✅ Why you are missing out on DeFi (Guide)

The post is a little long, but is not made to be fun.


Lastly Bitcoin did pump hard.

What did happen in the last cycles when the Bitcoin did pump hard, altcoins did pump hard after.

But there are things that are different from the last altcoins.

Here’s my point of view on the state of crypto industry in early 2021 :


1) The whales are here for at least 5 years now and they did take time to study their subject.

It means that pumps will be more rational than the last cycle, it means that only the good fundamentals since July offer a nice ROI/RR.

(RR is the ratio risk(%) / reward(%)), for other vocabulary/technical problems : Google is your friend !

What I mean by more rationale : ¾ of the top 100 market cap will change.

Many of the blockchains rely on a future DeFi ecosysteme to attract their investors. But nobody wants to use them cause nobody uses them, so what did they do ?

They are all building a bridge to Ethereum, and even more, they did make their shitchaines compatible with solidity, the language of ethereum, do you trust in copycats ?

What is the most important thing to have in a blockchain : scalability.

Ethereum announced 2022.

Which Blockchain coins currently have a nice investment RR :

The King : ETH

The Prince : DOT (scalability for 2023)

The Suitor : BNB (Owned by CZ)

The Outsider : HTR (scalability 2023, not the best but market cap is only 30M)

The existing alternatives : ATOM, AVAX, SOL (scalability 20XX, they don’t represent the best RR)

2) This time it’s not the public who is making the price pumping, it’s the banks because the value of fiat is hardly decreasing.

It mean, instead of being like the previous cycles where nobody knew what they were doing and the money was going in every projects, the money will flow from BTC into DeFi, making them pumping like hell (Mcp BTC : 700B, McP DeFI : 20 B) but with more strategy.

If you buy some BSV, sure you will earn some money, but maybe 100 less than peoples that did take only a little bit of time to understand.

In majority they are only invested in BTC and ETH.

But here comes the DeFi for Decentralized Finance who is unstoppable since May with a TVL (Total Value Locked) that went to 200M to 20B.

There are currently two major goals in crypto : store of value and replace the banks.

The first one is on Bitcoin and it can only be one.

And the second is undervalued in the crypto space who is undervalued. The RR is too big to be imaginable.


Why it can only grow ?

  1. When you’ll start using it, you will never come back into the old system.

  2. The banksters will use it at the end, because it’s cost reducing. They will certainly build on it but they’ll cannot compete with the system.


a) How to invest in DeFi :

There is Binance who have some nice opportunities.

And there is Metamask where all the DeFi ecosysteme is open to you (and you got your keys !)

Some people will argue that on Metamask with between 25 and 50 fees per transaction is too high, there is only one way to solve this problem easily, Stop being poor !


b) How find the blue gem ?

You can but there are plenty of people that will invest before you, twitter will be your best weapon if you can understand how the DeFi work and understand the white papers fast enough to invest before others.

Pay attention even the best projects can be hacked, you shouldn’t have every eggs in the same basket.

Beware if ethereum is hacked, everything will be lost, but is it really possible to hack Ethereum ?

Care to not overdiversify, select only 5-8 of your best project and ride them like that :


c) How to manage your investments :

-Take back 50% when x2 or 33% in x3.

  • Ride and when you want to totally take profit keep a 10% moonbag.

  • Care to not be married with a coin, if you have doubts get out before other people take the same decision before you.

  • Stay informed on the project avancement by following devs, official page and some doomer DeFi investors on twitter. ( to search your coin on twitter, type $ and the name of the coin).

  • Keep an eye on the whales addresses, especially dev one’s.

  • Remember that 1 week in DeFi = 1 month in traditional stocks, it’s likely that I’ll won’t have the same investments in 1 month.


d) In what I’m invested :

:warning:This is not investment advice, if there is bad news I will know before you, and if a whale drops her bags I will dump mine automatically with her.

:warning: It’s not because a token is not in the list that I’m not invested in it.

:warning:I don’t explain each protocoles because : Always DYOR :warning:


:white_check_mark: Datas :

$ALBT -> nice parteners

$VXV -> its a company token that can provide nice datas to hedge funds and medical companies.


:white_check_mark: Supply :

$MRPH Partner with coca, and some other in coming. They are reducing the cost of supply chains.

$QNT I did never see intelligent holders as much convinced like hell that QNT belong to the top 10.


:white_check_mark: Layers 2 with small market caps: to resolve the fees problem and have a nice RR :

$STAKE

$MATIC

:warning: DYOR cause I didn’t make mines.


:white_check_mark: Big players that can still snowball : I long them on Binance futures in x50.

$RUNE Blockchain bridge that is the first L2 of BTC.

$AAVE lending is stocks.

$RSR they are developing stable currencies for unstable countries. I didn’t understand anything but it seemed nice.

$SNX Layer 2, for me their synths are bad, they attract to much developers and hype to be a bad investment.

$OCEAN datas marketplace


:heart::heart::heart::heart:

:heart: Private pic :

$DEA -> (Warning I’m not that rational on it because I work with them) It’s a decentralized CFD (first release soon), who provide stocks synthetics in DeFi.

:heart::heart::heart::heart:


Some other types that you should know :

-:speech_balloon: There are the payment processors but I’m not convinced, I did never touch CRO and I won’t start now.

-:speech_balloon: Farming protocoles, it’s more trading than investing. I can’t figure out in time before whales what is the best yield. I did give up on that. (YFI, Pickle, Sushi, “{name of a food}.finance”)

-:speech_balloon: Insurances, UNN seems the best RR, but I’m not convinced yet in that field.

-:speech_balloon: IPO launchers : I did not invest in but I wish I wasn’t stupid.

$POLS Have Polka in the name and provide very nice IPO’s ROI.

$SWAP Seems nice

$ YFL an outsider, it’s more a trade than an investment for me.

-:speech_balloon: Oracles : The only value is hype, it could perform but it’s a huge risk. (LINK, BAND, UMA, TRB,…)

-:speech_balloon: Seigniorage : Stupid (ESD, DSD, ZAI, SHARE, …)

-:speech_balloon: Options protocols: I don’t like it but why not ($HEGIC)

-:speech_balloon: Governance tokens : For me it’s a scam, but I’m not the whales who are heavy in $UNI.

-:speech_balloon: The scams : It’s more for trading but it can still be worth it because market still stupid.

-:speech_balloon: NFT For a majority I don’t find the RR relevant compared to other types of protocols,… because I don’t find that people have a fundamental interest in them, it’s more a speculative interest.

-:speech_balloon: IOT : In this case, fees are the problem. There is nice project but more for 2022.

-:speech_balloon:Copytrading : I did test all of them, they are all shit.


:fire::fire::fire:

To conclude : In my opinion the DeFi market is currently market with the biggest RR.

:fire::fire::fire:

Take care.

20 Likes

Wow, thank you so much for this super useful & top quality recap on DeFi !

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Shrimpy is slick, easy and efficient.

Shrimpy is slick, easy and efficient.

The thread is about DeFi :sweat_smile: -> irrelevant.

You’re gonna get liquidated soon…

I did 2k+ x20-x50 Binance futures trades and got a VIP rank with them :sweat_smile: -> irrelevant

Then, why did you write in the end of your message « Copytrading : I did test all of them, they are all shit. »:thinking:

You wrote you used x50 leverage in Binance Futures and you pretend you are profitable in the long run ? Common, every people who read you message and have some experience in trading will burst out laughing. And to top it all, you mention crypto like RUNE or RSR which are extremely volatile and risky.

Option A : You are the best scalper that ever existed in the planet and you’ve just found a way to become a millionaire in a week.

Option B : You live in a fantasy world.

You’re a trader, you’re a gambler. I’m willing to challenge you in a live broadcast. :trophy:

If you can place an order with x50 leverage and you get 2k€, I will give you personally 2k€. If you get liquidated, you’ll owe me 2k€

You will pick one the « big player » you mentioned : RUNE, AAVE, RSR, SNX or OCEAN.

What do you think ? Shouldn’t be an issue for a VIP Binance trader :slight_smile:

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:joy:

Option C : I’m doing pair trading

You can’t bet more than a margin of 5k in x50 in these pairs in Binance, it’s why I also use x20 to have a margin up to 25k.

x50 is very usefull to take many positions at the same time, but I don’t put all my accont in x50, why would I do that ?.

You will pick one the « big player » you mentioned : RUNE, AAVE, RSR, SNX or OCEAN

I’m doing well in the volume, so I exactly do like MTT in poker I do 10-20 trades at the same time, so at the end of the trading session I’m regulary in positive.

And as you can see I’m playing only for fun when I have time, so I’m far from being millionaire.

In the screen below I did loss 80% of my account in 1 day so I prefer that you call me a degenerate ape gambler like others do.

Doing that is very exhausting, I can’t keep up for more than an hour, if I would be able to keep up all the day long…

What ?!

  1. You apply crazy x50 leverage
  2. With extreme volatile crypto assets like RUNE
  3. You use pair trading like RUNE/BTC

Pair trading is even more riskier than trading USDT… :no_good_man:

I confirm what all the others tell you.


My goal is not to clash a 18 years old kid but to warn all the others bros from the community to be very cautious about trading crypto : this market is very risky (especially those current days) and you cannot earn 2k with x50 leverage…

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:white_check_mark: I tottally agree trading is dangerous, just invest in DeFi or stocks the RR is waaayy better.

But isn’t it that 95% of traders are loosers, isn’t it that 95% of facebook marketter are loosers, isn’t it that in many professions only the top 5% get relly rewarded and the others are paying the top 5.

The wrong part is when you didn’t even try to understand how I manage my risk before saying I’m a degenerate ape gambler :sweat:.


For the current risk of the crypto market, in 95% of cryptos the futures market is no longer able to manipulate the price because it’s not worth it for them to liquidate noobs.

Especially in pairs that have the biggest part of their volume on uniswap, because of the AMM’s.

Compare to bear market, it’s the easiest time to play the crypto future markets doing « classic trading », because their will always noobs to be your exit liquidity.


:warning: For pair trading, you should really try understand how it work before saying silly things :

  • It’s nonsense to making pair trading VS BTC

101 Pair trading :

  • You can play stationnary corelated pairs
  • You can play permanent trending pairs
  • For the pairs who are AMM dependant, you have to trade vs ETH to get smooth curves.
  • Pair trading is nice to avoid being anoyed by BTC that goes wild when doing leverage.
2 Likes

I’ve found that portfolios that I’m advising are always outperforming my protfolio, so I will update my advices here. and try to follow it.

I’m very open to discuss on it, but beware as you can see I have strong opinions.

Beware n°2 : I’m already playing with free money so technicly I don’t care If I loose 100% of my portfolio.


Portfolio did very well vs ETH since the 01/05, doubles are taken.

BTC is now a boomer coin, Eth seems the new paradigme.


-IPO launchers :

  • +DUCK
  • minus Others -> too mainstream.

Blockchaine : minus ATOM -> I’ve figured out that is a boomer coin.


-Copytrading : + WAPS (front run bot disponible in 2 weeks, <100k market caps), I personnaly tried to shake out holders but nobody is selling anymore :sweat:.


-Datas : +LTO Hot, already having 100k tx’s / day. Nice parteners. Price haven’t pump in ETH.


-Layers 2 : I’ve finally did my DYOR this time :

  • minus Stake -> Bad to build on it.
  • minus Matic -> It’s hard to know if it will have an adoption.
  • +AVAX can be used as layer 2 with a bridge.

+Perp protocols :

By doing a lot with $DEUS/$DEA I’ve find that the others all have technology problems. $DEA have >70% locked, mainet in maximum 1 month. $DEA allow you to win the money that an exchange like Binance is wining. -> It’s a x100 or 0 project.


Some tips :

  • If you have ETH, BTC,… and your are not yield farm them your are now considered as a boomer.
  • If you are taking profit out cryptos in this market underneath x10 you have a poor behavior.
  • When trading in DeFi put the graph vs ETH.
  • Use Zerion to watch your portfolio

As always if you don’t dump on me, I will dump on you.

Cheers

3 Likes

Congrats for the huge work. Unfortunately, people can’t see all the value you shared because they’re not informed enough. This space is so complex.

If people have questions, I would love to answer some as I’ve been heavily learning DeFi and start grasping the ecosystem.

I’m generally agree with everything you said.

But I would add that in NFTs the niche is super early, but the upside is as huge as DeFI. The difference is that DeFi has working product with nice UI and some interoperability.

While NFTs has none. Yet, it’s only some basics video games and some crypto art, but in the coming years, NFTs will be absolutely massive I believe. If the blockchain succeed to create a metaverse, that is the next bubble on ETH and layer 2.

And just to add something : Governance tokens are a joke lol.

Nice work

2 Likes

True, there is a world where NFT’s have a strong upside potential and there is a world where having a strong interest on NFTs now will have the same ROI as people who was in DeFi since 2 years.

But in my opinion we need roads and engines before making Bugatti’s. Blockchaine is the road, engines is DeFi, Bugatti’s are NFTs.


Governance are very speculative and for big protocoles, they are a joke for retails, but real for whales.

For example 0xb1, a 200M Defi whale, wanted to force a vote on YFI (not sure on the token) to make him a nice gains. But he couldn’t because there wasn’t enough token in circulation to have 51% of the tokens.

The whales are the ones who are doing the most yield farming and there are the ones who have the most buying power. And if there is a vote to increase yield, they want that power of vote.

1 Like

I could say exactly the same.

Thank you for sharing your tips and experience @Max-G2 !


NFTs are really astonishing, huge potential not always easy to see / understand at first sight.

I appreciated the last video of Samy about one of these NFT token :


I like your way of speaking, quite true actually !

That’s now really easy to Yield farm with some Solutions like Celsius, AAVE or Compound for instance. It is even possible directly on Binance in the “Earn” part.

You can check and compare Yield Rates for some of these platforms here : https://defirate.com/lend/

And here the exemple of Celsius :

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Any of you play with Furucombo ?


Lucky you :slight_smile:

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Yep, I guess the play right now is about DeFi.

Right now I am 80/90% DeFi and these DeFi gains will go into NFTs.

DAO are good for whales yeah, that’s why we need quadratic funding ASAP, but it’s kind of hard to implement from what I’ve seen.

Voting power isn’t the only joke of DAOs. With DAOs, there is what … 1 or two people holding master key ? Maybe a little more ? But there are so FEW peopl eholding master key. This is not decentralisation.

This is better than the previous system we had, but not sustainable. I believe it’s 0xMaki that could move the Sushi’s swap fund at the launch of Sushiswap lol.

Anyway, we still have lots of R&D to do in this space.

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I’ve not watched the video but flash loans are a big deal in Solidity. Idk if Furocombo made it simple which I doubt yet. But they are hiiiigly complex and very gas consuming, you need a big capital to profit from them. I know it was like that on Aave.

It’s safer to lend your money lol. You borrow 1k eth but you don’t make that much money in 1 tx at the end compared to the size of the loan (from what I’ve understand, feel free to correct me if I made a mistake).

2 Likes

If someone coded furocombo, there is someone who coded his own furocombo but in a bot who is watching the price 24/24 and will always act before you.

The main arbitrage opportunities are with a complex sequences of transactions, and with furocombo your are very limited, because you can only acess the big protocoles. The fun with flash loans is to attack new protocoles.


For me there is 3 accessible alphas in DeFi :

  • 1)Copy trading sucessfull adresses.
  • 2)Follow smart peoples on twitter
  • 3)Front run (the link bellow is one adresse of the hundreds of adresses of a big network of front running). (Personnally they took me .5 Eth in total, imagine this, but scaling to thousands of peoples):upside_down_face:

https://app.zerion.io/ 0x00000000cd47aa64daf64f5144b0d7885754374c/overview

It’s why I was talking about $Waps


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Where can I have more information on waps ? I don’t find anything on dext.io and coingecko/CMC

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https://followswaps.com/

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Nice thread, I’m not agree with all of your personnal opinion but very useful informations for our bros who discover crypto.

About DeFi, frontrunning and Mev extraction (opportunity of rebalancing/arbitrage/liquidation on the network) I have 2 main play that can lead this huge opportunity place.

KeeperDAO ticker : $ROOK

I let you dyor (do your own research) on it. But to make thing simple they incentivize Keeper, Miners and Arb Trader to work in collaboration and frontrun all other front-runner with their treasury.

Link of the huge treasury they already amass in 2 months

They are built by co-founder of REN protocol Taiyang Zhang aka TaloSystem and AmberGroup (forbes under forbes team of genius)

They are mainly backed by :

  • Polychain Capital (CEO is Olaf Carlson an extraordinary person and a very successful investor in crypto recommand to watch interview of him)

  • Three Arrow Capital 3AC, they own 30% of Aave protocol. CEO is Su Zhu

A good thread to know more about the project

ArcherDAO ticker : $ARCH

A marketplace to match Miners with Keeper and arbitration traders

  • Already partner with SushiSwap to make transaction very lowcost with the project Ycabal

  • AndreCronje have shill it, and it’s possible ArcherDAO will be use with KEEP3R solution

  • Julien Bouteloup use it in his new project StakeDAO

My favorite is ROOK because I’m an hardcore rooker and I want to fuck rouquine at the back of a tea room at Hong Kong.

Good end of day to all of you my bros.

DeFi will change the world

3 Likes

Thx for this point of view dude!

I will not share mine cause it will be too long for the same conclusion :wink:

Haha, Keep going :metal:t3:

1 Like