Hey Degen Frens,
The Ukrainian War is on everyone's mind now. I don't plan on talking about that topic. You signed up for DeFi content, and I want to honor that.
It's exhausting to see people being macroeconomic experts one week, vaccine experts another, and now they're Geopolitical experts. I'm not one of those guys that needs to share their opinion on everything.
My thoughts and prayers go out to everyone that's affected. 🙏
Today I'll be talking about:
- The Current Trends & Narratives: What's hot in DeFi now.
- On Chain Forensics: a guide to following the money.
- Farming as a Service: Outsource your yield farming to the pros.
The Current Narratives in DeFi
One of the biggest DeFi narratives in 2021 was the Curve Wars. Right now we're seeing variations of this concept play out across different ecosystems like AVAX and FTM.
Here's a Rough Formula:
- an AMM platform has a lot of power and usage over an ecosystem. (Like Curve on Ethereum. Curve dominates Stablecoin Swaps)
- They have a mechanic that incentivizes locking up tokens to vote. (Like veCurve)
- These votes are powerful. They direct liquidity towards other protocols in the ecosystem.
- Most people don't want to lock up tokens for 4 years. So in comes platforms that will ask you to lock up your tokens through them, and you'll get a LIQUID version (rather than a version locked up for 4 years)
So that's where we're at now. New AMM platforms have come up on ecosystems such as AVAX and FTM.
And now there are platforms that are trying to accumulate voting power.
Let's take a look at a few:
/1 The Platypus Wars aka the Platypus Party (AVAX)
Platypus Finance is the premiere stablecoin swap on AVAX, and has recently reached $1b in TVL.
/2 Ve (3,3) is here! (FTM)
The much anticipated project from Andre Cronje is here. I haven't been covering this project lately.
There's way too much happening right now, and everything's super buggy. I'm sitting on the sidelines watching until the storms calm down.
But there is now a war for emissions.
Major Players: veDao, 0xDao, Tomb, etc.
/3 Beethoven X (FTM)
Beethoven is a fork of Balancer on FTM. Most places have liquidity pairs of two tokens like "BTC and ETH."
Beethoven allows a pool of multiple tokens. Their most popular one is USDC + wFTM + ETH + BTC for 40% APR!
Anyways, holding fBEETS will give you voting power. There are now bribes over at Beetswar.live (Warning: This site is in beta testing.)
Other narratives I'm seeing:
The Metis Dao ecosystem is blowing up. Metis Dao is a Layer 2 solution on Ethereum that's gaining a ton of traction.
The TVL is low compared to other ecosystems, and it was in an upward trend before the macro-environment shifted.
I am keeping a VERY, VERY close eye on METIS this year.
And Farming as a Service. This sector is only a few months old. It's a way to outsource your yield farming to a team of DeFi professionals. I wrote a detailed article below.
Seeing Where the Funds Flow
You can see every transaction ever made on the blockchain, but do you know how to read on chain analytics?
This is useful:
- You can see where hackers move their funds
- You can see if a VC dumps their funds
- You can learn how to hide your trail for privacy reasons.
Interested in learning more?
BowTiedPickle wrote a guest post on my blog. He goes into on-chain analytics, and gives different advice on how to increase your on-chain privacy.
Farming as a Service
DeFi can be a pain in the ass.
There's a huge learning curve, and it's hard for the average person to keep up with everything.
You probably don't do your own plumbing or taxes. What if you could pay someone to do your Yield Farming?
That's what Farming as a Service is. It's kinda like a Hedgefund for DeFi.
I spent 50+ hours researching the sector.
Tweets of the Week
March 3rd 2022
I just broke down how your favorite influencer makes money. Understand the business models out there so you don't become their exit liquidity.
At Delphi Labs, we have a long list of ideas we'd like to build, but we're limited by time and focus With this in mind, we've put together a list of 6 ideas we'd like to see built on @terra_money
March 1st 2022
The best way to see the future? See what people wish existed. A list of ideas that someone's proposing on Terra.
I'm surprised BTC's not lower. The Ukraine war, Fed increasing rates, etc. The fact that BTC is so resilient despite all this is why I'm not panicking in any way. The builders are still building.