Everyone's looking for the next "ETH Killer" - Solana, Terra, and AVAX.
My advice? Don't fade AVAX.
Multiple catalysts are showing that we could be heading for another AVAX season. Looks like all the 🔺 guys on Twitter aren't going away anytime soon.
In Today's Email:
• AVAX Gems: Avax is getting ready for its next season. Here are the 5 projects with the most potential.
• AVAX Yields: Earn up to 60% APY for staking AVAX!
• Focus: Feeling overwhelmed by DeFi? Learn to ignore more.
5 New Gems on AVAX
Most people can't afford to do DeFi on Ethereum.
Instead of waiting for ETH gas prices to become cheaper, most people have onboarded to alternative Layer 1's.
AVAX is one of the most popular ones (along with Solana, Terra, BNB, and FTM)
While AVAX had an amazing run-up last year, the metrics are still bullish for potentially another season.
Why's AVAX Going Up?
• Benqi just released Liquid Staking.
• BULLISH metrics. The TLV, daily transactions, and # of unique addresses keep increasing.
• Innovative protocols are being built on AVAX.
I've spent the past five weeks researching some gems for my own portfolio.
Here are some highlights:
/1 Trader Joe.
No, not the Trader Joe's where you go to buy organic oat milk.
It's the #1 DEX on Avalanche. While it's an established blue chip on AVAX, their tokenomics were kinda basic.
This month they've done an overhaul to their tokenomics.
Here's what's new:
rJOE - a Way to enter SEED rounds of new projects in their launchpad.
sJOE - Stake your JOE and get paid in Stablecoins. For those of you who love passive income, this is it.
veJOE - Stake your Joe and get additional yield in certain farms.
DEX's haven't performed too well lately. I'm basing this on the performance of PancakeSwap and Raydium.
Mainly because the tokens themselves don't have too much utility.
Could TJ new tokenomics add the utility needed to pump the token price up?
/2 DeFrost Finance.
A combination of abracadabra + boosting mechanics.
You can over-collateralize different AVAX yield bearing tokens, and get H2O in returns.
H2O is a soft pegged stablecoin native to AVAX.
/3 Platypus Finance.
Aiming to be the CURVE of AVAX. It's a AMM focused only on Stablecoins.
Backed by a ton of heavy hitters in the space.
You have the ability to increase your yields by locking up PTP tokens.
What's interesting is HOW they lock the tokens up.
• You stake PTP to earn vePTP. The longer you stake it the more you earn.
• The vePTP increases your stablecoin yields.
• Anytime you unstake your PTP, you lose your vePTP.
This incentives people to hold the PTP long term.
The #1 GameFi by volume (more than Axies Infinity) AVAX soon.
The token on AVAX will be Crystal.
You'll be able to earn Crystal by forming an LP pair with Jewel - Crystal. I have my JEWEL ready and I'm expecting the APR's to be in the 4 digits early on.
Think Axie Infinity with better tokenomics and on a cheaper chain than ETH.
I don't do GameFi so I don't have too much information about the game. I WILL say that this game has a ton of hype and people are making BANK with it.
If you want more information, I share more information in the thread below.
The AVAX 🔺 ecosystem is set to 🚀 this year. I've spent the past few weeks researching the newest dapps and protocols on Avalanche. Here are the 5 with the most potential: pic.twitter.com/voAPBqtDd5
February 15th 2022
AVAX staking on steroids
Benqi Finance just released Liquid Staking for AVAX.
This is a HUGE deal.
I have most of my AVAX being staked right now in the Native Wallet. I'm getting around 9% APY, and I'm helping to secure the network.
The problem? I can't access it for the next few months - that's how long that I chose to lock it up for.
Benqi is allowing you to deposit your AVAX, and in exchange you get sAVAX.
It's kinda like how Lido.finance offers stETH (staked ETH).
sAVAX maintains the same value as AVAX, but you're getting more of it overtime (because it's being staked)
We can do DeFi stuff with this sAVAX to earn additional yield.
Here's the best strategy with sAVAX.
1. Stake half of your AVAX at Benqi
Note: There's a cap on how many AVAX can be staked. It's at 500k right now and they've reached the limit. They will be increasing it.
2. Go to Trader Joe's. Use your AVAX and sAVAX to form a Liquidity pair.
3. You can deposit at TJ's and that's fine. If you want more YIELD % you can autocompound it.
What does an autocompounder do?
It automatically takes your rewards, sells it, and deposits it back into your pool. Your yields are on steroids.
Remember there's a downside. You're adding on a layer of risk.
4. You can autocompound at either Beefy Finance or Yield Yak.
YieldYak is offering a higher APY.
Beefy is the more battle tested and proven platform.
Tweets of the Week
For the past two weeks, I've been targeted in an extremely thorough social engineering scam that nearly cost me all of my ETH. I'm super lucky to have made it through unscathed. Here's the story 👇
February 12th 2022
You should know the basics of not being scammed by now.
1. use a hardware wallet
2. never enter your seed phrases anywhere.
Now scammers are taking it to the next level with social engineering.
A few takeaways:
Don't use a public wallet. I know it's trendy to have a [yourname].eth, but that makes you a target for scams.
Have a special wallet for transacting with others. Keep your "real" wallet a secret.
I don't accept anything free. I don't care about accepting an NFT. I'm ok missing out.
And finally, verify. It looks like the scammers were pretending to be real people.
Could there have been ways he could've verified this person was who they said they were?
Be careful out there - these scams are only going to become more sophisticated.
February 10th 2022
A thread on hunting microcaps.
I don't use these strategies - it's far too risky for me. But I did see a ton of value in some of the tools and systems that he shared.
One more tweet for fun.
February 10th 2022
Ahhhh i'm accummulaatttinggggg
1 Question For You
If you're feeling overwhelmed, it could be because you're trying to keep up with too many ecosystems.
Narrow your focus.
I don't research NFT's or GameFi - I ONLY focus on DeFi.
I'm The DeFi Edge - Not The Crypto Edge.
And with DeFi, I don't cover Cardano, Solana, BNB, or Polkadot ecosystems.
I'm not throwing shade at them. They don't fit my criteria for investing yet.
I focus on AVAX, FTM, Terra, and ETH.
I'm starting to research COSMOS and NEAR.
Why is this important? There's only so much time in a day. There's too much information to keep up with.
I would rather be a 10/10 on AVAX and 1/10 on Cardano
Than a 7/10 on AVAX and a 7/10 on Cardano
What are you selectively ignoring in order to focus more?