6/6: Summary: Always Ask This Question

Before you LP:
"Do I actually want to hold these assets?"

If no → don't LP, regardless of APR
If yes → check correlation, then consider yield

Underlying Asset > APR
Every single time.

Next up: "V."

The foundation matters more than the rate.
Don't chase yield. Chase quality assets.

#CryptoAZ #DeFi #UnderlyingAsset #LiquidityProviding #ImpermanentLoss #LST #ETH #Uniswap #Onchain

5/6: The Pro Mindset: "Stack, Don't Speculate" 💎

Smart LPs choose underlying assets they want MORE of.

Example:
- stETH/ETH LP → compound your ETH stack
- USDC/USDT LP → stable, predictable, low IL
- wBTC/renBTC LP → accumulate BTC

Strategy is the tool. The asset is the treasure.

4/6: What Makes a Bad Underlying Asset?

Low correlation = high impermanent loss.

Example: $ETH / Random-Governance-Token
ETH pumps 50%. Token dumps 80%.
You end up selling your ETH, holding worthless tokens.

"I would've been better off just holding ETH."
Classic mistake.

3/6: What Makes a Good Underlying Asset?

Two things:
1. Assets you actually want to hold long-term
2. Assets with high correlation (low impermanent loss risk)

Example: $wETH / $stETH
Both are ETH. Both move together.
You're not betting on ratios — you're stacking ETH.

2/6: The APR Trap

"This pool has 500% APR!"

Cool. But look at what you're LP'ing:
- Random governance token + ETH?
- Meme coin + stablecoin?
- Token with no real utility?

APR is the bait. Underlying Asset is the catch.

1/6: U is for Underlying Asset

In DeFi, the biggest mistake is chasing APR.

200% yields? Great.
But what asset are you actually holding?

High APR means nothing if your underlying asset goes to zero.

The foundation matters more than the rate.

8/8
Conclusion (NFA)
At ~12–13% expected yield, backed by observable revenue and high stake commitment,
TCY looks more like an on-chain dividend asset than a typical DeFi play.

Paired with something defensive (e.g. stable yield),
the risk/reward profile actually makes sense.

Yield is paid in RUNE, so price volatility matters.

7/8
The big takeaway
TCY isn’t:
❌ fixed APR bait
❌ inflation-driven yield
❌ reflexive ponzi mechanics

It is:
✅ real protocol revenue
✅ variable but explainable yield
✅ aligned long-term incentives

6/8
Usage isn’t flashy — and that’s a feature

・Daily active users are modest
・But THORChain serves native BTC/ETH/SOL swaps
・Revenue spikes during volatility

This is infrastructure usage, not retail hype.

5/8
Why the dashboard APR (~3–4%) looks “low”
That figure is:

・Short-term (7d window)
・Sensitive to RUNE price
・Snapshot-based, not normalized

Annualized expectations ≠ weekly noise.

4/8
Revenue check (no assumptions)
Annualized THORChain revenue: ~$4.5M
→ 10% to TCY holders ≈ $450k/year

TCY market cap: ~$31M

That math alone puts TCY in the low double-digit yield range.

3/8
Holder behavior matters

・76% of TCY is staked
・~98% is auto-compounding

That’s not mercenary capital.
That’s long-term, cash-flow–oriented positioning.

Sell pressure is structurally muted.

2/8
TCY basics

・Fixed supply: 210M TCY
・TCY holders receive 10% of THORChain protocol revenue (paid in RUNE)
・No fixed APR → yield flexes with real usage

This already puts TCY closer to equity than farming rewards.

TCY ($TCY): Is a ~12–13% Yield Actually Sustainable? (NFA)

1/8
After digging into the data, TCY is starting to look less like a “DeFi yield token
and more like an on-chain revenue-sharing asset.

Let’s break down why the ~12–13% yield estimate isn’t just hopium. 👇

7/7: From Synthetix (S) to THORChain (T), the puzzle pieces are clicking into place.

Next up: "U."

Will it be the dollar of on-chain finance — or the next liquidity king?

Stay tuned...

#CryptoAZ #Thorchain #RUNE #NativeSwap #DeFi #CrossChain #Bitcoin #Solana #Onchain

"No wraps. No custodians. Just native ownership."

The infrastructure that turns multi-chain chaos into seamless reality.

6/7: Verdict

Convenience: 10/10
Security: battle-tested

After surviving near-insolvency through TCY restructuring, THORChain proved it can self-correct via decentralized governance.

No longer just a DEX — it's settlement infrastructure for a multi-chain world

5/7: 2026: Expansion Phase

THORChain is back in growth mode.

Solana mainnet integration expected early Feb 2026 (after successful stagenet).
Native BTC ↔ ETH ↔ SOL swaps. No bridges.

With Streaming Swaps, large trades match CEX execution quality.

4/7: The $TCY Masterstroke

THORChain converted debt into equity.

$TCY (THORChain Yield): Claimants received tokens granting permanent 10% of protocol revenue.

Creditors became stakeholders.

Debt socialized — without inflating RUNE or socializing losses.

3/7: The 2025 Crisis — A Stress Test

Jan 2025: THORChain's lending protocol (THORFi) faced $200M debt imbalance.
Solvency at risk.

Response? Pause, community vote (Proposal 6), transparency.

Not denial. Not a rug.
A crisis that would've killed others became a stress test.

2/7: Why "No Wraps" Matters

Wrapped assets like WBTC are IOUs. If the custodian fails, your asset = zero.

THORChain is different. Nodes coordinate cross-chain vaults to deliver the real asset, secured by economic incentives.

No claim checks. No wrappers. Just native ownership.