jakiro
Author: FC, Sevenx Ventures partner Source: X,@FC_0X0
Is the debd up?It’s time to prepare.
This is the three “Defi Summer Big Winners” dug two “Mining Cheats on the Chain” summarized by two cycles.It is clear to “how to choose the target” and “what should you care about”.
Why is the growth of mining on this cycle of mining weak?
SMRTI LAB Lianchuang 0x992 @0x992ETH has been paying attention to & amp; participating in DEFI since 2018. By 2020 DEFI Summer started doing LIquidity Provider, and also established its own DEFI Fund.
He believes that the core of the cycle in 2020 was overflowing by the liquidity of Defi Summer. There were almost 800 issues of issuing coins. In those two years, there were two currency projects.
The so -called Point Summer in this cycle has a very obvious problem, that is, everyone dare not do the real Token Generation. Nothing has to understand what the coins that are unlocked in four years should be inspired.As the innovation of bribery or vtoken.
He also mentioned that the concept of Point Summer’s income is more vague. The core problem is that the liquidity of the buying disk is insufficient, and the specific manifestations are two aspects:1) Unable to find cyclical income2) Defi Lego’s innovation insufficient innovation can not attract new users
His personal point of view, Liquid Staking is actually a field that meets market demand and has cash flow and TVL growth potential, but the key is how to unlock the income mechanism to continue to promote market prosperity.
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Can there be “Defi Summer”?
Jimmy @0xjimmyyin first joined DAPP earlier, and later did DEX. In 2020, Izumi Finance was established. It focuses on providing LAAS for the multi -chain ecosystem and provides multi -faceted services including liquidity.
Jimmy mentioned that in the last round of the market, a large number of off -site liquidity was distributed layer by layer of income through the complex design of Tokenomics, which created a huge wealth effect and attracted new players.The funds of the strategy are transferred to the chain to operate.The current popular trend is to move the funds on the chain back to the centralized platform for RWA operation, which reflects the lack of income on the chain.
Jimmy believes that the last round of DEFI left significant value for the entire financial field, and real user needs still exist.For example, although some projects do not issue tokens, they still create actual use scenarios through interest rate arbitrage incentives.
If the current market can remain stable, the inflow of new funds will not be futile, but if certain projects will finally be zero, lack of real business and alternative value, it will be difficult to re -inspire users’ interest in the future.
Therefore, whether product innovation can reach the level of the previous round of DEFI will be the key factor that determines the value of these Paper Money in the future.
How to choose the timing and target of mining?
NEO @0xneosu has been an angel investor since 2018, and established Arcane Group in 2011.
Neo believes that the essence of mining on the chain is to create transaction liquidity and TVL for the DEFI project, and help the project to start cold start.
There are two most participating stages of mining on the chain:1) Cold start phase2) In the middle and late stages, that is, token already has a clear use and certainty stage
In the middle stage, when the project just issued coins and completed the incentive, it is usually the most difficult period.At this stage, investors need to pay attention to the long -term planning of the project, the help of the Token incentive to the ecosystem, and whether the business model of the project can support the unlocking period in the next 4 years.
When evaluating which projects are worth participating in mining, Neo emphasizes two key factors:1) The diversity of income sources and the richness of the agreement2) The ceiling of the project is high enough, that is, whether the project has high -quality endorsement, resources and liquidity providers (LP), these factors directly affect the project’s valuation and long -term development potential.
Neo mentioned Berachain, who said it was a project that performed well in terms of liquidity.Their POINTS model clearly tells users how many tokens can finally get, while many LRT projects have problems, often only given points, and there is no clear token distribution rules or income model
As a liquidity provider, what should you care about?
0x992 believes that for liquidity provider, the core issue they pay attention to is:
1) How many returns can be obtained from the project at the end of the investment period.The transparency and certainty of this result are the key to project success. Whether it is the LP of BTC or other forms of LP, it will pay attention to the proportion of investment and recovery assets.
2) Strategic transparencyThis is one of the important criteria for guarantee income.LP needs to know how to operate funds, especially when the implementation of multiple strategies, it is important to understand when each part of the funds generate.
3) Liquidity and strategy capacityNot only should we consider (such as APY or APR), but also need to pay attention to the liquidity of assets, especially when the market fluctuates or large -scale funds withdraw from the withdrawal, whether the assets can be quickly withdrawn.Liquidity management and strategic capacity can protect investor funds security under extreme market conditions and prevent the “black swan” incident.
In the end, all judgments were attributed to a core issue: the return rate of currency.Regardless of how the project party promotes complex income indicators (such as DPI, APY, etc.), LP is most concerned about how much BTC, ETH or other encrypted assets they can recover.These factors, actual income, liquidity, and transparency are the cornerstones of long successful success of Defi Farmer and the project party.
Where does the benefits of mining on the chain come from?
Jimmy explained that the source of income is mainly divided into two categories: transaction fees and nourishing.
Participants of trading fees are divided into three categories based on motivation:1) Ordinary users who pay GAS fees2) Use the supplier or trading bot with the information time between the information on the chain and the chain3) The wool party or scientist who obtains the airdrop reward through the chain transaction
The typical representative of nourishing is the lending agreement.There are two main forms:1) Early BTC and ETH mortgage lending income2) The pledge income after Ethereum turns to POS.For example, LIDO will attribute 10% of the income to the agreement to support the real income of the bottom.In addition, PointFi projects such as Blast, Manta, and Merlin also offer revenue based on single currency pledge, as long as the assets are deposited, they will get benefits.
At the same time, he also pointed out that the true returns under the chain, such as USDM and the Federal Reserve, and CEDEFI’s benefits of market merchants are also important supplements.
NEO believes that the real returns of the Defi project mainly come from two forms: one is the interest of single currency, and the other is the value corresponding to the value between the same assets.
Popular assets are usually the combination of BTC or ETH on ETH, because there is no trade difference between such assets, thereby avoiding the interference of contract risks and other complex factors.
He pointed out that it is a difficulty to effectively increase the currency value through Swimming Pool. Although liquidity does not fluctuate every day, asset prices may increase significantly when major events occur in the agreement.Therefore, investors hope that the assets they hold are not only safe, but also have the potential to hold long -term holdings.
The trading path is lonely. I hope to help everyone find the same frequency partners.
