Weekly Alpha #36 - Actionable Strategies On Base 🔵
Latest DeFi Alphas Delivered in a Concise Newsletter.
Welcome to the latest edition of Weekly Alpha.
I deliver insights on the cryptocurrency market, emerging projects, macroeconomic trends, and DeFi directly to your inbox.
In this edition of The Weekly Alpha:
🧑🌾 Actionable Strategies On Base
📈 Market overview
📆 This week in DeFi
Actionable Strategies On Base 🧑🌾🔵
In this post, I want to share three easy DeFi strategies on Base to grow your portfolio using stablecoins.
Aerodrome Finance
The msUSD/USDC pool on Aerodrome Finance is a stable pool with a current APR of 34.13% at the time of writing this newsletter.
Moonwell
Moonwell, with a TVL of $91.41 million, is a leading lending market on Base. It offers a great yield on USDC at 13.9%. The protocol has been forked from Compound V2, so we can say that the contract has been battle-tested.
Beefy
Beefy is a yield aggregator and one of my favorite protocols to auto-manage my assets. This strategy is particularly beneficial for those who received the ZRO airdrop from LayerZero. The strategy is managed by Beefy and originates from Uniswap, offering a current APY of 36.4167%.
Strategy Breakdown
This CLM product deposits the user's ZRO and WETH into the Uniswap ZRO-WETH concentrated liquidity pool to earn trading fees on swaps through that pool. Trading fees are regularly claimed and redeposited back into the pool to unlock the power of compounding. Each time funds are added or fees are harvested, all liquidity is withdrawn from the underlying pool and recalibrated to maximize utilization, before redepositing. CLM maximizes utilization by creating both a 50/50 position with as many tokens as it can and an alternative single-side position with the remaining tokens, meaning no tokens are sold. The transaction costs for managing the position are socialized among all the product's users to maximize earnings.
Market Update 📈
In this section, we'll take some time to examine useful metrics within the Ethereum ecosystem.
Bridge Deposits on Scroll Network
The amount of tokens bridged on the Scroll Network has increased by 30% over the past 30 days. This is likely because Scroll is one of the most popular Layer 2 networks that has not yet released its token, prompting farmers to move to this ecosystem to farm the anticipated token.
While there is currently limited DeFi activity on Scroll, if you are bullish on zkEVM, it could be a good idea to move some liquidity to Scroll.
Stablecoin Market Cap across Layer 2 Networks
The stablecoin market cap across Layer 2 networks is rising on the most popular networks. With a 9% increase on Base, its market cap is now less than $1 billion away from Arbitrum's stablecoin market cap. Base's growth has been impressive since March.
Fees Generated by Decentralized Exchanges in the Last 30 Days
Uniswap is still leading by far in fees generated across all networks, followed by Aerodrome Finance on Base.
Average Transaction fees
This Week In DeFi 📆
News 🗞️
In this section, I curate the week's most impactful DeFi news. This way, you can bypass the chatter on Twitter and concentrate on the essential updates.
ZapperFi to Build ‘Road to Onchain Literacy’ with Zapper Protocol - read
Curve Finance Founder Michael Egorov Suffers Massive Liquidations - read
Gensler Predicts Ethereum ETFs Approval by ‘End of Summer’ - read
Curve founder repays 93% of $10M bad debt stemming from liquidation - read
Traders: Ethereum is the 'most bullish altcoin' as ETH reclaims $3.5K - read
Bitoro launches perpetual futures on Injective protocol - read
Memecoins Get Decimated Amid Market Downturn - read
41% of top ZK airdrop wallets have already sold everything — read
MetaMask privacy updates: What users should know - read
TON-based DEX aims to simplify cross-chain swaps - read
Podcasts 🎧
In this section, I feature the week's most compelling DeFi podcasts and videos.
Bell Curve: Will the Fed Cut Rates in 2024? | Roundup - watch
Bankless: VanEck's CRAZY ETH 2030 Price Predictions - watch
Unchained: Anthony Scaramucci on Why Biden Will Be Best for Crypto - watch
The Defiant: Light In The Dark Forest: How To Fight MEV - watch
Token Unlocks 🔓
ID (18.23% of circulating supply) - June 22
ALT (6.92% of circulating Supply) - June 24
TORN (2.41% of circulating supply) - June 30
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