Our Closures in Detail

We have provided our premium users with thorough strategic alerts for more than 36 protocols in the DeFi space. In these protocols, we identified and engaged in a variety of pools to which we supplied liquidity, aiming to maximize returns and minimize risks while doing so. These pools were carefully selected based on our comprehensive market research, trend analysis, and evaluation of potential risks and returns.

This detailed overview, up to date as of December 1, 2023, provides an assessment of our closed positions, including a complete analysis of the profitability of each pool, an evaluation of how our investments have evolved over time, and what factors influenced our decisions to exit these investments.

Humus

In this protocol on the Metis blockchain, we were in 3 LPs for 203 days, achieving an average APR of 6.43%. This led to us farming 26,216.65 HUM and 82.43 METIS. We sold the HUM for USDC and are currently accumulating METIS.

Reason for closure: Recently, liquidity has gradually diminished in Humus, and rewards in the Metis token, which we had accumulated, were discontinued.

BaseSwap

In this protocol on the BASE blockchain, we were in 6 LPs for 107 days, achieving an average APR of 15.9 %. As a result, we farmed 5,311.69 BSX, which we regularly swapped for ETH.

Reason for closure: BaseSwap failed to maintain its position on the Base blockchain and was outpaced by competitors, which led to a corresponding outflow of liquidity.

Curve

In the protocol on the Ethereum blockchain, we were in 1 LP for 99 days, achieving an average APR of 4.55%. This resulted in us farming 277.1 CRV, which we gradually sold for USDC.

In the protocol on the BASE blockchain, we were in 3 LPs for 83 days, achieving an APR of 5.7%. From this, we farmed 694.55 CRV and 102.2 crvUSD, both of which we sold for USDC. Our LP crvUSD/tBTC/ETH ended with a 36% gain from our initial deposit, while our LP cbETH/wETH finished with a 26% gain from the deposit.

Reason for closure: The pool became underutilized, and its liquidity decreased to the point at which there were no daily rewards.

Azuro

In the protocol on the Arbitrum blockchain, we were in 1 LP for 60 days and achieved an average APR of 3%. This enabled us to farm 104.18 USDT.

In the protocol on the Gnosis blockchain, we were in 1 LP for 60 days and achieved an average APR of 15.4%, which resulted in us farming 246.31 xDAI. We then swapped the reward from this pool into USDT.

Reason for closure: Due to a significant drop in APR, these pools were no longer attractive for us.

KyberSwap Attack: Crisis and Response

Even our best research and risk assessment couldn't foresee the vulnerability of one particular protocol and its contracts. Unfortunately, on November 23, the KyberSwap protocol we chose was attacked, and its Elastic pools were drained of nearly all their liquidity, amounting to 54.7 million USD. In this protocol, we provided liquidity to 8 pools on the Scroll and Arbitrum blockchains. On the Arbitrum blockchain, we were left with 3% of the total deposited LP, and on the Scroll blockchain, we were left with 4% of the total deposited LP.

Fortunately, the KyberSwap team is working to recover the lost funds and compensate their users. So far, they have managed to reclaim 5.7 million USD from the the holders of some of the main bots that took advantage of the situation on the Avalanche and Polygon blockchains.

A letter from the attacker himself has also begun circulating on Twitter, including interesting demands such as complete control over KyberSwap and that all Kyber Network assets will be relinquished. The KyberSwap management has not commented on this message yet, but they have announced the compensation of all affected users who could not recover their stolen funds, using their treasury to do so. This should be in the form of a grant, up to the maximum amount in USD that users had at that time in elastic pools.