DeFi is completely insane and massively complex.
I’m about to load up the yEarn valut with some wrapped BTC, and am planning on staking about twenty percent of assets under management. This is almost insanely risky, but I believe that of all the projects in DeFi, the one I’m picking carries the least amount of risk.
We’re putting our faith in several assumptions.
- The wBTC protocol is secure, and that the BTC that we put in there will be safe when we decide to withdraw.
- The Curve protocol is secure, and that the smart contracts are safe. Of course, there’s a ton of assumptions nested here as well, including the other tokens in the pool, renBTC and sBTC.
- That the Yearn valut is secure, and that they know what the hell they’re doing.
Anyways, I must be insane.
I’ve got two out of three withdrawals out of BlockFi. I decided to use exchange funds instead of paying their thirty dollar fee to make another withdrawal. (I burned my freebie on a test tx.) I put in an order to convert BTC to wBTC, and that took all night to trade at an even price. After that completed I put in a text tx to my Etherum address, and then sent a max withdrawal after that cleared.
Now that those funds are sitting safely in my wallet, I have to choose whether to go ahead and proceed with loading the vault, or if I want to convert the rest of my BTC first. I think that’s wise. I feel like quibbling over the gas fee is probably stupid considering the size of the position here, but every bit will count in the long run.
If this works out, assuming that everything is safe and that my deposit grows at the respectable forty percent that I think it will, this could be one of the most significant, life changing decisions that I’ve made since getting involved with crypto.
We’ll give it three months and see.