DeFi

Here are the smartest ways to make money in DeFi: IntoTheBlock report

Published

7 months ago

29 June, 2024

Here are the smartest ways to make money in DeFi: IntoTheBlock report

Crypto market intelligence provider IntoTheBlock released a report on Thursday comparing the best risk-adjusted methods for earning yield in the world of decentralized finance (DeFi).

Despite the “nearly infinite number of composable strategies,” the company says it’s best to stick with “simple strategies,” which boil down to “just a handful of different primitives.”

The Best Way to Make Money with DeFi

The first strategy put forward by the company is the provision of AMM liquidity.

An AMM is an automated market maker. To earn yield, DeFi users can deposit their assets into AMM pools for different trading pairs, where they help provide liquidity to enable transactions. Depositors earn yield on trading fees every time a user trades between two assets using this pool.

AMM yields tend to produce higher returns for trading pairs in which the two assets have a low price correlation. However, the volatility of the assets in these pairs also creates a risk of fleeting losses for investors.

“As new capital is added to the pool, the expected annual return is diluted,” IntoTheBlock continues. “Since expected returns decrease as more capital enters the pool, the initial size of the pool relative to the capital deployment must be considered.”

Another promising source of high yield is “recursive lending,” where protocol users can supply and borrow the same asset, taking advantage of the difference between borrowing costs and protocol incentives. As with AMM pools, yields decline as more capital is added to the strategy, which is why the company recommends lower leverage when depositing more than $3 million in assets.

Assessing DeFi Risks

Then there is the “supervised loan”, which integrates the two previous techniques. Users use an “unproductive asset” (e.g. BTC) as borrowing collateral, then use their borrowed funds to purchase a “more productive asset” that generates yield elsewhere, such as an AMM pool.

Returns from this strategy can be low or net negative, as borrowing rates can often exceed protocol incentives and carry both liquidation and loss of value risk.

Finally, the report highlighted “leveraged staking” as a strategy to produce “average” returns on assets like ETH or SOL, which can be natively generated. staked for yield to secure their respective blockchains.

The yield remains positive with this strategy as long as borrowing rates for this asset remain below their staking rate. Yields increase as leverage increases, potentially exceeding 10% APY, compared to the 2% to 4% yields typically seen with simple staking.

“Combining these strategies can create a complex chain of risk considerations when it comes to rebalancing and taking profits,” IntoTheBlock warned.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

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Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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