Starny | Bangkok Arc

DeFi protocols please add to the list/comments below if you confirm that your protocol is not exposed to railway.

Any strategies or vaults you would like to see Yuzu spin up?

昨天，我和一位来自中国的朋友进行了一场长达三个小时、全程中文的 DeFi 交流。如果能召集到足够多的中国 DeFi 社区成员参与，我正在考虑举办一场全程中文的 AMA。 @KazumaxCrypto 能做主持人

@KazumaxCrypto is a DeFi power user and a long time Yuzu enjoyyoorr. He understands this best. Yes, everyone can loop Syrup, USDe, etc themselves, but we do what most people cant. Can you: - Snipe caps of the most profitable markets on Aave or Morpho when caps lift? - 24/7 be rebalancing your loops when they hit negative carry? - Execute OTC trades to unwind your loops if the entire of DeFi freezes over like during Aave/KelpDao? When USDT bridge was frozen, redemptions on major yield bearing stablecoins paused and there is a liquidity crunch on Aave? - Have enterprise grade infrastructure such as Fordefi, Hypernative and not to even mention our own proprietary AI bots and systems? We are the best at what we do at this scale full stop. If you want the best, look for us.

The RILLY Framework I've spoken to at least 50+ different groups trying to tokenize some form of yield and getting Yuzu to deploy into it. Making a post on this so it helps those trying to do so to have a better sense of whether they will find success. Also for everyone to have a sense of what we look out for at Yuzu Money. I would caveat by saying that our criteria at Yuzu is also extremely strict and has a big focus on the asset's robustness so it may not be the same for everyone but I'm pretty confident that if what you are trying to tokenize ticks all of the following you will be successful. 1) Robust. The asset needs have either a long track record showing that it never had any drawdown (or very little). If it doesnt have a long track record it needs to be issued or affiliated by a brand name entity. For e.g. Auto, Home, Prime by Figure. 2) Interest rate sensitivity. Please stop pitching bonds. Bonds have interest rate sensivities. They experience a NAV drawdown when rates go up (aka duration risk). Not to mention the many different intermediary fees. We are in a rate hike cycle. 2Y duration risk looped by 10x = 10% drawdown in 2 rate hikes. This is different from underlying duration of the asset; although it is related. I also highly recommend you read up on this concept before thinking about tokenizing any yield instrument if you are not familiar with it. 3) Liquidity. The asset needs be easily redeemable or unwound. Ideally within a week (e.g. Ethena, Maple, etc). Maximum a month (mGlo by Fasanara). Reason being most of the TVL in DeFi comes from looping. Making your asset loopable is what gets you most of your TVL. See next point. 4) Looping. It must be leveragable on Morpho or Aave. Being leveragable means you are either on Aave v3 or get a major curator (e.g. @SentoraHQ, @gauntlet_xyz, @SteakhouseFi, etc) to green light your asset. Anyone can be on Morpho, but not everyone can pass a good curator's due diligence. 4) Yield. Most of you get this in reverse. You think yield is the most important but it actually is the least. Yield just needs to be higher than 5% (most probably 6%) cause thats what the benchmark (Ethena and Maple) are paying but all of the above is the most important.

Grab's acquisition of Atome mirrors what I think is the potential path for Yuzu Money when DeFi strategies become a mainstream fixed income strategy. My view is once DeFi becomes more mature, regulated and recognized - a large player (CEX, asset manager, Fintech, etc) will see how Yuzu is an easy plug-and-play into their existing distribution channels or low cost of capital. Grab already had its own BNPL but Atome essentially allowed it to leapfrog 10 years of credit models (credit losses that you take while your own models learn). The lesson in this is - yes you can spin up your own DeFi team, hire professionals and build the process but you will be 2 years behind your competitors as you setup the infra, put together your team, ink SOPs etc. Your team may have DeFi experience but they didnt manage a significant chunk of the TVL of DeFi while navigating some of its worst storms and consciously avoiding the potholes (Stream, Neutrl, STRC, KelpDao, etc)