You have been having your best production yields you have ever had; you have been building your credit up and are now financing your own electrically powered irrigation pump that has much better access to water due to larger irrigation installments upstream.
(26/50)
With FDI inflows increasing, the GoE begins hiring engineers, irrigation technique counselors, contracting out developers and suppliers and restructures Kamali’s current irrigation channel.
Let’s enter back into Kamali’s world:
You have been having your best production yields you have ever had; you have been building your credit up and are now financing your own electrically powered irrigation pump that has much better access to water due to larger irrigation installments upstream.
You are now able to expand the amount of wheat coverage from .5 hectares to all 1.75 hectares that you own, but that means your input costs will increase by 250%. The financial institutions aren't yet comfortable issuing an unsecured credit voucher to you of that size.
Your alternative is to outsource a loan from the current Web 2 CeFi infrastructure via mobile app, Opay, a borrow/lending platform in Ethiopia. Opay was demanded to be taken off of Google Play Store for predatory lending as their practices included:
- Massive data privacy breach
1) internet browser history
2) social media
3) SMS and call history
4) location data
- high loan origination fee (upwards of 22%)
- massive APR (upwards of 300%)
- short term fixed duration (not suitable for farmers)
You cannot afford a 22% loan origination fee and don't want to consent to such invasive privacy access, you seem to be out of options.
Enter @liqwidfinance.
@liqwidfinance will be the first money market borrow/lending on-chain application on #Cardano. This will enable anyone with $ADA or on-chain stable coin to engage as a lender/supplier in the market to earn interest or to borrow against their assets.
This is only a high-level view as I will post a separate thread digging into the details and technology behind @liqwidfinance.
The removal of custody, settlement, and escrow with their heavy fixed costs built into the legacy CeFi system
and the introduction to algorithmically optimized money, like @liqwidfinance lowers the fees charged to perform key banking actions.
What this looks like for Kamali is a loan origination fee ~100x smaller than her current CeFi incumbent, Opay – currently 22% – at .25%.
@liqwidfinance will be working on ‘credit concepts’ that will enable a completely decentralized, on-chain credit scoring system which will allow for dynamic, algorithmically set interest rates that will incentivize borrowers like Kamali to make her loan payments on time.
To do this, it would be important for @iohk to open-source Atala PRISM to applications like @liqwidfinance as it is the most robust identity solution framework.
Lets jump back in with Kamali:
You have now secured financing and can borrow against your new found liquidity to obtain the credit voucher you were previously denied by the financial institution; the credit voucher allows you to pay a subsidized rate for inputs, usually 60%.
Your demand for expansion has now been met and you begin harvesting wheat and other crops on all 1.75 hectares, and guess what? Your entire village and other villages around you start taking the same approach.
Now the aggro-dealers are struggling keeping up with the new demand as their source of funding (financial institution + regional government) doesn't have the capital to pay importers, suppliers and input producers.
With FDI already at all time highs, how and where do we introduce more liquidity to keep up with growing input demand?
While the financial bottle necking in Ethiopia forces illiquidity and further expands financial exclusion from capital on-ramps across the globe,
the bridge to this is being built in DeFi and with the introduction of tokenization could provide liquidity to the near 5 trillion dollars in illiquidity that exists in Africa.
Currently, the financial institutions that distribute credit vouchers are backed by regional governments through the Commercial Bank of Ethiopia but most credit and cash sales are collected and facilitated by the financial institutions
themselves therefore mitigating budget risks for regional governments. These individual vouchers are 100% sovereign-backed and have a 90% repayment rate with a 15% interest.
While these vouchers are small individually, what if it was possible to tokenize them,
aggregate them, then create tranches based off of crop, harvest-rate and seasonal production which have maturation dates built in to provide investors varied risk profiling. You could call these debt instruments tABS’s or (tokenized asset-backed securities)
and they would live on the #Cardano blockchain and could be sold to hedge funds, investment banks, or individual investors in the #Cardano ecosystem.
Lets jump back into Africa:
Capital inflows into the financial institutions are pouring in and they can now fund the growing demand for agricultural inputs from suppliers. Agro-dealers and cooperatives have sufficient supply for small-hold farmers and production beings to see exponential growth.
Kamali has leveraged an emerging product that allowed her to set a new precedence for her community members. They begin to copy her business model, and word gets out and now her strategy has cascaded internationally throughout all of Sub-Saharan Africa.
There are many more problems that exist within this example, for instance post-harvest strategy, lack of storage-infrastructure, predatory agricultural brokers, road/railway infrastructure, and current import/export protocols
that could easily be solved by #Cardano and products like Atala TRACE, but for the sake of brevity, we will stop here.
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A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020
Fake chats claiming to be from the Irish African community are being disseminated by the far right in order to suggest that violence is imminent from #BLM supporters. This is straight out of the QAnon and Proud Boys playbook. Spread the word. Protest safely. #georgenkencho
There is co-ordination across the far right in Ireland now to stir both left and right in the hopes of creating a race war. Think critically! Fascists see the tragic killing of #georgenkencho, the grief of his community and pending investigation as a flashpoint for action.
Across Telegram, Twitter and Facebook disinformation is being peddled on the back of these tragic events. From false photographs to the tactics ofwhite supremacy, the far right is clumsily trying to drive hate against minority groups and figureheads.
Declan Ganley’s Burkean group and the incel wing of National Party (Gearóid Murphy, Mick O’Keeffe & Co.) as well as all the usuals are concerted in their efforts to demonstrate their white supremacist cred. The quiet parts are today being said out loud.
The best thing you can do is challenge disinformation and report posts where engagement isn’t appropriate. Many of these are blatantly racist posts designed to drive recruitment to NP and other Nationalist groups. By all means protest but stay safe.
There is co-ordination across the far right in Ireland now to stir both left and right in the hopes of creating a race war. Think critically! Fascists see the tragic killing of #georgenkencho, the grief of his community and pending investigation as a flashpoint for action.
Across Telegram, Twitter and Facebook disinformation is being peddled on the back of these tragic events. From false photographs to the tactics ofwhite supremacy, the far right is clumsily trying to drive hate against minority groups and figureheads.
Be aware, the images the #farright are sharing in the hopes of starting a race war, are not of the SPAR employee that was punched. They\u2019re older photos of a Everton fan. Be aware of the information you\u2019re sharing and that it may be false. Always #factcheck #GeorgeNkencho pic.twitter.com/4c9w4CMk5h
— antifa.drone (@antifa_drone) December 31, 2020
Declan Ganley’s Burkean group and the incel wing of National Party (Gearóid Murphy, Mick O’Keeffe & Co.) as well as all the usuals are concerted in their efforts to demonstrate their white supremacist cred. The quiet parts are today being said out loud.
There is a concerted effort in far-right Telegram groups to try and incite violence on street by targetting people for racist online abuse following the killing of George Nkencho
— Mark Malone (@soundmigration) January 1, 2021
This follows on and is part of a misinformation campaign to polarise communities at this time.
The best thing you can do is challenge disinformation and report posts where engagement isn’t appropriate. Many of these are blatantly racist posts designed to drive recruitment to NP and other Nationalist groups. By all means protest but stay safe.
