Thread by @the_smart_ape

The Shanghai Upgrade will be in 7 days! 🔥

The biggest narrative associated with this update is the LSD narrative! 🫧

Let's see how to take advantage of this narrative to make big returns! 🪙

Level: Intermediate 🔰
Reading time: 4 minutes 📚
THREAD 🧵

If you don't know what the Shanghai Upgrade is and what impacts this upgrade may be, I invite you to read this THREAD before continuing:

https://twitter.com/the_smart_ape/status/1641137796592041993?s=20

Today only 15% of $ETH is staked!

This is explained by the fact that $ETH staked and rewards are locked, so a large part does not stake $ETH.

Only these $ETH will no longer be locked after the Shanghai Upgrade.

As a large part cannot open a validator (32 $ETH needed) the liquid staking (#LSD) solution is a good alternative.

It allows a double return, a return on the staking, and a return on the LSD which can be used in #DEFI.

You should know that the pump of #LSD protocols already started at the beginning of the year when the date of the Shanghai upgrade approached.

But we haven't seen the real pump yet and it will happen after Shanghai when users really start liquid stake $ETH.

But which protocols are most likely to experience a great evolution?

One of the protocols I'm most optimistic about is @pendle_fi. #PENDLE is not a protocol that offers LSDs, rather it is a protocol that offers derivatives from LSDs.

To put it simply, it allows you to trade (up and down) the returns of LSD.

I made a series of 3 THREADS on @pendle_fi where I explain in detail how it works and what it is for, go read them if you want to know more on PENDLE.
PART 1 :

https://twitter.com/the_smart_ape/status/1637217113248079872?s=20

PART 2 :

https://twitter.com/the_smart_ape/status/1637389609544962048?s=20

PART 3 :

https://twitter.com/the_smart_ape/status/1638069990413697026?s=20

In addition to allowing derivatives on LSDs @pendle_fi tokenomics is good!

With 100% of the fees generated by the protocol being distributed to holders and a circulating supply not far from the max supply.

$PENDLE pumped today but I think it's far from being over.

There are many protocols that offer LSD but $PENDLE is unique in what it offers, so there is no liquidity-splitting effect.

https://twitter.com/the_smart_ape/status/1643497215388786689?s=20

To understand in a very simplified way why @pendle_fi can be the protocol that will benefit the most from this narrative, I'll let you see this THREAD from @0xSmolfarmer , if you still don't understand after this THREAD it's not normal ;)

https://twitter.com/0xSmolfarmer/status/1643516403885154304?s=20

Except for $PENDLE, one can also make X10-100 by investing in low marketcap LSD protocol tokens.

The marketcap is not the only important element to consider, you must also consider #TOKENOMICS.

From @hildobby_ @DuneAnalytics dashboard, we see that @LidoFinance is the biggest staker with a 31% market share.

You must therefore be interested in the smallest players who are most likely to make 10X-100X.

You can also classify them by MarketCap, $SWISE for example only holds 0.42% of the market share with a marketcap of $39M compared to a marketcap of $2.3B for @LidoFinance.

$Swise is just one example you can find others by following the same steps:
1 – Choose an LSD protocol with a low market share using this dashboard:
dune.com/hildobby/eth2-…
2 – Compare the Mcap of these protocols and take those with the lowest marketcap
3 – Study Tokenomics

Conclusion :
Even if the #LSD market has already started to pump since the beginning of the year, we still are at the beginning and I also think that this will be the narrative of 2023.

So there is still time to surf on this narrative.

You have two options to surf this narrative:
1 – Invest in protocols that offer LSD derivatives, @pendle_fi is the number 1

2 – Invest in protocols that propose LSDs, there are many of them, so you have to choose them carefully taking into account evolution and tokenomics

Mention some interesting CTs:
@Donnadelcrypto
@dazai_0x
@crypto_linn
@0xUnbased
@cryptocrushmia
@coinwithstereo
@ardizor
@nixnox_eth
@UtilityChad
@Donnadelcrypto
@GiuoNFT
@FarmerTuHao
@ayyyeandy

Tagging these gigachads whose retweets would help engagements
@CryptoShiro_
@rektdiomedes
@Flowslikeosmo
@0xSalazar
@Deebs_DeFi
@DeFiMinty
@Slappjakke
@crypto_linn
@TheDeFISaint
@DeFi_Made_Here
@Louround_
@0xsurferboy
@CryptoKoryo
@WinterSoldierxz
@Chinchillah_
@DAdvisoor

I hope you enjoyed it, don't hesitate to let me know in the comments, without forgetting to like and RT the first tweet of the thread!

Stay safe and learn 💪
#Cryptocurency #blockchain #THREADOR #staking #RealYield #DEFI #LSD

https://twitter.com/the_smart_ape/status/1643671844401152000?s=20