a measly 10% APY. Traditional vehicles like pension funds would kill for 10% returns, but you barely even touch $1M after year 25.
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Monteluna
@monteluna
Basically the short answer is: AMMs are the most novel efficient yield products crypto has gifted to the world. The retirement vehicle for the future is here for all those willing to setup smart contract wallets and private keys.
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Placehodler
@placehodler
agree with you that traditional retirement is broken. not sure about your AMM point, though. it seems like balancer and other AMMs don't come close to 20% APY in pools with little impermanent loss and non-sketchy tokens. also, i find it a bit of stretch to assume that potentially good yields in an AMM pool will persist over the timeframe that you mention. with that said, would be very interested to hear what AMM pools you had in mind and why you think the yield would be persistently high
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