Strategies to use with Zero

Hello sovereigns. This is a post that I had pending with the community and that I recently found a way to share it with you.

Here I detail some strategies that can be used with Zero to obtain more returns from your guarantees in rBTC. This was a community initiative, born from the Spanish community of Sovryn and with the collaboration of @lactarius. I also take the opportunity to mention @SovereignOrigin who was the creator of the #SuperHodl strategy that appears in both presentations.

There is a presentation in Spanish and one translated into English for greater dissemination and understanding by the community. Presentations are located in Drive, inside a folder titled “Sovryn Community”.

Link in English: Zero with strategy.pptx - Google Slides

Link en Español: Loading Google Slides

I would appreciate the feedback from the community to improve the information, that new and old sovereigns see accurate and updated information.

Cheers!
#StaySovryn

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Great initative, thanks for sharing! Some comments:

The origination fee is a loan amount (in zUSD), is around 20 USD and is returned upon redemption of your loan if it isn’t paid off (This fee is also known as the “Stability Reserve”).

There are two separate things here: origination fee and liquidation reserve.

In recovery mode, the origination fee is 0%. In normal mode the origination fee starts at 0.5% and increases as the volume of redemptions increases within a given period of time. As time goes on and there are no redemptions, eventually the fee comes back down to the base of 0.5%.

The liquidation reserve is 20 ZUSD. It is added to the debt when creating a line of credit and set aside. If the line of credit is closed, the 20 ZUSD is used to pay back 20 ZUSD of the debt and gets canceled out. If the line of credit is liquidated, then the 20 ZUSD goes to the user who triggered the liquidation to compensate for their gas cost.

The exchange fee is a percentage of the amount exchanged (in rBTC) when exchanging USD for rBTC, with the minimum fee being 0.5%.

Please note that swapping isn’t the same as paying off your loan, which is free.

should say: “The redemption fee is a percentage of the amount of RBTC received when redeeming ZUSD for RBTC, with the minimum redemption fee being 0.5%. Please note that redeeming ZUSD isn’t the same as paying off your loan, which is free.”

TO PAY THE PENDING DEBT IN ZERO YOU WOULD ONLY HAVE TO REDEEM THE FUNDS OF THE LENDING PRODUCT AND EXCHANGE THE BPRO FOR {XUSD OR ZUSD FIND OUT} AND PAY THE DEBT IN ZERO, KEEP THE DIFFERENCE OBTAINED FROM THE INCREASE IN THE PRICE ACTION + LENDING YIELD.

Here I think the path to paying back the debt would be BPRO → XUSD → ZUSD.

HTTPS://BRIDGE.SOVRYN.APP/

I recommend using the bridge from the Sovryn Portfolio rather than this bridge web page. The bridge web page will be taken offline after the new BabelFish UI is released. So just change that link to Sovryn

CRAB STRATEGY

haha love this name. I’m not sure I understand the “PAYBACK RBTC” step in the capital flow though. can you explain what you mean by this?

A couple of comments on this strat:

  1. If you deposit the ZUSD you borrow into the stability pool, then you might be able to automatically BTFD if there are liquidations. Of course, if there are no liquidations, you can simply withdraw the ZUSD and buy the RBTC on spot market to BTFD.

  2. This strat can also be combined with the Stable Strat, so while you wait to BTFD you can be earning interest on XUSD in the lending pool.

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Hi,

Sorry to jump into the discussion. As the crab strategy was suggested by me to @btcLegosi , I want to clarify it in case there has been some misinterpretation or mistranslation.

First I open a LOC with bitcoin at $20,000, then I change ZUSD to XUSD. And I wait for bitcoin price drop to buy more sats, for example at $16,000 I buy something, at $14,000 I buy something, etc…

I would not use the term pay back rbtc but buy rbtc.

With that I accumulate more sats to make with them different strategies later on (cancel LOC, enlarge LOC, buy BPRO…).

The Stability Pool is not used with the crab strategy. The Crab waits in the cave and steps back, and then attacks with its claws, the crab is fearful and reduces the risk of exposure to the protocol by waiting outside the Stability Pool.

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Thanks for your comments guys. I will be making the necessary changes soon!

Definitely the crab strategy is great!! :grin: