Forty-seven thousand

Everything is a mess right now and I can’t keep up.

Obviously the market gains that I’ve made the past month have come to quickly, and I’m over my head. I spent at least nine hours last night on the computer, downloading wallet transactions and going over them in a spreadsheet, trying to figure out what funds came from dad and the girls, and where they went from there and how much of the yields belong to them. The funny thing is that I don’t actually owe them any of it, but I want to keep track of it to be fair. There has got to be a better way to manage a “family office” like this. There’s got to be software out there that I can use, I sure don’t think I want to roll my own from here, but we’ll see. Using a token set in the future might help.

I wrote the above paragraph early this morning. I think I got distracted somehow, cause at some point I had to step away, and that’s when I found out the news that Tesla added $1.5 billion dollars of bitcoin to it’s balance sheet, sending the price mooning from thirty-eight to forty three in a matter of minutes. I think I lost my shit at one point. I remember rushing upstairs to tell Missus, who was utterly unimpressed with something work-related.

I was a complete wreck by the time I tried to get onto my morning conference call with work. Literally shaking, and almost brought to tears while scrolling Twitter. I signed onto the conference call, did my check-in with as much poise as I could and told Bossmang that I needed to talk to him privately afterward. I told him that I was meeting with a lawyer to draft up papers to transition me from full-time employee to contractor status, and before I signed the paperwork I wanted to make sure he was still cool with it. Not really, he said, but what was he going to do about it.

I started off telling him all that’s been going on, how things have been going better than expected, and how I couldn’t afford to keep moving forward with things the way they are. He understood my position, although his reaction was to ask me if I’d heard of the tulip bubble. Boss, I said, I’ve been in this space for years, of course I’ve heard of the tulip bubble. The conversation moved from there to discussion about what I was going to do in “retirement” and about his plans for the company. I’ve jokingly called it Zombie, LLC in posts here over the years, cause I do think the market here where we’re at is fairly oversaturated. He’s in a franchise agreement for almost two more years, and recently took out a PPP loan. Otherwise he would have gone bankrupt last year. I still think that would have been the better choice, honestly. But I told him that he’s been good to me for the last eight years, and that I wasn’t going to abandon him. I’d finish the projects that I started, and stick around long enough to transition to what’s next. What that’s going to look like, I have no idea.

And then, later today, I met with the lawyers. I wasn’t terribly impressed. I’m going to let them handle my independent contractor contract, but I don’t really feel right about using a lawyer for my crypto that doesn’t hold crypto. I knew the associate lawyer as a client in their previous firm, but this was my first call with one of the actual partners. I asked about their background with crypto, and they said that they had helped with some ICOs and with some individuals that were in my position, and needed to reduce their tax liabilities. I’m not sure they’d really kept up since the 2017 cycle.

We talked through some options, like buying depreciable assets, like a car, for example, gifting to charity, setting up a revocable trust for the kids, and so forth. They mentioned a client that has moved to another jurisdiction (Germany) to reduce their taxable income, and I joked about moving there before the end of next month to qualify for the nine-month exemption. There were a couple other options that we ran through, but nothing really stood out to me as something that I really wanted to pursue. I think moving as much money into a 401k is my best option at this point.

I did do some further research afterward, but I’m still trying to process it. There are too many moving factors right now, and today has been exhausting. I know a lot of people are interested in strategies to save on taxes, and I think the steps I’m taking right now are the best I can do for now. If my wife and I can reduce our income to less than $80k then we can take advantage of the zero percent rate on long-term gains, but that might be the best I can do. Right now my Badger yield farming is making more in a week than I take home in month, although as long as I leave that unclaimed I suppose I could let that accumulate for a year.

The bottom line is that I’m going to need to take a look at several tax services to see how well they can track defi farming. I can probably get away with reducing the income on some of the recent activities that I’ve done since it’s mostly been a wash, but I need to think real hard about what I want to do with my Badger gains. It’s tough.

Evening pages

Today was a bit of a mess. I tied one on last night and was useless for most of the day. I got to stop killing myself like this.

Yesterday I figured out that divergence loss on my Badger LP has been absolutely killing my returns. I’m up 5x right now overall, so I shouldn’t be complaining, but it looks like it should have been more like an 8x. It’s really hard to calculate everything with all the farming rewards that I’m getting; I’ll have to do a spreadsheet to figure it out. Earlier today I posted on the BadgerDAO forums to see if anyone has advice, but no one’s responded yet. I about got laughed out of the Discord by a few people when I was on there yesterday. It’s not a good feeling.

I’m also kind of pissed that I missed a huge 100% ZRX pump today. I had posted about it two days ago and was going to buy back the 2017 bags I sold last month, but I never got around to it because of gas fees. And so it goes. Again, it’s hard to be pissed at myself when almost everything I have is up. BTC is back at $39k as I write this, ETH is over $1700. I’m up more than a year’s salary in less than a month on Badger alone, and things are just getting started.

I spoke to a lawyer today, and former client that’s moved to a new firm. I rambled on about what’s been going on to him for twenty minutes earlier today, and probably sounded completely insane. I’m hiring him to do my new work contractor arrangement, and to help me reduce my tax liability going into next year. I’m also going to need someone on my side as I launch Homebrew.Finance. I have another meeting with him and his partner Monday to discuss things in depth.

I’ve been slowly working on the Homebrew docs and am on the final third of a litepaper. I still haven’t found a bank for the LLC, my Novo application got rejected cause they don’t service my type, so that’s probably the top of my priority list short term. Tomorrow I’m taking the girls to visit a friend on a farm and let them play with the animals. Should be fun. I’ve also got a lot of stuff to do on my honey-do list. The house is falling apart, literally, and I’ve got monthly finances to do.

But tonight, sleep.

Banking on bitcoin

The 2021 crypto bull run continues today. ETH broke $1500 then $1600, while BTC continued climbing to $38k. My IRA hit another nice round number with five zeros behind it, and by BadgerDAO positions just continues making new highs every day. Gas is has been hovering around 150 gwei or higher today, I’m waiting on a low gas transaction to withdraw my yaLINK. It’s looking like $200-300 fee at this point, so I’ve got to be more careful about what I ape into from here on out.

I managed to help my brother recover his funds from the timelock contract. Had some help from the team over Telegram and got his funds en route to BlockFi as we speak. I pulled all of my ETH from there last night after liquidating a few LTC that I had held over from 2017. I should have them in my wallet tonight, then let the games begin. Not sure what I’m going to do yet. Might buy some more DPI and stake it for INDEX, but I’ll probably want to sit on it while ETH runs to $2k and beyond. Transactions are going to get very expensive.

So the IRA LLC got approved. I spent most of last evening trying to find a decent, crypto-friendly bank. Most of them are in the UK, and the ones I could find that service US customers don’t have commercial divisions. I found one that deals with startups, but I don’t need anything fancy. Going to look at Capital One or Chase later today. Wells Fargo wanted additional paperwork beyond what I have already. So it goes.

Everything I read today was bullish. More and more firms buying bitcoin. Michael Saylor running his corporate treasuries training for some 1500 companies; Cathie Wood of ARK invest calling BTC a good investment; Bloomberg publishing a report that said the same. Startups everywhere. Just absolutely insane. DeFi is just getting started.

I actually caught up with some old friends today, back from the old crypto meetups that I used to host back in the day. Haven’t talked to one of them in almost two years I think, and it was good to catch up. Another is working for 0x (ZRX), and said that they’re very excited kabout this thread that went around yesterday.

I’m still trying to wrap my head around how I want to organize this IRA/LLC and whether I can use it as a vehicle for Homebrew Finance. It’s pretty clear that I can’t use the funds for personal gain, so I might have to find a different outlet for the funds. Either the funds will have to stay out of the set altogether, or the LLC will have to manage the Set completely. That rules out a DAO. For now, I’ll just focus on writing the documents and will do some more research over the next week as I get funds ready to move.

DeFi is breaking my brain

Monday

I was up till 4:30AM last night and I am completely exhausted.

I spent seven hours driving the fam up and back from the mountains for a day of snow fun. Younger got lost in the woods for about twenty minutes, I had to track her down like I was following a Family Circus cartoon. Other than that, it was a nice getaway, and we had fun sledding.

I managed to catch up on my podcasts on the drive, mainly a number of Uncommon Core episodes about options and perpetual swaps. The pieces are starting to fall into place and I’m really trying to wrap my head around some of these strategies for hedging and generating income. Buying puts seems like a no-brainer on long term accumulation targets, especially if the premiums are good.

I spent a good portion of last night on Discord, trying to figure out what the hell I’m going to do with my BadgerDAO positions. I’m up more than 2x right now, and I’ve got to figure out how to rerisk that position somehow. My Klondike experiment was no win, so I’ve got a transaction pending to withdraw my wBTC stake. I also aped into a $RUNE/$ALPHA Sushi pool.

Tuesday

Some guy DMed me last night. Apparently found me cause I mentioned the Gemini API in one of my tweets and he needed my help. He was trying to implement some sort of trade strategy in Python but kept getting the call rejected cause of some issue with a nonce. He was really aggressive and under some time pressure or something. I told him to regen the API keys and he said he could wait and was like “name your price” and I was all like dude, I just want to go to sleep. So I tried to point him in the right direction and apparently he got it worked out.

That’s been happening a lot to me lately, which is a good sign that I’m doing good work in the right field. Looks like the blog posts and tweetstorms are helping people, which is all I can ask. Things are coming together with the Homebrew.Finance chat group that I got going with my friends is growing. Getting all my friends in there. Even got my brother in today. I was telling everyone how bullish I was on ETH — before today’s breakout — and someone said they were going long 5x on Kraken. I asked what their liquidation price was and they were all wut? so I guess there’s more work to be done.

Missus got her second dose of the COVID vaccine yesterday, and had an extremely adverse reaction to it. She’s been in bed all day except for maybe fifteen minutes today, so of course the kids did everything they could to test me. They’ve been disobedient and disrespectful all day, so I put my foot down until they got in line. It was a war of attrition, but I finally got them to pull together by the end of the evening. As a result I didn’t get anything done for work, which is bad because I actually have a project to do.

At one point today my boss messaged me about some billing problem that was costing the company a whopping thirty dollars a month and it took all I had just to keep from telling him have fun staying poor. I’m trying to figure out what to do with six-figures of funds in an animal-themed DAO/yield farm and this guy’s bothering me because of thirty dollars? It reminds me of the old saw from late-Soviet Russia: they pretend to pay us and we pretend to work. Work is basically my side hustle at this point.

Of course, it’s usually when things are going this well that hubris comes and kicks me in the ass. Things are going a little too well, and I’m afraid that I’m going to do something stupid, take a risk or make a bad decision, or the market is going to turn against me. I’m not sure how long this run can keep going, but I’m having fun as hell.

And more good news, my AltoIRA Checkbook+ IRA just came through! We are full speed ahead!