The Big Recap by Lark
Volatility is the price you pay for performance. I just love that quote. And man, oh man, is it ever true!!! The last week has certainly been volatile. But one man’s emotionality is another man’s opportunity. Bitcoin was at a 22% discount the other day. Many altcoins also offered interesting buying opportunities. In order to be successful in this market you need to think counter intuitively to the herd. “When there is blood in the streets, buy it, even if it is your own” from Baron Rothschild really sums it up. But, but, but Lark… I don’t have any fiat left to buy dips!!! This comes down to less than ideal portfolio management. In my opinion, you always want to have some cash sitting on the sidelines.
My personal portfolio is usually around 10% stablecoins. I use it to buy dips and to create constant income. You can’t buy the dip if you don’t have any chips, so for this you need stablecoins ready and waiting. And I know what you are thinking, if you hold money in stablecoins then you can’t get any gains! Not true. In fact if you set it up right then you essentially can create perpetual free dip buying machine. How can you do this magic? Easy. By using your stablecoins for farming and lending. There are of course different risk levels between services, and yes I will give you a few ideas in a moment, but basically getting 10% on your money is pretty mundane in crypto. Let’s say that you have $10,000 in stables earning 10%, well that is $1,000 a year of free money to buy dips with. What if you are getting 30% or more on your money? Well then things get very interesting.
- Ethereum has great pools if you can afford the gas fees. Platforms like Convex Finance are cool, but if you want to keep the money all in stablecoin then check out Yearn Finance. They have high yield forex accounts (30 to 50% APY) and much lower gas fees since you can zap in and out of positions.
- Binance Smart Chain can be used to access Ramp Defi and provide liquidity into their rather low risk rUSD/BUSD liquidity pools for 30% APY.
- Curve Finance via Arbitrum is offering Euro pools over 20%.
- Terra Luna’s Anchor protocol is offering 19.5% on UST stablecoins.
- Even centralized lending platforms like Celsius offer 10% and the most user friendly experience.
The next big topic I want to discuss with you is layer two scaling. We have seen layer two Ethereum absolutely exploding in the last few months. This chart here shows the total value locked on the different layer twos.
Why are Ethereum’s layer twos gaining so much popularity? Simple. The fees are so much cheaper, and you can use many of your favorite apps.
As you can see below the fees to do a token transfer on layer two Ethereum are 1/10th of the fees on the main chain. AND a new Ethereum Improvement Proposal could see gas fees go even lower for layer twos on Ethereum. Source
So, now you might be thinking. Lark, this is all exciting, but what does it mean for me? Well there are two reasons to pay attention to layer twos.
The first is that you can save huge amounts on fees to use your favorite apps like Uniswap and Curve Finance. Now to be clear not all apps are supported, but an ever growing list of apps are. You can move in and out of the most popular layer twos using Hop Exchange, and there is even an airdrop rumored for it.
The second thing you can do is to invest in the protocols themselves. However not all of them have tokens. Arbitrum, the biggest by total value locked, has no token, although maybe we will get an airdrop some day. We can hope anyway. However other scaling solutions like Loopring and ImmutableX do have tokens that you can buy. However they also have market caps over a billion dollars. If you want the potential for more gains then look further down the cap rankings at players like Metis, Hermez, or Celer Network.
Please do keep in mind that there is not really a need for 20 scaling solutions, and that the liquidity will start to simply form around a few core ones. So not all of the current scaling coins will make it. Remember Raiden? Probably not. You get the point. At least that is what I think. I am not currently investing in layer twos outside of Polygon, but it is definitely a cool space, and I do enjoy using Arbitrum.
- Keeperdao has bought its first million of a planned 40 million purchase by the end of the year of Convex Finance tokens. I remain bullish on the Curve / Convex Finance defi pairing which is why I am farming heavily on Convex Finance and took a big trade on CRV.
- Yearn Finance has a hot new interface. HERE By the way, Yearn has some very nice forex yields right now!
- Arbitrum is offering some nice yields on popular defi apps like Curve Finance. Bitcoin pools at 6.5%, Euro pools at 24%, and tri crypto pool at 25%. HERE Sushi Swap is also offering some nice yields on Arbitrum with the Spell/ETH pool at 67%! HERE
- Speaking of Sushi Swap, there are still some nice low triple digit yields on Sushi via the Moon River network. HERE
- Crypto play to earn game Gold Fever just launched its liquidity staking program with good APY. HERE
- Ramp has launched a big incentive program for their rUSD coin. HERE
Top 15 Trending Coins This Week by Rebecca
Here are my key takeaways from the trends this week. The Metaverse, NFTs and Gaming are on fire, and the market is showing no signs of slowing up.
1 – BOSAGORA is building ‘MetaCity’, a blockchain-based Metaverse ESG virtual city. They have announced this week plans to showcase the prototype on 7 December.
2 – Steam Exchange is a new Canadian CEX. They are working towards being 100% compliant with OSC regulations, and regulations around the world to offer a safe space for new investors.
3 – Atari, the gaming giant, is starting to make waves in the metaverse, and getting lots of traction on social media due to a couple of small exchange listings this week.
4 – Railgun is a privacy token allowing users to interact with any DeFi apps without revealing their Ethereum address or balances. It’s in the process of deploying its privacy tech on the SOL and DOT networks.
5 – UFO this week has announced a strategic partnership with Kadena DEX, Kaddex, to introduce FRACTAL which will be an in-house cross-chain DEX and AMM.
6 – Metahero is a potential up and coming challenger to MANA and SAND. Bringing a hyper realistic experience to the Metaverse with proprietary scanning tech. The HERO community is very active on social media.
7 – Shiba Inu is trending this week due to a couple of things – online retail giant Newegg confirmed that it would start accepting SHIB as a payment method and that they have also been listed on crypto exchange, Kraken.
8 – Alchemix , the decrentralized liquidity provider, has been listed on both Binance and OKEX exchanges. Low supply and high demand have seen price soar.
9 – LCX, the regulated exchange based in Europe, has announced this week that registrations are now open for the upcoming token sale of DigiCorp Labs DigiMetaverse Token.
10 – BNB regularly features in the top trending coins and this week will no doubt be due to the anticipated Bruno upgrade which will burn BNB coin on every transaction.
11 – Wonderland (Time) is a rebase coin which is basically Olympus but on Avalanche. They were trending last week, and they are still proving to be very popular.
12 – Gala gaming is another stand out in the P2E gaming world, and they have announced this week that they are going to deploy $1 billion into game development in Korea.
13 – Sandbox looks to be a staple coin for many Ethereum whale wallets. Partnerships announced with Coinbase and Adidas will have also spiked interest in the platform.
14 – OVR is an AR, NFT and Metaverse platform that layers over the entire world. The community is getting excited amid the anticipation of updated on OVR’s 3D “Map to Earn project”.
15 – Micropets takes your favourite meme coins (dog coins) and turns them into NFTs that you can stake and trade. They have just reached the 60,000 token holder mark.
Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
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Lark and the Wealth Mastery Team
TCL Publishing ltd (director Lark Davis, owner of Wealth Mastery) is not providing you individually tailored investment advice. Nor is TCL Publishing registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. TCL Publishing is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.