Must-Haves for Entering Defi: Build Your On-Chain Resume

Mint Ventures

特邀专栏作者

2021-08-02 06:18

This article is about 6173 words, reading the full article takes about 9 minutes

A resume, an unimpeded pass in the DeFi world.

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A resume, an unimpeded pass in the DeFi world.

Translation & Editor's Note: Xu Xiaopeng, Mint Ventures

Original title: How to build your on-chain resume

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Haowen Intensive Reading is a new content section launched by Mint Ventures. We will translate excellent overseas articles in the field of encryption and present them to readers in this section.

At the same time, we will also explain some concepts in the article through the form of "editor's note" to facilitate the understanding of readers of different levels. And our different views on the author's point of view will also be attached in the form of "editor's note", which may help you look at the point of view of the article more diversely. In order to distinguish it from the original text, the editor has used italics in the typesetting.

Hope you enjoy our attempt.

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do you know? Your Ethereum wallet is your on-chain resume in the crypto world. This is a great way to prove yourself as a true native of the crypto world, and why you can start your career in a crypto private equity fund or Defi project. I'm not kidding, if you're really looking for a job in crypto, it's important to have a top-notch on-chain resume.

Therefore, this article will provide you with a list of Web3 tasks, ranked from easy to difficult, which will help you build a very beautiful on-chain resume.

Goal: Learn how to build your on-chain resume and develop relevant skills
Skills: Transition from beginner to advanced
Give: change yourself
first level title

first quarter

How to build your on-chain resume

Earlier this year, the total value locked (TVL) in DeFi was approaching $100 billion. Along with this booming financial trend, top DeFi projects have absorbed astonishing on-chain cash flow, which TradFi practitioners need to spend several times to achieve.

*Editor's note: Tradfi is the abbreviation of Traditional Finance, that is, traditional finance, and it is also abbreviated as TriFi or OldFi.

Additionally, last week we received confirmation that more than $2.5 billion worth of NFTs have been sold on the market since the start of 2021. This number and the speed at which it has been reached shows that the mainstreaming of NFT is already visible to the naked eye.

As a result, DeFi and NFTs, not to mention DAOs, are among the brightest stars of this fledgling Web3 movement, unlocking massive economic potential. Ethereum is the undisputed workhorse in making these incredible new economic opportunities possible, open and global.

So, if you're interested in digging deeper into the Web3 ecosystem, know that its size and the opportunities it breeds will continue to swell in the years to come. This means that if you prepare well, the expertise you gain along the way will be very valuable in the future.

To dive into this field, however, you don't have to draft a resume of work history, or email dozens of organizations expecting a response. In the crypto world, your Ethereum wallet is your best resume.

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second quarter

The benefits of preparing your wallet for the future

Ethereum is a public chain, so you need to participate in various Web3 activities through a public wallet, and you can prepare a native encrypted resume for the future.

There are many advantages to doing this, such as -

Build your Web3 skill tree so you have all the knowledge necessary to quickly learn and adapt to new DeFi, NFT, and DAO innovations as they emerge.
Earn lucrative token airdrops by participating in various dApps early on.
Collect NFTs of digital collectibles that may be valuable in the future and demonstrate your "curation skills".
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third quarter

Do a good job of balancing privacy on the chain

Before going any further, it’s worth pointing out that there is a natural tension between maintaining an attractive on-chain resume and maintaining one’s financial privacy.

In other words, realize that any wallet you maintain on your resume is likely to be public facing in some way. So you should gradually implement this plan after careful consideration.

The good news is that you don't have to be overly candid, you can have a dedicated "resume" wallet and use it to get involved in as many activities as you want. You don't have to use your primary address. You can do it, and some people do it too. In the final analysis, the balance of personal privacy needs to be grasped by yourself.

To sum up, security is a factor that needs to be considered. If you want to build an on-chain resume, you need to make sure it's done from a wallet that's under your control for a long time. Therefore, the combination of hardware wallet + smart wallet is the best solution.

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fourth quarter

Web3 Resume Task List

Alright, let's start creating an encrypted resume.

Ethereum’s Web3 ecosystem is decentralized, so there is no clear checklist of activities when it comes to building your on-chain profile. However, there are many different Web3 activities you can engage in today, some easy, others much more complex. Below, I've curated a curated list of such on-chain activities that will help make your crypto resume look solid.

I have categorized the tasks according to Beginner, Advanced and Advanced.

1. Getting Started

Trade on Uniswap — Let’s say you want to trade a niche DeFi token that is not yet listed on any centralized crypto exchange. The token may be tradable on Uniswap, so consider trading long-tail assets on the protocol.
Trade on Matcha - Matcha is a decentralized exchange aggregator that gives you the best prices across all DEXs. If you want an easy way to buy tokens into your wallet, you cannot ignore Matcha.
Open Maker Vault - Maker is the ancestral DeFi credit platform. Deposit some ETH, borrow some Dai, and get acquainted: what's it like to build your own banking service?
Lending on Aave or Compound - Once you have some tokens ready, consider lending them to lending protocols like Aave and Compound, where you can keep earning interest.
Create NFTs/Collect NFTs — Create NFTs on DIY NFT platforms like OpenSea, SuperRare, or Rarible. Then buy someone else's NFT on the open market. You don't have to spend a lot of money here, just find what you like and that suits you.
Use the savings function of PoolTogether - PoolTogether is a lossless DeFi savings game, the Chinese name is "lossless lottery". You deposit money into its contracts, and a few lucky depositors win a weekly accrual of interest. You can withdraw your "lottery ticket" and funds at any time.
Staking in Aave's Security Module - Support the protocol by staking Aave tokens into Aave's Security Module, helping Aave remain solvent. You can earn staking income and defend Aave's public reputation by doing so. All you have to do is deposit into AAVE through its product dashboard.
Provide liquidity on Bancor - Bancor is one of the easiest market making methods in DeFi, because DEX allows you to provide liquidity with a single asset (in contrast, market making with two or more assets is the majority of DeFi Require).
Set ENS name - Get yourself a .eth wallet address through the Ethereum Name Service.
Donate on Gitcoin - Gift ETH or other ERC20 tokens to small, medium and large Ethereum projects through Gitcoin's unique matching donation system.

*Editor’s note: Other suggested apps include transaction aggregator 1inch, stablecoin\encapsulated asset exchange platform Curve. In order to facilitate direct access by readers, we will directly put the URL of the Dapp\service mentioned above at the end of the article.

2. Advanced

Borrow and borrow on Aave or Compound - we just mentioned depositing funds on Aave/Compound. Borrowing is an intermediate skill because it entails the risk of collateral liquidation. Don't be afraid to experiment, but use it sparingly!
Providing liquidity on Uniswap V2 - Many projects still choose to facilitate their liquidity pools through Uniswap's V2 system. Unlike Bancor's unilateral supply method, Uniswap needs to supply two assets at a 50/50 ratio, so there is a risk of impermanent loss (IL), take some time to get familiar with V2.
Provide liquidity on Balancer - Balancer allows for customizable liquidity pools that can support up to 8 different tokens at the same time. Know these DeFi yield pools, they are still profitable now.
Mortgage LP tokens to obtain income - most DeFi output mining income needs to obtain LP certificates (market-making certificates) from DEXs such as Uniswap or Sushi, and then "mortgage" them, that is, deposit them into the smart contract specified by the project. This operation usually involves the potential risk of impermanent loss, so market making mining is not for the faint of heart.
Open Liquity Trove - Liquity is a DeFi credit platform that can be mortgaged to mint the stable currency LUSD. Unlike Maker, Liquity can essentially provide interest-free loans using ETH as collateral due to the unique design of the protocol. Try lending some LUSD instead of DAI.
Earn Yield Using Yearn Vault - I think everyone in DeFi will eventually come to Yearn if they stick around long enough. There is a reason for this. Various Yearn Vaults allow DeFi users to easily obtain income through advanced mining strategies designed by protocol strategists.
Use DeFi smart tools like Instadapp or DeFi Saver - Import your DeFi positions (e.g. Maker Vault) into Instadapp or DeFi Saver and enjoy these platforms' "smart" dashboards that help you easily trade a range of professional DeFi assets management work.
Lending via Sushi’s Kashi Platform – Sushi’s Kashi is a DeFi lending and margin trading platform. If you want to use it, you should at least be familiar with the general operation of lending and margin trading.
Use mStable's Save feature — Stablecoins are a magical thing. Even better, you can deposit them into amazing stablecoin-based services like mStable's Save program. This will save you money and get rewards + token rewards, which is nice.
Trading on Loopring’s L2 Exchange—Layer 2 (L2) scaling solutions will shine in the future, so Loopring Exchange provides you with an excellent way to familiarize yourself with the L2 DEX here and now and Benefited from.
Cross-chain assets onto Polygon sidechains – Polygon’s sidechain scaling solution has been in the spotlight this year. Start trying asset cross-chain now, and you will run ahead of others.

3. Advanced

Staking SNX on Synthetix - Synthetic derivatives are usually complex, and SNX staking also has a differentiated design. You can get decent returns here, but proceed with caution. If you migrate SNX to Optimism Layer 2, you can get additional rewards.
Try the Rai safe feature - Reflexer's RAI appears to be the first true stablecoin. Learn how to deposit ETH and mint RAI from Rai Safe, which is an advanced endeavor.
Provide liquidity for Uniswap V3 - Uniswap V3 utilizes centralized liquidity, amplifying potential gains and potential losses. It's best to try to become a V3 LP after researching.
Write Governance Proposals - Draft and present governance proposals. If your proposal is adopted, it will lead to important on-chain behavior, and this on-chain behavior will in turn affect the original DeFi protocol. This is one of the best things you can do right now - protocol teams will notice active governance participants in their community! It's a great thing to be able to present your own ideas.
Curating a gallery of NFTs - this can require a lot of ETH, so it's not an easy task. But over time, if you do collect a curated set of NFTs, displaying your work in whatever way you choose will show you as a creative and edgy figure.
Access Flash Loans with Furucombo - Flash Loans are like DeFi magic at your fingertips. If you have the ability to string together complex DeFi activities using flash loans, give Furucombo a try.
Use Yam Synths to Speculate on Ethereum Gas - Yam Synth is a collaboration between Yam Finance and UMA Protocol, which provides a series of crypto-native derivatives. One is uGAS, which allows users to speculate on the Ethereum Gas price for a specific time period!

4. Task guide: RabbitHole and Zapper.fi

You can use your spare time to practice the task list listed above one by one. You can also choose to complete these tasks through third-party platforms, which can plan on your behalf and guide you through these tasks.

Two platforms that come to mind are RabbitHole and Zapper.fi.

I'd be remiss in this post if I didn't mention RabbitHole co-founder Brian Flynn, who pioneered the "your wallet = your resume" philosophy. RabbitHole is a platform that helps guide people through “tasks” related to top Web3 projects like Aave, OpenSea, and Uniswap to build on-chain resumes.

looking to the future

Section five

looking to the future

1. Looking to the future

No one can tell you with certainty what will happen in the next 3, 5 or 10 years. However, you need to future-proof Web3 and find your niche smartly, provided you believe in the vision of Web3 and are willing to bet on it.

To do this, you need to start building your on-chain resume today with an Ethereum wallet, which will allow you to seize various on-chain and off-chain opportunities in the future. Well, now is the time to start preparing!

2. Recommendations for action

By completing the above tasks, gradually build your on-chain resume (just do one task a day)
Check out RabbitHole and Zapper.fi's mission system

*Editor's Note: Regarding building your on-chain resume, we have the following suggestions——

1. Although the author does not recommend Dapps other than Ethereum and Polygon, we still recommend that you actively try Defi applications on mainnets such as BSC, Solona, and Terra. On the one hand, they require lower handling fees. It is convenient for novices to play with confidence; on the other hand, the public chain war is not over yet, and the main network other than Ethereum also needs your attention.

2. If you want to seek career development in the Web3 field, in addition to extensive exposure to various applications, you also need to have knowledge and experience beyond most Defi users in one of the tracks. This track may be finance, games, and social networking. It depends on your background and interests.

3. Teaching is the best learning. To verify whether you fully understand a Dapp, the best way is to teach people around you to use it. If you can, try to write an article to influence more people. A good in-depth article can bring you a wide range of Influence and attention of your favorite project parties.

getting Started

getting Started

Uniswap：

https://app.uniswap.org/

Matcha：

https://matcha.xyz/

Maker：

https://makerdao.com/

Aave：

https://app.aave.com/

Compound：

https://app.compound.finance/