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 De Ching, Chapter IV

The Dao is empty But inexhaustible Bottomless The source of all things
It blunts sharpness Untangles knots Dims the light Becomes one with the dust
Deeply hidden, yet ever present I do not know whose child it is It came before the gods

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 arises 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

DAO dCHING, Chapter IV

Protocol TVL may decline But subsidies are exogenous Limitless The driver of credit demand
It lowers borrowing cost Unlocks utilization Sets a new equilibrium And flows with the market
Unconventional, yet truly possible We merely discovered, not invented it It existed long before the founders

To be continued…