Upending the FIRE game through DeFi stablecoin yield farming
Decentralized finance, or DeFi, is a broad term that refers to projects on Ethereum and other smart contract platforms that are rebuilding the world’s financial infrastructure on the blockchain. While it is certainly risky, the rewards are currently beyond anything available within traditional finance. Just look at your “savings” account. The amount of yield currently available among DeFi projects can put financial independence within reach for many people. Here, I take a deep dive on how I positioned myself for reFIREment, and allocated an emergency fund that will hopefully pay for itself and allow me to live my dreams.
I won’t get into the details of fiat on-ramps or using the Ethereum network, nor do I endorse blindly following my any of my positions. Black swan exploits and rug-pulls are still a huge risk, and my purpose here is to discuss the analysis and decision-making process that I went through in order to mitigate some of that risk. I hope you find it useful.
Checkbook control crypto retirement accounts, part 2
Well it took me over a month, but I was finally able to buy some bitcoin through my self-directed IRA. Last night, I was finally able to deposit some fiat into my SDIRA’s new FTX.us account, and purchased a few hundred dollars of BTC, wBTC and ETH. The process has been slow and somewhat infuriating, but there is nothing like having the ability to purchase cryptocurrencies within the context of a tax-advantaged account. That’s right, there are no taxable events on activities made with these funds, and once I am able to withdraw to an on-chain wallet, I’ll be able to yield farm to my heart’s content without worrying about capital gains.
The Solana hackathon commenced two days ago, and I can’t even figure out what I want to do with it. I’m not even really sure what my expectations are given that it’s only going on for three weeks and haven’t even really wrapped my head around how it works. I’ve got a couple ideas banging around in my head, but I’m not really confident about my ability to deliver anything in the three weeks. We’ll see.
I have two weeks left at work, so hopefully I won’t have any problems with that. I wanted to finish the Rustlings tutorials, I have two or three left, and then I was looking at doing the track at Exercism or just going into some Solana development.
I’ve been thinking about video games a lot lately; I got woken up early this morning and had a lot of ideas banging around in my head, but given that it’s not something I’ve been able to work out yet I don’t know what I would do. I really wanted to get in on the Star Atlas prize money, but doing a MolochDao implementation might be more within my skill set. I’ve got some research to do.
In other news, I’ve got what will probably be the last wire transfer out of my brokerage IRA. It seems this one has come through pretty quickly, hopefully I can get it onto the exchange quickly enough to buy this pullback. I’ll have to examine my spreadsheets to see whether I want to dump it all into BTC 2x FLI-wBTC or if I need to spread it out a bit more. Gas is low, not as low as I want it, but I may just go ahead and swap into a FLI SLP position this morning if I can move fast enough.
I’m a bit sleep deprived again this morning. Younger got sick and kept Missus up last night, she switched beds and then I got the brunt of of it. I managed to get a solid hour on the couch earlier, so I’m not going to be completely wasted, but might still want to call out. Missus already did, even though it was supposed to be her week to provide coverage at her office. At least I get another day before I’m on single-parent duty, a small blessing.
Not much else to talk about, I just want to get some caffeine in me and get some work done. Gas is rising already.
Gas was at forty gwei this morning, so I scrambled to get a lot of stuff done that I’d been planning all week: moving tokens to centralized exchanges and staking, claiming, unstaking various positions. Of course the rest of the market was in turmoil today as BTC continued it’s drawdown. As predicted, my last BTC buy is under my two percent limit, but I’m holding, come hell or high water. This seems to be another thirty percent pullback, I hope that we’re at a bottom or I am going to be begging for my job back before the end of the month is out. I kid.
I’ve been playing games with Elder. We puttered around in Project Entropia for a few hours last night. I’m not sure I want to get into an MMO with her, but it was mentioned as an influence by the CEO of Star Atlas, so I figured that it was another look. And it’s certainly better that those games that she plays on Roblox. Most of them are mindless, grindy click games. The obbies, short for obstacle course are somewhat okay, the worst are the tycoon games. They’re basically grinding games where you’re dependent on a timer to build up money that you need to build the next piece of whatever you’re building, and requires a lot of running back and forth from point A to B, to A, to C, and so on and on. The whole point of these games are to use every addictive game mechanism known to man to hook players, and then offer them bonuses like 2x walking speed or whatever to get them to shell out Robux to the developer. They’re extremely exploitative.
I don’t think I’d hate them so much if they weren’t being so completely transparent about it. While one could argue that they’re not that much different than other MMOs at the core, at least there’s an element of story to most games, and some level of interaction and space to form friendships. Most of that has been stripped away there.
The two of us spent a couple hours running around in a game today. It had RPG elements, we were mainly running around swinging swords at goblins and other monsters, for skulls, but we were limited by how many skulls we could carry, and had to respawn back at the start to sell them for coins, which we then used to purchase larger skull capacity. That should tell you all you need to know about that game. There were pets that gave you skull bonuses, but it all built up so fast that you eventually spent more time respawning and running back and forth than you did attacking monsters. And it was garish, like the RPG version of a casino. There was so much visual noise on the screen that I about had a fit, but thankfully I had the option to turn off all the money effects and pets.
After a couple hours of that I needed a detox, so I took the girls out. We stopped by the dollar store for some treats, then I took them to the nature park for some canoeing. Younger almost had a fit when we took off, but it was fun. The playground there was open for the first time since COVID started, and was a bit crowded. So we left there and I took them to the beach and let them run around in the surf for a bit. They had a great day.
So now they’re in bed, and I’m going to hopefully spend some time with Missus. She’s going to be working at the office this next week as part of a coverage rotation, so I’m going to be on my own all day with the kids tomorrow, a full time househusband. Her job hasn’t announced any “return to work” plans for her yet, but it’s coming. We’ll just have to see how much deep work I can get done with the kids around. It’s going to be a challenge.
Not a lot to talk about today, market-wise. ADA had been pumping lately, and it looks like someone’s let the air out of BTC. My big position that I opened a couple days ago is about to get stopped out, but I don’t know if I’m actually going to sell it. I continue playing the market with the Start Atlas posters, the latest one dropped today. Oh, and I got a few thousand USDC locked up on FTX because my 2FA codes stopped working for some reason. Fun times.
Last night we tied one on. The neighbors came over — the whole neighborhood would be a more accurate assessment — we let the kids blast some music off the porch and we fed them pizza and ice cream. D. and I drank almost an entire bottle of Glenfiddich, so this morning was a bit rough. We did our cleaning day activities and drove across the water to a rally in support of the the local newspaper, which is at risk of being shut down by their parent company halfway across the country. We stopped at a Mexican joint on the way home and ate out with the girls for the first time in several years. Good times.
I’m not sure what all I’m going to get done today. Gas has been pretty low today, so I’ve done some farming. No trades, just some claiming and staking. Might as well go and manage the BSC farms while I’m at it today. Not sure I’m going to get much else done tonight besides play video games with Elder. I need to turn in early today and get a good start tomorrow.
Most of the blood from the last two days has settled. BTC is back up over $50k, and ETH has reclaimed four. I have not made a transaction on mainnet in over four days, and have had a forty gwei transaction pending since then. Instead, I’ve been planning out my activities and estimating gas costs, waiting for another costs to come down a bit more. Gas is at eighty now, but I’m hoping for a couple more days below fifty before I start making any moves.
I’ve got several farms and stakes that need harvesting, but mainly I’ve been eyeing the BTC 2x-FLI/wBTC pool on Sushiswap. Pairing the 2x and native token effectively creates a 1.5x leveraged position, and the fees on the Sushiswap pool basically pays you to hold it. I really wanted to do something a few nights ago, but couldn’t justify the cost with gas at three or four hundred. ETH is going to become even more expensive, so I’m holding on to every single bit. Especially since I’m not going to be earning fiat after three weeks from now.
That’s right, I have two weeks to go after today. I actually had a handoff meeting with a team out of St. Louis to go over our clients, I spent ninety minutes debriefing them and have another meeting next week to go over a few more operational details. It’s really happening.
One small wrinkle in my reFIREment plan, if you will. I had BTFD FOMO so hard after the Tesla FUD that I dumped my entire A tranche that was on Voyager into a BTC market order. I’ll admit it was a very stupid move, considering the fact that I had just held it up as assurance to my wife, who was concerned that I wouldn’t have cash available when “something comes up.” I told her I had funds available on the exchange that I could move directly to my bank within a day or two, not to worry. And now I’ve gone ahead and bought the dip with it.
I did at least manage to draw up a trade plan after the fact, and even calculated a two percent loss level on the cash position. I came very close to that yesterday, but right now I’m back at my entry. I chose $70k as my exit just to give myself a 5x R/R on the trade. However, Voyager doesn’t allow limit orders that are “too far” outside of the current market price, so I might be forced to move the funds to Kraken just so I can place a proper OCO order on the position. And part of me wants to send it over to Coinbase, swap it for wBTC and put it into the BTC2x pool I mentioned earlier. I think I’ve put myself in enough of a pickle. I should probably just cash out now so I don’t have to worry about tax ramifications, but I know I’m going to hold this for the next leg up.
I’m still working my way through the Rust tutorials, I got hung up on the multithread lesson, so that’s going to take some time today to get that right. I’m at the point now where there aren’t any video tutorials on Egghead, so I had to figure things out for myself. I felt pretty good when I managed to clear one of the later iterators lessons that required me to write some functional one-liners that used closures. I might get this programming thing yet!
Even though I haven’t been active on Ethereum, I’m still tending my STEP farm on Solana. I’m pretty far down underwater right now, but it’s printing cash every day, so I’m going to hold this one for now and see how things go. I want to automate the harvesting, so that will be one of my projects once I finally start moving into the Solana side of things. I’ve also been trying to corner the Serum market on Star Atlas posters, but more on that another time.
Last thing I’ll leave is this podcast that I listened to a few days ago. It resonated with me because it talks about the idea of a time-multiplier. Doing activities today that will give you more time tomorrow. This is my whole philosophy with automation, and this guy basically has system to it, and gives himself a 30x time investment quota to work on things. Meaning, that if you spend five minutes a day on something, then you should spend one hundred and fifty minutes, or two and a half hours, training someone to do it, or figuring out another way to delegate it or automate it. He also says that getting someone to do something at 80% efficiency is better than doing it with 100% efficiency yourself, as it frees up time, and that’s how successful leaders operate. It ties in very nicely with the Essentialism book that I’m reading.
CPI inflation beat all estimates; Vitalik rugs SHIB and other meme coins; Elon dumps Bitcoin over “dirty power”, bitcoiners fight back.
I don’t have much insight on these inflation figures but am just throwing them here for informational purposes. We’ve known asset inflation was already here, as I discussed yesterday, but I did not see this change in the CPI coming so fast, nor did I expect it to hit four percent already. Most of the macro people I follow have been anticipating this for some time, the question is where do we go from here. Bullish BTC.
So Vitalik Buterin, the founder of Ethereum, gets lots of airdrops. Apparently token creators do it as some sort of social proof, as they can later say that “Vitalik is an investor in our project”. This happens to Mark Cuban as well as any high profile whale address like the 0x_01b address or whatever it is. So that’s how Vitalik wound up owning about $8 billion dollars in SHIB. These dumbasses decided to drop him Uniswap LP tokens instead of just locking them up in a timelock like most people. Vitalik’s been in a very tough conundrum, a trolley problem, as one person described it. Holding the token was bullish for SHIB, and could lead to more nonsense. Selling it would hurt a lot of people. Damned no matter what he did.
The final straw was several days of network congestion on Ethereum, as gas prices remained in the 300-400 for several days. Most of the traffic was SHIIB, as well as several other clones that sprung up. Even Binance chain was affected and required people to increase gas. So VB did what he had to do, and dumped it. All of them.
You should really look at the thread above . He removed the LP, then started dumping and donating coins to charity. SHIB, AKITA, and ELON were all either dumped or given to charities including Gitcoin and a COVID relief fund for India. One person pointed out that he sent the meme coins to the charities, while keeping the ETH for himself. What this means is that he was able to deduct the full value of the meme tokens as a charitable contribution, even though the charities would in no way be able to redeem the tokens for that value. There’s just not enough liquidity or depth to the market.
This seemed to trigger a minor pullback in the price of ETH, but that was nothing compared to what was about to happen. Queue memelord Elon Musk:
This caused a huge dump in the BTC price from $54-46k in a matter of hours as billions of leveraged traders were liquidated. Much of it was quickly bought up, and it’s recovered to the 49.6k level as I write this. Many were quick to point out that anyone with enough BTC to actually buy a Tesla were unlikely to spend it on one, so Elon wasn’t shooting himself in the foot here. There was also speculation that Elon may have been pressured by bitcoin critics on the environmental front, and that he doesn’t really believe the Tesla statement personally. This article provides some additional context.
The Bitcoin community is taking this accusation as a call to arms. For months, there has been misinformation about bitcoin’s environmental impact being circulated, and this Tesla tweet is the last straw for many. Many believe that bitcoin production actually creates more demand for renewable production as well as the capture of waste energy. Many bitcoin farms rely on hydroelectric, and there are companies that are capturing waste methane from gas mining rigs, which would normally be vented out into the atmosphere, to power bitcoin mining equipment. Bitcoin mining can also smooth out troughs in power demand, coming online when demand is low and shutting down when it goes back up.
Of course that’s not to say that some bitcoin production relies on fossil fuel. The Tesla statement is apparently referencing a Chinese coal plant shutdown last month that was accompanied by a significant drop in the bitcoin hashrate, which was apparently due to the fact that hydroelectric power supplies had caused many Chinese miners to shutdown and relocate following the rainy season.
Bitcoin is an easy target for many due to the fact that the hashrate is available directly on chain. While critics like to bemoan the fact that the bitcoin network uses more power than most small countries, it’s not a fair comparison. No one talks about the current environmental impact of gold mining production, or the combined cost of paper currency production by every nation on earth. Those figures aren’t as easy to come by. Thankfully, Ark Invest has done the math for us.
Of course for many bitcoiners, the cost of the fiat monetary system is way worse than the environmental impact of bitcoin. If we are returning to four percent inflation, or higher, then people are going to witness firsthand the damaging effects of wealth destruction, as peoples’ savings are destroyed by rising prices. The next few days will likely see bitcoin’s energy usage at the front of debate, and hopefully this time it can be put to rest.
Thoughts on Weimar, meme coins and the end of bullshit jobs
So ETH broke $4200 as the world has lost its mind over meme coins. SHIB is some multi-billion dollar token now, and new competitors are springing up left and right. Gas on ETH is the lowest I’ve seen in days, 180 gwei as I write this, but I still have yet to make any moves on mainnet in roughly a week. It’s just too expensive. My OpenSea listings remain untouched, and likely won’t fill since it’s just too damn expensive to do anything.
I think we go up from here. Sell pressure on ETH is likely to be non-existent for some time, given all of the staking options that are happening. Bankless has gone into this whole ultra-sound money thesis a bunch so I’ll not repeat it here, but Cochran’s tweet below is likely correct. NGU technology indeed. And I love that he lumps his investments into EVM-compatible and Solana. Confirmation bias indeed.
My thesis for this cycle has been that ETH would outperform BTC. When ETH hit $2000 I put a good amount of my retirement portfolio ETH into the ETH 2x FLI token, at $123. Today it’s at $420, and I’m sitting pretty. I’ll likely hold this position until ETH breaks this line, then I’ll consider scaling it back a bit.
Messari’s Ryan Selkis made a comment a while back that we’re likely to see a lot of “idiots” making more money than us this cycle, and he cautioned that it was OK and not to follow the FOMO. There’s plenty of money to be made this cycle, one just needs to keep their cool, follow their plan, and execute. There’s just so many people flowing into crypto this time round, there’s no telling how crazy things can get from here.
One thing that does have me concerned is the broader casino quality that’s going on now. I don’t know how much of the broader population is entering the space right now, but I think we might be in for trouble long term if we start minting millionaires left and right. I don’t know how many low-wage workers are winning the lotto with Doge and SHIB and all these other meme coins, but I hate to see the fallback once this bubble busts. I remember the feeling of anxiety and excitement that I felt during the 2017 run as I watched my four figures become size, but I also remember the anxiety and doubt that occured as the market corrected eighty percent over following six months.
There’s been a bit of fear-mongering among some conservative and libertarian media about people making more money on unemployment benefits and stimulus than they would make working at most jobs, and we know we’ve been facing a skilled labor shortage here in the US for some time. A good number of my clients over the years have been struggling to find skilled labor. HVAC techs are just one example I can think of. Now I’m seeing reports on social media of fast food restaurants closing down with signs taped to the intercoms that “no one wants to work here” or “people don’t show up for the jobs they signed up for”.
And I can attest that certain types of tech roles are hard to fill these days. Take mine for example. I’m basically forfeiting my position to work for daos or protocols or yield farming or whatever the hell I’m going to call it. Is this the future of work? Is the rise of SHIB and meme tokens going to spawn an exodus from productive labor? in the past I’ve pushed back against the idea that stimulus and UBI would lead to the mass exodus of labor from the market, at least a detrimental one. Sure a lot of bullshit jobs are going to be really hard to fill moving forward. No one wants to work for a minimum wage job when it takes three or four hours of labor to feed a family of four from the same restaurant.
After reading When Money Dies I’ve got a few doubts. So much of what that book describes in 1920’s Germany seemed oddly familiar to me when I was reading it, and each day that goes by seems to be like deja vu. The rush to speculative assets for example, the realization that it’s not the assets themselves that are going up in value, but that our money itself is losing value. In this case it’s not just the dollar, but all fiat currencies that are losing value against Bitcoin and other cryptoassets. We’ve already seen asset inflation in stocks and the housing market; used cars experienced a bubble last summer as stocks of new cars fell off due to factory closures; the price of lumber is still exorbitantly high due to home-improvement and new construction demand. Now, as the economy returns post-COVID, we’re seeing the beginnings of a bubble in energy stocks as demand meets a year of underproduction. Not to mention the shutdown of the Colonial Pipeline due to a ransomware attack that has led to gas station shortages.
We are in the beginning of the euphoria phase of this bull cycle, I would say. One recurring theme from When Money Dies stands out to me, it was that through the multi-year collapse of the mark in Weimar, things kept getting worse in an unending catastrophe, again and again and again. Crypto, with its charts and cycles, might be giving us a better view of exactly what’s going on. As the market cap of these coins go parabolic, we can always wonder when the pullback will begin, when the correction will come.
I’m starting to feel a bit of ennui lately. It’s starting with a hesitancy to sit down and write these posts in the morning. I feel like I’m running out of things to say and am just repeating myself day after day. So I’m waiting until later in the day to figure out what to write about. That’s causing me a bit of anxiety as the unfinished post is hanging over my head.
I think part of the problem is I made a commitment to the founder of a protocol to work on some docs for them, and I procrastinated on it and seemed to have burned that relationship. I haven’t followed up, or followed through, so it’s just taking up mental space in my head and likely will until it’s resolved. I suppose the proper thing to do is just do the work and try to salvage the relationship. I don’t want to be someone with a reputation for not following through. It also means that I’ve got to really focus on where I divert my attention.
I have this vision of my head of life after I quit my day job, that I’m going to be able to hunker down for two or three hours at a stretch and really dig into some project work. I think the reality in the near term is mostly going to be the same as it is now, househusband. Having Zombie, LLC is mostly a distraction right now, and having that off my plate is going to cut down on the interruptions, but as long as the kids are around, I’m subject to constant interruptions. Hashtag dad life. The only time I can get work done is if they’re out of the house or watching TV. The rest of the time it seems like they’re either making a mess, fighting, or trying to sneak into the pantry to sneak some snacks or treats. It’s like I’m on high alert all the damn time.
It’s actually pretty easy for me to knock out two hundred words on this blogmost days, it’s just sitting down that’s the hardest part. Most days I can easily knock out eight-hundred to a thousand words, no problem, so I have a issue just leaving after a couple hundred. I can usually find something to talk about. It’s just the fact that if I don’t wake up at six AM and knock out this page before anyone else wakes up, I will be interrupted two dozen times before I can finish the page.
And now it’s ten till nine, which means I have to stop and call in to check-in with Zombie…. brb.
SAIA Dao just started week three. I added up all of the dao funds, and along with the Gnosis vault and Solana wallet, we just passed twenty thousand dollars in funding! Today we start accepting $10,000 and under tributes. We’ve got enough funds to make it to tier three, but we’ll need another $110k from here in the next four weeks if we’re going to make it to T4. It’s going to be interesting. I’m spending a lot of time managing the proposals and doing technical support for people with their wallets. Now, we’re mostly going into a marketing and promotion phase; I’ve got a podcast that I’ve been promising to do.
I’ve been making good progress with Rust, moving through a section or two a day. I’m not sure if I’ll be ready for the hackathon or not at this pace, since I’m time-limited, but I’m trying to get people thinking of ideas for the Star Atlas Arcade. Converting MolochDAO would be my fallback position. I’ve got a whole bunch of random stuff that I want to figure out as soon as I can start diving into the Solana: yield harvesting/restaking my farm positions; multi-sig wallets, token holder analytics (for SA posters, of course), and maybe a couple other things.
And I’ve been a bit of a mess because of my dad’s surgery. He’s supposed to be dismissed from the hospital some time today or tomorrow and we don’t know what to do with him. He can’t go home by himself, and we’re just not prepared for him hear. I’m bringing him to a nursing home for a few days, but it’s just too damn expensive for him to stay there very long. And the kids have been really bad lately, I’ve been short-tempered and today was just a mess.
ETH broke $4000 early this morning, and with gas at 250-300 gwei, it has become painfully apparent how difficult it is going to be to continue to operate on Mainnet for the coming months. Yesterday a simple ERC20 transfer was about $180 in gas, and I’m pretty much putting a hold on all ETH activities unless I carefully consider exactly what I’m doing.
Everything under $400 in value is effectively dust for now. We may see some relief briefly once Optimism launches, but I think long term, if ETH is going to $5000-10,000, it’s going to price most participants out of the market. I’m almost there myself. I’m trying to triage my positions into several buckets.
Dust: shitcoins I bought as a crapshoot, that have no real value to justify swapping them back to ETH. I’m not sure what I can do to deal with the tax ramifications of this. I can’t merely mark them “abandoned” unless I burn them or the private keys for the wallet. The latter is unacceptable for a variety of reasons, I’m not sure what else can be done about this loss. It will need further research.
AMM only coins: Coins that are worth a couple hundred bucks, but don’t have any liquidity off-chain. I’ve got a couple things I can do here. One, if I believe in the project I can just hold on, which is the most risky option, or I can swap close the trade and take ETH/stablecoin profits. Alternatively, I could bridge them to a sidechain, Polygon, BSC, or Polygon. This might not be as expensive as an AMM trade, but it also depends on liquidity as well.
Majors: Most of the blue chips have plenty of options for trading, so it might make most sense to move these coins to Kraken or one of the other centralized exchanges. L2s are also an option, but migration is a bit more expensive than just an ERC20 transfer. It all depends on how comfortable I am with custodial risk. There are a couple ways to reduce cross-chain transfers fees. FTX has free transfers to Solana, and Binance can do the same for BEP20 tokens. It seems kind of ironic to set up to sell ETH on Solana, but no more so than doing wBTC on Ethereum.
Then there’s the whole what to do with my yield farms. Obviously, harvesting is going to slow down a lot, and there’s a lot of yields that aren’t going to be worth the gas to claim. I’m going to be thinking very hard about what I do in the coming months. And moving into new positions… well, that’s going to be a very hard decision to make.
I think there’s probably one project that I’m even remotely considering getting into. OlympusDAO seems almost too good to be true, like Alchemix, so I’m going to wait for an opportunity for gas to come down and then throw some funds into it.
Basically I’m looking for things that I’ll be comfortable staying in for the next three months. Or longer. I don’t know how the Ethereum community is going to deal with the prospect of five-figure ETH, and what that might mean for the network. If it’s going to continue to be the type of network that can run a node on a laptop, then they’re not going to be able to increase the blocksize too much bigger than they have now. Still, I’m not able to make a prediction as to what the long term effects on gas is going to be. Optimism and the upcoming EIP may reduce short-term gas issues, but if ETH continues to climb, then Ethereum will continue to price people out of the market, forcing participants onto side chains.
Today is Mothers’ Day, and ETH is almost $3900. All I can think about is flipping Star Atlas posters and Solana. This will be a short post, as I want to get a workout in before the girls start waking up. Missus has said on occasion that all she wants is to sleep in and a clean house, so that’s all I’m giving her. I was totally preoccupied with my dad’s surgery and hospital stuff that I forgot to by my Mom a gift, but Missus did it for me. So I really need to make things special for her.
ETH’s progress from the $2000 level has been rather short of amazing. My mining rig continues to crank out gwei for my never ending degen activities, but we’re reaching a critical point. I need to dump the GPUs as I’m sure they’ll be fairly useless soon, from a mining perspective. I’ve already decided that they’re too much trouble to keep up with the occasional failure, as I’d rather concentrate on other activities. Last week’s low gas let me ignore the issue, but yesterday’s recent spike to 300 while I was scrambling to buy my allotment of Star Atlas posters reminded me just how expensive things are going to be in the future. I wanted to transfer USDC to my FTX account and it was … $150?!
There is a lot of trash in my wallet, some degen coins that I bought for 0.05 ETH earlier in the year. They’re all effectively dust. Swap fees effectively means that anything less than $100 is dust, and that number is going to get progressively higher over the next two months. I’m not sure that the launch of Optimism is going to change that, long term. I’m going to start looking through my wallet, and anything that I can trade on a CEX is going there for transfer. I’ve got to dump things will I still can, and tighten up my wallets so that I’m in positions I don’t mind holding for months.
I probably need to up my game with the NFT sales, I need to flip a lot of week one and two posters so I can afford to buy more of this week’s. I figure that I should probably hold enough funds in reserve to secure the next tier, so that limits what I can buy today. I’ve got a lot of posters to flip. I basically need to dump my entire inventory this week to be able to buy enough week three posters to keep things moving. It’s going to be a bit more tricky than I thought, but a fun exercise. I have no fears about losing money, I’m just concerned that I’m not going to be able to flip things fast enough to make it to tier three, which is going to cost 3x my initial starting capital. The clock is ticking!
I’ve been contacted by someone about the Solana projects that I pitched for the hackathon. I’m not sure exactly what I can do. The Lattice hard wallet support is probably out until after the hackathon, and the Gnosis vault probably requires some serious integration work with existing wallets that might be too much to take on right now. Forking MolochDao/DaoHaus might be a good project, but with the StarAtlas arcade rewards, I’ve been thinking that’s where I’m going to be focusing.
I’ve had a couple ideas for games, mainly in-browser versions of retro arcade classics, stuff that we could fork and modify with some blockchain mechanics and throw on a web page. Nothing terribly original yet, I’m afraid. I still need to build a team, and I’ve got a week to do it.
Today has been a bit of a mess. I just finished putting the first application of putty over the hole I made in the bathroom wall months ago when I got mad at Elder. The girls are down the street at a birthday party, and I’ve been messing around with Solana trying to get the week’s Star Atlas poster on Serum and losing my mind.
Solana transactions are nothing like Ethereum’s EVM transactions. I’m at the point now where I can follow the transfers of tokens going in, out and every which way, but Solana is just a completely foreign beast. Seriously, what in the hell is this?
I must have tried five transactions on the Serum DEX before I figured out that I needed to pay for the posters at a higher price as there was an exchange fee in the transaction that wasn’t displayed on the site. Oh well.
I just sold another week one poster on OpenSea, bringing my total to five sold. I’ve managed to sell all of them for at least double the starting price, but I’m going to run out of capital in a week if I can’t move more of them. I’ve already got fifteen of week two, which ends sales any minute, and Ill be able to afford nine of next week’s posters with the starting capital and proceeds that I’ve got now. My business plan is below.
I’ve figured out that I can list on OpenSea without any gas, and allow others to scoop them up from me, covering the cost. Changing the price or cancelling is going to cost me, and then there’s the whole situation with moving them over to Solana when I’m done. I figured that the posters would be works of art in their own right, and non-gamers would be willing to pick them up on Ethereum at a premium, and it’s mostly been borne out. There is a pretty big price discrepancy between the networks, as gas is a huge consideration. So to that end, I bought five of this week’s poster on Solana. I’m not sure how I’m going to split things moving forward, so we’ll just have to see how the price moves.
I got my Ledger wallet yesterday, and moved my IRA funds to it. God, I hate it. Compared to the Trezor or Lattice it is obviously inferior device. Inputting the pin is a pain, and I couldn’t even get it to work on my Ubuntu workstation yesterday. It may have been operator error, but the Trezor’s ability to enter the pin via the keyboard’s number pad is so much better.
I actually started looking at what it would take to bring Solana support to the Lattice. They’re going to be opening up the device’s SDK a bit, so I may try to dig in with that. I signed up for the Solana hackathon, thinking that it might make a good project, but the hackathon starts in a week and ends on June 7th. I had thought it started on June 7, and the device won’t be ready for me. As alternatives, I considered joining up with someone to try to port the MolochDao or Gnosis Vault contracts, but then I saw this Tweet.
So, yea, I know what I’ll be working on during the hackathon! Now to come up with some arcade game ideas.