Hey, so, I read the duplex announcement, and as far as I can tell it’s just ‘we attach two asset classes together to up yield but with much higher counterparty risk’. A few questions: what is this doing on secret, besides ‘it’s a high yield asset class with bridges’? Is keytango using the enclaves to manage automatic liquidation upon asset depreciation?
In short, why should we care about this, who’s working on it, etc.
I believe it is because Can and Guy are advisors:
source: https://keytango.io/wp-content/uploads/2021/03/ES-keyTango-onepager.pdf
I don’t believe Can is the CPO any longer, they should probably update that.
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I removed my post to avoid confusion, I was under the impression the secret end was exposed to IL , etc. Upon discussing with people outside I learned that was not the case.
I don’t quite understand the question, but the way Duplex works is that it takes the assets on the bridge contract on ETH and invests them (in this case we use Curve and Convex - so blue chip DeFi protocols).
On Secret side it’s the same as usual - you get a synthetic asset and that is deployed on Secret. For now it’s staking but ideally it’s used as liquidity to SecretSwap or some other DeFi protocol on Secret.
Rewards are combined from both sources (ETH + SCRT) and that’s what generates the higher yield.
As the Can - he’s no longer a part of Enigma and isn’t active in keyTango either.
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Thanks for the answer! Is there anything about this that requires the nonETH side to be on secret? Also, afaict this is economically equivalent to just being double-leveraged amd splitting your resulting leverage into half scrt defi and half eth defi, is that wrong?
If you’re leveraged you’d have to pay interest, so your overall ROI would be smaller.
This doesn’t have to be on SCRT, but you do need to be the developer of the bridge (and have that be a solution that people actually use in your ecosystem). This creates a competitive advantage which is why this likely hasn’t been explored yet. That’s why I find the solution interesting.
Thanks! (I just had a similar discussion with Itzik) This does seem interesting, though I’m still not 100% sure I buy the increased ROI argument as compared to e.g. curve doing this with uniswap
I mean, it’s a fact so I don’t get why you need to believe anything :).
Curious if it’s staking right now how can the secret APR be at 200%, or is it staking sefi ?
Oh, I buy that the leverage version decreases APR, just not the self-built bridge version 