shivsak.eth Profile picture
Jan 25 β€’ 7 tweets β€’ 2 min read
DeFi Q&A #5

Q. What are some safety / security tips for people getting started with #DeFi.

A. A bunch of tips below πŸ‘‡

[1/x]
1/

β€’ Keep your seed phrase safe. Don't lose it or let anyone get access to it, or you could lose all your money.

β€’ Don't send your crypto to a project without understanding it first.

β€’ Check if project smart contracts have been audited by a reputable auditor.
2/

β€’ Send a small amount first when sending to a new wallet or protocol. If you can't withdraw from the protocol, that's a major red flag.

β€’ Using a hardware wallet is usually the safest way to store your crypto.

β€’ Set up 2FA on exchange accounts.
3/

β€’ Split your funds across several wallets and protocols

β€’ Be on the lookout for phishing / social engineering attacks. Be careful when clicking on links in emails. Don't believe someone because they call you and tell you they're from your bank.
4/

β€’ Back up your Google Auth codes:

5/

β€’ Make yourself aware of common scams in the space. I have a video about this too:

6/

β€’ Learn about common mistakes people make in DeFi (and avoid them):

β€’ β€’ β€’

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More from @shivsakhuja

Jan 26
#DeFi Q&A #7 by @UndekhiValue

Q. With so many different protocols coming every now and then, what are the ways to get more info about them to separate wheat from chaff? πŸ‘‡
A. To separate good projects from πŸ’©, look for:

β€’ good tokenomics & value capture mechanism
β€’ compelling narrative & use case
β€’ solid team
β€’ fast growing TVL where the price hasn't caught up
β€’ engaged and fast growing community
β€’ ability to compete
1. Twitter:

β€’ Search for the symbol: Great real time feed.

β€’ Advanced Search:

- Add "min_retweets:100" to find popular posts about a project.

- Add "from:@username" to find tweets by a specific username. Can use this to search for tweets by project founders, etc
Read 9 tweets
Jan 25
DeFi Q&A #4

Q. How does Impermanent Loss (IL) work when providing liquidity while the market is going down?

A. Whether the coins are going up or down, the only thing that matters for IL is the relative price change between the assets in the pool.

[1/4]
2/

A few example:

β€’ If one asset stays flat, and the other goes down 50%,
IL = 5.72%

β€’ If one asset stays flat, and the other goes up 100%,
IL = 5.72%

β€’ If both assets go down 30%,
IL = 0%

β€’ If one asset stays flat, and the other goes down 90%,
IL = 42.50%
3/

IL is absolutely terrible if one asset goes to 0. If the assets move roughly the same %, it's not too bad.

A simple way to think about IL, is that you are dollar cost averaging into the coin going down more.
Read 4 tweets
Jan 17
The #DeFi world has lots of legos, that you can plug and play into one another to earn more yield.

Here are a couple of ideas to earn 25-60% on your boring grandpa coins like $BTC and $LINK using the $FTM ecosystem πŸ‘‡

[1/x]
2/
If you HODL some grandpa coins as I do, you might feel frustrated that your $BTC & $LINK are just sitting around collecting a measly 5%.

Meanwhile $FTM pools are giving 120%, all while the ecosystem explodes with most coins at ATH.
3/
So let's get creative. We want still the exposure to BTC, but we want to use it more productively than the 5% we've come to expect.

Say you have 1 BTC ($42,000).

5% yield is $2,100.

Let's try to beat that.
Read 12 tweets
Jan 15
Impermanent Loss (IL) is a concept that can be quite tricky to grasp, especially if you’re new to providing liquidity.

I’m going to run through some examples here to illustrate the impact of IL in various scenarios πŸ‘‡πŸͺ‘

[1/x]
2/

First, if you don’t understand how liquidity pools work, you can check out this post which explains.
3/

A standard liquidity pool (LP) constantly balance your tokens so you always have a 50-50 value.

As the pool balances, the quantities of tokens you own changes.

IL is the risk that you would have been better off holding the 2 tokens, instead of providing liquidity.
Read 18 tweets
Jan 13
Getting to other chains early is key to success in #DeFi. The best yields are not on the biggest chains.

Bridging $ can be intimidating, confusing and expensive.

Here are the best methods I've found to bridge assets from / to any chain 🧡 πŸ‘‡

$SOL $MATIC $NEAR $FTM $LUNA $ONE
1/

For some background info, EVM chains like $ETH, $AVAX, $FTM, $MATIC, $BSC, $ONE, $AURORA are compatible with @MetaMask.

Non-EVM compatible chains include:
- $LUNA
- $SOL
- $ATOM
- $DOT
- $BTC

These chains can not be used with Metamask, you need different wallets.
2/

1. From a centralized exchange

Using a centralized exchanges like @Binance, @kucoincom, @gate_io, etc is often the easiest way to bridge assets.

They allow withdrawals between many chains, and you can swap tokens without gas.

See my old thread:
Read 15 tweets
Jan 12
What a day for the $FTM ecosystem!

- $SCREAM: +79%
- $BOO: +79%
- $SPIRIT: +47%
- $TAROT: +73%
- $FTM: +17%
- $GEIST: +65%
- $REAPER: +94%
- $GRIM: +86%
- $LQDR: +50%
- $BEETS: +43%
- $BOO: +33%

A compilation of some great threads about #DeFi on Fantom πŸ‘» πŸ‘‡
2/

@Route2Fi's MEGA-thread about all the greatest #DeFi plays on the $FTM chain:

Read 11 tweets

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