@n2ckchong's great educational thread on Aave inspired me to write a #CryptoTwitterManual. This is a useful guidebook to help all the new market participants navigate the Crypto Twitter (CT) minefield and avoid getting rekt by fomo.
The #CryptoTwitterManual consists of the real tweets I captured from many CT influencers with the explanation what they really could have meant. Don't be under a delusion that influencers publicly share alpha for the benefit of their followers. Most of them don't.
Not all CT influencers are mindless shillers though. Some really do care for their followers and try to educate them, not only force them to buy shilled bags. Be mindful of this fact, learn from others but not necessarily immediately buy what they shill.
T - the original content of the Tweet (but without tickers)
E - Explanation what author probably had in mind
T: This one hasn't even started!
E: Price has already increased a lot and it's understandable that you are hesitant to jump onto this parabola so I will pretend I know things nobody else knows to make you fomo-in.
T: X crushing it with some great partnerships.
E: X partners with a project nobody has ever heard of before or uses some publicly available services from well known companies like Google Cloud. It means nothing but I want it to sound great.
T: Some of the projects that you should keep an eye on: X, Y, Z. I expect them to be top performers for the upcoming months.
E: I invested in private sales for X, Y, Z and need you to become my exit liquidity. Please fomo-in so I could maximize my profit.
T: What dips are we buying today? X, Y, Z all seem like good dip opportunities imo.
E: My X, Y, Z bags are underperforming and I need your bids to exit.
T: Spoke with an insider today that is close to the team, he told me minimum it will hit [$] short term because of what is coming...
E: I have no idea what this project is about and don't know how to sell it to you, so I will use insider meme to convince you.
T: This is one of the most hyped launches I've seen in a while.
E: I invested in private sale and have to create some hype around this to get a nice multiplier on my investment.
T: My price predictions for XYZ:
- short term: $
- long term: $$
I will quote this tweet as we reach those milestones.
E: If I happen to be right, I will quote this tweet and brag like crazy to show how brilliant I am. If I'm wrong, you will never see this tweet again.
T: Damn this is huge, I knew XYZ were doing some crazy things! Send this thing.
E: XYZ announced a meaningless partnership with a meaningless project to do meaningless things supposedly together. It's nothing but I need to build some hype around it.
T: XYZ hasn't had a bull cycle yet, I would not be sleeping on this one. They're making some impressive things behind the scenes that will seriously legitimise this project.
E: I have big bags of XYZ and in spite of my heavy shills it still underperforms heavily. Buy please!
The list of similar tweets is endless but I will stop here. Just remember that the author of the shilling tweet always has the purpose and it's rarely to make you rich. Don't buy if you don't know what you buy and when you want to sell. Good luck!
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1) @iearnfinance TVL crossed $3B. This is a big milestone. It grounds Yearn's 1st place in the competition between yield aggregators - amazing achievement taking into account that it's the only protocol which doesn't incentivize TVL by issuance of its native token $YFI.
2) With hindsight, I think that distribution of total $YFI supply in a single farming event last summer was a big hurdle for the development of the protocol. How can you compete with others who fork your code and add token issuance on top of it to increase APY for users?
3) Yet, this lack of $YFI inflation led @iearnfinance to the place where they are today. They had to be creative to offer competitive returns for depositors. Let's summarize what they did.
1) Yesterday a new farm appeared on Ethereum: app.thisistheway.finance. It doesn't even matter what it is. The most important fact is that it rewards farmers with a token $BAG for staking $ETH, $WBTC, $USDC or $DAI. So it's passive earning opportunity.
2) "But sir, it's a new farm, it must be risky!" Is it? The farming contract is a slightly modified version of MasterChef - a well known and battle-tested contract on Ethereum. The only change is that it applies an exit fee on your stake if you leave early.
1) It's been a while since my last bullish thread on $BNT but @Bancor Team keeps building and it deserves some commentary. Let's talk about a new addition to $BNT tokenomics, Vortex Burner, which puts deflationary pressure on circulating supply of $BNT.
2) Let's start with a quick reminder how @Bancor works. In contrast to other AMMs like $UNI or $SUSHI, in Bancor, you can provide liquidity with a single token. You don't have to pool your token with other asset which often leads to impermanent loss (IL).
3) Whitelisted pools in Bancor are fully protected from IL. It works by bundling an array of pools into one bucket. Some pools have high IL, others don't and fees they generate are used for IL compensation. It shifts IL from single-pool risk to a risk spread across many pools.
1) I really like experiments. Especially the ones which can disrupt what we are currently used to. DeFi is the best example - an attempt to disrupt TradFi with a code. AMMs are already disrupting centralized exchanges and constantly evolve. What about the final form of AMM?
2) This is what @IntegralHQ tries to achieve - the final form of AMM, the one that eats other exchanges' liquidity. Sounds like a dream, doesn't it? So let's dive into it deeper. It's complex and I won't pretend I fully understand all the technical docs but I'll try to ELI5.
3) How will @IntegralHQ suck in all the liquidity? Technically it won't. But it will act as if it would have. This is due to its unique combination of AMM with orderbook (OB-AMM design). It allows them to mirror liquidity from other exchanges to become the cheapest one to trade.
1) While I, as active liquidity provider, am excited about sophisticated options for LPs in $UNI v3, I'm also concerned that too much complexity will only serve few in the know and leave the majority of (passive) LPs behind.
2) Although I haven't conducted a survey to justify my thesis, I'm quite convinced that the majority of current LPs don't actively manage their pools. This is based on my observations and pushed me to share a set of "advanced" strategies for active LPs:
3) Uni v3 feature to provide liquidity only for a given range (+ other options) will be useful for professional market makers who will likely eat lunch of passive LPs. If passive LPs earn less, they may look for alternative simple solutions.
1) What is the most popular term in DeFi which you have never heard of in traditional world? Probably aping but let's assume it's impermanent loss (IL). Every liquidity provider in AMM suffered from IL. But do you know that you can beat it? Read this thread to find out how.
2) Let's start with a quick definition of IL. It's a difference in value between your current assets in liquidity pool (LP) and assets you would have if you hadn't added them to LP. In other words:
IL = current assets at current prices - initial assets at current prices
3) Why current assets are different than initial assets? Because this is how AMM works - each trade changes the amount of both tokens (x and y) in LP so that their product remains constant (x*y=k). It's like automatic rebalancing of your portfolio consisting of tokens x and y.