Five bullet Friday - Issue #57

Dear Partners,

All the partners who subscribed to the fund by August 1st, should have received their statements today. We have returned 431.27% (before fees) in the month of August, 2020. Our monthly performance can be seen here. From April 1st, if you have invested the same $100 into RCIF and S&P 500, your stake in RCIF would be worth $3787.14, whereas S&P 500 would have given you $135.43.

1. I received a 5 page letter from my bank to inform me that my interest on saving account dropped from 0.02% to 0%. It is even funny that they have decided to send this by regular mail spending more on postage. World today is starving for yield, thanks to the reckless policies of central banks around the world. Decentralized Finance is here to stay as it is able to produce huge yield opportunities for investors. The total amount of money locked in the DeFi protocols was close to $1 Billion on June 1st. Today it surpassed $10 billion dollars as can be seen here. Capital will flow to where it can get the highest yield. I would expect DeFI protocols to act like a liquidity blackhole and attract capital from investors around the world. I expect this sector to reach at least $500 billion in the next two years.

2. This week we received 511 Uniswap tokens basically for using the platform. We received them as air-drop just for providing liquidity to the Uniswap. It is amazing that a simple protocol that is run by 5 people has given out close to $200 million dollars worth of tokens to its users as can be seen here. These 511 tokens are currently worth $2509. I believe that they will be worth a lot more in future. This is a substantial amount of money for many users in developing countries.This is almost like a stimulus package from Uniswap to the world. Compare this our Federal Government, with access to printing presses, manage to send only $1200 stimulus to each american in the middle of a global pandemic.

3. We have staked our Nexus Mutual tokens and received 30.81 new tokens of SAFE. I expect the SAFE project to really grow well over the years. These 30.81 tokens are worth $12,000 today. Now I can describe our core holdings in our portfolio, as UNEASY. These are Uniswap, Nexus Mutual, Ethereum, Aave, Synthetix, YFI tokens. All of them will earn us steady income. My role as a toll-booth operator is to bring enough income so that you don't feel uneasy holding them.

4.  This week I have reduced our debt related to Synthetix. This enabled us to make two claims for our share of the toll-booth fees. For last week, we received 6174 tokens of SNX, bringing their total value to $27,034. This gave us a yield of 79%. For this week, it is 3283 tokens valuing them at $13,588, which gave a yield of 34%. This massive drop was not caused by the drop in the Synthetix trading volume. In order to comply with the smart-contract enforced collateralization ratio of 600%, I reduced our debt , by 'burning' some of it. That automatically reduces our pro-rata share of the transaction fees. The full report can be seen here.

 
5. We are generating good income from our dark nodes running for REN protocol on the cloud platform of Digital Ocean. This week we collected $891.03 ( per node $127.29) 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 $820 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!