The 🟡Optimist: (L)Earn with Defi #38
Tips, Tools & Strategies for your personal journey in DEFI on the Superchain
Welcome in Part 2 of this newsletter providing tools & tips to ease your journey in personal finance management in Web 3.
If you missed our previous Superchain News, don’t worry, just click HERE
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————————————— KEY TAKEAWAYS ——————————
🟡Mode Accelerator Program: Our favorite projects
Making money in Crypto is always a timing skill. Getting in early on new projects is often the path towards success. Incubation programs like the one launched by the Mode team is the Ideal place to position yourself. Discover our top 3 projects.
💹 Crypto market review
Bi-weekly update on the Crypto Market.
➡➡➡ 🤯 Quote of the Week
🔎 Technical Analysis: $LDO (Lido Finance)
🔴 Optimism allocated 1,500,000 OP tokens for Superfest
If you planned to spend this summer at the beach, don’t forget your cold wallet to join the SuperFest event organized by Optimism rewarding users on OP Mainnet, Base, Mode & Fraxtal. Here are our best strategies.
Spotlight : Segment Finance
Discover Segment Finance, your top-tier lending and borrowing protocol on 🟠BOB. Deposit your assets and unlock a world of earnings: lending yields, Segment points, and Spice points.
And you know what’s Hot🥵right now? The forthcoming launch of “stable contest” consisting in an extra 20m SPICE points to be distributed.
With integrations of major assets from Threshold, StakeStone, Sovryn and working with reliable Oracles providers such as DIA & Redstone, borrowers can leverage their portfolio low interest rate.
Start Bridging on 🟠BOB here and connect to https://app.segment.finance/
🟡Mode Accelerator Program: Our favorite projects
by Subli
The inauguration of the "Mode Yield Accelerator Program" took place on Tuesday, July 2nd. This marks a significant advancement for the development of DeFi on Mode. As a reminder, this program was initiated to fund the development of innovative DeFi projects on Mode with a budget of $10 million.
This “Superday” was an opportunity for the 14 selected protocols to present their projects to the community, VCs, early investors...
In total, the live event gathered more than 7,500 spectators and lasted 4 hours.
Today, we will present 4 protocols that caught our attention: Otomato, Supermigrate, Strateg, and Betmode.
(you can find the complete list of projects in this Tweet)
1 - Otomato: the no-code automation platform for Web3.0
Who hasn't dreamed of automating complex actions on DeFi without opening a coding software?
This will soon be possible with Otomato.
If you are familiar with Zapier or Make.com, which allow you to automate interactions between different applications on the "traditional" web without coding, Otomato is the Web 3.0 equivalent.
The protocol will allow, through visual logic programming, to set up sequences of automatic actions on the blockchain based on certain conditions.
For example, you could imagine a scenario that triggers the purchase of a token when an influencer talks about it on social media, then automatically sells it a few minutes later, all while notifying you by text message of the transaction.
Otomato's strength lies in its ability to monitor numerous on-chain and off-chain events.
The strategic possibilities are therefore enormous:
NFT sniping
Token sniping
Arbitrage
Automatic de-risking of positions
Etc.
It is a promising protocol that will need to prove itself but presents very good ideas to improve the user experience in DeFi.
What to do now?
For now, the protocol is not accessible to the public. However, a private Beta version should be released in a few days. You can sign up now and be among the first to test the protocol by filling out this form:
You can also join the Discord server and check out their Twitter for further research (n.b.: The documentation is very brief/nonexistent for now).
https://discord.com/invite/vZ5qrwX2N6
2 - Strateg: creating, simplifying and rewarding DeFi strategies
Strateg is an omnichain DeFi protocol designed to change how we manage and integrate DeFi into our portfolios.
The idea behind Strateg is to offer an intuitive, no-code platform to configure complete DeFi strategies involving different blockchains.
Each strategy can then be shared by its creator and deployed by the community in a few clicks.
Previously, setting up and sharing a yield strategy required designing a diagram, sharing it on social media, and then configuring each step one by one on the protocols. It was very easy to make a mistake with the interaction on different interfaces.
Moreover, you were not compensated for your work.
Now, it is enough to visually create your strategy on Strateg, launch it to obtain yields, and copy/paste the link to allow your community or friends to deploy it. And if people use your strategies, you earn a percentage of their yields.
A bit like Otomato, the interface is presented in the form of specific action blocks that just need to be connected. These actions can be deposits, loans, swaps, etc… on the most popular protocols.
It is a particularly useful tool for connecting DeFi experts and beginners. We can very well imagine that tomorrow, when the protocol is mature, Thomas will offer you complex strategies directly on Strateg that you could deploy in a few clicks.
What to do now?
The protocol is currently in beta on Polygon and will soon integrate the Superchain.
The beta is unfortunately whitelist only, but you may be eligible to be part of the next group of testers!
To do this, you can mint the beta NFT on the official blog and join the Discord.
https://mirror.xyz/blog.strateg.eth/TBTRauC3lV_7bROJsDsXkNx1t4sZN9yg0BJXNG8Zv_g
https://discord.com/invite/HtVSPrRuQs
3 - BetMode: a decentralized casino
Built exclusively on Mode, BetMode is a decentralized casino operating on DeFi.
You can now play most of the classic crypto casino games like Blackjack, Slots, or Plinko.
The main advantage of BetMode is that it benefits from the speed and efficiency of the Mode network, ensuring a smooth gaming experience and instant rewards.
Another unique feature of BetMode is that it allows users to fund the casino reserve through liquidity pools. In return, users receive a portion of the profits generated by the protocol as yields. This liquidity reserve is limited and its size is calculated based on monthly transaction volumes to guarantee attractive yields.
Currently, the liquidity pool is closed to a few users (team, early investors...) for 4 to 8 weeks as the project is in its launch phase.
The second phase will grant access to the liquidity pool to the most active users for 4 to 8 weeks.
Finally, the last phase will fully open the liquidity pool, allowing everyone to benefit from the yields.
What to do now?
We all know the saying: "The casino always wins." Therefore, if you believe in this model, there may be interesting yield opportunities in the liquidity pool.
To do this, you have two options:
- If you are a degen and love gambling, you can try to be one of the most active users on the platform to secure a spot in the liquidity pool in phase 2 (on your own risk).
- If you are less aggressive, you can wait a few months for the liquidity pool to open to the public. This will give you time to observe the platform's development, assess its credibility and manage your risk.
Conclusion
The Mode Yield Accelerator Program is already demonstrating its potential with promising projects such as Otomato, Supermigrate, Strateg, and Betmode. We strongly encourage you to explore these four projects and examine the ten other protocols selected in this program. Unfortunately, we don't have the time to cover them all in this edition.
The Superchain is currently full of opportunities that should not be missed!
💹 Crypto market review
by Axel
Bitcoin
The past two weeks have been challenging for crypto hodlers. Bitcoin hit a new low before fully recovering the following week. The correction on Bitcoin now exceeds 25%. We can now refer to this as a significant correction. Are we finally witnessing the much-anticipated recovery? Let's examine this together.
On the weekly timeframe, Bitcoin broke below its red support and the monthly support (green). The reintegration was immediate. The next candle was crucial and must stay above these supports to confirm the pico bottom was indeed a deviation. If it doesn't, and these supports are broken again, it is very likely that Bitcoin will touch the bottom of its ascending channel (orange), around 50k$-52k$.
On the daily timeframe, the new data allows us to update our bull flag. We observe a bullish divergence (red).
Bullish signs: On the weekly chart, Bitcoin broke its supports but quickly reintegrated (green and red lines). On the daily chart, Bitcoin is diverging from its RSI.
Bearish signs: We are in the summer trading period.
DXY
As anticipated in the previous article, the indicator is still moving within its range. It was likely to break out of its range in the short term, but this did not happen.
CME Gap
This week, Bitcoin created a CME gap between $58,000 and $61,000. Gaps are often to be filled by Hedge Funds that are not active over the week-end. So don’t be surprised if we go back to that level, and get some bullets (liquiity) ready to shoot.
As a reminder, we still consider a CME gap open around $48,000.
Altcoin
Bitcoin Dominance: The indicator is still trading above its blue support. If the indicator breaks above the 57% resistance, it would be a strong bearish signal for altcoins. The resolution of the ongoing bearish divergence formation may take some time as it plays on the weekly chart.
ETHBTC: Ether has broken above its blue resistance from the bottom of its range. The weekly divergence is still ongoing. We need more consolidation before next leg up. The firework will start when the green resistance is broken.
TOTAL3: The indicator deviated downward before re-entering its support zone. We hope this deviation marks the bottom for altcoins.
Conclusion
If we look at the market, we are not sure if it has bottomed out. The re-entry of Bitcoin above its supports is promising, but the road to a full market recovery is still long. We remain cautious and keep some liquidity in case of another drop around $48,000 - $52,000, at which point we will enter the market aggressively with the remaining liquidity.
Regarding altcoins, many majors appear to be consolidating while others are nearing their bottom. In terms of timing, we do not expect much from July. We think the market will continue to consolidate, and we will start to see the first signs of recovery in August.
We are surprised that this correction is so deep and prolonged. Indeed, all the catalysts are present for a cryptocurrency market run. We are experiencing losses on our positions, like many others, but we know that the market still has a lot to offer. That is why we maintain our convictions.
Reminder: patience will be rewarded once the summer trading period passes. These times are challenging but necessary to exhaust all sellers, allowing the market to regain momentum when the time comes.
🤯 Quote of the week
By courtesy of QuotableCrypto
🔎 Technical Analysis on $LDO (Lido Finance)
By Axel
In this newsletter, we propose to analyze $LDO, the governance token of Lido. Why this one? Cause Lido has few catalysts for which we are deeply curious:
Real Yield meta narrative may come back stronger than ever
Lido Alliance
Symbiotic, Restaking protocol like Eigen Layer, built around stETH
Mellow Finance, a permissionless Liquid Restaking protocol, built around stETH too
Lido currently targetted by the SEC claiming $LDO is a security
High revenue, and #1 Liquid Staking Token
$LDO (Lido DAO)
We observe the price has been evolving within an upward channel (purple) since 2022. Today, the price is correcting as it has failed to break above the blue line in 2024. However, the price is showing strong divergence with the RSI. Indeed, we observe a very long-term divergence in green and a shorter-term divergence in red, as these are weekly signals.
In daily timeframe, we also observe a bullish divergence in red. Moreover, the price has not made a lower low by going below the green support corresponding to the consolidation phase (purple).
On the LDO/ETH pair, we observe a divergence on the daily timeframe and a consolidation zone forming. The resolution of this consolidation period should be closely monitored. While we can be bullish given the divergence currently forming, we will need more confirmation before exchanging our ethers for this token.
Action Plan:
Before taking a position, we would like to see a consolidation phase form. If one doesn't develop, we can consider buying near the support level (around $1.45) and exit the position if this support is broken to the downside.
The LDO/ETH pair is promising and should be monitored closely. A breakout would indicate that this token is outperforming Ether.
Your objective on this market is to outperform BTC & ETH. So get prepared for this, cause fundatally, $LDO is strong, and technically, things are in good shape for a nie run.
🔴 Optimism allocated 1,500,000 OP tokens for Superfest
By Thomas
Dear readers,
The SuperFest is now live! This DeFi event taking place across the Superchain should probably interest you.
Discover all the details of this campaign through this article.
What is SuperFest
Launched on July 9th, the SuperFest is a cross-chain event aimed at rewarding builders and users of the Superchain.
This rewards campaign is launched on 🔵Base, 🟡Mode, ⚫Fraxtal and 🔴Op Mainnet and allocates 1.5 million OP tokens over approximately 8 weeks through various protocols within this chains.
Participation is very simple: just perform certain activities on the DeFi platforms involved in this event (LP, supply, borrow, etc.).
By doing so, you will earn OP tokens (only on certain missions) as well as Jumper XP (this event is carried out in partnership with the protocol).
From the SuperFest interface, you can see the different missions to complete. If the mission has an OP badge at the top right of its image, it means you can earn OP tokens there.
If a mission interests you, you can inspect its details by clicking on it. Doing so will allow you to see the various actions required, the supported chain, and the rewards.
But as you can see, you don't have very precise information. That's why we're going to share a tip with you to be more efficient.
Merkle
Merkle is a protocol built by the Angle Protocole team. It allows for simple distribution of incentives to underlying protocols.
Optimism has relied on Merkle for the SuperFest. Consequently, you can find all the campaign details on this site (APR/TVL/distribution, etc.).
By filtering opportunities on OP Mainnet, Base, Mode, and Fraxtal, you will be able to quickly identify the best opportunities of the SuperFest.
Note: Only the campaigns with rewards expressed in OP are included in this event.
And this is very interesting because you can not only see the APR of the campaign (not visible on the official SuperFest site) but also know the start and end dates of the incentives!
All the details are displayed by clicking on a campaign.
What are the best yield opportunities?
If you don't have time to look for strategies, we've pre-selected three for you:
1 : Supply ezETH on Silo
The first interesting opportunity lies with Silo Finance.
By depositing ezETH on Silo's Optimism version (on the ezETH market), you can earn approximately 6% APR in OP tokens.
But what's intriguing is that when you combine this yield with the native yield of ezETH (3.3%) and the supply yield, you achieve a net APR of 10.43%.
Given that the borrowing cost on ET
H is around 7.3%, you can create loops to multiply your yield AND accumulate Renzo points (X3).
This is very attractive because these loops on LRT usually come at a high cost. Here, you're assured of maximizing Renzo points while hedging against potential disappointments if the airdrop doesn't meet your expectations.
The APR for depositing on ezETH does not include its native yield.
2 : LP weETH-wETH sur Uniswap Base
This second strategy is simpler than the first: it involves simply providing liquidity on Uniswap for weETH-WETH (on Base).
The OP incentives allow you to earn yield very straightforwardly through protocols and assets highly regarded in the crypto ecosystem (you also earn Etherfi points).
Keep in mind that these incentives are in addition to the base yield of your LP position, so depending on your range, you could potentially earn around 15% net APR.
3 : Supply FRAX on FraxLend (Fraxtal)
Finally, the last farming opportunity we've selected revolves around Fraxtal. It simply involves lending FRAX on Fraxlend.
As you can see from the screenshot, the APR is quite compelling (26.7% in OP) for this type of TVL.
In addition to earning OP tokens, we believe it's strategic to implement this strategy to farm the Superchain airdrop. (If you missed it, we covered this topic in episodes 35 and 37 of our newsletter).
Why? Because there are very few users on Fraxtal. By increasing your footprint on this network, you likely enhance your eligibility for the airdrop.
Conclusion
This review of the SuperFest is now concluded!
Despite the relatively small distribution of OP tokens, some yield opportunities remain very compelling, especially for positioning yourself for the next Airdrop..
Happy farming!
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.