DeFi Weekly: No DeFi outside of Ethereum?
Because of the continuous preaching of AMPL, increasing numbers of people are watching me. I'm quite grateful to the visitors for their love and spreading for me personally everywhere. Every day, new close friends add to my Series and have various questions. A lot of primary questions can't be solved one by one. To give answers, you can only answer selectively, or you can settle the queries with higher repetition rate through Weibo and Pinterest, and everyone can examine them by themselves.
In the event that you follow my Weibo or Pinterest for more than half a month, and browse the content material carefully, your profits on return is still extremely bad, you might have to reflect on it deeply, and you could basically determine that you will be a project celebration 24k pure leeks harvested casually. This is not ridicule, but sincere persuasion. Recognizing yourself may be the very first lesson in trading.
Therefore, in the event that you recognize the status quo and strengthen your belief in value investment, you won't go astray. Among the missions of DeFi Weekly is to enable retail investors to have a deep knowledge of the progress of the industry. At the same time, I'll present my expense analysis logic to everyone for the reference and reference, and win collectively in probability.
I usually update the latest content material on my personal Weibo as quickly as possible. Unless you want to miss the latest advancements in DeFi, you can proceed to your Weibo accounts [DeFi He Tai Chi].
A couple of things to view this week??:
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01
This week, liquidity mining kills a dark horse
The latest this week may be the stable currency wealth management platform yearn.finance and its governance token YFI. It can be reported to be a hit overnight. It is continuing to grow by 4000% in two days. The total worth of locked jobs in Balancer's YFI fund pool has enhanced 67 moments in a single day. , The foreign currency price will be up to 50 times.
Yearn can be an aggregation and distribution system for lending business. When users down payment on this system, Yearn will instantly allocate funds to the present highest yielding agreement from the decentralized lending protocols it supports, such as substance and AAVE. YFI may be the governance token launched by the system and contains no financial worth.
So why do traders follow YFI?
Because YFI is completely different from the previous liquid mining, there is no pre-mining, no sales, and it is completely distributed through liquid mining. And a restricted supply of 30,000 items will be distributed within one week. It is just like the decentralized spirit advocated by Bitcoin.
As soon as the news came out, traders rushed to obtain in the automobile like crazy. Even though founder of Yearn claims that YFI has no financial worth, the currency cost has soared since the first transaction of US$34.53, with no more than 50 moments. The current cost is US$1315, which also allows the lock-up amount of the fund pool for mining YFI. Greatly increased.
The aphrodisiac of liquid mining will continue steadily to stimulate the growth of the complete industry. If the project starts to provide liquid mining and purchase with closed eye, there exists a high probability that the price of the foreign currency will skyrocket. Needless to say, if your funds are large plenty of, for the sake of safety, taking part in liquidity mining itself can be a profitable expense.
Who'll provide liquidity mining next?
AAVE (introduced in the previous weekly survey), BZX (a new version of the system will be released inside August, launching liquid mining).....
02
IDO is not suitable for ordinary traders to participate
IDO (Initial DeFi issuance) has become a growing number of popular, and the environment of speculation has become stronger. Within the last issue of the weekly report, we talked about the decentralized lending system bZx issuing the governance token BZRX on Uniswap, nonetheless it was cut off by the robot system, arbitrage millions of dollars, and retail individuals became the receivers. This incident resulted in the suspension of mStable, the stablecoin aggregation system for IDO through the same period. This 7 days, it switched to Dutch auctions, which is the invert cost reduction auction technique. The issuance system was also changed from uniswap to the Mesa website that helps ring trading.
On that day time, a lot more than 10 million US dollars of mUSD was used in mesa.eth.link to take part in the mstable (token MTA) public auction, grabbing 2.66 million MTA tokens.
I did so not take part in the MTA transaction, but I have been observing his cost out there of curiosity. The current price 's almost $3 each. According to the total marketplace value, mstable's current market value 's almost 300 million U.S. dollars. A DeFi project that has just been launched includes a valuation greater than 300 million U.S. dollars, which is indeed strange.
Within 2 days, someone on Twitter broke the news that mstable had sold 6.5% of the full total supply of tokens (6.5 million) to VCs in the seed round for under $0.15. The seed circular was closed a few days before the public sale. The price of MTA marketed to community individuals (leeks) is $1.81, which is 12 moments the cost of the seed circular. Then on the 22nd, mstable airdropped 3.3 million tokens worth a lot more than 13 million US dollars to seed traders once the token transaction cost was 4 US dollars. Following the airdrop happened, MTA investing volume soared, however the cost plummeted. Because seed traders who got free chips began to sell like crazy.
After another two days, the mstable team came out to apologize and promised to boost the transparency of circulating supply. Require seed traders to secure positions for 90 days and postpone the vesting period of group tokens.
The whole thing is out, and folks can't assist but sigh. If you are at an information disadvantage, don't blindly vote. To stay from this dishonest group, they're the leek harvesters. The scary factor is that, driven by the progressively speculative atmosphere of DeFi, a growing number of leek reducing projects should come out to cheat cash. Please become optimistic about your greed.
A lot of investors always desire to chase the new currency, nonetheless it is certainly actually not easy because there is zero valuation basis and the information is not symmetrical. Finding a good target is really as difficult as getting lightning in a bottle. In addition, it really is difficult to state whether many projects have product marketplace fit. Business owners don't have even a simple MVP. They just blow bubbles, and modification their clothing with DeFi. Not necessarily DeFi. A wave of speculation didn't go considerably.
What's more, the cost of tokens received by retail traders is frequently dozens of times the cost of the institution, and the initial price is quite easy to manipulate. You do not know how numerous coins are actually unlocked, and you are at risk of selling at any time. In general, IDO is not suitable for ordinary visitors to participate, but more desirable for all those with risk hunger.
03
Just how many DeFi super users are there?
The Ethereum accelerator ConsenSys released a sydney showing that DeFi super users increased by 20% in the second quarter.
The so-called super user implies that a lot more than 100 transactions have already been made in the DeFi agreement through the quarter. According to this definition, I'm also a super user
There are also several data worth attention:
1. Uniswap gets the most super users with 1,625, a growth rate of 55%
2. Kyber will be second with 916
3. Compound 3rd, only 367
Another trend may be the increase inside the use of investing robots. Which means that the arbitrage space of retail traders in the DeFi space has been further squeezed, and you can find no benefits in capital volume and technology. The only method is to combat for reputation and find potential expense targets in order to become market winner.
04
The total value of locked positions is not the most important indicator in DeFi
The total value of DeFI's locked positions exceeded US$3 billion this week. Databases: defipulse
When evaluating DeFi projects, we most like to quote the full total worth of locked positions (TVL indicator) proposed simply by defipulse. That is going to become a business standard. I utilized to mainly look at this indicator, however the ranking of this indicator appears to be becoming a lot more unstable , Especially with the launch of liquidity mining in a swarm of projects, the distortion of data is quite high, just how many will be the real needs of users, and just how many are short-term wool party injections. In the chart of last week's weekly survey, we are able to clearly see that the marketplace value of all tokens includes a bad correlation with the amount of locked positions. Which means you possess to invest in a DeFi token. I think the total worth of locked jobs is not the most important indicator. What to appear at? Consider the traction of the business, that is, consider the growth rate of the business, especially showing an accelerated development trend.
Another manifestation of the unreliable total worth of locked positions is certainly that big players dominate the marketplace. Foreign institutions lately published a report that stablecoins are the most prominent DeFi use situation, but in the info they discovered that the true user bottom of DeFi is quite small, and the TOP30 addresses contribute most of the transaction volume. Start to see the image above. In a nutshell, DeFi is still very early, and speculation dominates the complete market. How to find a particular relative certainty in uncertainty can be an art.
According to the top ten agreements of #DeFi#, a month ago
According to the top ten agreements of #DeFi#, now
According to the assessment of the top 10 DeFi agreements along with locked positions, the data offers changed a lot before and following a month. Can you tell who's the dark equine? Can be anyone explosive? Investment is not to see who's cheaper, but to observe who will become more valuable later on!
Find out there the worthiness of old projects. If you feel LEND and SNX aren't unicorn-level businesses, you may not be suitable for investment. You will not dare to win if the cards enables you to win.
For novice traders, you can follow a straightforward investment theory: there is no DeFi outside of Ethereum, and if you adhere to the main track head project of Ethereum DeFi, your earnings will be very good.
05
Do you want to vote for the high imitation edition of DeFi?
There is no DeFi outside of Ethereum. Needless to say, it isn't the ultimate trial, but a strategic selection to avoid falling pits.
A lot of junior investors hardly understand why the higher imitation versions of AAVE, MAKER, and uniswap in another chain aren't worth investing, as the unique version has been in existence for a lot more than 3 years and contains grown up in the market combat and accumulated wealthy brand value. , Complex maturity, team knowledge along with other benefits, the strong will be strong, but latecomers cannot rapidly copy or surpass very quickly. The execution of technology projects is more challenging than you can imagine, and knockoffs cannot appeal to top talents and high-quality community individuals. If Ethereum fails ultimately, the original version can easily migrate to some other very good layer1.
All "Ethereum killers" are emphasizing how powerful and quick their technology is. Nevertheless, the true moat of Ethereum may be the community. Consequently, at this time, I would believe that you will see no Ethereum killer, he'll evolve himself. Non-Ethereum DeFi only has short-term speculative value, not long-term investment worth. To get certainty and win in the market, it really is more reliable to configure the head of Ethereum DeFi projects. These projects are valued in accordance with traditional financial technology, and most of them are around angels and round A. There is still lots of room for the marketplace value explosion. Have to continue to follow-up the project development, the survival of the fittest.
At the moment once the entire currency circle is transforming the DeFi concept, there are many new so-called DeFi projects that are as well radical to fall to the bottom. If in 1994, when Jack Ma has been still focusing on the Yellowish Pages, someone asked you to invest in a Weibo project, do you want to invest? Traders should understand what product marketplace fit is.
06
DeFi beats CeFi on the stable currency exchange track
The stable currency exchange protocol Curve includes a daily trading volume of 78 million U.S. dollars and a complete lock-up volume of 168 million U.S. dollars. By comparison, this volume has reached half of the coinbase of the biggest trade in the United States, surpassing most small exchanges. DeFi offers beaten CeFi in the subdivision industry, showing strong vitality and development.
Within the next couple of several weeks, we will see more DeFi conquering locations on the subdivision track to seize probably the most value.
07
Currently the most popular DeFi dapp
Who is the main dapp currently in the DeFi classification? Not compound, not uniswap, but 1inch.
1inch is really a DEX aggregation process, and you can find currently 1073 daily active wallets. The development momentum originates from the gasoline price of Ethereum will be very costly, 1inch offers a solution to save gas price. By July, the transaction volume reached 396 million US dollars, while only 27 million US dollars at the beginning of the year.
The second place in the industry is Synthetix, and Daily Life Wallet is continuing to grow by a lot more than 100% this season.
The quickest growing of Daily Life Wallet may be the loan agreement Aave, which has increased by 1886% this season. Aave's unicorn temperament in addition has become more and more obvious.
Regarding the Aave process (token LEND), put in a few more data (data source intotheblock):
1) LEND transaction volume offers increased rapidly with cost, and the daily transaction volume of LEND offers increased by nearly 10 moments in two a year.
2). Large purchase indicator: LEND hit a new high of US$26 million in daily trading volume on June 18 and then fell back again. This data implies that the interest of institutional traders is increasing.
3). The amount of addresses keeping LEND for under a month has more than doubled, and only increased by almost 50% in the last 30 days, indicating that the FOMO effect of the marketplace is taking shape.
4) The amount of LEND tokens held for more than one year offers dropped by 42%, indicating that great households with long-term jobs possess sold a lot when the cost soared and fully changed hands.
08
The relationship between mainstream DeFi tokens and centralized exchanges
??The representative has recently exchanged on the exchange. Those who have not yet outlined on the coinbase are all potential shares; the fewer outlined on the trade, the more possible. (Additionally, Maker had not been outlined on Binance at the time of drawing, it was posted today).
If it's not that the DeFi idea is too popular, I assume that the centralized trade would not desire to list DeFi tokens within their investing list. After educating users, it is likely that lots of people will directly turn to DEX later on. This is the destiny of Binance.
Based to my personal experience, the vast majority of my transactions now are conducted via uniswap and balancer. Making use of eth as a investing pair feels much cooler than traditional exchanges. Traditional exchanges are basically reduced to a place for OTC deposits and withdrawals.
Consequently, judging from my own personal experience, the demand for ETH for staking+DeFi will exceed the past ICO, which is ten moments the expectation.
09
The most important thing to invest in AMPL is to enjoy compound interest
I watched that AMPL took less than a month to climb to the second place in the defi marketplace value listing, from 19 million US dollars to a lot more than 700 million US dollars. The rewards of keeping the coins outweighed any blind procedures. Congratulations to the fans who viewed my Weibo previously month.
Our wise band of close friends made a picture for everybody: in case you have 100 ampls on July 1st, then the quantity on July 18th should be 870. Do not operate blindly, the consequences will be so serious.
This is the terrible thing about compound interest. And my personal profits on return, beneath the compound interest effect, has already reached 20 times.
Many people who do not understand remain hesitating.
A profitable trader expressed his gratitude in private. I asked him why you dare to obtain on an AMPL vehicle. He said:
The cost of trial and error is not higher, and the expense of not trying is too much!
This is very good.
Are you aware what the profits on return of Bitcoin is? A lot more than 180,000 times in 10 years.
The exact price of Bitcoin's first transaction is $0.04951, and the block elevation is 68773:
Time: 2010-07-17 23:09:17 UTC
Amount: 20.00000000 BTC
Price: $0.04951
Value: $0.9902
Converted to today's currency cost, Bitcoin's USD expense income is approximately 184,000 times! But just how many folks have eaten 180,000 times?
If you are given a chance to go back to the initial day of investing in Bitcoin nowadays, what strategy do you require to fight the greed and concern with human nature rather than be dumped?
Here, an over-all version of expense operation suggestions for retail traders who have no knowledge or time to watch the marketplace:
1). For the long-term worth of the head defi project with strong certainty, the long-term worth of the heavy warehouse
2). For fresh projects with possible, Qingcang medium and long-term
3) Double the cost of execution
4), double the execution revenue to half the profit
5) Do it again the operation of 4
6) Do it again the above operations
The industry includes a bonus period of at least half of a year, so play much less short-term!
For more newest subjects, please follow my Weibo [DeFi He Taiji].
Finally, I would like to recommend a book to everyone, one of the best publications I've read this season, the title is "Siddhartha", the author is Sai Hei, the Nobel Prize winner. Suitable for a noiseless afternoon to become with yourself. The businessman asked Siddhartha what you would do, and he mentioned, I'd: think, wait, quick! It reminds me of purchase. The biggest enemy of traders is in fact yourself. You have to figure out how to "think, wait, and fast".
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Disclaimer: The digital possessions mentioned in this article are extremely risky, and this article will not constitute any expense advice. DeFi development theory focuses on decentralized finance, that is a fresh financial system constructed on an open up blockchain. It really is regarded as probably the most possible program of blockchain, that may break the pattern of traditional monetary industry and monetary technology. On the other hand, many people are also beginning to encounter DeFi being an "emerging investment technique" and incorporate it into asset allocation.
Previously two decades, the web has had over power and influence from traditional mass media; in the next twenty years, DeFi will take over from traditional finance to the next era. Follow us for more information about DeFi and match the latest and most interesting developments.
About the author: He Yuqing, block chain, DeFi front-line workers, serial entrepreneurs, Chinese Academy of Sciences Distinguished business mentor. He's also a hardcore Tai Chi enthusiast and Bitcoin collector.
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