Weekly Alpha #23
Weekly Alpha #23
Latest DeFi Alphas Delivered in a Concise Newsletter.
Welcome to the latest edition of Weekly Alpha.
Every Friday, I deliver insights on the cryptocurrency market, emerging projects, macroeconomic trends, and DeFi directly to your inbox.
In this edition of The Weekly Alpha:
🗞️ Weekly DeFi News Digest
👩🌾 Actionable DeFi strategies
📈 Market overview
Your Weekly DeFi News Digest 🗞️
In this section, I highlight the week's most impactful DeFi news. This way, you can bypass the chatter on Twitter and concentrate on the essential updates.
Arbitrum DAO may dip into $3.9B treasury, approves staking
Llama raises $6M for role-based governance platform
Kraken follows Coinbase’s lead with plans to launch Layer 2 network: report
Linea Kicks Off ‘DeFi Voyage’ Campaign
Wintermute Threatens Near Over $11.2M Soured Stablecoin Deal
Aave To Vote On Restoration Plan Following Market Freezes
WstETH gets on Base after LayerZero strikeout
Scroll Rockets Through Layer 2 Rankings Amid Origins NFT Campaign
Ether Surges Above $2,000 On BlackRock ETF Hopes
Poloniex wallets drained of as much as $100 million in crypto assets
Will layer-2s become table stakes for exchanges?
Actionable DeFi strategies 👩🌾
In this section, I'm sharing some intriguing DeFi strategies that you may find actionable. Please note that this is not financial advice, and it's crucial to conduct thorough due diligence before making any investments.
Liquid Staking Tokens Strategy
Prisma is a brand-new protocol that leverages the power of Liquid Staking Tokens.
You can use LST tokens to mint the Prisma stablecoin called mkUSD. What's unique about minting mkUSD through Prisma is that you will earn PRISMA, the governance token, by maintaining an active debt. The amount of PRISMA you receive is determined by the number of votes it received in the previous week and how many others mint against this collateral within a 24-hour period.
For this first strategy, let's keep it simple: mint mkUSD against rETH. As we discussed earlier, having an active debt will allow you to earn PRISMA tokens. Once you've minted mkUSD, deposit it into the protocol's stability pool to earn a 12.79% APR paid in PRISMA. You can use the stability fund to gradually repay your debt while keeping half of the earned PRISMA.
Please note that PRISMA is currently only available on the Ethereum mainnet.
Arbitrum bull strategy
This strategy is particularly advantageous if you are bullish on ARB (the governance token of Arbitrum) and is easy to manage, making it suitable for beginners. You won't have much to do, and you'll steadily accumulate ARB tokens.
To implement this strategy, we'll be using Stargate Finance, an omnichain bridge built on LayerZero technology. By using Stargate Finance, you not only earn ARB but also potentially become eligible for a LayerZero airdrop.
The first step is to have USDT, USDC, ETH or FRAX.
The first step is to have either USDT, USDC, ETH, or FRAX on Arbitrum.
After depositing the token, you will receive an LP token that represents your share of the pool in Stargate Finance.
Next, click on 'Farming' to access all the available farming vaults.
Once you're on the 'Farming' page, simply select the Arbitrum pool where you've deposited your LP tokens, and you'll begin farming ARB tokens with an approximate APY of 5%.
The advantage of this strategy is its simplicity. You also have the potential to qualify for an airdrop, and Arbitrum is planning to enable staking of ARB tokens with a lock duration. So, if you're bullish on ARB for the long term, this is a good strategy to consider, and you can even start with a small amount.
I'll be sharing new ARB strategies next month since the liquidity grant program of Arbitrum has been approved. If you haven't already, make sure to subscribe to the newsletter.
DeFi market overview 📈
If you're reading this newsletter, it comes as no surprise that we are entering a bullish phase. Personally, I'm staying vigilant, especially when we witness parabolic movements. The current narrative is far from certain, and when it comes to the ETF, I believe it may be accepted, but it's not guaranteed.
Personally, I haven't made many moves other than putting my assets to work in DeFi protocols. I strive to maintain a long-term perspective in the market and avoid being distracted by short-term price fluctuations. Staying level-headed helps me steer clear of FUD and FOMO. I'm dedicated to self-improvement, aiming to make data-driven decisions based on narratives I believe will have a significant long-term impact.
As I mentioned in the tweet below, the fees generated by GMX, Gains Network, and Synthetix have been quite promising over the last 24 hours. I currently have exposure to SNX and GMX, which I believe could perform well in both bullish and bearish markets. This is because traders tend to trade regardless of market conditions.
What I mean to convey is that derivatives continue to be a viable business, whether the market is bullish or bearish. For instance, GMX offers fee-sharing, similar to SNX. Synthetix has also implemented a fee-sharing mechanism called "Staking Rewards" in Synthetix v2. Users who staked their SNX tokens and minted synthetic assets (Synths) could earn rewards from fees generated within the Synthetix ecosystem. These rewards were distributed among the stakers, incentivizing their participation and contributing to network security.
Wrapping up for this week. For daily DeFi updates, follow me on Twitter
None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose