Five bullet Friday - issue #55

Dear Partners,

Here in Oregon we are surrounded by massive wildfires, that I have never seen before. With all the smoke in the air, in the middle of the day, we can look at the sun and it looks like the moon to us.

1. US Stock markets are a thing of beauty in the middle of this grave pandemic. They are not deterred by great depression level unemployment, racial protests, 50% drop in S&P 500 earnings, wildfires on the west coast, 50% budget deficit for the US Government, steadily rising mortgage delinquencies and retail store bankruptcies. Apparently, all these factors are great for the stock market according to the pundits on CNBC. This market is so good that Swiss National bank, which is the equivalent of the Federal Reserve in Switzerland, is a big buyer of equities with freshly minted money.

2. Recently YFI announced a plan to issue Stable Credit, allowing any crypto holders to issue stable coins by adding collateral to a pool. Currently it is only possible to issue DAI as a stable coin collateralized by ETH on the Maker platform. Now YFI is expanding this concept to all coins. This is great news for YFI and it will certainly increase the volumes locked in its smart contracts. This makes me more bullish on YFI future prospects. We own 430 tokens of YFI and the largest single holder of these tokens in the world.

3. We continue to add to our position in NXM tokens last week. As more money is locked into the smart contracts, there is a constant demand for more insurance against smart contract bugs. As soon as they release new tokens, granting insurance they are being bought up in minutes. It is hard to even project how fast this demand will continue to rise. We can stake our tokens and receive the premiums paid by other users. We currently hold 6134 tokens of NXM.

4.  We are actively engaging in proof-of-stake mining with Synthetix. Synthetix will pass the trading fees (0.3%) generated on the exchange to the token stakers. This week we have generated a staking income ( 773.52 SUSD + 4958.13 SNX * $5.71  )  totaling $29,084. The value of the staked SNX  (651585) is $3,720,550 at a price of $5.71.  This gives us a yield of 29084 / 3720550, which is 0.7817% per week. If we annualize the yield by (1.007817)^52,  it results in a yield of 49.91% APY.  This can be seen directly from this website here:https://docs.google.com/spreadsheets/d/1QU47tR4eK0fD2ySaP88LM9U46vD7p6mt80KSfqu00DI/edit#gid=366963260  on the SNX tab. We currently hold 661,437 tokens of Synthetix.  

 
5. We are generating good income from our dark nodes running for REN protocol. This week we collected $1154 in new tokens as our toll-booth fees. The full report can be seen here:https://docs.google.com/spreadsheets/d/1QU47tR4eK0fD2ySaP88LM9U46vD7p6mt80KSfqu00DI/edit#gid=982608609. REN protocol had close to zero transaction volume on June 1st. Today it is close to $570 million. I am impressed with their growth and it still has a long way to go. So far there are exactly 1197 such dark nodes collecting transaction fees.

Have a wonderful weekend!