Diamond Protocol. AMA with PancakeSwap recap
Welcome everyone. Here I prepared Diamond Protocol AMA with PancakeSwap recap from 2023.09.15 for everyone who missed that call. Enjoy reading.
Evie Zhang - CEO
Evie Zhang | CEO: Today, we will delve into the Diamond protocol and explore strategies for thriving in this prolonged bear market. Often, when people encounter a challenging market condition, they tend to bury their heads in the sand, hoping to wake up and find things back to normal. I am a traditional financial money manager and a crypto entrepreneur. Today, I'd like to begin by sharing a few thoughts on how to navigate this type of market. So, let's address the fact that there is an abundance of bad news in the market right now. I believe there are a few indicators that hold significance, not only in terms of market trends but also as reflections of the fundamental issues we currently face.
- First of all is reducing StableCoin market cap.
Secondly, we are experiencing the lowest trading volume, which hasn't been seen since Q2 2019.
Trading volume peak was in Q1/Q2 2021.
- The overall TVL in DeFi has also decreased since 2022 (that year was peak).
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Why is it so bad and painful this time around? We've always faced some fundamental traffic issues, especially in the crypto market. For instance, there's the constant pressure from both CeFi and traditional tradeFi regulators, not to mention the frequent hacks. Protocol security has been a major concern for as long as we can remember, with various hacks occurring every year. The most recent one was the $17 million hack on Curve just last month. However, the thing is, this issue isn't new; it has been around since the inception of DeFi and cryptocurrency.
- So, what makes it different this time? What is the fundamental reason behind this?
The current Fed rates are draining liquidity.
Some of the most well know Funds in the Venture Capital industry has trobles by raising funds right now.
All of these above means that risky assets are being punished of the Fed Rate. What is currently happening in the market also involves incorporating deleveraging.
Another question: is the yield curve currently inverted? Yes, it has been inverted since last July. Some of the economist argue that recession is inevitable. Not only the market is down and bad right now. We may still have the worse time that come. It's already been a year since the big dump happen.
Should one aim to minimize risks or navigate them with strategic and logical approaches? Answer is definitely Yes. Basically focus on sustainable yield, investigate the yield: is it stablecoin , ETH or WBTC.
- Before investing in the yield, conduct thorough research and explore various business models available in the market.
Now, let’s take look at the PancakeSwap. This particular videos show what the different between V3 and V2.
The first distinction lies in concentrated liquidity. When you provide liquidity on PancakeSwap V3, you can earn an exceptionally high fee APR while within the specified range. PancakeSwap V3 amplifies this by offering a high APR within the range, and zero fees outside the range.
The second difference pertains to Impermanent Loss (IL).
- The V3 positions are actually quite complex. They entail a specific LP to track whether your position is within range or not, a concern you don't have when using V2.
In our case, We essentially streamlined it into two interconnected products: Diamond Factory and Diamond Pool.
The beauty of employing various leverage options is that users can earn both long and short-term profits when they accurately predict market movements. Additionally, they have the opportunity to enjoy high Annual Percentage Rates (APR) when using leverage.
Let's say you provide USDC and borrow ETH with a 1.5x leverage. Our platform also allows you to trade in reverse. If you borrow USDC and provide ETH with a 1.5x leverage, you are effectively shorting ETH. Additionally, users have the option to utilize a simulator on our platform for all of these strategies.
A little bit background about Diamond’s team
What’s Unibot?
UniBot is the first Leveraged Liquidity Provision (LLP) Platform for Uniswap V3, where users can create positions to provide liquidity in Uniswap V3 with leverage, hedging, and automation on Layer 2 blockchain. It is the latest product launched by Diamond, a DeFi protocol specializing in building on-chain structured products.
💎 Website: dmo.finance
🐦 Twitter: twitter.com/diamondprotocol
🗃 Crew3: crew3.xyz/diamondprotocol
👾 Discord: https://discord.gg/diamond
✍ Blog: medium.com/@diamondprotocol
🔮 Galxe: galxe.com/diamondprotocol
AMA Recap made by Diamond Protocol’s Head Mod - 一川drive#4181
AMA Record 👉 Community AMA with PancakeSwap
