Inspired by the Dao De Ching from Lao Tzu ☯️
Dao De Ching, Chapter I
The Dao that’s spoken isn’t the eternal Dao
The name that’s named isn’t the eternal name
The nameless is the start of Heaven and Earth
The named is the mother of 10,000 things
Ever desireless, one can see the mystery
Ever desiring, one sees the manifestations
These two arise from the same source
Yet, they differ in name
This appears as darkness
Darkness within darkness
The gateway to all mysteries
Dao De Ching, Chapter II
When people see some things as beautiful
Other things become ugly
When people see some things as good
Other things become bad
Thus, being and non-being create each other
Difficult and easy support each other
Long and short define each other
High and low rest on each other
Before and after follow one another
Therefore, the Sage acts by doing nothing
And teaches without saying anything
Things arise and he lets them come
Things disappear and he lets them go
He has but doesn’t possess
Acts but doesn’t expect
When his work is done, it is forgotten
That is how it lasts forever
Dao De Ching, Chapter III
Not exalting the gifted prevents quarreling
Not hoarding treasures prevents stealing
Not seeing desirable things prevents confusion of the heart
Therefore, the Sage rules by emptying hearts and filling bellies
Weakening ambitions to strengthen bones
If people lack knowledge and desire, then the clever won’t try to interfere
If nothing is done, then all will be well
DAO dCHING, Chapter I
A DAO that’s centralized isn’t an eternal DAO
A rate that’s fixed isn’t an eternal rate
Free rates are the spirit of Supply and Demand
Fixed rates give birth to unsustainable debt
Ever yield-less, one can see the opportunity
Ever yield-seeking, one sees the risks
These two arise from the same liquidity
Yet, they differ in name
This comes from free markets
Markets within markets
The gateway to all opportunities
DAO dCHING, Chapter II
When yields are considered attractive
Borrowing becomes expensive
When borrowing is cheap
Lending yields get worse
Thus, collateral and credit create each other
Borrowing cost and yield support each other
Supply and demand define each other
High and low rates rest on each other
Lenders and borrowers follow one another
Therefore, the Protocol retains nothing
And shares rebates without anyone asking
Utilization rises and it lets lenders come
Subsidies drop and it lets borrowers leave
It earns but doesn’t keep
Subsidizes but doesn’t expect
When rebate is paid, cost is forgotten
That’s how lending yield lasts forever
DAO dCHING, Chapter III
Not praising the whales prevents coveting
Not hoarding treasury prevents draining
Not seeing triple-digit APYs prevents confusion of the heart
Therefore, the Protocol grows by reducing greed and sharing subsidies
Lowering leverage to strengthen security
If there’s no leakage of value and incentives, then manipulators won’t try to interfere
Without interference, everything rebalances