YouSaid · the spoken record

Aaron Lammer

lines on the record: 63
first: 2021-05-20
most recent: 2021-05-20
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“I wish I could get someone like Hayden to explain some of this stuff to me because honestly, the deeper this DeFi stuff goes, it's like, it's like I was here for algebra, but I'm not here for calculus.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Causes people to only want to use your chain for serious things. So, you know, I guess you could look at Sheba as a counter example of that, although I think the Shiba era is now already over because Vitalik just dumped all of his Shiba. But overall, some people might say it's not such a bad thing that it's really expensive to do something on the network. People will only do things that are valuable instead of what you saw when gas was really cheap, which is a lot of like front running bots and things like that that are basically just trying to extract small amounts of value. And that becomes unprofitable as gas becomes expensive.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“So Ethereum's in this tricky position where not only is the network congested, the coin itself has seen 10x gains over the last year and the gas fees are scaled by that. I think there's also a counter argument that some of the friction in high gas fees is not a terrible thing. It actually”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Only a few transactions can fit and uses some dynamic system. And that should allow for a lot more throughput directly on the Ethereum mainnet. This is probably like the biggest issue in DeFi right now is figuring this stuff out. Because as the price of Ethereum keeps going up, it's not so much that gas fees are high right now, they are, they're high scaled by the price of Ethereum. So one important concept, I think, for people listening is that whatever network you're on, you pay the native token in gas. So when you're on the Ethereum mainnet, you pay Ethereum. When you're on the Binance Smart Chain, you pay BNB. And when you're on the Matic network, you pay Matic.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“But not Ethereum mainnet, and pay cents on the dollar in terms of fees. So I'm actually farming on Matic right now. And because Maddic is trying to lure people to do that, the incentives are excellent. I'm using the Matic Uniswap clone. It's called QuickSwap. And QuickSwap is offering all sorts of incentives to provide liquidity. So I'm providing some liquidity there. You do still pay a gas fee when you jump between the Ethereum network and the Maddic network. I don't actually think that is going to be the implementation that solves this. I think the implementation is going to be something called roll-ups. And my understanding is that Uniswap, the new Uniswap, will eventually use roll-ups to lessen fees. And I can't tell you how they work technically, but basically it batches a large number of transactions in the space that currently”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“The answer if you don't think the future is everyone just trading on a centralized finance system is layer two. And layer two, like EIP 1559, is something that's like incoming right now in Ethereum. There's already certain ways you can use it, and there'll be a lot more by the summer. And as I understand it, there's basically two major threads of how we can deal with these congestion problems with layer two. The first way is through Ethereum sidechains. And the most famous one is probably Matic. I think they've rebranded as Polygon. And Matic's actually a different network. Like if you're in MetaMask, you have to go off Ethereum network and onto Matic network, which isn't the easiest thing. But Matic basically takes all of the protocol level stuff that's going on with Ethereum and lets you do it on their own still decentralized.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. All this stuff is super easy, and you can do a gazillion throughput, whatever if it's just running on a server somewhere. We've solved these problems for centralized currencies. It's much harder to do in a decentralized way.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“People are paying for those transactions. So it's not like they're just joking. They are actually spending money. They're spending the same money. Gas costs the same amount as for a joke and for a serious purpose. So the friction is there. The short story is that some people believe that people are going to flee Ethereum to other networks that are basically clones of Ethereum, but with minuscule gas prices. And the best known one would probably be Binance SmartChain.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“There you go. See, Joe's the Doge expert in the call. But ironically, you know, I don't know if you heard about this thing, Shiba, Shiba. I was just about to ask.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Honestly, like he's playing so many narrative threads at once that I don't even know how all these things can Coexist in one space. But yeah, I think Doge is forked off of Litecoin or forked off of something Litecoin related. So it's a descendant of Bitcoin.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“We're doing all this stuff in DeFi that burns a lot of gas. The amount of gas being burnt to do all this stuff is immense. And if we start not paying that out to miners who then sell it and instead literally burning it, Ethereum is just going to go through the roof as it becomes deflationary and more people want it. And people need it. Businesses, I think, will eventually do business within DeFi. People will hold company treasuries in yield farms. I know that sounds crazy, but it's coming. And all of those people are going to need Ethereum gas to put their money in and out and do stuff. So the big change for me with Ethereum from getting into this stuff with Bitcoin is you can actually do stuff with Ethereum. And when you do stuff, it causes Ethereum to be destroyed post-July 14th.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Proof of stake system. There may be people who know more about the timing than I do, but for people who, like me, the next big thing that we're thinking about is this EIP fit. CNBC, and they're doing like a maybe it's not CNBs. There was some TV thing that had how to get into Ethereum mining. And like, this is the worst possible time to get into Ethereum mining. That equipment will be trash in a few months when this happens. It's not so different right now, but they're on very different trajectories with regards to mining. And the people who are making the bull case for Ethereum are saying, look.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“After EIP 1559, we're going to stop paying the miners. Mining is going to become less profitable, and we're going to start burning that Ethereum. And Ethereum is going to go from an inflationary asset. There's more and more Ethereum every year to Ethereum has the potential to become deflationary as we burn more than is created. And that's a step towards the ultimate goal of going into this proof of stake model in which there's no mining at all. In fact, I'm not really sure after EIP 1559 whether there will be any mining. I don't know what the timetable for the true shift to proof of stake is, but when a lot of this environmental stuff came up, people were like, let's do it right now. Like there was a movement with an Ethereum to expedite it. So I think that there is a huge pressure to do it. And my guess would be by 2022, we'll be in a”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's basically like a change to how Ethereum works. And these are planned a lot in advance and don't always happen. But this one is happening. I would bet very strongly that this happens on July 14th. So right now, when you pay your fee to Ethereum, your gas fee, that goes to miners or a percentage of it goes to miners. That's how we pay all these miners, right? Yeah. We're giving them, they're holding up the network. We pay them a fee.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“If I was like an angry Bitcoiner, I would say never gonna happen right now. And they do say. And what I would say is the next big landmark is July 14th. So it's soon. And it's EIP 1559. These are like constitutional.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“And I'm hoping that more and more of the market shifts away from these centralized exchanges that were sort of established during the Bitcoin period and moves towards this new Ethereum future of DEX. So I know that was kind of a long explanation, but like all of those things were coloring my thinking about this news event that probably some PR person at Tesla wrote. I don't even know if it had anything to do with like the actual Elon Musk. But it all moves the markets a lot.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“So the thing is the environmental stuff. And I have thoughts about it. I know Joe is in contact a lot with Nick Carter, who's written a lot about this. I'll just say that the environmental stuff is not something I consider myself particularly knowledgeable about. But I do know that a big difference between Bitcoin and Ethereum is that Ethereum is moving towards proof of stake. And this actually, all the stuff that we've talked about, it all interlinks. When I say that you can earn money by staking for Ethereum 2, that is staking Ethereum that will ultimately power the proof of stake system that moves Ethereum off mining. Bitcoin has no plans to leave proof of work mining behind. So it's a really big difference between the two of them. For me, when I read that, I was like, okay, I'm going to take a small hit here. The market's going to come down. But ultimately, I think it leaves Ethereum stronger than Bitcoin.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, I won't say anything negative about him since he's been on the show. But I think when you sort of create idols out of these people, the rug can get pulled out from under you. And the same thing works the other direction.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“It's getting ugly out there, I will say. I kind of left crypto for a year or two, and the new thing that really came in is true animosity between the Ethereum and Bitcoin camps. So for me, I look into very specifically what was said, which was Elon Musk said, we're pulling, first of all, I think people were playing with fire when they turned Elon and Michael Saylor. Was he on this show, Michael Saylor? Yeah, we had Michael.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Know, I honestly didn't even check. Like, most of this yield stuff just kind of happening in the background. I'll look and see how much I've made. Looking more at the prices of the tokens than yields. I think that there are people who are just seeking yield out there, but those are people who have a lot more capital to start with than I do and are like not wanting to risk it, but want to just earn yield on like stable coins. I'm primarily holding Ethereum and other DeFi tokens. So when I saw that, I actually was happy because I'm an Ethereum true believer, and I believe that Ethereum will pass Bitcoin at some point. And I am fine with accelerating that if it can pass Bitcoin by going up or by Bitcoin going down.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Some of those Legos stop being like things that are just smart contracts and actually start to interact with the real world or become companies that started in a DeFi fashion and then are like doing business with the rest of the world. And startups are usually the easiest way to understand that because they're things that need a bunch of capital quickly for an experimental project that will probably fail. But if you invest in 100 of them, you'll probably do pretty well.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Everything the company does from earning money to paying out money to even establishing like forms of like a constitution that basically dictates how the company is governed. All these things can happen on the blockchain. Young people are doing it. The same young people that I saw in San Francisco doing startups whatever year, startup mania in San Francisco peaked, those people are doing this stuff. You know, a lot of DeFi I think of as like people use the metaphor of Legos, right? So you may not even know which different protocols you're interacting with. These protocols are all stacked on top of each other and each of them can earn value. So I think it bleeds into the real world”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“There to guarantee your loan So, for people like me who like don't have a full time job and haven't for like a decade, you know, it's a weird proposition to try to get lent money to buy a house. I have to really sort of justify I'm like, no, I'm a podcast maker. I make podcasts. Those kind of things don't really go over well with like banks. So I think that's one potential application, but I think an even deeper application is in company formation itself. I think people will form companies in which”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Bleeding into the real world. So I do think DeFi has the potential to bleed into the real world. And the easiest ways that I can imagine that happening early on are I do think like home loans will be done through this system in the not very distant future. I actually think you could do it now, but you'd have to be like me, like a guy who was willing to do it as kind of a stunt, I think, right now. But there's nothing stopping you. Let's say you have a large amount of coins, which a lot of these early crypto people do, including Bitcoin people who hate this stuff. If they come around, you could potentially lock up some of your Bitcoin in a protocol through wrapping it, wrap Bitcoin, and then take a loan against it and stable coins and buy a house that you can live in. And potentially, there are ways to do that where you get the money you need but don't even actually lose your collateral. It's just sort of sitting.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so you're not wrong at all. And I think that's an accurate way to characterize where it is right now, which is very early. So we're like, I don't know if we look at Uniswap as like one of the launch of Uniswap is like one of the first landmark events here. I don't know. I think that's less than three years ago that it even launched the V1 product. So I think where we are now is we're moving a lot of capital into this system because the traditional finance world shows you need a lot of capital to do any of this stuff. You can't just like start from zero. So a lot of these incentives and APIs, they're here to lure people in. But I think once that's established, there's a lot of ways that this can Ever read that story by Borges? I think it's called Talon Ukbar. It's about a guy who writes like a fictional story and then the objects”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“So I did go visit. My plan was to buy a defunct hydroelectric dam in upstate New York that had its own power generating station. And then use that to mine. And like most things in crypto, that wasn't going to happen, but it did lead me an interesting place. It eventually hooked me up with these guys, bison trails, who were starting a mining center, which I actually think their mining center didn't do that well, but they built a bunch of software for their mining center to coordinate all the miners. And then Coinbase acquired them because they wanted all of this mining software. So like that's a lot of cryptos like that. Few losses than a win. Few losses than a win.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Like that wasn't smart. That wasn't like a smart financial move to do that. Some of the things I think I've done in DeFi, like I've bought some like dumb NFTs, I've bought some projects that went to zero. There have been mistakes along the way. But, you know, this stuff is so new that simply riding the success of even the biggest projects probably would have yielded you many multiples now. And I didn't actually, I wasn't into this during the DeFi summer last summer, which is when people made the most gains. I only got into this like after the first wave of interest. I thought I had no idea what it was when it was first happening.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“If I had just bought Bitcoin when I very first got into crypto and never done anything, I would have done better than I did now. So I was into all this small capcoin trading during the first altcoin boom in 2017. And I also made a lot of money during that period, not a lot of money. I had my initial investment was very small, but as a percentage, a large amount of money and it lost it all in the crash. I don't really know that I'm going to walk away even with as much as I've made now. And I know people who've made a hundred times more than me through more aggressive strategies. I'm kind of in it to like mess around a little bit more. Like I like to try things. So some of the things I do are not necessarily the smartest or most, you know, putting your money in during the first run in an exchange that was supposedly, I think, in New Zealand, but the guy's exit scammed.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“I won't tell you how much money I made. I'll tell you how much, a factor of what I put in and what it's worth now. So I think I've gone about 14 or 15x, my original investment, but that original investment was.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“And following them does give me some insight. Like, I saw that they had a designer who was doing a rebrand of the site. It's kind of bullish, you know? Like people who are shipping new software and doing stuff, those are the people I would try and back.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Same way that I think I don't know 2009, like Silicon Valley was probably a good place to just invest in every little startup that was coming up and people made a lot of money doing that. When I look at the sort of shallow end of the DeFi world, I just see like a lot of really young people experimenting and some of those projects will become big. I'm probably not going to like hold them for three years. So I might not see all of that. But if I can ride it, you know, through the early part of the project, it's kind of exciting. And a lot of these projects, like I was interested in this project, NFTX, which basically creates funds based on NFT. So they have like a crypto punks fund where instead of actually owning crypto punks, you can get exposure to crypto punks through this coin. It's just a bunch of people. They're on Twitter. You can see the people who are running the project. I follow them. And it's kind of fun.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“But it's not necessarily easy to get out of some of those positions. So each of those factors are kind of like weighing against each other. And I'm so bullish on Ethereum right now that I'm like kind of less loath to be dabbling in these really tiny coins. But I think that's kind of a market cycles thing. I'll probably be back there at some point. But one of the reasons there's so many of these little projects that I actually do think are worth buying and I have invested money in is that the whole DeFi system makes it really easy for people who make open source software to do their own projects. You've got DAOs, digitally autonomous organizations which are tools to coordinate lots of people around the world and split the upside amongst them. You've got a lot of people who are willing to flood capital into tiny projects, often with almost no information.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Which is going to crash the price. So I'm on the lookout for all that stuff, but I'm mostly looking for what looks like a legitimate project that has a clear value proposition. Ideally, it's doing something that earns money, right? Uniswap earns money. It's earning millions of dollars in fees every day. That's a good look. I like that. I look at all those factors and then I try to figure out where I am sort of in the narrative of that coin. And I generally don't like to buy things when they're like really, really at the beginning because liquidity is really bad. You know, some of these really tiny coins, if you're to sell off anything over, say, like $10,000 worth of them, you can slip the market. I've had times when it's going to slip the market 15% if I sell off my own coins, right? So some of those things you need to be careful of. It may look like a great opportunity that's doubling every few days in value.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a lot of really tiny cap coins. So I'll admit, I, for a period, would scan the top 500 coins, top gainers when NFTs were big. I just looked through the entire list on CoinGecko of NFT related coins. I'm looking for a good logo. I'm looking for a clear presentation that offers what the value is. And above all, I'm looking at the market cap. You know, if I can see a coin that has a market cap, and the market cap, this is in cryptocurrency, just basically how much at the current price are all the tokens in circulation worth? And I also like to look at how much will the total market cap be when it's fully diluted? Because there's a lot of manipulative tactics where it's like, oh, you know, we only have released a certain amount now, but we're going to release a ton in the future.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it's a really interesting question because I have really dabbled in all the stages from the blue chip prestige DeFi to the very, very tiny market cap. And I've tried to play those kind of weighted. So I have most of my DeFi money and things like the top 10 DeFi tokens, things like Uniswap that you've heard of. And then as you say, 2000 being added a day.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Or hundreds of millions of dollars in the way that can earn the most yield. So not everyone is like me trying to do this themselves, which is probably stupid. I think a lot of the smarter people actually just go for these automated strategies.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“It's allowing small coins to get traction and big protocols to lock large amounts of value, which allow them to do lending and borrowing stuff. And then there's this service called yearn that's kind of on the top of a lot of this stuff where if you don't want to go out and seek out all these yield opportunities, you can just lock your coins and yearn. And yearn works in an automated fashion to try to find you the best opportunities. So I would say that actually most of the yield farming that's happening isn't people who are like making a bunch of manual decisions. It's people who are locking their money into these big protocols that go out and use strategies that require tons and tons of capital. If you only have a few thousand dollars in crypto, it may not be worth it to do this, but it might be worth depositing that crypto into yearn and letting yearn move around billions.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Which will do that F2 staking that I was describing. And you can deposit your F with them and they give you pack a token called Steph STF, which is basically staked F. When you take that staked F, you can then go deposit that somewhere like compound or AAVE AVI and borrow against it. So you can take that staked F and go borrow a bunch of stable coins against it and then earn yield on those. The really hardcore farmers are using a system of constant lending and borrowing to get the most advantageous yield while basically still holding their original collateral. That's the game is to hold your original collateral and get as much else as you can. So when you ask what would happen when it crashed, the same thing would happen when it crashed that would happen to me anyway, except I'd have more of the thing that had crashed, which”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“I loved when you brought up Sue Swap there because I'm not sure I had actually ever heard Hayden Adams directly say what he thought about Sushi Swap, which is a clone of his exchange. But when Sushi Swap was started getting started, they basically said, we'll pay you these APY fees and we'll pay you this bonus in our native sushi token to bring your liquidity over here. So on top of the liquidity providing, you get a LP token, right? So my deposits aren't just something I know I have. I can actually see my LP token in my wallet. In the case of Sushi Swap, you can then deposit that LP token and earn these incentives on top of the APY. So a lot of this farming stuff is like bonus on top of bonus. I'll give you like an example of like a way you can stack some of this yield earning. There's this thing called Lido Finance.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I started as a trader and I don't really consider myself like a hardcore farmer. So I'm mostly speculating on coins. This is a way for me to get the coins I already have and a bit more. If Ethereum crashes and I have 1.2 times as many Ethereum as I did before, I'm still in a better position. So I don't really choose what I buy based on what farming I can do. I more use farming as a bonus. And one other thing I didn't mention about that sort of fee that you get from Uniswap is Uniswap is this like very austere non-scammy presentation kind of company. But they have a lot of competitors who would rather you put their liquidity with them instead of Uniswap. Those people offer incentives on top of the fees to juice the value of providing liquidity there. And I think you talked about sushi swap on there.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Those kind of ideas, I mean, you've talked about decentralization on the show. It sort of goes beyond just safety and risk. I think it's fundamentally who's in control. When you go to a centralized exchange, they're choosing which coins you can trade. They're influencing the market heavily simply by letting you buy certain things and not letting you buy other things.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Unlike in the case of Quadriga, which was a centralized exchange that was lying and running a fractional reserve, if Uniswap didn't have the money that it was supposed to locked into its smart contracts, we'd all know. And a lot of these protocols have gotten hacked. So there is risk. I would not downplay the risk of this stuff. You have people who are often pseudonymous creating products that lock up billions of dollars in value. And there could be a catastrophe. But unlike the centralized exchange system, I think it's more likely that catastrophe would happen at the code level and less likely it would happen at the human thief lies level. And my own orientation is to sort of trust that system far more than I would trust any person who was running in exchange.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Think it relies very little on decisions that are humans are making at Uniswap, and it depends deeply on how well the protocol itself works. The money is not like locked up in some office that Uniswap owns. It's locked up into the smart contracts. So all of this stuff is as strong as the smart contracts that support it. The good thing is that those smart contracts are something you can just see. You can see the money's there.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Little more complicated when you're talking about pairs where it's say an altcoin like compound or maker and ethereum. You don't necessarily know which direction they're going. So I think in practice it almost acts more sort of like a cost average where it's continually rebalancing these two assets that you have so that you have equal amounts of them. The pool always needs to have equal amounts of both”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, this is like a tricky concept, but like, let's just think about something that's pegged and something that's not pegged. So let's say I deposited $2,000 worth of Ethereum when ETH was $2,000 a coin. And I put in $2,000. But now ETH as of yesterday had doubled to $4,000, right? So basically the whole time the liquidity pool, as I understand it, is acting as sort of a balancer, like as if it was balancing an ETF so that I have the same amount value of each. So as Ethereum is going up in value, it's tilting towards die so that they're worth the same amount. And that When I withdraw, I'm getting more of the other thing. That seems like a bad deal when crypto is going way up.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Going into these liquidity pools can blunt some of your upside to holding crypto. But you're getting paid a fee to do that. And someone might look at ETH die and say, hey, I don't want to be in that pool. If ETH moons, I'm going to end up with more dye than ETH, and that's a loss for me. So in some ways, we're incentivizing people to create liquidity and their liquidity makes their trading a little bit less valuable, perhaps.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“This is a fascinating question, and I am still not totally clear on it. So I'm going to give you what I think without being totally right. So there's something called impermanent loss. And this has to do with the fact that the two things in the pool are not being equally drawn, right? If Ethereum's going up and there's more demand for Ethereum, Ethereum's getting pulled out of the pool than Dai. And therefore, Be in a pool like that is to actually lose some of your exposure to Ethereum. You might end up getting put in equal amounts die in Ethereum, but because of changes in the pricing of Ethereum relative to dye, you might get out more die.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“ETH Ethereum upgrades to ETH2, your tokens are unlocked and you get paid that yield for that whole period. So the kind of yield farming where you're providing liquidity is maybe the most active and the way that you can optimize the most for your results, but there's other ways that are far more passive that you can more safely earn, what's still a pretty good yield compared to like a bank.”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so you're holding basically a token that represents one dollar and you're getting paid 30 to 40% APY versus less than 1% at its bank. But some of this yield stuff is starting to infect other parts of the ecosystem. So now Coinbase and Gemini are saying you can stake your Ethereum probably in a way that's more safe than the way I just described for I think six to eight percent APY so depending on your tolerance for risk there are other ways to earn yield. The simplest way is to stake your Ethereum for ETH2 which is a big update that's coming to Ethereum and you can basically stake your Ethereum now and get paid. I'm not sure if it's six or eight percent. I think it depends who you do it well with for the entire time until that happens and when”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source
“So there's certain properties about which pools are valuable that I think you can sort of see as patterns. Pools that have stable coins pay very well. And the reason is most people in crypto don't want to hold a bunch of stable coins because they're DJN gamblers. They would rather hold Bitcoin or Ethereum or an even smaller coin that's going up. So because not many people want to hold stablecoins, stablecoin pools pay very well. There's a thing where you can pool with other people in a sort of automated way called pool together and stablecoin pools usually pay 30 to 40% APY. This is against, I don't know. What is a bank pay in terms of yield right now?”
2021-05-20 · Odd Lots · Aaron Lammer on Yield Farming and Trading in the World of DeFi · IDENTIFIED FROM THE TRANSCRIPT · source