The second wave of DeFi: the FOMO sentiment of overseas investors is high?

Editor's Note: This article comes fromHot Wheels Community (ID: FHBT18), Author: Pepe, reproduced by Odaily with authorization.

Editor's Note: This article comes from

Hot Wheels Community (ID: FHBT18)

Hot Wheels Community (ID: FHBT18)

, Author: Pepe, reproduced by Odaily with authorization.

Some people say that seeing the hot projects in the current defi boom is like a tiger in a circus who keeps drilling the fire ring for a full meal.

I don't know whether he is referring to the defi project or the "farmers" who are deeply involved in mining, but it may not be so bitter, as mentioned in the theory of capital, as long as there is 50% profit, capital dares to It’s a desperate move, not to mention that the annualized rate of many defi varieties here can reach nearly 100%, even if it is temporarily illusory and variable.

However, compared to the Bitcoin world, where the largest mining pool is in China and overseas is in charge of “accepting orders”, in this wave of defi, it seems to be the other way around. More overseas users are swiping their screens to share various digging pits, oh No, I was wrong, mining experience is investing money.

In China, there are also some tutorials on this aspect, but judging from some comments, there are more onlookers eating melons, and more speculators will choose simpler and rude direct buying.

There may be two reasons for this phenomenon. One is that many DeFi applications are overseas products with language barriers. In addition to the domestic environment, it is not bad if two out of ten coins can play with wallets.

The other is that foreigners have not seen the world very much, unlike us who have experienced the pain of transaction mining, video mining and other behavioral mining, and have not much fomo interest in those inflated annualized returns, waiting for overseas silly leeks The more you experience it the better.

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Overseas leeks are being planted and sold

As we said before, this time overseas has specially invented an internet term for this wave of DeFi: farm (farming).

Like those farmers in reality, they choose DeFi projects with suitable profits in the Ethereum network, just like choosing a paddy field with sufficient fertilizers to sow seeds, just like lending or mortgaging their eth, u or btc Go in, and then sit and wait for various comp, bal, crv and other tokens to grow, this is the fruit they harvested.

http://www.predictions.exchange/balancer/None

Of course, as a farmer, these fruits must also be sold in the market.

This "agricultural movement trend" in the encrypted world is also becoming more and more abundant, from the initial mortgage stablecoin to harvest comp, to the addition of arbitrage, and now it has developed "cross-platform farming" and "diversified harvesting".

For example, Balancer, another hyped hot platform after comp, its model is that it can obtain corresponding token incentives by being a liquidity market maker of various trading pairs. According to the current price of BAL, the annualized rate of return can be as high as 83%:

A cross-platform arbitrage solution derived from this is to deposit U and USDC on compound, get a share allocation + interest of a comp every day, then convert them into cUSDC and cUSDT, transfer them to Balancer as a market maker, and obtain a 83% annualized return.

And this farmland can not only be planted in a row as mentioned above, but also can be planted to get four. We call it "diversified harvesting". This is a cooperative activity from several defi project parties. Synthetix, balancer, and Ren also have a visual inspection Curve, which is about to be listed on the exchange, has jointly launched an incentive pool, the main goal of which is to provide liquidity for Bitcoin on Ethereum.

As long as users deposit Bitcoin, they can get four kinds of token incentives: SNX, REN, CRV and BAL. This activity started last week, but it seems to only last for ten weeks.

For the current "defi farmers", this is a stage of diversification of income, and how to choose which field to sprinkle your seeds on will be a matter of knowledge.

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1. DMG

Domestic speculators are frantically chasing the next wealth code

2. OKS

However, in this game, the more profitable and more direct is to directly hype the relevant targets. Before the comp was launched, it doubled more than five times, and after that, BAL was fired up to more than 20U, and the initial seed round price of his family It is 0.6U.

3. DF

This has also caused some domestic communities to frantically track all kinds of codes that are sold on private wood, fomo on platforms such as uniswap, and that may be listed soon.

4. CRV

Let's sort out a basic situation of this part of the relevant code:

5. PNT

The governance token of the DMM (DeFi money market) project belongs to the Ethereum ecology. It completed a ladder sale on the 22nd, with a price of 0.29-0.36-0.56u.

The token of Oikos, the only defi project currently on TRON, the platform uniswap+Synthetix (issued air currency + air option arbitrage), may be due to the fact that some Internet celebrities with small traffic close to us have been launched one after another in the past two days. Stir-fry here is relatively popular, and I searched for keywords overseas, but there is no feedback on leeks, and I am a little shivering.

6. Uniswap Token

Some time ago in China, it was also regarded as the incentive token of the dforce family who became an Internet celebrity due to hackers stealing coins and returning them.

pNetwork, originally made an interoperable portal to transplant assets such as Bitcoin to Ethereum in the form of pBTC. This wave of his family is going to say to everyone: I, defi, remember to send money!

Recently, Binance has been launched quietly, and it is said that it will also launch a governance plan in the future, taking the model of incentive tokens.

After talking about Uniswap for so long, it is estimated that his family will also issue coins, but the timing is not clear yet. As long as you don’t wait until the defi wave cools down, it will probably become the focus of the market. After all, as long as you play the defi sector now, who People don't know uniswap.

The above are some of the current ones I have seen. Welcome to add, there should still be many projects on the way.

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Risk Tips for Treading Defi

Of course, the above-mentioned targets may have more pitfalls. The suggestion is to only speculate and not think too much.

It’s like comparing defi mining to farming overseas. I think this metaphor is too subtle, because in the eyes of most idiots, farming is a safe job. The so-called sowing and harvesting, stable happiness.

But only veterans know that farming depends on the weather. If everything goes well, there will be a bumper harvest, but if there is a natural disaster, not only will there be no harvest, but all efforts may be lost.

Yes, the current state of the DeFi mining industry is like this. There is no guarantee of capital here, but many investors are like Xiaobai's understanding of agriculture, and they don't realize it.

Not only that, if you really want to masturbate, you will find that the high handling fee in front of those illusory 100% annualization is simply a "vampire".

The following is a reference given by a foreigner:

Deposit $USDC = 2-3U

Open leverage position = 8-10U

Collect Harvest (Ask for $COMP) = 5-10U per transaction

Sell ​​$COMP = 10-15U for $USDC

According to him, these operations can cost 100U in two or three days. I looked at the data, and it may be a little exaggerated. It should be about the same to extract COMP for a sum of 2U. However, I also read some domestic public opinion, and the handling fee will be spent. Hundreds of U are also common.

In other words, if you don’t have more than 1000U of funds in your hand, really don’t play this game. The more you play, the more you will lose money, and you will go bankrupt.

Even 1000U is not enough. If you really want to arbitrage, it is better to have 10,000 U-100,000 U or more, but whether the large amount of funds can guarantee the income to cover the cost of handling fees may still be a question mark. As we said before, now Mining has begun to differentiate, and it may be necessary to adjust strategies and select platforms according to the market at any time, and every move is a cost.

What's more, as more and more high-quality targets in this area or hot ones, new coins continue to emerge, diversifying the funds in the market, and pulling in the profits of all aspects. In the end, the script is from the thriving " FOMO mining" has become "mutual cutting within the group".

epilogue

If this is the case, the problem is that some of the water here may still be very deep:

So, you say, can we really have fun?