Tuesday, October 15, 2019

Earn High Interest on your Crypto? I deposit 200 ETH ($50,000 SGD) to find out.

Okay, so I know I've talked about earning interest on stablecoins before, specifically with the DeFi and centralized platforms.

What actually is a very well kept industry secret that most people probably don't know is that you can also earn interest on your crypto!

Yup. I bet you didn't know that, right?

Question: What's the rate that we are exactly talking about here?

6.2% on your first 5 BTC (~$55,000 SGD) is pretty damn good.
4.1% on your first 200 ETH (~$50,000 SGD) is also pretty damn good.
Also 8.6% on GUSD (which is a crypto token that is 1:1 redeemable for actual USD via Gemini) is pretty damn dope.

Interest for the current month is paid out on the 1st working day of the next calendar month.
There is NO minimum deposit.
There is NO lock up.
This isn't a fixed deposit. It's a freaking high yield savings account.

So let's ASSUME that
1 - you max out Tier 1 for BTC and ETH
2 - the interest rate stays constant for the whole year
3 - the price of BTC and ETH does not go up or down

Then you'll be depositing $106,000 and end up with ~$5560 worth of crypto in a year. Obviously, pretty much the average between the 2 rates since the capital amounts are roughly similar. About 5.2% APR.

And that's assuming you don't use put in any USD at all either.

And that's assuming that crypto prices doesn't change. Though, it's a double edged sword in this case. If that worries you, perhaps you're *only* cut out to earn FREAKING 8.6% ON A USD STABLECOIN. Which is still pretty damn good.

Lol, btw guess where I got the current rate and conversions from? DIRECTLY FROM GOOGLE!

Anyway, since they go up to 200 ETH, I thought I'll throw in a bit of my ETH into this BlockFi interest account. So, I have deposited 200 ETH into my account. Perhaps it's rounding error because of my previous deposits and withdrawals, but it displays as 199.9999999 ETH. Oh well, lol.

I'll think about putting in BTC or GUSD later. But actually, I listened to a recent interview with the CEO of BlockFi (yes, I actually do due diligence) and it seems like USDC will likely be an offering by the end of the year.

I'm thinking to put in a nice phat and T H I C C amount of USDC then. Hmmm, what do you guys think? On top of me updating this thread on my 200 ETH deposit, would you also like to see my put in USDC?

I'm thinking maybe $10k, $20k or maybe even $50k. Hmmm, we'll see about that. Let me know!

Also, in the following posts, I'm thinking of doing a walkthrough on how to deposit crypto with BlockFi. When USDC comes out, maybe I'll do a similar guide on how to set up a Circle account and link your bank to USDC to send over to Celsius? Does anyone want to know how to send over GUSD to BlockFi? Personally, I think it's better to just wait for USDC, since I have strong suspicions that GUSD is gonna get shelved by Gemini soon, but that's just my speculation.

Oh yes, risks. What are the risks of this?

Well, everything in life is risk, and then you die. Haha! Okay, but real talk. It is almost entirely custodial risk. You are entrusting BlockFi to not only keep your money safe and later give it back to you (and not get hacked in between), but to also stay solvent in their lending business by having prudent risk management.

By the way, in case you were wondering, BlockFi can afford to pay interest on crypto deposits because they lend out the crypto to borrowers. To date, they haven't lost a single penny. Also based on the recent interview I heard, their Risk Management officer has been doing something very similar to this for 15 years and during the 07-08 financial crisis, his department never lost any money either. Of course, past track record has no bearing on future performance, but I thought it's an interesting thing to mention.

I have actually been lending and earning interest with BlockFi for months now, but I decided to share this little secret that I have with people since (1) I've been doing rather well for myself in crypto lately and (2) they have a referral programme now lol.

So, who might BlockFi be for?

1a) You are interested in earning 4-6% on your BTC/ETH
1b) You are interested in earning 8.6% on USD
2) You understand that there's custodial risk involved (the same class of risk as money in your bank)
3) You go and do your own damn follow-up research!

In that case, sign up with my referral link and follow me on a magical crypto journey!

Obviously there is a lot more to know and learn about BlockFi, but since I am now happily referring people to them (and since I also use them), I will probably be talking about them more in the future.

Thursday, October 3, 2019

Can I Outperform the "Market" with my Crypto USD savings account?

I know, I haven't had any content in a while.

Anyway, I've been thinking of this idea, funding 2 crypto "savings" accounts with $1000 USD each and then watch as I outperform everyone else without even breaking a sweat, taking only black swan risks, and have almost no liquidity issues.

Should I do it?


I'm thinking of throwing 1000 USDC into Celsius, and 1000 DAI into Compound / Idle Finance.

Data from loanscan

8-9% APR with minute/daily interest payouts and no withdrawal penalties or restrictions?

I'm sure most of you are asking yourselves "is this a scam?!?!", lol.

Anyway, I've been busy making money, so maybe when I'm more free?

I'm open to suggestions for what I should use as the benchmark. I suppose maybe a 100% STI ETF portfolio to amp up those risks so that returns might have a chance to be comparable until there is a risk-event. Is there a local REITs benchmark? I know all you "passive investors" love REITs, heh.

The general crypto market has come down, but guess what? I'm still doing great, lol!

Wednesday, September 18, 2019

Crypto Soft Flex

As we all know, I've been doing crypto balls deep since 2017.

I'm happy to report that even after that devastating bear market we saw in 2018, I'm still in profits today.

Yes, that's right, I'm in profits.

And better than that, I'm actually in triple digit percentage profits too.

So if you take the most minimum amount that triple digits could mean, that would be 100%.

With BTC at $10,200 and ETH at $210, that would mean that my average buy in price across ALL my purchases is at least 50% of that.

You could probably generalize that my highest possible average buy-in for BTC is $5,100 and ETH is $105. (assuming a 50/50 portfolio, which obviously mine is not)

Also, assuming a minimum of 100% profits as of now, that would make my annualized return ~42% per annum for the last 2 years.

And this is on the back of coming OUT of a bear market and not even in a bull market yet.

Mind you, this is the minimum. I can comfortably assure you that my profits is MORE than 100%. How "low" or how high, well let's just leave it to your imagination. Unfortunately, it is closer to 100% than it is to 999%, that much I'm willing to share.

Perhaps look forward to my next salt post when I post about my 4 digits percentage profits, or maybe when my crypto portfolio exceeds $1M in profits? We'll see how things go. Maybe I get rekt because all crypto is a scam, right? Haha!

As usual, I post SIGNIFICANTLY more on Twitter, with a lot more updated views (since things change so fast in this space). For example, the previous post about me buying back into DGD on the thesis of a corporate raid? I've already exited my position and booked ~10% absolute profits for a short 2 month trade. Those that follow me probably know what is the trade that I have been in that has been one of the main drivers of my returns, haha.

Anyway, just wanted to flex on all you stock / REIT / bond bois.

I actually wanted to make a more clickbaity title, but I'm actually happy that none of the mainstream financial bloggers are in crypto. All still convinced by their idol Buffet that crypto is a scam, lol.

Feel free to continue to believe that crypto is some digital ponzi!

I'll be busy earning retirement money in the easiest market there is out there.

Tuesday, August 20, 2019

Negative Bank Deposits in Denmark

Can't make this shit up.

Large accounts (more than 7.5M DKR) would have -0.6% rates.

Denmark already has negative home loans at -0.5% lol.

And while people are paying banks for the privilege of them to hold their cash (and allowing the banks to use the cash to lend out and earn a profit), I'm earning ~12% APR with my USD stablecoins, with no lockups.

Sorry to say, but the world ain't fair.

You don't do the hard work of educating yourself on what matters, you don't get the same opportunities as people who have.

Sunday, August 11, 2019

DGD is a BUY now???

I think DGD needs no introduction.

I used to own a shit ton. I sold majority for disgusting profits. I exited the rest of my position at around breakeven. Recapped all of this in Jun 2019 when I was saying how DGD is crap and will never distribute their DAO funds.

Well, guess what happened?

Anyway, I've been an asshole on Twitter and I've been poking the shit out of their community on twitter - blasting their crap capital returns, terrible yield and below NAV valuations. Also saying that their team is either incompetent or fraudulent. I guess their community finally had enough of my shit and decided that I'm actually not an idiot and know what I might talking about?

Finally, the community has a proposal for a DGD burn for DAO ETH and it is looking like there are very decent chances that it will pass voting.

You can read the proposal here yourself.

Anyway, the game theory of this whole thing now that Pandora's Box is being opened (challenging the status quo that the ETH in the DAO should actually be redeemable) is not that difficult.

Optional Step 1 - team and insiders hold majority tokens and keep blocking the Burn vote until they themselves have bought enough cheap DGD to burn

Eventual Step 2 - the burn vote is approved, boom instant profit.

Anyway, guess what I did, being the opportunist that I am?

I freaking bought back some DGD! Lol!

Hasn't even been a month, but based on the current ratio of DGD/ETH, I'm already up 14% in ETH.

Anyway, this has CORPORATE RAID written all over it.

I wouldn't be surprised if some funds have been accumulating large positions in DGD simply so that they can take part in governance and vote for the burn, and then are able to instantly sit in ~100% unrealized ETH gains until they decide to burn out their position.

In fact, there is already a suspected party doing this which is involved in this quarter's voting.

By the way, there's nothing malicious with corporate raiding. It simply means investors' think that the business has shit prospects are their assets are worth more than whatever the business hopes to earn, so it's better just to dissolve the business and liquidate their assets.

The game theory of this is NOT complex at all (unless I'm missing something?). It is an eventuality that the burn will pass, and when it does, the price of DGD/ETH will shoot up to the realizable ETH value if DGD is burnt. It is not rocket science.

Even if the burn does not immediately pass this quarter, I'm highly optimistic that EVENTUALLY I will be able to sell at a decent price, near the NAV which is ~0.18 ETH. Incidentally, that is about a 100% profit for me if that happens. Though I'll concede that it is likely to pass with a 10% exit tax, meaning that the first burners will realize a DGD burn value of 0.168 ETH, but that's still a very decent +85% profit for me,

I was prompted to write this post after I saw this post by The Babylonians on how they decided to exit their DGD position.

Funny how fate has it, that after me being vocally against DGD for months, I've entered in a position just coincidentally after someone did a great independent fundamental review and decided to exit their position.

I wonder who will be right. Them? Me? Stay tuned to find out! By the way, in case it was not obvious, their base is using SGD, where my base is using ETH. So mileage may vary.

I'll update again later in the future to gloat about this insanely obvious opportunity. Or maybe I'll be wrong. Heh. Who knows?

Worst case, lose money only lor.