1/ Let's talk about Impermanent Loss and how it can be solved using tranches and segregating returns between parties.

โš ๏ธ๐‚๐ฅ๐š๐ข๐ฆ๐ฌ ๐ญ๐ก๐ข๐ฌ ๐ฉ๐จ๐ฌ๐ญ ๐œ๐จ๐ง๐ญ๐š๐ข๐ง๐ฌ ๐€๐ฅ๐ฉ๐ก๐š ๐š๐ซ๐ž ๐ฎ๐ง๐๐ข๐ฌ๐ฉ๐ฎ๐ญ๐ž๐.

2/ @saffronfinance_ is building a tranche ecosystem that is bifurcating yields between high-risk/high-return and low-risk/low return tranches. The initial products were aimed at interest generation. High-risk tranche earns 10x interest of low tranche, in exchange for insuring the
3/ principal of the low-risk tranche if there is an adverse event in one of the underlying lending/yield aggregating platforms. Now, thinking outside the box and expanding a bit this can be applied to insurance, more specifically IL insurance.
4/ A low-risk tranche (LPs) can deposit their LP tokens (Uniswap, Sushiswap, etc.) into this tranche in exchange for a portion of their LP rewards & trading fees. A high-risk/high-yield tranche contains both of the LP tokens and covers the IL of the low-risk tranche.
5/ If the low-risk tranche has IL, the tokens are taken out from the high-yield tranche. The low-risk tranche can now be a LP and earn at least 12% APY with *zero* risk of IL. The high-yield tranche will receive elevated returns from the LP rewards + trading fees obtained from
6/ insuring the low-risk tranche. Yields for this tranche could very well be 88% APY. Now imagine users can only enter the high-yield tranche by having the $SFI and staking it, which is fixed and limited in supply.
7/ If the pair has excessive IL and the high-yield tranche is losing too much principal a third tranche could be created that also contains the two principal tokens. This tranche would receive $SFI rewards as compensation. Conceivably in the future, the $SFI token could receive
8/ protocol fees among all tranche products making it a cash-flow generating token, and a bet that there is high-demand for tranche products. Given its unique PMF and basically no competitors in DeFi, it is.
9/ Now also imagine that @iearnfinance does not have a tranche product, and is basically acquiring the entire DeFi stack. What if?

Some other similarities between the two projects: the lead dev for @saffronfinance_ could have rugged 50m DAI, but choose not to. Andre could have
10/ rugged 198m DAI in July (initial $YFI farming) but choose not to. Both products are focused on composability and improving DeFi, while also making returns more simple and sustainable. Andre has also been experimenting/thinking about IL insurance for quite some time.
11/ I would have shared this information in @basedkarbon 's paid group, but he is a scammer and I cancelled my subscription.

Tokyo is back on the menu $100k EOY.

Imagine the smell.

More from For later read

@snip96581187 @Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen Clearly, because as I have been saying for 8 months now, DTRA and DARPA have been using Ecohealth and UC Davis to collect novel pathogens for gain of function work back in the USA. I have documented this in many threads which I will post here just to annoy everyone.

@Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen


@Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen


@Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen


@Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen
The common understanding of propaganda is that it is intended to brainwash the masses. Supposedly, people get exposed to the same message repeatedly and over time come to believe in whatever nonsense authoritarians want them to believe /1

And yet authoritarians often broadcast silly, unpersuasive propaganda.

Political scientist Haifeng Huang writes that the purpose of propaganda is not to brainwash people, but to instill fear in them /2


When people are bombarded with propaganda everywhere they look, they are reminded of the strength of the regime.

The vast amount of resources authoritarians spend to display their message in every corner of the public square is a costly demonstration of their power /3

In fact, the overt silliness of authoritarian propaganda is part of the point. Propaganda is designed to be silly so that people can instantly recognize it when they see it


Propaganda is intended to instill fear in people, not brainwash them.

The message is: You might not believe in pro-regime values or attitudes. But we will make sure you are too frightened to do anything about it.

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