The 🔵Optimist: (L)Earn with Defi #29-2
Tips, Tools & Strategies for your personal journey in DEFI
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.
A question for us? Leave a comment and we’ll reply to you.
Click on your preferred language to access the translated version:
Chinese - French - Japanese - Korean - Persian - Portuguese - Russian - Spanish - Thai - Vietnamese
————————————— KEY TAKEAWAYS ——————————
🔵Tips to make the most of the Bull Run
Congrat’s for having survived the bear market. It’s now time to put aside everything you learned to be able to MAKE IT in this new bull run.
🟢Crypto market review
Bi-weekly update on the Crypto Market.
🍀TA & FA : Propy Keys ($PRO)
Imagine a world where individuals could exchange properties wallet to wallet in the matter of seconds. Propy Keys makes it a reality.
🟤Farming Strategy: How to provide liquidity on Avantis perp
Become a liquidity provider & choose your tranche based on your risk appetite & get protected in case of loss.
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.
🔵Tips to make the most of the Bull Run
by Subli
You leaned your back since 2 years, learned a lot, studied with the help of others, took some habits that make you stand right here right now at the perfect position, with your perfect Portfolio. But, things have changed since BTC breaks its ATH.
During the bear market, the idea is to be cautious, protect your PortFolio, make sure to not over allocate, and keep stables. Forget about this, time has changed, so you need to adapt, but still in a wise & responsible manner. I’ll tell you what whales & I are doing, we are not here to catch the x1000 on your PF, if you chase this, better to unsubscribe from this newsletter.
Here are the tips covered in this newsletter:
Portfolio Health Check-up
Narratives Trading
Exit plan
1. Portfolio (PF) Health Check-up:
This is the current X Timeline: Good luck to fight FOMO.
Only 1% of you will probably be as lucky as the guy opening a 6x LONG on $BONK as early as it could be. Ask yourself: are you sure not being part of the 99%? My own rules:
Don’t gamble
Don’t rotate too much
Size your bet instead of spreading your size over several cryptos
What’s the best way to check you’re on the right path? Make a regular Portfolio Health check-up:
Portfolio Objective Vs Current one:
I’m using this verification in order to help me to re-allocate my funds to the right range of assets and make sure I don’t touch my LONG term bags, never!
Never sell your long term bags
Keep stables: Dips are for buying here
Rebalance your PF: Take profit on high risk play & buy low risk play or stables
Crypto Sector exposure: Diversifying in Crypto is a meme. Here are the different narratives:
2017 : ICO
2021 : DEFI + Metaverse
2025 ?? : RWA + AI
One thing here i’d like to move on in 2024, is to increase exposure to RWA (read our next article about Propy), and AI.
PF Overall performance.
Measure your PF performance, and compare it with ETH.
If your overall performance is less than ETH performance, you may reconsider your investment, go FULL into ETH, and have a real IRL life instead 😂. If you spend time in crypto, it’s to make more money than the one who doesn’t.
I advised a friend of mine to do his own PF health check-up, and here is the result.
This is a more aggressive PF than mine, higher risk but higher rewards too. What’s yours? Send me your pie chart.
2. Narratives trading
We are in this period of time where Attention > Fundamentals
Whether you like it or not, this is where the market is going. Adapt or stay sidelined. Edgy made a perfect post about how to snipe narratives:
Here are the current ones:
Airdrops: Friendtech, Eigen Layer, Liquid Restaking token projects, Jupiter, Celestia, Dymension… Mode chain, Jumper Exchange, Parcl, Avantis 👀, so many projects can be farmed. And there is place for everyone. Loyalty points are very often used in Web 2.0, and now we even have a dedicated Layer 3 project built on Base that offers PAAS - Points as a service: STACK
AI: You can read about AI since a very long time. Our friends at Revelo Intel are good at that, my First source of knowledge.
RWA: I think people are struggling to evaluate RWA projects. In less than a year, TVL of RWA projects reached a TVL ATH of 6.3b$. Some project i’m eyeing: Ondo Finance, Mountain Protocol, LandX, Propy.
3. EXIT plan
Most of you will end up with 0$ at the next bear market if you don’t plan your exit. If you think you know how to snipe the top of the market, remember 05-Dec-2021. Altcoins market cap decreased by 27% on a day. Nobody has a crystal ball, and you’r now fighting against BlackRock guys, a team of hundred of quants more experienced than you in the market.
Take profit strategy: During bear i was making 50% at 2x (getting my initial fund out). In this bull run, I’ve set the following 1st TP 30% at 3x.
Don’t marry your bags: If you invested due to a reaon (new product launch, listing on CEX, TVL increase, etc…) and your story doesn’t play out, rotate to something that will generate more return
Top indicators: History doesn’t repeat but often rythmes. Here is a list of top indicators of past bull cycles. Worth keeping the one you believe in mind. This a great list mak by Crypto_Condom:
Final thoughts:
Don’t chase a x100 on your 1st bull run. I’ve been aiming at a humble x2 per year, and every year exceeded it
Build in Crypto. Building on the Superchain can generate tremendous returns (OP, Base or Mode grants / RPGF / Etc…). There are more wealthy builders than wealthy traders
Focus on 2-3 narratives & ecosystems. Be an expert in it
There will always be another opportunity if you miss one
Surround yourself with people you trust. Crypto is full of grifters & scammers
Farming your tokens in a bull market is an underrated play. You can now easily find: 50% APR on stables, 15 to 30% APR on ETH
Secure your funds. You’re not working that hard to loose it all through a phishing link
That’s it guys. The above are all the things i’m using on a daily basis. Hope it will help you too. Happy to discuss if you have some questions about all of this.
Stay safe.
🟢Crypto market review
by Axel
Bitcoin
The Bitcoin is currently trading at over $72,000, yet the euphoria does not seem to have taken over the market. If you were present in November 2021, you know what I'm talking about; Bitcoin seemed to have no ceiling.
We are now in price discovery, what should we expect?
Bullish signs: Bitcoin has surpassed its 2021 ATH in the past few days, and the price seems to be stabilizing above the resistance.
Bearish signs: The weekly RSI is high, and the movement is parabolic.
Following the breakthrough above the three high-timeframe (HTF) resistances (red, orange, and 0.618 Fib), Bitcoin has experienced ongoing growth.
CME gap
There have been no changes in the CME gaps. They remain open 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.
Gold
Gold This week, we want to highlight gold. There is a correlation between the price of gold and the price of Bitcoin. Indeed, when gold pumps, Bitcoin tends to follow a few weeks later.
We observe that the price of gold is in price discovery, much like Bitcoin. We have a beautiful trading pattern known as the cup and handle, which began in 2011, giving us optimism for the coming months/years.
We invite you to read NL#3 for more information on the correlation between the prices of gold and Bitcoin.
Altcoin
Bitcoin Dominance: We continue to monitor the breakout, whether it is to the upside or downside of the range. The weekly RSI has cooled off and dropped low enough for a possible run again.
ETHBTC: We observed that Ethereum is no longer in correction against Bitcoin. The breakout to the upside of the green resistance will be very bullish for the price of Ethereum and for the entire altcoin market in general.
Conclusion
Now that we are in price discovery, we must be ready for high volatility. For this, it is essential to have liquidity, take some profits on your larger holdings to be able to buy lower in case of a crash.
Market makers want us to get used to seeing only green bars so that we panic at the first red candle, which can be impressive. Indeed, experiencing a -20% drop in your portfolio in a few hours can be very stressful and lead you to change your plan and make poor decisions.
We must understand that exhausting sellers is necessary so that only buyers remain, allowing the price to continue to grow. Regarding Bitcoin, we need to remain cautious. Bitcoin could rally alone while altcoins correct or consolidate. For this, we monitor the BTC.D ticker and the ETHBTC pair.
If the BTC.D ticker breaks above its resistance, altcoins could be negatively impacted. If the ETHBTC pair breaks out of consolidation to the upside, altcoins could be favorably impacted in that case.
If you follow us diligently, the plan remains unchanged, and we will continue to be bullish until the charts indicate otherwise. It is crucial that we maintain control over our emotions.
🤯Quote of the week
By courtesy of QuotableCrypto
🍀 TA & FA : Propy Keys ($PRO)
By Axel & Subli
We have already discussed the topic of narratives. We are always in search of the top gainer, and if we play altcoins, it's to grow our portfolio more rapidly. For this, we need to remain agile and position ourselves in the most powerful altcoins.
In each phase of a bull market, there exists a narrative that absorbs the market's liquidity. In 2020 and 2021, we had the narrative around DeFi, NFTs, and the metaverse. However, narratives evolve, and what worked previously is not certain to work today.
Currently, the most powerful narratives revolve around AI, RWA, DePIN, and Gaming. It is possible to discover new narratives during this bull run, and that's why we will remain agile in our positions.
Today, we want to highlight RWA, Real World Asset. Blackrock and Binance have already expressed interest in this narrative in 2023. Indeed, this allows traditional finance to provide a concrete use for cryptocurrencies in their portfolios. If only 1% of the real estate market is tokenized, it represents several tens of billions in valuation. The tokenization of real estate has bright days ahead.
Technical Analysis:
Let's conduct a technical analysis on the $PRO token.
Price Action: It has broken out of consolidation with over a year of compression. We have seen a higher low, which is the definition of an uptrend.
RSI: There is an ongoing bullish divergence that seems to have already played out and signals a trend reversal.
Narrative: The token aligns with the RWA (Real World Asset) narrative.
From a technical standpoint, we chose to enter this token for the three reasons mentioned above. However, we believe that the momentum will accelerate after the price surpasses $0.82.
Fundamental Analysis:
Company name: Propy Inc.
Business: Innovating the RealEstate business through AI & Blockchain
Project name & Token: Propy Keys, $ PRO
Scope: Proof of Ownership of your home as a NFT. Sell it or borrow against it.
Chain: $PRO listed on Coinbase, available on Ethereum (for now), but expect soon on Base. Propy Keys launched on Base on 13/03.
RWA Narrative
In the realm of the Bull Run, as presented in the 1st article of this newsletter, narratives exceed fundamentals.
Propy Keys is surfing the RWA wave (Real World Asset). Real Estate residential market volume is estimated to 2 trillions $ for 2023: $2,000,000,000,000,000😱
Propy & Base / Coinbase + Others:
Since the beggining we heard about Propy, we found the team being very close to high profile people in Crypto or Investment at large:
Check this twitter space with Jesse Pollack (Base founder) Cathie Wood (CEO of Ark Invest), Tim Draper (VC…invested in Skype, acquired silk road BTC through auction), Anthony Pompliano (large entrepreuner & investor), and more… hosted by Natalia Karayaneva (Propy founder) #propykeys
Records of Part 1 live
Records of Part 2 live
Natalia is also writing for Forbes about Onchain real estate. Check this brilliant article
“There are several companies, including mine |Propy Keys], that bring ownership rights onchain, that are expecting for Fidelity’s and Blackrock’s clients to start requesting about managing real estate assets onchain; and there are about 20 great companies focusing on fractional ownership onchain, that one day may replace REITs'“ by Natalia Karayaneva
Propy has been integrated into Coinbase Learning Rewards (Access to retails) on 04 March 2024
Integration of Propy Keys into coinbase wallet too
And the whole Base team is pushing to raise awareness about Propy Keys:
They are so many things happening around Coinbase & Base that tell me CB Ventures could announce soon backing Propy Keys. And remember that $PRO token is already listed on Coinbase.
A bit of fundamentals
PRO token will be used to mint:
Tiers 1 - 10 PRO: Home address (100% going to staking pool at start)
Tiers 2 - 100 PRO: Ownership certificate (90% validators & 10% staking pool)
Tiers 3 - 2000 PRO: RWA NFT that can be used either for onchain transaction or as collateral to take out a loan (90% validators & 10% staking pool)
Tokenomics (57% PRO tokens already in circulation as of 10/03/24):
Staking Pool: Stake your NFT + X PRO tokens (= to the staking power) and earn staking rewards depending on your TIERS. Tiers 1 → 1x staking power / Tirs 2 → 10x staking power / Tiers 3 → 200x staking power.
This system is very similar to a “Fees & Buyback” model, but in this case FEE is the governance token of the project, creating an equilibrium between demand & supply (without considering any possible token inflation).
Finally, the potential of Real Estate tokenization is unbelievable. From allowing owner to sell their home as easy as to sell a NFT on OpenSea, the future will also go towards fractionalization of NFT that can be used by Hedge funds and other investors
and to split the ownership of a property and the rights to access the cash flow this property is generating:
As a final piece, I strongly suggest you read this amazing article by Chainlink of Tokenization of Real Estate. As as BlackRock CEO said:
Last minute note: Propy keys has launched on 13/03. Mint your home address on Coinbase Wallet & receive 10 PRO tokens:
🟤Farming Strategy: How to provide liquidity on Avantis perp
By Thomas
At present, there are numerous on-chain trading platforms in the DeFi sphere.
However, despite this market becoming increasingly saturated, a few innovative projects still manage to carve out a place in this ecosystem.
That's why we are pleased to introduce Avantis today, an on-chain DEX built natively on Base with innovative features.
What is Avantis ?
Avantis is an on-chain trading protocol that enables trading cryptocurrencies, forex, and commodities via perpetual contracts (perps) and an LP system.
Backed by Base, Pantera Capital, and other major institutions, the platform quickly gained attention in the ecosystem.
Avantis is built natively on Base and features a sleek user interface that makes the trading experience quite enjoyable.
The platform allows leverage trading up to 20X on crypto and offers a wide selection of currencies (leverage up to 75X on forex and 30X on commodities).
If you wish to have a detailed overview of the fees, click here.
But what sets Avantis apart from other protocols is that the platform has two important features:
Loss protection
Avantis vaults
Let's detail these two components together.
#1 Loss Protection
Yes, you've read it correctly, Avantis has loss protection.
This incentive was created to encourage traders to rebalance the open interest and stabilize the protocol. It is progressive and depends on market asymmetry.
If you trade against the general sentiment, you will benefit from a rebase on your deficit of up to 30%!
Here's a concrete example of a trade executed on 10/03:
At that time, the majority of positions on Avantis were long positions. Therefore, I was able to benefit from loss protection on my short position.
On a negative PnL of $277, Avantis refunded me $83, which is 30% of my loss!
This incentive unlocks a realm of possibilities: you can take advantage of it not only on directional strategies but also on delta-neutral strategies… 👀 (check our strategy for airdrop farming on other Perp protocol in the newsletter #25-2.
#2 Avantis LP Vaults
Let's talk about the attractive LP system now.
On Avantis, any user can position themselves as a liquidity provider to collect protocol fees and benefit from platform interests.
In practice, this is made possible by depositing $USDC into one of the two vaults below.
Liquidity providers are vital for the protocol, they enable traders to take significant positions and contribute to the platform's expansion.
That's why Avantis has established an attractive and sustainable LP system based on “real yield” (in contrast to liquidity incentives expressed in governance tokens, which are often short-lived).
Here's what you need to remember:
By depositing USDC into the vault, users receive a percentage of the trading fees generated on the platform, this corresponds to the displayed min APY. And if you lock your deposit up to 6 months, you can earn the max APY (more info a bit later).
The more activity there is on the protocol, the more LPs generate returns (assuming that the amount of USDC in the vaults does not increase too much).
By becoming an LP on Avantis, users are essentially betting against traders:
When traders have a positive PnL, their gains are withdrawn from the vaults: LPs lose money.
Conversely, when traders incur losses, these losses are sent to the vaults: LPs gain.
Here's a brief overview of traders' PnL on Avantis. 😉 The house always wins.
If you're familiar with GMX's GLP system, it operates in a similar manner.
As you can see on the screen, Avantis has also divided its vaults into two risk tranches: the Junior Tranche and the Senior Tranche.
They allow for compartmentalizing the risk on the LP side.
A cautious user will choose the Senior Tranche: they will only receive 35% of the fees & traders' PnL compared to an LP on the Junior Tranche, exposed to 65% of the fees and traders' PnL.
Note: Avantis has a locking mechanism: the longer users lock their deposits, the higher APR they generate, and vice versa. You can instant exit your position by paying a fee up to 10%, reducing to 0% at the end of your locking period.
Points System
Avantis recently teased a points system that is expected to launch in a few weeks.
Similar to traditional points systems, users will be awarded XP based on their actions on the protocol. According to Avantis documentation, two activities will earn points:
Providing liquidity in the vaults (LPs with longer lock periods receive more points).
Simply trading on the platform.
Extract from Avantis' official documentation.
It is likely that the points will be retroactive. Therefore, if you want to position yourself ahead of the crowd, you can start interacting regularly with the platform now.
Disclaimer: Avantis experience points have no monetary value. We do not encourage you to accumulate them, let alone in an abusive manner.
So, what do you think of Avantis? Keep your eyes peeled because the platform might just make waves in the coming weeks.
The Optimist Social accounts:
Twitter: The Optimist
Farcaster: Subli_Defi
Notion (Research database): https://sublidefi.notion.site/sublidefi/Subli_Defi-c57a3141c983433ca74e785a0bf1bcd0
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.