Youtube vids exploring yield potential for Flare (warning *highly speculative*)

[Seoulite]

The Defi Standard channel is releasing a series of videos with complex calculations trying to estimate the potential returns on yield for Flare. Obviously the numbers change a lot depending on the initial participation in the network. But needless to say the numbers are very exciting, potentially mind-blowing in the initial months.

For the TLDR, I suggest skipping to video number 3, start at 6 minutes 44 seconds. He explores the potential returns for combining compounding yield from FXRP and FLR. Numbers are:

if you hold 2500 xrp, in 180 days you could earn 18500 spark

at 10k xrp, you could earn 74000 spark in 6 months

at 50k xrp, you could earn 370,000 spark in 6 months.

Again, these numbers are highly speculative. However daily compounding yield is powerful.

 

 

Edited May 12, 2021 by Seoulite

[JASCoder]

Their massive airdrop maneuver could wind up giving the launches of the network and apps a record number of initial participants. 

Have other similar deployments created significant "running starts" like this ?

[Seoulite]

11 minutes ago, JASCoder said:

Their massive airdrop maneuver could wind up giving the launches of the network and apps a record number of initial participants. 

Have other similar deployments created significant "running starts" like this ?

I don't know. Maybe someone with a broader knowledge of smaller projects could name one, but I can't imagine there has been anything like this.

[BillyOckham]

The thing that I am most interested in at this point, and that I haven’t seen much discussion of, is the relative risks associated with the various options.

I’m a risk taker at times,  but for passive income I want low risk strategies that I can rely more upon.

So...  normally it’s direct ratio of risk and reward but I suspect in this nascent financial market there may be hidden gotchas and also hidden advantages in the risk reward ratios.

Think back to the GFC.  If you were a newbie investor then,  and someone was offering you high returns on derivatives based on triple A rated mortgages,  you would likely assume the risk was small.  As it happens they were junk but most participants were unaware of that.

Not at all saying this stuff is junk,  in fact I think it might be very robust given how Flare have collected smart minds to examine and plan it...  but some options might be riskier than others.

Would love to see any discussion of a ordering of relative risks and perhaps some discussion of what those risks were.

[Seoulite]

10 minutes ago, BillyOckham said:

The thing that I am most interested in at this point, and that I haven’t seen much discussion of, is the relative risks associated with the various options.

I’m a risk taker at times,  but for passive income I want low risk strategies that I can rely more upon.

So...  normally it’s direct ratio of risk and reward but I suspect in this nascent financial market there may be hidden gotchas and also hidden advantages in the risk reward ratios.

Think back to the GFC.  If you were a newbie investor then,  and someone was offering you high returns on derivatives based on triple A rated mortgages,  you would likely assume the risk was small.  As it happens they were junk but most participants were unaware of that.

Not at all saying this stuff is junk,  in fact I think it might be very robust given how Flare have collected smart minds to examine and plan it...  but some options might be riskier than others.

Would love to see any discussion of a ordering of relative risks and perhaps some discussion of what those risks were.

So the delegation of your vote to the FTSO which will earn daily yield in spark has zero risk. You are not moving your tokens, you are not doing anything except using the detachable vote. 

Everything else has some risk, although the F-asset system is set up in a way that you value is always secure (excluding tax issues etc). 

So at the basic, core of the system is a risk-free compounding yield. 

[RobertHarpool]

4 hours ago, JASCoder said:

Have other similar deployments created significant "running starts" like this ?

Perhaps Dfinity (in top 10 on day 1)... and may well eat Flare's lunch ... fun challenge ... 

(Actual dispersement is quite different, but planned and distributed) 

Edited May 13, 2021 by RobertHarpool

[BillyOckham]

1 hour ago, Seoulite said:

So the delegation of your vote to the FTSO which will earn daily yield in spark has zero risk. You are not moving your tokens, you are not doing anything except using the detachable vote. 

Everything else has some risk, although the F-asset system is set up in a way that you value is always secure (excluding tax issues etc). 

So at the basic, core of the system is a risk-free compounding yield. 

Thanks yeah I was aware of those two relatively low risk options.  (Even detached FTSO vote delegation has risk...  the risk of capital in a return that could be bettered - basic FLR investment risk, the risk that the FLARE chain breaks or is corrupted or abandoned.)

So nothing is zero risk.

But what I would like to see is the ladder of strategies rated on risk.  Also sorted on return.  We can’t see the returns ladder yet because it’s still to be determined.  Even once rates are known at init there can be dynamics that change that.

But the risks should be able to be listed and perhaps evaluated.  I haven’t seen such a thing yet.

[TreeLine]

I learned quite a few things from that third video you pointed out.

Why does he start with 100% airdrop for the calculation? I'm not sure how much that is affecting the result. (I'm thinking not much because the airdrop is in addition to staking rewards.)

What can I do with FLR? It sounds like they want you to hold on to it as price appreciates?

Edited May 13, 2021 by TreeLine

[RobertHarpool]

After watching all three videos, I'm 100% certain that I am nowhere near 100% certain what's going on ... but I'm sure I'll get there .. 

Edited May 13, 2021 by RobertHarpool

[Seoulite]

1 hour ago, TreeLine said:

I learned quite a few things from that third video you pointed out.

Why does he start with 100% airdrop for the calculation? I'm not sure how much that is affecting the result. (I'm thinking not much because the airdrop is in addition to staking rewards.)

What can I do with FLR? It sounds like they want you to hold on to it as price appreciates?

I think he mentions somewhere why he has that calculation but yeah it’s all speculation.

Well you will be able to use flare in DeFi applications, you will be able to stake it in the f asset system, put it in the liquidity pools of flare finance, put it in the probity vault on trust line. Lots of stuff.