The 🔵Optimist: (L)Earn with Defi #27-2
Learn & Earn with DEFI: Optimism, Base, Mode, Zora, Lyra, Ancient, Redstone, Worldcoin, Mint, Lisk, Frax
Welcome in Part 2 of this newsletter providing tools & tips to ease your journey in personal finance management in Web 3.
If you missed part 1 [OP Superchain News], don’t worry, just click HERE.
Click on your preferred language to access the translated version:
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————————————— KEY TAKEAWAYS ——————————
🔵Frame / Farcaster / Base / Optimism
What do these 4 have in common? Accessible to 110 million users.
🟢Crypto market review
Bi-weekly update on the Crypto Market. Some bullish sign that could lead to an ETHEREUM + ALT Season.
🍀Technical & Fundamental Analyses: SNX (Synthetix)
The power of merging TA & FA is unbelievable. Today we will conduct our analysis on SNX, synthetix governance token.
🟤Farming Strategy: Farming NFT like any token
Have you ever thought holding a fraction of a Top Tiers NFT: Bored Ape, Punk, Bong Bear without spending hundred thousands of $? Welcome to ERC-404 tech, bringing fractionalisation & liquidity to NFT collections.
Spotlight project: Stake Together
Stake Together is a Liquid Staking Protocol that offer the highest yield on the market, and can fund public good projects. Indeed a share of the protocol fees will fund the project of your choice.
Soon, you’ll be able to buy ETH with a supra-efficient on-ramp solution from 186 different countries, and earn restaking rewards. Stake ETH, receive stpETH and earn up to 5% APY.
🔵Frame / Farcaster / Base / Optimism:
by Subli
Base founder Jesse, is a friend of Dan.
Farcaster is the new decentralized social network with 150k users, new users going exponential, built on Optimism by Dan Romero.
Warpcast is the “client” which is the User Interface (like Twitter Interface) where one can cast on the platform, and react to other casts.
Frame is a new tech that turns post, alias CAST in Farcaster, into mini_dapps. And with hundred of frames hitting Warpcast, let’s dive in a bit more and try to feel the potential of this.
Farcaster
Farcaster is a decentralized protocol, responsible to store data such as user’s handles, casts, likes, re-casts, etc…
Farcaster raised 30m$ in 2022 backed by well known VCs such as a16z, Coinbase Ventures & Multicoin Capital. This relation with Coinbase is not new since Dan Romero (Farcaster co-founder) was a work friend of Jesse Pollack (Base Lead Contributor). So this makes totally sense to have Jesse supporting the much famous news named FRAME.
In Warpcast, you can:
Cast or Post
Engage on other Cast by replying, re-casting, liking
Follow specific channel based on your preference and cast only in this channel
The 1st FRAME has been deployed on Farcaster on 26-January. Since then, it’s has been as Crazy as the launch of Friendtech. DAU (Daily Active Users) +1000% over a week.
FRAMES
Frames let user build small apps that run inside casts. Frames can support anything from game, polls, smart contracts.
A Real User experience is worth thousand words. So here is a typical example of FRAME where you can claim ETH & TYBG tokens:
If you ‘ve subscribed to Farcaster around summer 2023, your Farcaster ID should be <20k. How to check your FID? Go to your profile and follow the steps below.
Now, just click on Claim, and that’s it, you have claimed 0.01 ETH & 8453 $TYBG BaseGod memecoin. Excuse me, but this is the best onboarding path to crypto by far I’ve ever met.
Another example? More connected to our real life = Buy cookie on Farcaster using FRAME:
Why Farcaster is so different from other SOCIAL_FI APP?
Do you remember Friendtech, Posttech, and other social_fi protocols that popped up on every chain last year? What’s the difference with FARCASTER?
Farcaster is becoming the foundations letting people to build on top, and the more projects built on top, the more robust and sustainable will become Farcaster. Farcaster is not a application, it’s becoming an infrastructure.
Remember how X can easily change their policy, change API for other projects to build on top not being able to access data, prohibit substack link, cannot handle bots? Well, Farcaster is just the opposite cause it embraces the vision of why blockchain has been created: permissionless, decentralized, composable.
If you ‘re interested to join, here is an invite link & connect with me.
Final tip: Farcaster just released a new protocol, and release a NFT to commemorate this. Free mint for active users, or mint with wrap, directly on Warpcast.
Some interesting contents that helped me to know more about Farcaster:
Framing the future of internet by Packy McCormick
🟢Crypto market review
by Axel
Bitcoin
Bitcoin is once again demonstrating its bullish strength. With no contrary signals, it's important to trade in the direction of the trend. So, we were right to remain bullish while Bitcoin consolidated. Where do we stand today?
Bullish signs: Bitcoin has re-entered its bullish channel marked in orange. We only consider closed candles.
Bearish signs: The weekly RSI is high.
The first high-timeframe resistance has been surpassed. It needs to be confirmed as support. If successful, the other resistances in red and green should be overcome soon.
DXY (U.S. Dollar Index):
The bullish divergence continues to play out. We need to be vigilant because if a bullish reversal occurs, it could impact the entire cryptocurrency market.
While we maintain a bearish stance on this index, it's crucial to trade based on what we observe rather than what we wish to see.
Feel free to refer to NL #1 to understand how to interpret the DXY index.
CME gap
We have a new CME gap at $48,000.
The currently open CME gaps are at the following price levels:
$48,000
$31,600
$29,800
$27,000
$26,300
$20,500
Feel free to refer to NL #5 to understand how to interpret the CME gaps.
Altcoin
Bitcoin Dominance: We are still in the same configuration as two weeks ago. We are witnessing a rebound on the BTC.D ticker. However, we are in a range. It will be crucial to closely monitor the breakout, whether it's to the upside or downside. However, the indicator is losing steam; indeed, the RSI is making lower highs while the price touches the top of the range.
Ethereum is still in consolidation relative to Bitcoin. We should expect a resolution of this pattern soon. We had a promising higher low.
Conclusion
Bitcoin has successfully surpassed a significant resistance and is poised to overcome the next ones shortly. What is currently unfolding holds great promise for the future, especially considering that we are still in a pre-halving period.
And don’t forget the large inflows infused by BTC ETF:
While the DXY index is regaining some strength, it doesn't seem to hinder Bitcoin's upward movement at the moment.
We are still waiting for the BTC.D ticker to break out of its range to the downside. The RSI confirms its fatigue. A breakout from the compression triangle on the ETHBTC pair would be a strong signal for altcoins. The plan remains unchanged.
🤯Quote of the week
By courtesy of QuotableCrypto
🍀 Technical & Fundamental Analyses: SNX (Synthetix)
By Axel & Subli
In this newsletter, we will delve into the $SNX token and conduct a technical analysis on various pairs coupled with our fundamental analysis Is there an opportunity? Let's explore this in detail.
Technical Analysis:
$SNX/USDT
Price Action: The price is still moving within an accumulation range between $1.5 and $4.50. We saw a bullish breakout of the horizontal support at the bottom of the range at $3 (dotted line), and this resistance has been tested as support. Bullish sign.
Volume: The volume is decreasing while the price is still in accumulation.
RSI: The RSI is following the token's price. We do not observe a trend reversal; the bullish trend is maintained. Bullish sign.
The price is moving favorably, but the token remains in accumulation. We prefer to be patient and await a horizontal breakout. Indeed, the price could remain in accumulation for a while, and we do not want to tie up our funds that could be utilized in other altcoins.
$SNX/ETH
Price Action: The price is moving within an accumulation range. The price is currently forming lower highs. Bearish sign.
Volume: The volume is steady. Neutral sign.
RSI: The weekly RSI diverges from the token's price. Indeed, the price forms a lower high while the RSI forms a higher high. Bearish sign.
For now, the token does not seem to have the necessary strength to outperform Ethereum. Therefore, it is more advantageous to be in Ethereum than in SNX.
SNX/BTC
Price Action: The price is forming within a compression triangle. The price is currently creating lower highs. Bearish sign.
Volume: The volume is decreasing. Neutral sign.
RSI: The weekly RSI diverges from the token's price. Indeed, the price forms lower lows while the RSI forms higher lows.
We would like to see a bullish breakout from the compression triangle with increased volume, forming a higher low to be fully bullish on this pair. These signals may take several more weeks to develop.
Conclusion Technical Analysis:
The SNX/USDT pair seems bullish at first glance, but we need more confirmation to ensure that the token is a top gainer. For now, it is preferable to stay in Ethereum and Bitcoin, but the trend could quickly reverse on the BTC pair. However, all signals are bearish on the SNX/BTC pair, so it is advisable to be patient on this pair.
Once again, as a trader, it is better to wait for more confirmation to allow for a swing trade. If we enter now, we could remain in consolidation for several weeks, and we do not want our funds to be locked in a position.
For an investor, these price levels are where the token should be accumulated and purchased gradually. The investor's conviction will allow them to be more calm and patient while waiting for the price to soar.
Fundamental Analysis:
Synthetix is #1 protocol on OP Mainnet with a TVL of 270m$. Perps V2 has been a game changer, and their main integrator, Kwenta, reached outstanding results:
If you wish to know more about Perps V2, read this article writen 1 year ago. SNX token is the governance token. Stake it on their dAPP, mint sUSD stablecoin & earn protocol fees. So what are the bullish or Bearish catalysts for Synthetix that can affect token price ?
Bullish signs:
Perps V3, alias Andromeda, launched on Base. Perps V3 will enhance capital efficiency allowing: USDC collateral, isolated pools for Liquidity Providers, Integrator fee sharing. Listen or read our written notes from our last podcast with Synthetix
Open Interest is very low and ramping up SNX tokenomics review:
SNX inflation stopped
Revenue sharing from Perps V3 going to Buyback & Burn SNX on the market
SNX BuyBack over time
Perps V3 will launch on other chains like Arbitrum & Kain, in his last essay, wrote that SNX App chain is as well a target in order to avoid liquidity fragmentation
Kwenta & Infinex will accumulate SNX in their treasury using the new revenue sharing module from Synthetix
Bearish Signs:
The derivatives landscape is getting very crowdy, as everyone wants the slices of the cake lost by CEX.
Synthetix, thanks to Kwenta - the main Synthetix integrator - was side to side with GMX in the top 3 derivatives protocols in trading volume, and is now ranked #19, representing only 0.69% of market share.
sUSD stablecoin has been Red Flagged by Bluechip
New competitors with different mechanism like Avantis, Aevo, Lyra, Hyperliquid with their point farming system are attracting a lot of traders
Conclusion Fundamental analysis:
Wait & See: Everything is set for an amazing success of Synthetix - Great engine, excellent front end, deploying on other chains, revamped tokenomics with no more SNX supply. But at the same time, competition is fierce. So it’s time to regularly monitor the data, and confirm or cancel our above thesis.
Overall Conclusion TA & FA:
The two analyses hold the same conclusion. Things are set to be bullish, everything is there for a nice SNX price increase, but confirmation remains to happen. If TA & FA theses are valid, then buying SNX could be a nice play for this bull run. However if it turned out that both analyses show bad or under-performance signs, then, don’t marry your bag, and cut your potential losses.
🟤Farming Strategy: Farming NFT like an ERC-20 token
By Subli
NFT has always seen the same problem: Illiquidity. Illiquid asset is an asset that cannot easily and readily be sold or exchanged for cash without a substantial loss in value . Looking for quick cash by selling your NFT? List your NFT under the Floor Price on OpenSea, then someone else list under the FP, forcing you to reduce your listing price….death wheel ☠.
Some projects like Caviar and now Fungify have offered NFT fractionalization. You don’t have the money to buy a APE, Punk or a Bong Bear NFT worth thousands of $, but you can hold a fraction of it for few $ = Fractionalized NFT.
But recently, a new trend has taken all of us by surprise. Welcome to ERC-404.
What is ERC-404?
It’s an UNOFFICIAL….yeah that sounds crazy…token standard that aims to merge NFT being an ERC-721 asset and liquid token being an ERC-20 asset.
This new tech is therefore bringing liquidity to an illiquid asset, and opens DEFI composability for your preferred NFT collection. Here is an example of the 1st ERC404 collection on Base “Maid Sweepers”.
I have no affiliation with this project, don’t hold any token/NFT, nor endorse if this is legit. I’m taking this example just to tell you the possibilities.
So the Maid Sweepers is a collection of 10k NFT.
So I bought 1 NFT, and received 1 $SWPRS token. But now what?
Enjoy new DEFI opportunities like on Solidly Labs:
Meme Seazon
Base meme seazon has kicked-off. You’re a lucky reader, since we are on top of such new trends:
What’s this project about? Read more here.
3m$ will be airdropped by Own the Doge project into the Base Ecosystem distributed to token holders, liquidity providers, and few others (click the post above for more info). Check your wallet, you may find a surprise:
So with 1st ERC404 project on Base, DOG hitting Base, Jesse Pollack engaging on tybasegod (a NFT collection based on Brian Armstrong), i wouldn’t fade the meme seazon on Base.
But don’t buy anything, anywhere. You’ll probably end up loosing all your funds. Due some due diligence, check who is following the X project account, check their website, etc…
Optimism Twitter accounts:
@OPLabsPBC for protocol development
@OptimismGov for governance
@OptimismGrants for Grant Council updates
The Optimist Social accounts:
Discord Handle: Subli#0257
Twitter: The Optimist
Farcaster: Subli_Defi
Notion (Research database): https://sublidefi.notion.site/sublidefi/Subli_Defi-c57a3141c983433ca74e785a0bf1bcd0
Youtube: https://www.youtube.com/c/Subli_Defi
Disclaimer: Nothing in this content is financial advice. We may have some positions on the presented projects, however these articles are written in a non biais way so that you can make you own opinion out of it.
Do your own research before investing, and remember that Crypto is extremely volatile and risky.