Hey Everyone,
Welcome to this week's edition of the DEXTF Newsletter!
You can follow the community conversations on Discord, Telegram, Twitter and Reddit!
DEXTF updates
We conducted an AMA on Telegram to address the community’s many questions over the DEXTF Green BTC Token ($XTF.GBTC), which is an environmentally friendly bitcoin. The $XTF.GBTC is a tokenized carbon neutral bitcoin consisting of $WBTC and tokenized carbon credits $MCO2 issued by Moss Earth.
To learn more:
Please join! it'll be quite educationalAs a part of our partnership with @moss_earth on the DEXTF Green Bitcoin Token, we're hosting an AMA tomorrow featuring @luis_adaime & @NicolaLanteri from our team who’ll answer your questions! Feel free to share your questions here! https://t.co/2w2q2NDpgODEXTF Protocol @dextfprotocolReally an exciting conversation between Luis and Nicola.
Interestingly, US$ 15M worth of $MCO2 was purchased off the market, the equivalent of 800 million trees saved!
Also the best 10 questions won $100 worth of GBTC.
DEXTF v2 is progressing as planned. We’re finalising it and the next step would be the testing. The final step is the commissioning of a security audit which will follow soon after the testing is completed.
Portfolio Metrics
[As on 3rd Jun 2021].
Please refer to the DEXTF website for latest APYs:
DEXTF/ETH is offering 86% APY
XTF/DEXTF is offering 130% APY
You can also earn $DEXTF by providing liquidity on Uniswap (29.6K tokens daily) or investing in any of the XTF funds (12K tokens daily)
Current TVL is US$ 4.1M (refer to DeFi Pulse)
You can invest by buying on Uniswap or on the DEXTF app
Here’s a quick guide on how to buy
Concept of the Week
⚖️ Impermanent Loss
Impermanent Loss/Gain is one of the core concepts to know if you are serious about getting into the DeFi rabbit hole.
It may sound complicated, but in reality it’s based on a simple notion of balance.
So, firstly, when you provide liquidity in an AMM like Uniswap (for simplicity we will not discuss the consequences of their v3 release) typically you’ll have to get ready 2 tokens in a ratio of 50/50 (e.g. ETH/DAI). Let’s assume that ETH is now US$3000 and that DAI is US$1.
If you want to provide liquidity for 10 ETH, you’ll have to provide US$30,000 worth of DAI, which is 30,000 DAI.
Now, for simplicity we will assume that the size of the pool is US$ 60,000 (10 ETH and 30,000 DAI)
For the price of ETH to go up, demand needs to increase. So investors armed with DAI will snatch up ETHs by “contributing” their DAI and removing ETHs from the pool. We assume that 2 ETHs were bought with 6000 DAI.
So now you have the pool that has increased in value to US$ 72,000 since no one has removed liquidity.
So the pool now will have 8 ETHs (10-2) and 36,000 DAI (30k + 6k). So how much should the ETH?
36k DAI/8 ETHs = 4.5k DAI
Now what exactly happened to the LP?
In this case, if he were to remove 100% of the liquidity, the LP will have realised a gain (although that technically means you’ve rugged the market, but we’ll not delve into that for the sake of the example) by earning additional DAI but a loss by losing ETH in the process.
So, in summary, impermanent loss/gain is a temporary change in numbers of tokens provided to the pool that can revert back to the original arrangement if price returns to the same levels as when the liquidity was provided.
Pro tip: if you provide liquidity to the WBTC/XTF.GBTC, there’s almost no impermanent loss and same rewards in $DEXTF distributed!
And that's it for this week! See you next week.
Semper Fortis
DEXTF Team