Recently, my friend Shelly was holding a few uniBTC, and she was super envious of others racking up 5x points from Looping Vaults. She went ahead and threw all her BTC into a leveraged loop. I asked her if she knew the annualized interest on the loan, and she said she hadn't really checked, just that she was going in full throttle.

I did the math for her, and the annualized loan rate was already over 30%. She was totally shocked.

This isn't an isolated case. Since @Bedrock opened Looping Vaults, my social feed is flooded with people flexing their points. Retail traders are going wild with uniBTC, cycling their leverage, and racking up points like crazy, but hardly anyone is taking a close look at the real situation of the underlying lending pools.

I started wondering, who’s actually lending out the money? After some thought, it dawned on me that the big players aren’t chasing the hype. They’re just chilling, providing liquidity in the native WBTC single-sided pool and steadily earning interest. If you really think you’re the chosen one, just wait until uniBTC and WBTC decouple a bit. Once the oracle clears it, the leverage players will blow up right on the spot, and the lenders could snag your spot at a discount. Isn’t that just classic interest-for-liquidation rights?

So my strategy now is simple: if I have idle BTC, I’m going straight for single-sided lending, capitalizing on these high rates. Don’t just hand over your liquidation rights to the market; those points you’re chasing might not even cover the losses from getting liquidated.

And about that #Bedrock fission mechanism, the referral program gives you 30-50% in Diamonds for bringing in new people, and new users get bonuses, which looks pretty sweet. But there’s only a total of 10 billion $BR , and with so many points being distributed, who’s really going to foot the bill? It’s still the folks who are just saving their money.

The PoSL flywheel sounds fancy, staking for rewards, locking veBR for votes, optimizing emissions, attracting assets, but there are plenty of people bailing at every step. Many grab the rewards and then run; how many veBR holders are genuinely voting? Reset every 12 weeks—will the next season's activity even hold up?

The weekend liquidity test is coming up, and friends still riding high on leverage, you might want to think twice. After chatting with Shelly, she’s already considering scaling back. $BR

Speaking of which, why don’t we all cast a vote and see what everyone's planning to do?