I read the financial report and had one thought to share about the potential yield of the crypto assets.
There are several reputable DeFi protocols which could easily earn 10%+ on the crypto assets while potentially reducing the price risk of Bitcoin.
Namely, the WBTC/USDC pool on Uniswap v3 is currently earning 18% APY. It is the biggest DeFi protocol, well audited.
And also the GMX GM WBTC/USDC is currently earning 30% APY on Arbitrum, the largest Ethereum L2 and a very reputable project despite being smaller than Uniswap. It is also well audited.
Given the current assets, it could stabilize the price of the crypto assets for Haiku as this amounts to selling half of the BTC now, while potentially doubling or even tripling the project funding.
I am not including links on purpose to avoid being perceived as a scam, anyone should at least double check the authenticity of each project website.
I’m sorry, but these numbers spark extreme skepticism in me. Where are they getting the funds to pay such sky high interest rates, with the latter being well beyond what even the S&P 500 yielded last year? That’s always the question I ask whenever I see such amazing returns (which are usually too good to be true), because often the answer is simply “from newer depositors’ funds”, which is just a Ponzi scheme.
I think Haiku is not very interested in getting into cryptos trading anyways.
This whole thing started because a few years ago, someone asked “hey could you accept donations in bitcoins?” and we said “sure, why not?” and set it up. Bitcoin was obscure and not worth a lot at that time.
Now the bitcoins we got are worth a lot of money and we’re just trying to figure out how to convert them to actual money. It’s not really about return rates and the like.
These are fees earned by decentralized open protocols.
That’s the (maybe comparable) fees banks take for themselves, but in blockchain decentralized apps are openly distributed to the liquidity providers.
I am a dev myself, everything is transparent and visible onchain.
Which is totally acceptable, thx for your answer… Just thought it could provide $100k/year additional funding but I understand the complexity (maybe even not doable for a 501c).
Well, it could happen like with Celsius, I was encouraging myself to invest in that platform and shortly after it went bankrupt
I think that with Paypal you can make a monthly subscription for example and donate, I don’t know, 2 USD per month automatically (or whatever is considered) and it sounds more stable.
Putting aside any trust and security issues with that, the people who sell the crypto would be responsible for paying capital gains taxes on the crypto, which would be significant. That’s why they’ll need to get Coinbase to assign their account to Haiku, Inc., the 501(c)3 nonprofit, before they sell any.
Not where I live (Europe, The Netherlands, for example), if it happens within a calendar year, there would be no problem. The revenue service only wants to know about your assets on the first of January.
I am no Dutch tax lawyer so I could be wrong, but judging by this website it seems that in the Netherlands the transfer of crypto would count as a gift, and thereby be taxable at 40% for the value of the crypto above €3,244. I guess you could organize 100 Dutch people to each receive a portion of it to sell, but putting aside the logistical issues that would definitely trigger money laundering concerns . . .
If I receive crypto on an account at company A (not a bank) and I send out an amount to Haiku via bank B, I seriously doubt it. And why would there be alarms? It’s not illegal in the first place.
The reason I brought it up in the first place, was the hope to solve the crypto issue Haiku has and combine it with the wish to hire an extra developer (or extra time for Waddlesplash if that’s possible).
I plan to move away from Github, possibly including my monthly donations through it.
Unfortunately, it looks like a direct SEPA bank transactions to Liberapay isn’t possible because Haiku Inc. sits in the USA.
That’d leave donating via credit card. Does anyone know the fees for that case for €25/month (or maybe €75/3months)? If it’s significant, I could persuade myself to have Microsoft/Github keep footing the fee-bill…
Liberapay accepts SEPA bank transactions,but you need to switch the currency to Euro for it to work.
Direct Euro donation link: https://liberapay.com/haiku.inc/donate?currency=EUR
The popup when hovering the three icons below the “Donate” button states that SEPA is accepted (I’m using a credit card however,so not tried)
