Apologies for the late reply, I wrote a post earlier and something happened with the internet connection and everything was lost before being posted. I became depressed and made me some eggs.
What other metrics or indicators would you look at when assessing a given blockchain?
There are several metrics other than price to look at both for long term investors and short term day traders who may look at metrics like the Relative Strength Index. For me when looking at a layer 1 blockchain, I like to look at long term metrics like how much development activity is happening on the core code (Github commits to measure) and # of (useful) projects that are developing on the blockchain. No matter what if the price is up or down, if there is no one developing on it then it is essentially a dead project that'll go to zero at some point. What gives real value is the number of people using that blockchain for real life improvements. In lower market cap projects I would also look at development activity (Github commits & # of projects developing) in ratio to number of devs on their team.
Other good indicators is to look at 30 day transaction volume (coinmarketcap and coingecko should take care of this), 30 day NFT Volume (if they're active in that space), total value locked in DeFi (there was a great etc.
EDIT:
Mentions of Terra Luna in Messari’s “crypto theses for 2022” report: 55
Mentions of Cardano in Messari’s “crypto theses for 2022” report: 2
(one of which was basically “it sucks lol”)
https://nitter.net/cardano_whale/status/1534849482189578241
Be aware of extreme bias in the crypto community even in metrics websites and especially in journalistic/media sites. I am pretty biased to Cardano but I just see so many strengths there that are either not being reported or covered up with lies. I did my research, looked at all the top projects and this is my choice for the strongest project. People are waiting for the DeFi projects to roll out on Cardano, that is where I think it's going to get real good.
Given that, Messari and DefiLlama are other crypto metric sites many people use.
https://cryptoslam.io/ is a great website to look at NFT sales volume but they are very obviously missing Cardano NFT sales volume which would be #3 if included in their 30 day charts. If you notice, it is also only -20% in 30 day NFT sales volume compared to top 3 on Cryptoslam.io: Ethereum (-74%), Solana (-71%), BSC (-79%).
https://opencnft.io/market-overview#trend
https://www.cnftjungle.io/statistics
Another important indicator for me is how transparent that blockchain is in terms of development, roadmap, and projects developing. Can they give short and simple explanations as well as long and thought out explanations on the same topic? How big of a community of communicators do they have? Is their code open source? Is code being audited?
Red flags for me are projects that don't meet their roadmap goals after given ample amount of time. Here is a video with Vitalik Buterin announcing that by 2016 ETH 2.0 will be running proof of stake.
https://files.catbox.moe/uea6n1.mp4
6 years later Ethereum is still working on moving to proof of stake and they just suffered a 7 block reorg in their inital testnet for the merge. A block reorg is when the blocks in the blockchain get out of time alignment meaning the ledger is giving faulty information about when a transaction was made (definitely not good)
Ethereum Beacon Chain Suffers Longest Blockchain 'Reorg' in Years
https://decrypt.co/101390/ethereum-beacon-chain-blockchain-reorg
Visualising the 7-block reorg on the Ethereum beacon chain
https://barnabe.substack.com/p/pos-ethereum-reorg?s=r
Decentralization is absolutely worth pursuing because it takes much more entropy and time to destroy it. Take a look at this genius episode from a kids show from over 20 years ago to see what happens to an asset when it becomes completely centralized in hands of a few compared to the many. When an asset is completely controlled by a few people and everyone else sees it, the masses begin to reject that asset.
https://www.youtube.com/watch?v=D7WPeUpcBlg
Solana is one of those projects that is more centralized and the devs shut down their blockchain every other week to make "fixes" on it. This means they shut down all transaction activity on the blockchain and they ultimately control your ability to make transactions. That is a HUGE deal and imo nobody should ever have that kind of power. They also magically made Solana appear on the blockchain about a year ago on their first blockchain shutdown, idk why people forgot that. All it takes is one of the devs to go rogue and things could get really bad for Solana holders. Not to mention the recent DAO vote on their Solend project to take control and liquidate a wallet that was about to sell $180 million of Solana which would dump Solana price. The deciding vote was a wallet of $700k and took 80% of the vote. See how important decentralization is? The next day after the results were announced the devs held another "vote" to undo the previous vote of taking over the wallet and undid the previous voters. Pretty hypocritical if you ask me and not a safe place to invest.
Also, what are your thoughts on stablecoins? Algorithmic vs fiat pegs etc.
Tether is going to lose its market cap, USDC will eventually take its place as the top stablecoin. The question is how fast will Tether lose its market cap? Also how much market cap is lost in the crypto community if Tether runs out of "dollar equivalent assets" before its actual market cap goes to $0.
Opinion: collapse of USDT
The problem with this $13B liquidation though, originates at the source of this report published by Tether, stating that only 2.94% of its reserves are in cash. The pie chart in that document is a bit misleading -- it says 3.87%, but it is 3.87% of the 75.85% category of "Cash & Cash Equivalents & Other Short Term Deposits & Commercial Paper."
That report was published on March 31, 2021. At that time, the market cap of Tether was ~$62B (see chart below). 2.94% of that is $1.8B. We can also play out a second scenario: assume the cash reserves grew in tandem with the market cap. If that's the case, then at $83B, $2.4B would be in cash reserve.
Tether Claims 'Coordinated' Conspiracy Is Trying to Take It Down
The next question is how safe is USDC? Who created and controls USDC and are they able manipulate my USDC coins/transactions?
https://en.wikipedia.org/wiki/USD_Coin
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre,[1] which was founded by Circle and includes members from the cryptocurrency exchange Coinbase [2] and Bitcoin mining company Bitmain,[3] an investor in Circle.[4] USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).
I still need to do more research into them and how things can be affected if say Coinbase flops and/or the price of Bitcoin drops further pushing Bitmain out of business as well. These entities "manage" USDC but to what extent can they control my USDC and transactions?
As far as algorithmic stablecoins go, I would look into AgeUSD protocol (this is a stablecoin design but not an actual stablecoin) and specifically look at SigmaUSD stablecoin that is using the AgeUSD protocol.
https://github.com/Emurgo/age-usd
It is complicated but once you understand it, it's not that bad and it seems to be built much sturdier than the other algorithmic stablecoins that have failed recently like Luna (I remember somebody trying to get me into it and I kept asking what that 20% APY was backed by).
How to trust a stablecoin
https://files.catbox.moe/l6xf8y.mp4
SigmaUSD is an algorithmic stablecoin project on a smaller market cap blockchain called Ergo that has never depegged throughout this bull and bear market even with Ergo taking big dips. The stable coin is over-collateralized by the underlying asset (ERG on SigmaUSD protocol). The price of the underlying asset (ERG) would have to drop over 75% in a very short time (like an hour or less) to actually begin depegging the stablecoin. Anything longer than that and people flooding into the Reserve Token will be making some good money from the SigmaUSD protocol fees. The price of Ergo is listed on the blockchain in real time by the Ergo Oracle.
Redeeming of SigRSV for ERG or Djed on Cardano can only occur when the reserve ratio is greater than 400%.
In a short answer for how to make money on this, if you're shorting Ergo price to go down in the future, you buy the stablecoin SigUSD and if the price of Ergo goes down you get back more Ergo when cashing out of the stablecoin. Likewise, if you're longing Ergo you can buy the reserve token SRV and if the price of Ergo increases further you cash out your SRV for more Ergo. It's actually a little more complicated than that since if Ergo price falls to the point SigUSD is lower than 400% overcollateralized to SigRSV, then people locking in ERGO for SigRSV tokens get exponentially more rewards in users fees as the price of Ergo goes lower. This is a reward mechanism to get people to buy more reserve tokens to get the SigUSD overcollateralized again (Which is why if even Ergo fell 75% in price in one day, other people would be too greedy buying SigRSV to let the stablecoin get depegged).
https://files.catbox.moe/40td1h.jpg
https://files.catbox.moe/bosr3r.jpg
https://files.catbox.moe/rge4oz.jpg
https://files.catbox.moe/mte70v.jpg
https://files.catbox.moe/0l3b7c.png
https://files.catbox.moe/x27p74.png
https://files.catbox.moe/utwdiv.png
https://files.catbox.moe/6mls3x.png
It was exhausting when I was first trying to understand SigUSD stablecoin and I know this is already information overload but I'm gonna dump some more links for you to come back to:
How would've Ergo's SigmaUSD held up with the whole LUNA Fiasco?
SigUSD is over-collateralised, every sigusd is backed by 3$ currently. Everyone can see that there is money in the bank. This stops a bank run at its inception. The breaking point of the peg is explicit and open for anyone to see. With UST, you have no idea, which gives you an incentive to get out first.
https://nitter.net/ergoplatformorg/status/1524118293476700160
https://curiaregiscrypto.medium.com/sigmausd-vs-the-competition-e70b23fe37a3
Luna supply depends on terra usage, Ergo does not. Burning luna when trend is up, pumps its price. However, when trend is down, luna price will dump harder, because more luna is printed.
collateral ratio for sigusd is higher. This means that the capital efficiency (less collateral tied for each stablecoin) is better for terra. That is why luna/terra can offer better yield.
However, this means that luna/terra needs an additional mechanism to ensure stability...
PSA: sigRSV is not a simple long position
https://www.teddit.net/r/ergonauts/comments/prxpag/psa_sigrsv_is_not_a_simple_long_position/
Noob tries to explain SigmaUSD/RSV (an attempt at an ELI5)
https://www.teddit.net/r/ergonauts/comments/nhjc1f/noob_tries_to_explain_sigmausdrsv_an_attempt_at/
Apologies for the late reply, I wrote a post earlier and something happened with the internet connection and everything was lost before being posted. I became depressed and made me some eggs.
What other metrics or indicators would you look at when assessing a given blockchain?
There are several metrics other than price to look at both for long term investors and short term day traders who may look at metrics like the Relative Strength Index. For me when looking at a layer 1 blockchain, I like to look at long term metrics like how much development activity is happening on the core code (Github commits to measure) and # of projects that are developing on the blockchain. No matter what if the price is up or down, if there is no one developing on it then it is essentially a dead project that'll go to zero at some point. What gives real value is the number of people using that blockchain for real life improvements. In lower market cap projects I would also look at development activity (Github commits & # of projects developing) in ratio to number of devs on their team.
Other good indicators is to look at 30 day transaction volume (coinmarketcap and coingecko should take care of this), 30 day NFT Volume (if they're active in that space), total value locked in DeFi (there was a great etc.
EDIT:
Mentions of Terra Luna in Messari’s “crypto theses for 2022” report: 55
Mentions of Cardano in Messari’s “crypto theses for 2022” report: 2
(one of which was basically “it sucks lol”)
https://nitter.net/cardano_whale/status/1534849482189578241
Be aware of extreme bias in the crypto community even in metrics websites and especially in journalistic/media sites. I am pretty biased to Cardano but I just see so many strengths there that are either not being reported or covered up with lies. I did my research, looked at all the top projects and this is my choice for the strongest project. People are waiting for the DeFi projects to roll out on Cardano, that is where I think it's going to get real good.
Given that, Messari and DefiLlama are other crypto metric sites many people use.
https://cryptoslam.io/ is a great website to look at NFT sales volume but they are very obviously missing Cardano NFT sales volume which would be #3 if included in their 30 day charts. If you notice, it is also only -20% in 30 day NFT sales volume compared to top 3 on Cryptoslam.io: Ethereum (-74%), Solana (-71%), BSC (-79%).
https://opencnft.io/market-overview#trend
https://www.cnftjungle.io/statistics
Another important indicator for me is how transparent that blockchain is in terms of development, roadmap, and projects developing. Can they give short and simple explanations as well as long and thought out explanations on the same topic? How big of a community of communicators do they have? Is their code open source? Is code being audited?
Red flags for me are projects that don't meet their roadmap goals after given ample amount of time. Here is a video with Vitalik Buterin announcing that by 2016 ETH 2.0 will be running proof of stake.
https://files.catbox.moe/uea6n1.mp4
6 years later Ethereum is still working on moving to proof of stake and they just suffered a 7 block reorg in their inital testnet for the merge. A block reorg is when the blocks in the blockchain get out of time alignment meaning the ledger is giving faulty information about when a transaction was made (definitely not good)
Ethereum Beacon Chain Suffers Longest Blockchain 'Reorg' in Years
https://decrypt.co/101390/ethereum-beacon-chain-blockchain-reorg
Visualising the 7-block reorg on the Ethereum beacon chain
https://barnabe.substack.com/p/pos-ethereum-reorg?s=r
Decentralization is absolutely worth pursuing because it takes much more entropy and time to destroy it. Take a look at this genius episode from a kids show from over 20 years ago to see what happens to an asset when it becomes completely centralized in hands of a few compared to the many. When an asset is completely controlled by a few people and everyone else sees it, the masses begin to reject that asset.
https://www.youtube.com/watch?v=D7WPeUpcBlg
Solana is one of those projects that is more centralized and the devs shut down their blockchain every other week to make "fixes" on it. This means they shut down all transaction activity on the blockchain and they ultimately control your ability to make transactions. That is a HUGE deal and imo nobody should ever have that kind of power. They also magically made Solana appear on the blockchain about a year ago on their first blockchain shutdown, idk why people forgot that. All it takes is one of the devs to go rogue and things could get really bad for Solana holders. Not to mention the recent DAO vote on their Solend project to take control and liquidate a wallet that was about to sell $180 million of Solana which would dump Solana price. The deciding vote was a wallet of $700k and took 80% of the vote. See how important decentralization is? The next day after the results were announced the devs held another "vote" to undo the previous vote of taking over the wallet and undid the previous voters. Pretty hypocritical if you ask me and not a safe place to invest.
Also, what are your thoughts on stablecoins? Algorithmic vs fiat pegs etc.
Tether is going to lose its market cap, USDC will eventually take its place as the top stablecoin. The question is how fast will Tether lose its market cap? Also how much market cap is lost in the crypto community if Tether runs out of "dollar equivalent assets" before its actual market cap goes to $0.
Opinion: collapse of USDT
The problem with this $13B liquidation though, originates at the source of this report published by Tether, stating that only 2.94% of its reserves are in cash. The pie chart in that document is a bit misleading -- it says 3.87%, but it is 3.87% of the 75.85% category of "Cash & Cash Equivalents & Other Short Term Deposits & Commercial Paper."
That report was published on March 31, 2021. At that time, the market cap of Tether was ~$62B (see chart below). 2.94% of that is $1.8B. We can also play out a second scenario: assume the cash reserves grew in tandem with the market cap. If that's the case, then at $83B, $2.4B would be in cash reserve.
Tether Claims 'Coordinated' Conspiracy Is Trying to Take It Down
The next question is how safe is USDC? Who created and controls USDC and are they able manipulate my USDC coins/transactions?
https://en.wikipedia.org/wiki/USD_Coin
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre,[1] which was founded by Circle and includes members from the cryptocurrency exchange Coinbase [2] and Bitcoin mining company Bitmain,[3] an investor in Circle.[4] USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).
I still need to do more research into them and how things can be affected if say Coinbase flops and/or the price of Bitcoin drops further pushing Bitmain out of business as well. These entities "manage" USDC but to what extent can they control my USDC and transactions?
As far as algorithmic stablecoins go, I would look into AgeUSD protocol (this is a stablecoin design but not an actual stablecoin) and specifically look at SigmaUSD stablecoin that is using the AgeUSD protocol.
https://github.com/Emurgo/age-usd
It is complicated but once you understand it, it's not that bad and it seems to be built much sturdier than the other algorithmic stablecoins that have failed recently like Luna (I remember somebody trying to get me into it and I kept asking what that 20% APY was backed by).
How to trust a stablecoin
https://files.catbox.moe/l6xf8y.mp4
SigmaUSD is an algorithmic stablecoin project on a smaller market cap blockchain called Ergo that has never depegged throughout this bull and bear market even with Ergo taking big dips. The stable coin is over-collateralized by the underlying asset (ERG on SigmaUSD protocol). The price of the underlying asset (ERG) would have to drop over 75% in a very short time (like an hour or less) to actually begin depegging the stablecoin. Anything longer than that and people flooding into the Reserve Token will be making some good money from the SigmaUSD protocol fees. The price of Ergo is listed on the blockchain in real time by the Ergo Oracle.
Redeeming of SigRSV for ERG or Djed on Cardano can only occur when the reserve ratio is greater than 400%.
In a short answer for how to make money on this, if you're shorting Ergo price to go down in the future, you buy the stablecoin SigUSD and if the price of Ergo goes down you get back more Ergo when cashing out of the stablecoin. Likewise, if you're longing Ergo you can buy the reserve token SRV and if the price of Ergo increases further you cash out your SRV for more Ergo. It's actually a little more complicated than that since if Ergo price falls to the point SigUSD is lower than 400% overcollateralized to SigRSV, then people locking in ERGO for SigRSV tokens get exponentially more rewards in users fees as the price of Ergo goes lower. This is a reward mechanism to get people to buy more reserve tokens to get the SigUSD overcollateralized again (Which is why if even Ergo fell 75% in price in one day, other people would be too greedy buying SigRSV to let the stablecoin get depegged).
https://files.catbox.moe/40td1h.jpg
https://files.catbox.moe/bosr3r.jpg
https://files.catbox.moe/rge4oz.jpg
https://files.catbox.moe/mte70v.jpg
https://files.catbox.moe/0l3b7c.png
https://files.catbox.moe/x27p74.png
https://files.catbox.moe/utwdiv.png
https://files.catbox.moe/6mls3x.png
It was exhausting when I was first trying to understand SigUSD stablecoin and I know this is already information overload but I'm gonna dump some more links for you to come back to:
How would've Ergo's SigmaUSD held up with the whole LUNA Fiasco?
SigUSD is over-collateralised, every sigusd is backed by 3$ currently. Everyone can see that there is money in the bank. This stops a bank run at its inception. The breaking point of the peg is explicit and open for anyone to see. With UST, you have no idea, which gives you an incentive to get out first.
https://nitter.net/ergoplatformorg/status/1524118293476700160
https://curiaregiscrypto.medium.com/sigmausd-vs-the-competition-e70b23fe37a3
Luna supply depends on terra usage, Ergo does not. Burning luna when trend is up, pumps its price. However, when trend is down, luna price will dump harder, because more luna is printed.
collateral ratio for sigusd is higher. This means that the capital efficiency (less collateral tied for each stablecoin) is better for terra. That is why luna/terra can offer better yield.
However, this means that luna/terra needs an additional mechanism to ensure stability...
PSA: sigRSV is not a simple long position
https://www.teddit.net/r/ergonauts/comments/prxpag/psa_sigrsv_is_not_a_simple_long_position/
Noob tries to explain SigmaUSD/RSV (an attempt at an ELI5)
https://www.teddit.net/r/ergonauts/comments/nhjc1f/noob_tries_to_explain_sigmausdrsv_an_attempt_at/
Apologies for the late reply, I wrote a post earlier and something happened with the internet connection and everything was lost before being posted. I became depressed and made me some eggs.
What other metrics or indicators would you look at when assessing a given blockchain?
There are several metrics other than price to look at both for long term investors and short term day traders who may look at metrics like the Relative Strength Index. For me when looking at a layer 1 blockchain, I like to look at long term metrics like how much development activity is happening on the core code (Github commits to measure) and # of projects that are developing on the blockchain. No matter what if the price is up or down, if there is no one developing on it then it is essentially a dead project that'll go to zero at some point. What gives real value is the number of people using that blockchain for real life improvements. In lower market cap projects I would also look at development activity (Github commits & # of projects developing) in ratio to number of devs on their team.
Other good indicators is to look at 30 day transaction volume (coinmarketcap and coingecko should take care of this), 30 day NFT Volume (if they're active in that space), total value locked in DeFi (there was a great etc.
EDIT:
Mentions of Terra Luna in Messari’s “crypto theses for 2022” report: 55
Mentions of Cardano in Messari’s “crypto theses for 2022” report: 2
(one of which was basically “it sucks lol”)
https://nitter.net/cardano_whale/status/1534849482189578241
Be aware of extreme bias in the crypto community even in metrics websites and especially in journalistic/media sites. I am pretty biased to Cardano but I just see so many strengths there that are either not being reported or covered up with lies. I did my research, looked at all the top projects and this is my choice for the strongest project. People are waiting for the DeFi projects to roll out on Cardano, that is where I think it's going to get real good.
https://cryptoslam.io/ is a great website to look at NFT sales volume but they are very obviously missing Cardano NFT sales volume which would be #3 if included in their 30 day charts. If you notice, it is also only -20% in 30 day NFT sales volume compared to top 3 on Cryptoslam.io: Ethereum (-74%), Solana (-71%), BSC (-79%).
https://opencnft.io/market-overview#trend
https://www.cnftjungle.io/statistics
Another important indicator for me is how transparent that blockchain is in terms of development, roadmap, and projects developing. Can they give short and simple explanations as well as long and thought out explanations on the same topic? How big of a community of communicators do they have? Is their code open source? Is code being audited?
Red flags for me are projects that don't meet their roadmap goals after given ample amount of time. Here is a video with Vitalik Buterin announcing that by 2016 ETH 2.0 will be running proof of stake.
https://files.catbox.moe/uea6n1.mp4
6 years later Ethereum is still working on moving to proof of stake and they just suffered a 7 block reorg in their inital testnet for the merge. A block reorg is when the blocks in the blockchain get out of time alignment meaning the ledger is giving faulty information about when a transaction was made (definitely not good)
Ethereum Beacon Chain Suffers Longest Blockchain 'Reorg' in Years
https://decrypt.co/101390/ethereum-beacon-chain-blockchain-reorg
Visualising the 7-block reorg on the Ethereum beacon chain
https://barnabe.substack.com/p/pos-ethereum-reorg?s=r
Decentralization is absolutely worth pursuing because it takes much more entropy and time to destroy it. Take a look at this genius episode from a kids show from over 20 years ago to see what happens to an asset when it becomes completely centralized in hands of a few compared to the many. When an asset is completely controlled by a few people and everyone else sees it, the masses begin to reject that asset.
https://www.youtube.com/watch?v=D7WPeUpcBlg
Solana is one of those projects that is more centralized and the devs shut down their blockchain every other week to make "fixes" on it. This means they shut down all transaction activity on the blockchain and they ultimately control your ability to make transactions. That is a HUGE deal and imo nobody should ever have that kind of power. They also magically made Solana appear on the blockchain about a year ago on their first blockchain shutdown, idk why people forgot that. All it takes is one of the devs to go rogue and things could get really bad for Solana holders. Not to mention the recent DAO vote on their Solend project to take control and liquidate a wallet that was about to sell $180 million of Solana which would dump Solana price. The deciding vote was a wallet of $700k and took 80% of the vote. See how important decentralization is? The next day after the results were announced the devs held another "vote" to undo the previous vote of taking over the wallet and undid the previous voters. Pretty hypocritical if you ask me and not a safe place to invest.
Also, what are your thoughts on stablecoins? Algorithmic vs fiat pegs etc.
Tether is going to lose its market cap, USDC will eventually take its place as the top stablecoin. The question is how fast will Tether lose its market cap? Also how much market cap is lost in the crypto community if Tether runs out of "dollar equivalent assets" before its actual market cap goes to $0.
Opinion: collapse of USDT
The problem with this $13B liquidation though, originates at the source of this report published by Tether, stating that only 2.94% of its reserves are in cash. The pie chart in that document is a bit misleading -- it says 3.87%, but it is 3.87% of the 75.85% category of "Cash & Cash Equivalents & Other Short Term Deposits & Commercial Paper."
That report was published on March 31, 2021. At that time, the market cap of Tether was ~$62B (see chart below). 2.94% of that is $1.8B. We can also play out a second scenario: assume the cash reserves grew in tandem with the market cap. If that's the case, then at $83B, $2.4B would be in cash reserve.
Tether Claims 'Coordinated' Conspiracy Is Trying to Take It Down
The next question is how safe is USDC? Who created and controls USDC and are they able manipulate my USDC coins/transactions?
https://en.wikipedia.org/wiki/USD_Coin
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre,[1] which was founded by Circle and includes members from the cryptocurrency exchange Coinbase [2] and Bitcoin mining company Bitmain,[3] an investor in Circle.[4] USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).
I still need to do more research into them and how things can be affected if say Coinbase flops and/or the price of Bitcoin drops further pushing Bitmain out of business as well. These entities "manage" USDC but to what extent can they control my USDC and transactions?
As far as algorithmic stablecoins go, I would look into AgeUSD protocol (this is a stablecoin design but not an actual stablecoin) and specifically look at SigmaUSD stablecoin that is using the AgeUSD protocol.
https://github.com/Emurgo/age-usd
It is complicated but once you understand it, it's not that bad and it seems to be built much sturdier than the other algorithmic stablecoins that have failed recently like Luna (I remember somebody trying to get me into it and I kept asking what that 20% APY was backed by).
How to trust a stablecoin
https://files.catbox.moe/l6xf8y.mp4
SigmaUSD is an algorithmic stablecoin project on a smaller market cap blockchain called Ergo that has never depegged throughout this bull and bear market even with Ergo taking big dips. The stable coin is over-collateralized by the underlying asset (ERG on SigmaUSD protocol). The price of the underlying asset (ERG) would have to drop over 75% in a very short time (like an hour or less) to actually begin depegging the stablecoin. Anything longer than that and people flooding into the Reserve Token will be making some good money from the SigmaUSD protocol fees. The price of Ergo is listed on the blockchain in real time by the Ergo Oracle.
Redeeming of SigRSV for ERG or Djed on Cardano can only occur when the reserve ratio is greater than 400%.
In a short answer for how to make money on this, if you're shorting Ergo price to go down in the future, you buy the stablecoin SigUSD and if the price of Ergo goes down you get back more Ergo when cashing out of the stablecoin. Likewise, if you're longing Ergo you can buy the reserve token SRV and if the price of Ergo increases further you cash out your SRV for more Ergo. It's actually a little more complicated than that since if Ergo price falls to the point SigUSD is lower than 400% overcollateralized to SigRSV, then people locking in ERGO for SigRSV tokens get exponentially more rewards in users fees as the price of Ergo goes lower. This is a reward mechanism to get people to buy more reserve tokens to get the SigUSD overcollateralized again (Which is why if even Ergo fell 75% in price in one day, other people would be too greedy buying SigRSV to let the stablecoin get depegged).
https://files.catbox.moe/40td1h.jpg
https://files.catbox.moe/bosr3r.jpg
https://files.catbox.moe/rge4oz.jpg
https://files.catbox.moe/mte70v.jpg
https://files.catbox.moe/0l3b7c.png
https://files.catbox.moe/x27p74.png
https://files.catbox.moe/utwdiv.png
https://files.catbox.moe/6mls3x.png
It was exhausting when I was first trying to understand SigUSD stablecoin and I know this is already information overload but I'm gonna dump some more links for you to come back to:
How would've Ergo's SigmaUSD held up with the whole LUNA Fiasco?
SigUSD is over-collateralised, every sigusd is backed by 3$ currently. Everyone can see that there is money in the bank. This stops a bank run at its inception. The breaking point of the peg is explicit and open for anyone to see. With UST, you have no idea, which gives you an incentive to get out first.
https://nitter.net/ergoplatformorg/status/1524118293476700160
https://curiaregiscrypto.medium.com/sigmausd-vs-the-competition-e70b23fe37a3
Luna supply depends on terra usage, Ergo does not. Burning luna when trend is up, pumps its price. However, when trend is down, luna price will dump harder, because more luna is printed.
collateral ratio for sigusd is higher. This means that the capital efficiency (less collateral tied for each stablecoin) is better for terra. That is why luna/terra can offer better yield.
However, this means that luna/terra needs an additional mechanism to ensure stability...
PSA: sigRSV is not a simple long position
https://www.teddit.net/r/ergonauts/comments/prxpag/psa_sigrsv_is_not_a_simple_long_position/
Noob tries to explain SigmaUSD/RSV (an attempt at an ELI5)
https://www.teddit.net/r/ergonauts/comments/nhjc1f/noob_tries_to_explain_sigmausdrsv_an_attempt_at/
Apologies for the late reply, I wrote a post earlier and something happened with the internet connection and I lost everything I wrote before I could post it. I became depressed and made me some eggs.
What other metrics or indicators would you look at when assessing a given blockchain?
There are several metrics other than price to look at both for long term investors and short term day traders who may look at metrics like the Relative Strength Index. For me when looking at a layer 1 blockchain, I like to look at long term metrics like how much development activity is happening on the core code (Github commits to measure) and # of projects that are developing on the blockchain. No matter what if the price is up or down, if there is no one developing on it then it is essentially a dead project that'll go to zero at some point. What gives real value is the number of people using that blockchain for real life improvements. In lower market cap projects I would also look at development activity (Github commits & # of projects developing) in ratio to number of devs on their team.
Other good indicators is to look at 30 day transaction volume (coinmarketcap and coingecko should take care of this), 30 day NFT Volume (if they're active in that space), total value locked in DeFi (there was a great etc.
EDIT:
Mentions of Terra Luna in Messari’s “crypto theses for 2022” report: 55
Mentions of Cardano in Messari’s “crypto theses for 2022” report: 2
(one of which was basically “it sucks lol”)
https://nitter.net/cardano_whale/status/1534849482189578241
Be aware of extreme bias in the crypto community even in metrics websites and especially in journalistic/media sites. I am pretty biased to Cardano but I just see so many strengths there that are either not being reported or covered up with lies. I did my research, looked at all the top projects and this is my choice for the strongest project. People are waiting for the DeFi projects to roll out on Cardano, that is where I think it's going to get real good.
https://cryptoslam.io/ is a great website to look at NFT sales volume but they are very obviously missing Cardano NFT sales volume which would be #3 if included in their 30 day charts. If you notice, it is also only -20% in 30 day NFT sales volume compared to top 3 on Cryptoslam.io: Ethereum (-74%), Solana (-71%), BSC (-79%).
https://opencnft.io/market-overview#trend
https://www.cnftjungle.io/statistics
Another important indicator for me is how transparent that blockchain is in terms of development, roadmap, and projects developing. Can they give short and simple explanations as well as long and thought out explanations on the same topic? How big of a community of communicators do they have? Is their code open source? Is code being audited?
Red flags for me are projects that don't meet their roadmap goals after given ample amount of time. Here is a video with Vitalik Buterin announcing that by 2016 ETH 2.0 will be running proof of stake.
https://files.catbox.moe/uea6n1.mp4
6 years later Ethereum is still working on moving to proof of stake and they just suffered a 7 block reorg in their inital testnet for the merge. A block reorg is when the blocks in the blockchain get out of time alignment meaning the ledger is giving faulty information about when a transaction was made (definitely not good)
Ethereum Beacon Chain Suffers Longest Blockchain 'Reorg' in Years
https://decrypt.co/101390/ethereum-beacon-chain-blockchain-reorg
Visualising the 7-block reorg on the Ethereum beacon chain
https://barnabe.substack.com/p/pos-ethereum-reorg?s=r
Decentralization is absolutely worth pursuing because it takes much more entropy and time to destroy it. Take a look at this genius episode from a kids show from over 20 years ago to see what happens to an asset when it becomes completely centralized in hands of a few compared to the many. When an asset is completely controlled by a few people and everyone else sees it, the masses begin to reject that asset.
https://www.youtube.com/watch?v=D7WPeUpcBlg
Solana is one of those projects that is more centralized and the devs shut down their blockchain every other week to make "fixes" on it. This means they shut down all transaction activity on the blockchain and they ultimately control your ability to make transactions. That is a HUGE deal and imo nobody should ever have that kind of power. They also magically made Solana appear on the blockchain about a year ago on their first blockchain shutdown, idk why people forgot that. All it takes is one of the devs to go rogue and things could get really bad for Solana holders. Not to mention the recent DAO vote on their Solend project to take control and liquidate a wallet that was about to sell $180 million of Solana which would dump Solana price. The deciding vote was a wallet of $700k and took 80% of the vote. See how important decentralization is? The next day after the results were announced the devs held another "vote" to undo the previous vote of taking over the wallet and undid the previous voters. Pretty hypocritical if you ask me and not a safe place to invest.
Also, what are your thoughts on stablecoins? Algorithmic vs fiat pegs etc.
Tether is going to lose its market cap, USDC will eventually take its place as the top stablecoin. The question is how fast will Tether lose its market cap? Also how much market cap is lost in the crypto community if Tether runs out of "dollar equivalent assets" before its actual market cap goes to $0.
Opinion: collapse of USDT
The problem with this $13B liquidation though, originates at the source of this report published by Tether, stating that only 2.94% of its reserves are in cash. The pie chart in that document is a bit misleading -- it says 3.87%, but it is 3.87% of the 75.85% category of "Cash & Cash Equivalents & Other Short Term Deposits & Commercial Paper."
That report was published on March 31, 2021. At that time, the market cap of Tether was ~$62B (see chart below). 2.94% of that is $1.8B. We can also play out a second scenario: assume the cash reserves grew in tandem with the market cap. If that's the case, then at $83B, $2.4B would be in cash reserve.
Tether Claims 'Coordinated' Conspiracy Is Trying to Take It Down
The next question is how safe is USDC? Who created and controls USDC and are they able manipulate my USDC coins/transactions?
https://en.wikipedia.org/wiki/USD_Coin
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre,[1] which was founded by Circle and includes members from the cryptocurrency exchange Coinbase [2] and Bitcoin mining company Bitmain,[3] an investor in Circle.[4] USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).
I still need to do more research into them and how things can be affected if say Coinbase flops and/or the price of Bitcoin drops further pushing Bitmain out of business as well. These entities "manage" USDC but to what extent can they control my USDC and transactions?
As far as algorithmic stablecoins go, I would look into AgeUSD protocol (this is a stablecoin design but not an actual stablecoin) and specifically look at SigmaUSD stablecoin that is using the AgeUSD protocol.
https://github.com/Emurgo/age-usd
It is complicated but once you understand it, it's not that bad and it seems to be built much sturdier than the other algorithmic stablecoins that have failed recently like Luna (I remember somebody trying to get me into it and I kept asking what that 20% APY was backed by).
How to trust a stablecoin
https://files.catbox.moe/l6xf8y.mp4
SigmaUSD is an algorithmic stablecoin project on a smaller market cap blockchain called Ergo that has never depegged throughout this bull and bear market even with Ergo taking big dips. The stable coin is over-collateralized by the underlying asset (ERG on SigmaUSD protocol). The price of the underlying asset (ERG) would have to drop over 75% in a very short time (like an hour or less) to actually begin depegging the stablecoin. Anything longer than that and people flooding into the Reserve Token will be making some good money from the SigmaUSD protocol fees. The price of Ergo is listed on the blockchain in real time by the Ergo Oracle.
Redeeming of SigRSV for ERG or Djed on Cardano can only occur when the reserve ratio is greater than 400%.
In a short answer for how to make money on this, if you're shorting Ergo price to go down in the future, you buy the stablecoin SigUSD and if the price of Ergo goes down you get back more Ergo when cashing out of the stablecoin. Likewise, if you're longing Ergo you can buy the reserve token SRV and if the price of Ergo increases further you cash out your SRV for more Ergo. It's actually a little more complicated than that since if Ergo price falls to the point SigUSD is lower than 400% overcollateralized to SigRSV, then people locking in ERGO for SigRSV tokens get exponentially more rewards in users fees as the price of Ergo goes lower. This is a reward mechanism to get people to buy more reserve tokens to get the SigUSD overcollateralized again (Which is why if even Ergo fell 75% in price in one day, other people would be too greedy buying SigRSV to let the stablecoin get depegged).
https://files.catbox.moe/40td1h.jpg
https://files.catbox.moe/bosr3r.jpg
https://files.catbox.moe/rge4oz.jpg
https://files.catbox.moe/mte70v.jpg
https://files.catbox.moe/0l3b7c.png
https://files.catbox.moe/x27p74.png
https://files.catbox.moe/utwdiv.png
https://files.catbox.moe/6mls3x.png
It was exhausting when I was first trying to understand SigUSD stablecoin and I know this is already information overload but I'm gonna dump some more links for you to come back to:
How would've Ergo's SigmaUSD held up with the whole LUNA Fiasco?
SigUSD is over-collateralised, every sigusd is backed by 3$ currently. Everyone can see that there is money in the bank. This stops a bank run at its inception. The breaking point of the peg is explicit and open for anyone to see. With UST, you have no idea, which gives you an incentive to get out first.
https://nitter.net/ergoplatformorg/status/1524118293476700160
https://curiaregiscrypto.medium.com/sigmausd-vs-the-competition-e70b23fe37a3
Luna supply depends on terra usage, Ergo does not. Burning luna when trend is up, pumps its price. However, when trend is down, luna price will dump harder, because more luna is printed.
collateral ratio for sigusd is higher. This means that the capital efficiency (less collateral tied for each stablecoin) is better for terra. That is why luna/terra can offer better yield.
However, this means that luna/terra needs an additional mechanism to ensure stability...
PSA: sigRSV is not a simple long position
https://www.teddit.net/r/ergonauts/comments/prxpag/psa_sigrsv_is_not_a_simple_long_position/
Noob tries to explain SigmaUSD/RSV (an attempt at an ELI5)
https://www.teddit.net/r/ergonauts/comments/nhjc1f/noob_tries_to_explain_sigmausdrsv_an_attempt_at/
Apologies for the late reply, I wrote a post earlier and something happened with the internet connection and I lost everything I wrote before I could post it. I became depressed and made me some eggs.
What other metrics or indicators would you look at when assessing a given blockchain?
There are several metrics other than price to look at both for long term investors and short term day traders who may look at metrics like the Relative Strength Index. For me when looking at a layer 1 blockchain, I like to look at long term metrics like how much development activity is happening on the core code (Github commits to measure) and # of projects that are developing on the blockchain. No matter what if the price is up or down, if there is no one developing on it then it is essentially a dead project that'll go to zero at some point. What gives real value is the number of people using that blockchain for real life improvements. In lower market cap projects I would also look at development activity (Github commits & # of projects developing) in ratio to number of devs on their team.
Other good indicators is to look at 30 day transaction volume (coinmarketcap and coingecko should take care of this), 30 day NFT Volume (if they're active in that space), total value locked in DeFi (there was a great etc.
EDIT: Mentions of Terra Luna in Messari’s “crypto theses for 2022” report: 55
Mentions of Cardano in Messari’s “crypto theses for 2022” report: 2
(one of which was basically “it sucks lol”)
https://nitter.net/cardano_whale/status/1534849482189578241
Be aware of extreme bias in the crypto community even in metrics websites and especially in journalistic/media sites. I am pretty biased to Cardano but I just see so many strengths there that are either not being reported or covered up with lies. People are waiting for the DeFi projects to roll out on Cardano, that is where I think it's going to get real good.
https://cryptoslam.io/ is a great website to look at NFT sales volume but they are very obviously missing Cardano NFT sales volume which would be #3 if included in their 30 day charts. If you notice, it is also only -20% in 30 day NFT sales volume compared to top 3 on Cryptoslam.io: Ethereum (-74%), Solana (-71%), BSC (-79%).
https://opencnft.io/market-overview#trend
https://www.cnftjungle.io/statistics
Another important indicator for me is how transparent that blockchain is in terms of development, roadmap, and projects developing. Can they give short and simple explanations as well as long and thought out explanations on the same topic? How big of a community of communicators do they have? Is their code open source? Is code being audited?
Red flags for me are projects that don't meet their roadmap goals after given ample amount of time. Here is a video with Vitalik Buterin announcing that by 2016 ETH 2.0 will be running proof of stake.
https://files.catbox.moe/uea6n1.mp4
6 years later Ethereum is still working on moving to proof of stake and they just suffered a 7 block reorg in their inital testnet for the merge. A block reorg is when the blocks in the blockchain get out of time alignment meaning the ledger is giving faulty information about when a transaction was made (definitely not good)
Ethereum Beacon Chain Suffers Longest Blockchain 'Reorg' in Years
https://decrypt.co/101390/ethereum-beacon-chain-blockchain-reorg
Visualising the 7-block reorg on the Ethereum beacon chain
https://barnabe.substack.com/p/pos-ethereum-reorg?s=r
Decentralization is absolutely worth pursuing because it takes much more entropy and time to destroy it. Take a look at this genius episode from a kids show from over 20 years ago to see what happens to an asset when it becomes completely centralized in hands of a few compared to the many. When an asset is completely controlled by a few people and everyone else sees it, the masses begin to reject that asset.
https://www.youtube.com/watch?v=D7WPeUpcBlg
Solana is one of those projects that is more centralized and the devs shut down their blockchain every other week to make "fixes" on it. This means they shut down all transaction activity on the blockchain and they ultimately control your ability to make transactions. That is a HUGE deal and imo nobody should ever have that kind of power. They also magically made Solana appear on the blockchain about a year ago on their first blockchain shutdown, idk why people forgot that. All it takes is one of the devs to go rogue and things could get really bad for Solana holders. Not to mention the recent DAO vote on their Solend project to take control and liquidate a wallet that was about to sell $180 million of Solana which would dump Solana price. The deciding vote was a wallet of $700k and took 80% of the vote. See how important decentralization is? The next day after the results were announced the devs held another "vote" to undo the previous vote of taking over the wallet and undid the previous voters. Pretty hypocritical if you ask me and not a safe place to invest.
Also, what are your thoughts on stablecoins? Algorithmic vs fiat pegs etc.
Tether is going to lose its market cap, USDC will eventually take its place as the top stablecoin. The question is how fast will Tether lose its market cap? Also how much market cap is lost in the crypto community if Tether runs out of "dollar equivalent assets" before its actual market cap goes to $0.
Opinion: collapse of USDT
The problem with this $13B liquidation though, originates at the source of this report published by Tether, stating that only 2.94% of its reserves are in cash. The pie chart in that document is a bit misleading -- it says 3.87%, but it is 3.87% of the 75.85% category of "Cash & Cash Equivalents & Other Short Term Deposits & Commercial Paper."
That report was published on March 31, 2021. At that time, the market cap of Tether was ~$62B (see chart below). 2.94% of that is $1.8B. We can also play out a second scenario: assume the cash reserves grew in tandem with the market cap. If that's the case, then at $83B, $2.4B would be in cash reserve.
Tether Claims 'Coordinated' Conspiracy Is Trying to Take It Down
The next question is how safe is USDC? Who created and controls USDC and are they able manipulate my USDC coins/transactions?
https://en.wikipedia.org/wiki/USD_Coin
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre,[1] which was founded by Circle and includes members from the cryptocurrency exchange Coinbase [2] and Bitcoin mining company Bitmain,[3] an investor in Circle.[4] USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).
I still need to do more research into them and how things can be affected if say Coinbase flops and/or the price of Bitcoin drops further pushing Bitmain out of business as well. These entities "manage" USDC but to what extent can they control my USDC and transactions?
As far as algorithmic stablecoins go, I would look into AgeUSD protocol (this is a stablecoin design but not an actual stablecoin) and specifically look at SigmaUSD stablecoin that is using the AgeUSD protocol.
https://github.com/Emurgo/age-usd
It is complicated but once you understand it, it's not that bad and it seems to be built much sturdier than the other algorithmic stablecoins that have failed recently like Luna (I remember somebody trying to get me into it and I kept asking what that 20% APY was backed by).
How to trust a stablecoin
https://files.catbox.moe/l6xf8y.mp4
SigmaUSD is an algorithmic stablecoin project on a smaller market cap blockchain called Ergo that has never depegged throughout this bull and bear market even with Ergo taking big dips. The stable coin is over-collateralized by the underlying asset (ERG on SigmaUSD protocol). The price of the underlying asset (ERG) would have to drop over 75% in a very short time (like an hour or less) to actually begin depegging the stablecoin. Anything longer than that and people flooding into the Reserve Token will be making some good money from the SigmaUSD protocol fees. The price of Ergo is listed on the blockchain in real time by the Ergo Oracle.
Redeeming of SigRSV for ERG or Djed on Cardano can only occur when the reserve ratio is greater than 400%.
In a short answer for how to make money on this, if you're shorting Ergo price to go down in the future, you buy the stablecoin SigUSD and if the price of Ergo goes down you get back more Ergo when cashing out of the stablecoin. Likewise, if you're longing Ergo you can buy the reserve token SRV and if the price of Ergo increases further you cash out your SRV for more Ergo. It's actually a little more complicated than that since if Ergo price falls to the point SigUSD is lower than 400% overcollateralized to SigRSV, then people locking in ERGO for SigRSV tokens get exponentially more rewards in users fees as the price of Ergo goes lower. This is a reward mechanism to get people to buy more reserve tokens to get the SigUSD overcollateralized again (Which is why if even Ergo fell 75% in price in one day, other people would be too greedy buying SigRSV to let the stablecoin get depegged).
https://files.catbox.moe/40td1h.jpg
https://files.catbox.moe/bosr3r.jpg
https://files.catbox.moe/rge4oz.jpg
https://files.catbox.moe/mte70v.jpg
https://files.catbox.moe/0l3b7c.png
https://files.catbox.moe/x27p74.png
https://files.catbox.moe/utwdiv.png
https://files.catbox.moe/6mls3x.png
It was exhausting when I was first trying to understand SigUSD stablecoin and I know this is already information overload but I'm gonna dump some more links for you to come back to:
How would've Ergo's SigmaUSD held up with the whole LUNA Fiasco?
SigUSD is over-collateralised, every sigusd is backed by 3$ currently. Everyone can see that there is money in the bank. This stops a bank run at its inception. The breaking point of the peg is explicit and open for anyone to see. With UST, you have no idea, which gives you an incentive to get out first.
https://nitter.net/ergoplatformorg/status/1524118293476700160
https://curiaregiscrypto.medium.com/sigmausd-vs-the-competition-e70b23fe37a3
Luna supply depends on terra usage, Ergo does not. Burning luna when trend is up, pumps its price. However, when trend is down, luna price will dump harder, because more luna is printed.
collateral ratio for sigusd is higher. This means that the capital efficiency (less collateral tied for each stablecoin) is better for terra. That is why luna/terra can offer better yield.
However, this means that luna/terra needs an additional mechanism to ensure stability...
PSA: sigRSV is not a simple long position
https://www.teddit.net/r/ergonauts/comments/prxpag/psa_sigrsv_is_not_a_simple_long_position/
Noob tries to explain SigmaUSD/RSV (an attempt at an ELI5)
https://www.teddit.net/r/ergonauts/comments/nhjc1f/noob_tries_to_explain_sigmausdrsv_an_attempt_at/
Apologies for the late reply, I wrote a post earlier and something happened with the internet connection and I lost everything I wrote before I could post it. I became depressed and made me some eggs.
What other metrics or indicators would you look at when assessing a given blockchain?
There are several metrics other than price to look at both for long term investors and short term day traders who may look at metrics like the Relative Strength Index. For me when looking at a layer 1 blockchain, I like to look at long term metrics like how much development activity is happening on the core code (Github commits to measure) and # of projects that are developing on the blockchain. No matter what if the price is up or down, if there is no one developing on it then it is essentially a dead project that'll go to zero at some point. What gives real value is the number of people using that blockchain for real life improvements. In lower market cap projects I would also look at development activity (Github commits & # of projects developing) in ratio to number of devs on their team.
Other good indicators is to look at 30 day transaction volume (coinmarketcap and coingecko should take care of this), 30 day NFT Volume (if they're active in that space), total value locked in DeFi (there was a great etc.
EDIT: Mentions of Terra Luna in Messari’s “crypto theses for 2022” report: 55
Mentions of Cardano in Messari’s “crypto theses for 2022” report: 2
(one of which was basically “it sucks lol”)
https://nitter.net/cardano_whale/status/1534849482189578241
Be aware of extreme bias in the crypto community even in metrics websites and especially in journalistic/media sites. I am pretty biased to Cardano but I just see so many strengths there that are either not being reported or covered up with lies.
https://cryptoslam.io/ is a great website to look at NFT sales volume but they are very obviously missing Cardano NFT sales volume which would be #3 if included in their 30 day charts. If you notice, it is also only -20% in 30 day NFT sales volume compared to top 3 on Cryptoslam.io: Ethereum (-74%), Solana (-71%), BSC (-79%).
https://opencnft.io/market-overview#trend
https://www.cnftjungle.io/statistics
Another important indicator for me is how transparent that blockchain is in terms of development, roadmap, and projects developing. Can they give short and simple explanations as well as long and thought out explanations on the same topic? How big of a community of communicators do they have? Is their code open source? Is code being audited?
Red flags for me are projects that don't meet their roadmap goals after given ample amount of time. Here is a video with Vitalik Buterin announcing that by 2016 ETH 2.0 will be running proof of stake.
https://files.catbox.moe/uea6n1.mp4
6 years later Ethereum is still working on moving to proof of stake and they just suffered a 7 block reorg in their inital testnet for the merge. A block reorg is when the blocks in the blockchain get out of time alignment meaning the ledger is giving faulty information about when a transaction was made (definitely not good)
Ethereum Beacon Chain Suffers Longest Blockchain 'Reorg' in Years
https://decrypt.co/101390/ethereum-beacon-chain-blockchain-reorg
Visualising the 7-block reorg on the Ethereum beacon chain
https://barnabe.substack.com/p/pos-ethereum-reorg?s=r
Decentralization is absolutely worth pursuing because it takes much more entropy and time to destroy it. Take a look at this genius episode from a kids show from over 20 years ago to see what happens to an asset when it becomes completely centralized in hands of a few compared to the many. When an asset is completely controlled by a few people and everyone else sees it, the masses begin to reject that asset.
https://www.youtube.com/watch?v=D7WPeUpcBlg
Solana is one of those projects that is more centralized and the devs shut down their blockchain every other week to make "fixes" on it. This means they shut down all transaction activity on the blockchain and they ultimately control your ability to make transactions. That is a HUGE deal and imo nobody should ever have that kind of power. They also magically made Solana appear on the blockchain about a year ago on their first blockchain shutdown, idk why people forgot that. All it takes is one of the devs to go rogue and things could get really bad for Solana holders. Not to mention the recent DAO vote on their Solend project to take control and liquidate a wallet that was about to sell $180 million of Solana which would dump Solana price. The deciding vote was a wallet of $700k and took 80% of the vote. See how important decentralization is? The next day after the results were announced the devs held another "vote" to undo the previous vote of taking over the wallet and undid the previous voters. Pretty hypocritical if you ask me and not a safe place to invest.
Also, what are your thoughts on stablecoins? Algorithmic vs fiat pegs etc.
Tether is going to lose its market cap, USDC will eventually take its place as the top stablecoin. The question is how fast will Tether lose its market cap? Also how much market cap is lost in the crypto community if Tether runs out of "dollar equivalent assets" before its actual market cap goes to $0.
Opinion: collapse of USDT
The problem with this $13B liquidation though, originates at the source of this report published by Tether, stating that only 2.94% of its reserves are in cash. The pie chart in that document is a bit misleading -- it says 3.87%, but it is 3.87% of the 75.85% category of "Cash & Cash Equivalents & Other Short Term Deposits & Commercial Paper."
That report was published on March 31, 2021. At that time, the market cap of Tether was ~$62B (see chart below). 2.94% of that is $1.8B. We can also play out a second scenario: assume the cash reserves grew in tandem with the market cap. If that's the case, then at $83B, $2.4B would be in cash reserve.
Tether Claims 'Coordinated' Conspiracy Is Trying to Take It Down
The next question is how safe is USDC? Who created and controls USDC and are they able manipulate my USDC coins/transactions?
https://en.wikipedia.org/wiki/USD_Coin
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre,[1] which was founded by Circle and includes members from the cryptocurrency exchange Coinbase [2] and Bitcoin mining company Bitmain,[3] an investor in Circle.[4] USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).
I still need to do more research into them and how things can be affected if say Coinbase flops and/or the price of Bitcoin drops further pushing Bitmain out of business as well. These entities "manage" USDC but to what extent can they control my USDC and transactions?
As far as algorithmic stablecoins go, I would look into AgeUSD protocol (this is a stablecoin design but not an actual stablecoin) and specifically look at SigmaUSD stablecoin that is using the AgeUSD protocol.
https://github.com/Emurgo/age-usd
It is complicated but once you understand it, it's not that bad and it seems to be built much sturdier than the other algorithmic stablecoins that have failed recently like Luna (I remember somebody trying to get me into it and I kept asking what that 20% APY was backed by).
How to trust a stablecoin
https://files.catbox.moe/l6xf8y.mp4
SigmaUSD is an algorithmic stablecoin project on a smaller market cap blockchain called Ergo that has never depegged throughout this bull and bear market even with Ergo taking big dips. The stable coin is over-collateralized by the underlying asset (ERG on SigmaUSD protocol). The price of the underlying asset (ERG) would have to drop over 75% in a very short time (like an hour or less) to actually begin depegging the stablecoin. Anything longer than that and people flooding into the Reserve Token will be making some good money from the SigmaUSD protocol fees. The price of Ergo is listed on the blockchain in real time by the Ergo Oracle.
Redeeming of SigRSV for ERG or Djed on Cardano can only occur when the reserve ratio is greater than 400%.
In a short answer for how to make money on this, if you're shorting Ergo price to go down in the future, you buy the stablecoin SigUSD and if the price of Ergo goes down you get back more Ergo when cashing out of the stablecoin. Likewise, if you're longing Ergo you can buy the reserve token SRV and if the price of Ergo increases further you cash out your SRV for more Ergo. It's actually a little more complicated than that since if Ergo price falls to the point SigUSD is lower than 400% overcollateralized to SigRSV, then people locking in ERGO for SigRSV tokens get exponentially more rewards in users fees as the price of Ergo goes lower. This is a reward mechanism to get people to buy more reserve tokens to get the SigUSD overcollateralized again (Which is why if even Ergo fell 75% in price in one day, other people would be too greedy buying SigRSV to let the stablecoin get depegged).
https://files.catbox.moe/40td1h.jpg
https://files.catbox.moe/bosr3r.jpg
https://files.catbox.moe/rge4oz.jpg
https://files.catbox.moe/mte70v.jpg
https://files.catbox.moe/0l3b7c.png
https://files.catbox.moe/x27p74.png
https://files.catbox.moe/utwdiv.png
https://files.catbox.moe/6mls3x.png
It was exhausting when I was first trying to understand SigUSD stablecoin and I know this is already information overload but I'm gonna dump some more links for you to come back to:
How would've Ergo's SigmaUSD held up with the whole LUNA Fiasco?
SigUSD is over-collateralised, every sigusd is backed by 3$ currently. Everyone can see that there is money in the bank. This stops a bank run at its inception. The breaking point of the peg is explicit and open for anyone to see. With UST, you have no idea, which gives you an incentive to get out first.
https://nitter.net/ergoplatformorg/status/1524118293476700160
https://curiaregiscrypto.medium.com/sigmausd-vs-the-competition-e70b23fe37a3
Luna supply depends on terra usage, Ergo does not. Burning luna when trend is up, pumps its price. However, when trend is down, luna price will dump harder, because more luna is printed.
collateral ratio for sigusd is higher. This means that the capital efficiency (less collateral tied for each stablecoin) is better for terra. That is why luna/terra can offer better yield.
However, this means that luna/terra needs an additional mechanism to ensure stability...
PSA: sigRSV is not a simple long position
https://www.teddit.net/r/ergonauts/comments/prxpag/psa_sigrsv_is_not_a_simple_long_position/
Noob tries to explain SigmaUSD/RSV (an attempt at an ELI5)
https://www.teddit.net/r/ergonauts/comments/nhjc1f/noob_tries_to_explain_sigmausdrsv_an_attempt_at/
Apologies for the late reply, I wrote a post earlier and something happened with the internet connection and I lost everything I wrote before I could post it. I became depressed and made me some eggs.
What other metrics or indicators would you look at when assessing a given blockchain?
There are several metrics other than price to look at both for long term investors and short term day traders who may look at metrics like the Relative Strength Index. For me when looking at a layer 1 blockchain, I like to look at long term metrics like how much development activity is happening on the core code (Github commits to measure) and # of projects that are developing on the blockchain. No matter what if the price is up or down, if there is no one developing on it then it is essentially a dead project that'll go to zero at some point. What gives real value is the number of people using that blockchain for real life improvements. In lower market cap projects I would also look at development activity (Github commits & # of projects developing) in ratio to number of devs on their team.
Other good indicators is to look at 30 day transaction volume (coinmarketcap and coingecko should take care of this), 30 day NFT Volume (if they're active in that space), total value locked in DeFi (there was a great etc.
EDIT: Mentions of Terra Luna in Messari’s “crypto theses for 2022” report: 55
Mentions of Cardano in Messari’s “crypto theses for 2022” report: 2
(one of which was basically “it sucks lol”)
https://nitter.net/cardano_whale/status/1534849482189578241
Be aware of extreme bias in the crypto community even in metrics websites and especially in journalistic/media sites.
https://cryptoslam.io/ is a great website to look at NFT sales volume but they are very obviously missing Cardano NFT sales volume which would be #3 if included in their 30 day charts. If you notice, it is also only -20% in 30 day NFT sales volume compared to top 3 on Cryptoslam.io: Ethereum (-74%), Solana (-71%), BSC (-79%).
https://opencnft.io/market-overview#trend
https://www.cnftjungle.io/statistics
Another important indicator for me is how transparent that blockchain is in terms of development, roadmap, and projects developing. Can they give short and simple explanations as well as long and thought out explanations on the same topic? How big of a community of communicators do they have? Is their code open source? Is code being audited?
Red flags for me are projects that don't meet their roadmap goals after given ample amount of time. Here is a video with Vitalik Buterin announcing that by 2016 ETH 2.0 will be running proof of stake.
https://files.catbox.moe/uea6n1.mp4
6 years later Ethereum is still working on moving to proof of stake and they just suffered a 7 block reorg in their inital testnet for the merge. A block reorg is when the blocks in the blockchain get out of time alignment meaning the ledger is giving faulty information about when a transaction was made (definitely not good)
Ethereum Beacon Chain Suffers Longest Blockchain 'Reorg' in Years
https://decrypt.co/101390/ethereum-beacon-chain-blockchain-reorg
Visualising the 7-block reorg on the Ethereum beacon chain
https://barnabe.substack.com/p/pos-ethereum-reorg?s=r
Decentralization is absolutely worth pursuing because it takes much more entropy and time to destroy it. Take a look at this genius episode from a kids show from over 20 years ago to see what happens to an asset when it becomes completely centralized in hands of a few compared to the many. When an asset is completely controlled by a few people and everyone else sees it, the masses begin to reject that asset.
https://www.youtube.com/watch?v=D7WPeUpcBlg
Solana is one of those projects that is more centralized and the devs shut down their blockchain every other week to make "fixes" on it. This means they shut down all transaction activity on the blockchain and they ultimately control your ability to make transactions. That is a HUGE deal and imo nobody should ever have that kind of power. They also magically made Solana appear on the blockchain about a year ago on their first blockchain shutdown, idk why people forgot that. All it takes is one of the devs to go rogue and things could get really bad for Solana holders. Not to mention the recent DAO vote on their Solend project to take control and liquidate a wallet that was about to sell $180 million of Solana which would dump Solana price. The deciding vote was a wallet of $700k and took 80% of the vote. See how important decentralization is? The next day after the results were announced the devs held another "vote" to undo the previous vote of taking over the wallet and undid the previous voters. Pretty hypocritical if you ask me and not a safe place to invest.
Also, what are your thoughts on stablecoins? Algorithmic vs fiat pegs etc.
Tether is going to lose its market cap, USDC will eventually take its place as the top stablecoin. The question is how fast will Tether lose its market cap? Also how much market cap is lost in the crypto community if Tether runs out of "dollar equivalent assets" before its actual market cap goes to $0.
Opinion: collapse of USDT
The problem with this $13B liquidation though, originates at the source of this report published by Tether, stating that only 2.94% of its reserves are in cash. The pie chart in that document is a bit misleading -- it says 3.87%, but it is 3.87% of the 75.85% category of "Cash & Cash Equivalents & Other Short Term Deposits & Commercial Paper."
That report was published on March 31, 2021. At that time, the market cap of Tether was ~$62B (see chart below). 2.94% of that is $1.8B. We can also play out a second scenario: assume the cash reserves grew in tandem with the market cap. If that's the case, then at $83B, $2.4B would be in cash reserve.
Tether Claims 'Coordinated' Conspiracy Is Trying to Take It Down
The next question is how safe is USDC? Who created and controls USDC and are they able manipulate my USDC coins/transactions?
https://en.wikipedia.org/wiki/USD_Coin
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre,[1] which was founded by Circle and includes members from the cryptocurrency exchange Coinbase [2] and Bitcoin mining company Bitmain,[3] an investor in Circle.[4] USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).
I still need to do more research into them and how things can be affected if say Coinbase flops and/or the price of Bitcoin drops further pushing Bitmain out of business as well. These entities "manage" USDC but to what extent can they control my USDC and transactions?
As far as algorithmic stablecoins go, I would look into AgeUSD protocol (this is a stablecoin design but not an actual stablecoin) and specifically look at SigmaUSD stablecoin that is using the AgeUSD protocol.
https://github.com/Emurgo/age-usd
It is complicated but once you understand it, it's not that bad and it seems to be built much sturdier than the other algorithmic stablecoins that have failed recently like Luna (I remember somebody trying to get me into it and I kept asking what that 20% APY was backed by).
How to trust a stablecoin
https://files.catbox.moe/l6xf8y.mp4
SigmaUSD is an algorithmic stablecoin project on a smaller market cap blockchain called Ergo that has never depegged throughout this bull and bear market even with Ergo taking big dips. The stable coin is over-collateralized by the underlying asset (ERG on SigmaUSD protocol). The price of the underlying asset (ERG) would have to drop over 75% in a very short time (like an hour or less) to actually begin depegging the stablecoin. Anything longer than that and people flooding into the Reserve Token will be making some good money from the SigmaUSD protocol fees. The price of Ergo is listed on the blockchain in real time by the Ergo Oracle.
Redeeming of SigRSV for ERG or Djed on Cardano can only occur when the reserve ratio is greater than 400%.
In a short answer for how to make money on this, if you're shorting Ergo price to go down in the future, you buy the stablecoin SigUSD and if the price of Ergo goes down you get back more Ergo when cashing out of the stablecoin. Likewise, if you're longing Ergo you can buy the reserve token SRV and if the price of Ergo increases further you cash out your SRV for more Ergo. It's actually a little more complicated than that since if Ergo price falls to the point SigUSD is lower than 400% overcollateralized to SigRSV, then people locking in ERGO for SigRSV tokens get exponentially more rewards in users fees as the price of Ergo goes lower. This is a reward mechanism to get people to buy more reserve tokens to get the SigUSD overcollateralized again (Which is why if even Ergo fell 75% in price in one day, other people would be too greedy buying SigRSV to let the stablecoin get depegged).
https://files.catbox.moe/40td1h.jpg
https://files.catbox.moe/bosr3r.jpg
https://files.catbox.moe/rge4oz.jpg
https://files.catbox.moe/mte70v.jpg
https://files.catbox.moe/0l3b7c.png
https://files.catbox.moe/x27p74.png
https://files.catbox.moe/utwdiv.png
https://files.catbox.moe/6mls3x.png
It was exhausting when I was first trying to understand SigUSD stablecoin and I know this is already information overload but I'm gonna dump some more links for you to come back to:
How would've Ergo's SigmaUSD held up with the whole LUNA Fiasco?
SigUSD is over-collateralised, every sigusd is backed by 3$ currently. Everyone can see that there is money in the bank. This stops a bank run at its inception. The breaking point of the peg is explicit and open for anyone to see. With UST, you have no idea, which gives you an incentive to get out first.
https://nitter.net/ergoplatformorg/status/1524118293476700160
https://curiaregiscrypto.medium.com/sigmausd-vs-the-competition-e70b23fe37a3
Luna supply depends on terra usage, Ergo does not. Burning luna when trend is up, pumps its price. However, when trend is down, luna price will dump harder, because more luna is printed.
collateral ratio for sigusd is higher. This means that the capital efficiency (less collateral tied for each stablecoin) is better for terra. That is why luna/terra can offer better yield.
However, this means that luna/terra needs an additional mechanism to ensure stability...
PSA: sigRSV is not a simple long position
https://www.teddit.net/r/ergonauts/comments/prxpag/psa_sigrsv_is_not_a_simple_long_position/
Noob tries to explain SigmaUSD/RSV (an attempt at an ELI5)
https://www.teddit.net/r/ergonauts/comments/nhjc1f/noob_tries_to_explain_sigmausdrsv_an_attempt_at/
Apologies for the late reply, I wrote a post earlier and something happened with the internet connection and I lost everything I wrote before I could post it. I became depressed and made me some eggs.
What other metrics or indicators would you look at when assessing a given blockchain?
There are several metrics other than price to look at both for long term investors and short term day traders who may look at metrics like the Relative Strength Index. For me when looking at a layer 1 blockchain, I like to look at long term metrics like how much development activity is happening on the core code (Github commits to measure) and # of projects that are developing on the blockchain. No matter what if the price is up or down, if there is no one developing on it then it is essentially a dead project that'll go to zero at some point. What gives real value is the number of people using that blockchain for real life improvements. In lower market cap projects I would also look at development activity (Github commits & # of projects developing) in ratio to number of devs on their team.
Other good indicators is to look at 30 day transaction volume, 30 day NFT Volume (if they're active in that space), total value locked in DeFi, etc.
https://cryptoslam.io/ is a great website to look at NFT sales volume but they are very obviously missing Cardano NFT sales volume which would be #3 if included in their 30 day charts. If you notice, it is also only -20% in 30 day NFT sales volume compared to top 3 on Cryptoslam.io: Ethereum (-74%), Solana (-71%), BSC (-79%).
https://opencnft.io/market-overview#trend
https://www.cnftjungle.io/statistics
Another important indicator for me is how transparent that blockchain is in terms of development, roadmap, and projects developing. Can they give short and simple explanations as well as long and thought out explanations on the same topic? How big of a community of communicators do they have? Is their code open source? Is code being audited?
Red flags for me are projects that don't meet their roadmap goals after given ample amount of time. Here is a video with Vitalik Buterin announcing that by 2016 ETH 2.0 will be running proof of stake.
https://files.catbox.moe/uea6n1.mp4
6 years later Ethereum is still working on moving to proof of stake and they just suffered a 7 block reorg in their inital testnet for the merge. A block reorg is when the blocks in the blockchain get out of time alignment meaning the ledger is giving faulty information about when a transaction was made (definitely not good)
Ethereum Beacon Chain Suffers Longest Blockchain 'Reorg' in Years
https://decrypt.co/101390/ethereum-beacon-chain-blockchain-reorg
Visualising the 7-block reorg on the Ethereum beacon chain
https://barnabe.substack.com/p/pos-ethereum-reorg?s=r
Decentralization is absolutely worth pursuing because it takes much more entropy and time to destroy it. Take a look at this genius episode from a kids show from over 20 years ago to see what happens to an asset when it becomes completely centralized in hands of a few compared to the many. When an asset is completely controlled by a few people and everyone else sees it, the masses begin to reject that asset.
https://www.youtube.com/watch?v=D7WPeUpcBlg
Solana is one of those projects that is more centralized and the devs shut down their blockchain every other week to make "fixes" on it. This means they shut down all transaction activity on the blockchain and they ultimately control your ability to make transactions. That is a HUGE deal and imo nobody should ever have that kind of power. They also magically made Solana appear on the blockchain about a year ago on their first blockchain shutdown, idk why people forgot that. All it takes is one of the devs to go rogue and things could get really bad for Solana holders. Not to mention the recent DAO vote on their Solend project to take control and liquidate a wallet that was about to sell $180 million of Solana which would dump Solana price. The deciding vote was a wallet of $700k and took 80% of the vote. See how important decentralization is? The next day after the results were announced the devs held another "vote" to undo the previous vote of taking over the wallet and undid the previous voters. Pretty hypocritical if you ask me and not a safe place to invest.
Also, what are your thoughts on stablecoins? Algorithmic vs fiat pegs etc.
Tether is going to lose its market cap, USDC will eventually take its place as the top stablecoin. The question is how fast will Tether lose its market cap? Also how much market cap is lost in the crypto community if Tether runs out of "dollar equivalent assets" before its actual market cap goes to $0.
Opinion: collapse of USDT
The problem with this $13B liquidation though, originates at the source of this report published by Tether, stating that only 2.94% of its reserves are in cash. The pie chart in that document is a bit misleading -- it says 3.87%, but it is 3.87% of the 75.85% category of "Cash & Cash Equivalents & Other Short Term Deposits & Commercial Paper."
That report was published on March 31, 2021. At that time, the market cap of Tether was ~$62B (see chart below). 2.94% of that is $1.8B. We can also play out a second scenario: assume the cash reserves grew in tandem with the market cap. If that's the case, then at $83B, $2.4B would be in cash reserve.
Tether Claims 'Coordinated' Conspiracy Is Trying to Take It Down
The next question is how safe is USDC? Who created and controls USDC and are they able manipulate my USDC coins/transactions?
https://en.wikipedia.org/wiki/USD_Coin
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre,[1] which was founded by Circle and includes members from the cryptocurrency exchange Coinbase [2] and Bitcoin mining company Bitmain,[3] an investor in Circle.[4] USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).
I still need to do more research into them and how things can be affected if say Coinbase flops and/or the price of Bitcoin drops further pushing Bitmain out of business as well. These entities "manage" USDC but to what extent can they control my USDC and transactions?
As far as algorithmic stablecoins go, I would look into AgeUSD protocol (this is a stablecoin design but not an actual stablecoin) and specifically look at SigmaUSD stablecoin that is using the AgeUSD protocol.
https://github.com/Emurgo/age-usd
It is complicated but once you understand it, it's not that bad and it seems to be built much sturdier than the other algorithmic stablecoins that have failed recently like Luna (I remember somebody trying to get me into it and I kept asking what that 20% APY was backed by).
How to trust a stablecoin
https://files.catbox.moe/l6xf8y.mp4
SigmaUSD is an algorithmic stablecoin project on a smaller market cap blockchain called Ergo that has never depegged throughout this bull and bear market even with Ergo taking big dips. The stable coin is over-collateralized by the underlying asset (ERG on SigmaUSD protocol). The price of the underlying asset (ERG) would have to drop over 75% in a very short time (like an hour or less) to actually begin depegging the stablecoin. Anything longer than that and people flooding into the Reserve Token will be making some good money from the SigmaUSD protocol fees. The price of Ergo is listed on the blockchain in real time by the Ergo Oracle.
Redeeming of SigRSV for ERG or Djed on Cardano can only occur when the reserve ratio is greater than 400%.
In a short answer for how to make money on this, if you're shorting Ergo price to go down in the future, you buy the stablecoin SigUSD and if the price of Ergo goes down you get back more Ergo when cashing out of the stablecoin. Likewise, if you're longing Ergo you can buy the reserve token SRV and if the price of Ergo increases further you cash out your SRV for more Ergo. It's actually a little more complicated than that since if Ergo price falls to the point SigUSD is lower than 400% overcollateralized to SigRSV, then people locking in ERGO for SigRSV tokens get exponentially more rewards in users fees as the price of Ergo goes lower. This is a reward mechanism to get people to buy more reserve tokens to get the SigUSD overcollateralized again (Which is why if even Ergo fell 75% in price in one day, other people would be too greedy buying SigRSV to let the stablecoin get depegged).
https://files.catbox.moe/40td1h.jpg
https://files.catbox.moe/bosr3r.jpg
https://files.catbox.moe/rge4oz.jpg
https://files.catbox.moe/mte70v.jpg
https://files.catbox.moe/0l3b7c.png
https://files.catbox.moe/x27p74.png
https://files.catbox.moe/utwdiv.png
https://files.catbox.moe/6mls3x.png
It was exhausting when I was first trying to understand SigUSD stablecoin and I know this is already information overload but I'm gonna dump some more links for you to come back to:
How would've Ergo's SigmaUSD held up with the whole LUNA Fiasco?
SigUSD is over-collateralised, every sigusd is backed by 3$ currently. Everyone can see that there is money in the bank. This stops a bank run at its inception. The breaking point of the peg is explicit and open for anyone to see. With UST, you have no idea, which gives you an incentive to get out first.
https://nitter.net/ergoplatformorg/status/1524118293476700160
https://curiaregiscrypto.medium.com/sigmausd-vs-the-competition-e70b23fe37a3
Luna supply depends on terra usage, Ergo does not. Burning luna when trend is up, pumps its price. However, when trend is down, luna price will dump harder, because more luna is printed.
collateral ratio for sigusd is higher. This means that the capital efficiency (less collateral tied for each stablecoin) is better for terra. That is why luna/terra can offer better yield.
However, this means that luna/terra needs an additional mechanism to ensure stability...
PSA: sigRSV is not a simple long position
https://www.teddit.net/r/ergonauts/comments/prxpag/psa_sigrsv_is_not_a_simple_long_position/
Noob tries to explain SigmaUSD/RSV (an attempt at an ELI5)
https://www.teddit.net/r/ergonauts/comments/nhjc1f/noob_tries_to_explain_sigmausdrsv_an_attempt_at/