ALΞX Profile picture
May 15 10 tweets 11 min read
🧵 $30B in TVL wiped out by the $LUNA and $UST collapse. Total #DeFi TVL slashed in half over the last month.

What does the future hold for DeFi on the major #Layer1 chains and protocols? My thoughts in 10 tweets. 1/10
#DeFi exploded from $19B TVL at the start of 2021 to $280B by the end of 2022, holding steady until April of this year.

It now stands at $128B with the majority of that over 50% drop coming in the last month as investors rush for the exits. 2/10 Image
Why? A negative global macro outlook with inflation and rising interest rates leading to sell off in traditional markets.

The knock on effect on $BTC compounded by the shock from the $LUNA and $UST fallout has nervous investors going risk off. 3/10
But risk off into which assets? Large outflows into $BTC and fiat of course.

But those that remain in #DeFi appear to be looking to the relative safety and security of #Ethereum.

#ETH TVL dominance is at 65% (2/3 of all TVL!) which is an 18% increase vs. 1 month ago. 4/10 Image
And on #ETH itself there's a longer term trend of consolidation into tried and tested high TVL #DeFi 1.0 protocols.

#MakerDAO #Lido #Aave and #Curve now account for 49% of TVL on #Ethereum up from 36% at the Jan 2022 DeFi peak.

$MKR $DAI $LDO $AAVE $CRV 5/10 Image
What does this mean? Many chains have emerged, but many have failed to sustain significant market share (for now).

The cheaper and faster narrative is not enough. #Ethereum still has the security, user base and devs. It's where whales feel safe. 6/10
Many tout #Layer2 and #ETH 2.0 as the solution to speed and cost, strengthening the Ethereum dominance narrative.

Some other chains may die, but not all. I'm still watching the ones below sorted by active protocols (and high TVL).

Regardless of chain #DeFi is very risky. On the protocol level I expect focus on practical #DEX #lending and #yield options with high TVL and "realistic" returns.

Interested in growth of #liquidstaking (e.g. #LDO) and #derivates (e.g. #DYDX #GMX #DPX and #RBN). 8/10 Image
This is not to say that new innovations will not emerge. #DeFi is far from dead. We're just potentially in survival mode for now.

I'm personally interested in #Ethereum or #Layer2 solutions/protocols meeting real needs with a real business/revenue model. 9/10
This is one of the ways I look at the market to catch trends and position myself in the market.

If you've found it useful give the thread a retweet and give me a follow for my daily musings.

Let me know if there's any topics you'd like me to cover. 🙏 10/10

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More from @CrossChainAlex

May 17
🧵 What if we never needed an #ETH killer, just a faster and cheaper #Ethereum network? Enter #Layer2 solutions.

A brief thread on what they are in simple terms, why I'm bullish, and how they'll drive the next wave of #DeFi adoption. 1/12
A traditional business has sales to generate revenue (transactions) and accounting to keep the books (settlement).

Putting the accountant in charge of everything would be slow and costly and inhibit growth!

#Layer2 = sales and #Layer1 = accounting. 2/12
So, business needs multiple skillsets to scale, #blockchain needs decentralization, security and speed to scale.

Similarly #ETH excels in decentralization and security but increased costs and reduced speed inhibit growth. 3/12 Image
Read 12 tweets
May 7
🧵 Here's how I make 43% APY on $USD (and my $EUR, $ETH and $BTC) by utilising a fully regulated brokerage service called #Freeway. Perfect for bear markets and I personally believe it is safer and with a better R:R than e.g. $UST on #AnchorProtocol or $USDD on #TRON. 1/20
❗ This is my own research presented in an objective manner. I include a few of my own opinions. Not financial advice, do your own research, be aware of the risks. Learn about #Freeway here (referral link, but using it boosts your rewards by 2%): 2/20
📜 Background: founded in 2017 as #AuBit, rebranded to #Freeway. Global team of 40+. Formally registered operations registered in Greece, UK, and Germany (prime brokerage), Estonia (licensed virtual currency exchange), and Seychelles (business operations). 3/20
Read 20 tweets
May 6
🧵 The market is tough right now so it's time to get behind projects with strong teams, use case and potential. I'm still bullish on #FaaS and here's a thread on @TheCryptoTrian1 $MUDA a #DeFi3 project that differentiates itself from competitors in some interesting ways! 1/12
The business strategy is composed of 3 pillars. The 3 sides of the triangle aim to make $MUDA an easily accessible form of passive income across multiple chains with direct retail onboarding via fiat onramp. The objective is to offer well rounded, safe and profitable #FaaS 2/12
Pillar 1 was launching multi-chain with a custom BEP to ERC20 bridge from day 1, allowing users to choose to invest on either #Ethereum or #BSC, as well as offering arbitrage opportunities to align the market cap on both chains. 3/12
Read 12 tweets
May 4
🧵 Was cooking dinner and mulling over tokens, why there are so many, do we ever need them, maybe ERC-20 tokens are not what we thought they were, and why I'm slowly catching on to the potential of #NFTs. Random thoughts, some of it obvious, felt like typing it up. 1/16
Currently I only really see two "use-cases" for the majority of ERC-20 tokens in most cases not providing much real utility. Projects create them as it is an easy way to bootstrap a fundraise and a way to provide future incentives to use their protocol. 2/16
Us guys follow that thread and look to speculate on this something out of nothing value creation to try and acquire these tokens at lower prices and sell them at higher prices, whilst trying to outrun lack of real utility or high emissions. 3/16
Read 16 tweets
May 3
🧵 An attempt at an objective review of #YieldNodes. A #masternode service that has generated an average of 10% a month on #stablecoins for 3 years to date. Like everything in #crypto it is high risk. I present the pros, cons, benefits and risks, as objectively as possible. 1/12
What is it? #YieldNodes offer managed masternoding, pooling investor funds, and managing the infrastructure and profit distribution. Here's a link for you to #DYOR. It is a ref link which means I receive a small commission on any deposits you make.… 2/12
What are #masternodes? Here is the investopedia definition and a link for you to research in your own time. Masternodes have been a commonly used part of #blockchain infrastructure for many years so it is nothing particularly exotic or innovative.… 3/12
Read 12 tweets
Apr 29
🧵 On the theme on legit projects with strong teams, real utility and a long-term game plan and upside, here's a thread on @ADRTtoken $ADRT. A really unique project that I would categorize as a #DeFi #IaaS protocol. Here's what I like about it. 1/9
🚀 So, what is it? There is a 12% buy and sell tax. 4% goes back to holders as #ETH reflections, 4% to an investment treasury to generate returns for holders, 2% to liquidity, and 2% to marketing. So, there are taxes, but they are sensibly distributed and deployed. 2/9 Image
🧑‍🤝‍🧑 Team: we're all tired of getting rugged by anon devs, and it's a cliche but people buy people, and the founders James and Kris are both fully doxxed (in fact I'm meeting Kris for coffee next week). They are also joined by 3-4 others with extensive experience. 3/9 Image
Read 9 tweets

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