The Anchor DeFi ponzi collapse journal

Discussion in 'Crypto Assets' started by Pekelo, Mar 23, 2022.

  1. Pekelo


    Not things, just THIS thing. Prediction: 1 year or less

    The coin I can get behind is:

    Theranos Coin (LIZ) is an ERC-20 token immortalizing a story of revolutionary innovation and fantastic hypergrowth, stunning duplicity and scandalous fraud — the story of Elizabeth Holmes and Theranos.

    Come on John, you know you want it! :)
    #11     Mar 24, 2022
    johnarb likes this.
  2. johnarb


    You don't like Anchor Defi or Luna or UST, it's ok, Pek

    There are many others, but don't go for the pump and dump, like Litecoin or Nano

    Buy a Bored Ape and get the next airdrop landsale or Koda? NFA, but I'm in the process of doing this

    I know you're being facetious on Liz :D
    #12     Mar 24, 2022
  3. Pekelo


    Forget about Anchor when you can invest in Yield Zilla, 2.5% DAILY returns! With a mere 1K investment you make almost 10MM by the end of the year:

    "I believe there is a contest between Ponzi schemes for who offers the most absurdly high APYs. First Titano with 102,000%, then Safuu with 383,000% of APY. It's scary because some fools are betting tens of thousands of dollars on these blatant scams."

    #13     Mar 26, 2022
  4. johnarb


    Those are very very very very very risky projects and not the same as Anchor, Pek

    I got rugged for over $30K on PulseDao, but I made $ on a different one, so it's ok

    I did not learn my lesson, though, I'm on another one of those. The key is to know there is a time limit to the Ponzi and to get out in time

    Lots of opportunities if you have the heart for it and the skill. This is a very difficult game to enter

    #14     Mar 27, 2022
  5. johnarb


    The Bitcoiners are split on this Terra LUNA-UST stuff

    The project has bought close to $1B worth of Bitcoins and using for reserves-backing of the UST stablecoin

    So as they print more stablecoins, they buy more Bitcoins, plan is to buy $10B worth of Bitcoins

    This is fucking amazing!! Reflexive loop pump machine for Bitcoin

    (it can also go in reverse which is what concerns the Bitcoin maxis)


    #15     Mar 27, 2022
    NoahA likes this.
  6. Pekelo


    Now you are talking. But you know what I think of someone who knowingly enters a pure ponzi?

    1. Either an ignorant moron who doesn't know it better.
    2. Giant greedy asshole scamming others.

    You have to have a talk with your conscience about which one you are...

    And again, going back to Anchor, the problem is that the 20% APR is unsustainable. So just because the incoming money may have have had a positive effect on BTC, the outgoing money will have a negative effect. Money always leave FASTER than it comes in.
    #16     Mar 27, 2022
  7. johnarb


    You make great points,Pek, but did not expect this side of you. I rarely get the chance to go beyond the quick few-liners and needed to appeal to high-level shallow reasoning

    To quickly summarize without doing a very TL;DR on this

    Tomb protocol-based projects are not real-ponzis. There is a use-case for the ones that are legit and not trying to scam people. They start with huge APR's in the beginning and prices of the tokens are very high due to low circulating supply

    It's a seigniorage project so as it creates new tokens that get distributed to all the participants, the APR's come down, the prices come down

    The project in my screenshot when I first started, the APR's were 50% per day, now down to less than 7%/day, the m2m value was profitable in the first few days, as prices crashed, m2m was negative, last couple of days, it turned positive

    That shows you that if the project is not a scam, the design of the protocol is to reward the long term supporters

    Sustainability? The original Tomb fork is still running and will be 1yo, albeit less APR's. The expansion of the ecosystem, i.e. multi-chain and dex and other projects ensure that it will earn fees and to be an ever-growing sustainable project

    Another Tomb fork that is successful and has been sustainable for some time now is Mini-verse, expanding to gaming and NFT's

    In summary, these projects are not ponzis but many are scams or many many do fail to deliver. High-risk and high-rewards


    I'm not an expert on Anchor but you have to understand that there's ongoing debates on the mechanics of this project

    Terra Luna and UST are such a big ecosystem. From my (uninformed and ignorant) understanding, they are trying to create a successful algorithmic stablecoin, like DAI, using complex game theory mechanics, with burning and yields and now, Bitcoin as reserves backing

    This is unlike the other stablecoins Tether and USDC who promise 1-1 $ fiat backing
    #17     Mar 27, 2022
    Sprout likes this.
  8. Magic


    Cool that there’s a journal about this. Hope you keep up documentation on Anchor news and Luna prices.

    Luna is definitely an interesting strategy, akin to cash burn to create revenue without caring about margin in the equity world. Which is pretty risky but has created some absolute monsters (AMZN, TSLA).

    I was initially on the fence about having LUNA exposure. How much of UST stakers understand that the yield will eventually drop, probably somewhere to low teen %s? I’d hope most of them, but how much of the capital is mercenary and will exit as yield lessens slightly?

    Because of the size of the TVL and UST’s algorithmic tie to LUNA itself, whales might end up hurting themselves with too much slippage if they exit too rapidly and are invested in any other part of the LUNA ecosystem.

    With the market caps that crypto junk like the endless OHM forks and meme coins like DOGE or SHIB can still command I’d probably say LUNA is not anywhere near overheated on a relative value basis in light of the real liquidity and associated utility this $$ burn runway has garnered. Will be interested if the rest of the ecosystem aside from Anchor can develop and get enough adoption to keep LUNA up the market cap rankings when Anchor stops burning as much money.
    #18     Mar 27, 2022
    Sprout likes this.
  9. johnarb


    You haven't been updating the thread, Pek

    #19     Apr 8, 2022
  10. Pekelo


    I wasn't aware of any news, this is what I have quickly found:

    " there is a continued imbalance between borrowers and lenders, with 12.4 billion UST worth of deposits relying on income generated by just 3.47 billion UST of loans. Anchor must tap into its reserves to pay out its promised APY when this occurs. According to data from an unofficial tracking resource called, Anchor has less than 340 million UST remaining in its reserves, compared to approximately 450 million UST last month. Despite the declining reserve count, the Terra development team is using initiatives such as injecting more reserve capital and launching more income-generating methods to maintain protocol. "

    LUNA dropped from $118 to $98 in 4 days... But the whole crypto market has been weak, so that is not a sign itself.
    Last edited: Apr 8, 2022
    #20     Apr 8, 2022
    johnarb likes this.