A thread on Portfolio Management, Execution, & Psychology to level up your game.

8 mental frameworks to cut through the noise and become a sharper, more focused, and structured trader 🧵 1. Take The 100% Cash Test

To optimize your portfolio allocation, at least to the best of your ability, ask yourself this critical question:

—If your portfolio were to reset to 100% USDT today, would you choose to reallocate funds exactly into the same positions you currently hold?—

The answer for most people is probably not. Yet, many struggle to act. Why? Because of these psychological barriers:

• The Sunk Cost Fallacy
• Emotional Attachment
• Fear Of Being Wrong

The Sunk Cost Fallacy is the cognitive bias where people continue to invest time, money, or energy into something simply because they've already invested in it, even when it's no longer logical (this can also apply to relationships, projects, etc).

In trading, this means holding onto underperforming positions because you've already "spent so much" on them—whether financially or emotionally—rather than cutting losses and reallocating to better opportunities.

Ask yourself the question. If the answer is no, you need to act.

It can feel overwhelming at first, but start small, with 1 position: ask yourself if you would buy that exact amount of that token today. Then go with a 2nd one.

Selling is emotionally difficult because it feels like closing the door on potential. But clinging to positions based on hope or fear leads to stagnation and poor judgment.

1/ Introducing #BasedAI Creatures: a Digital Form of Living AI Agents.

This might be the closest we've come to AGI in crypto—a fusion of Cellular Automata and LLMs 🧵 2/ So, what exactly are Creatures?

"A self-organizing colony that combines cellular automata, quantum coherence, and LLMs, to explore emergent collective intelligence through cellular agents that think, plan, and evolve in a multi-dimensional space."

A lot to unpack here.

I've lost thousands of USD in crypto due to rugs or exploits. And who hasn't...

This free tool can help you find vulnerabilities in tokens and check out the health of your wallets to be protected

For example, I realized I have $31,010 exposed to risk in this wallet 🧵 @DeDotFi offers under the same UI different security tools, which are free to use for everyone:

1. Shield 🛡️ (my fav one)
2. Scanner 🔎
3. Rekt Database ℹ️

Hopefully thanks to it, you can avoid losing money in charts like this:

$KUJI | @TeamKujira looks good consolidating above $0.85

Cosmos L1 not listed yet in any top-tier CEX @ $100M Mcap

VCs out & 94% in circ, so they can't dump on you. Heard the team has quite a lot of runway

Gud tech: decentralized liquidator, stablecoin, on-chain orderbook, etc needs a top-tier CEX listing, only in MEXC now

Not easy to get users onto non-EVM L1s due to onboarding and lack of liquidity. But seems they're working on it

I'm still one of those who think that non-EVM L1s will be a main point of discussion again as narrative shifts

$LVL catalysts

- Deployment on @arbitrum in June
- Partnership with @traderjoe_xyz (hinted)
- $LVL / $LGO OFT tokens powered by @LayerZero_Labs w/ fully cross-chain yield aggregation
- @GMDprotocol to build delta-neutral vaults for LLP tranches (+ $LGO ?)

Chart looks pumpy here $GLP yield has dropped to 5.7% APR as TVL isn't being utilized. $GMX has more TVL than it needs

$LVL LLPs tranches are doing 38%, 127%, & 209% in BSC (only fees)

I think it's inevitable that some GLP liquidity migrates to Level to seek higher yields

1/ On Trading Narratives - some thoughts

There is something that took me some time to master. Still not 100% there, tbh, but in the right path.

We tend to increase size as the narrative becomes more & more obvious. And we're shy at the beginning, just in case. High risk, right? 2/ We have to do the opposite. Go hard initially and take some off the table as the narrative becomes more obvious

It seems counterintuitive. As human beings we have a cognitive bias to feel safer once we're comfortable, and we're comfortable when everyone is on the same trade.

This isn't about TA but about psychology. Gonna use this example.

$AIRI is consolidating within a tighter range, with overall trend to the upside. How many times the $0.0045 area has been touched?

The tighter the consolidation, the more violent the next move will be.

[1/5] Market reacting positively to the recent CPI print. BTC close to 19k, FET and OCEAN making new HHs, PHB and other AI coins up

Think what this chart is saying to sellers and buyers. When there are no big dips, eventually emotional humans are forced to buy as they feel fomo

[2/5]

1/ It Is Finally Live!

#NEAR is now compatible with @MetaMask 🔥🔒

Thus, NEAR becomes the first non-EVM chain to offer MetaMask compatibility through a smart contract called #NETH, developed by @proximityfi

Thread on how NETH works 🧵👇 2/ #NETH is a smart contract that enables your Ethereum address to remotely control your paired NEAR account via signing transactions.

NETH is deployed on the NEAR side and allows you to directly interact with NEAR dApps using most Ethereum wallets, such as MetaMask

1/ Can't believe market isn't aware of this gem

-Active liquidity management & market making on UniV3
-$3M Mcap | $10M FDV w/ 67.5% staked
-Fees>Mcap lol
-Just moved to Arbitrum
-Real Yield & utility

Enter $GAMMA | @GammaStrategies

THREAD 🧵
s/o @CryptoDamus411 for discovery 2/ Gamma is a non-custodial, automated, active concentrated liquidity manager

Gamma's Supervisor contacts (Hypervisor + input strategies), automatically manage the price ranges, rebalances assets, and re-invests earned fees to generate yields in an optimal way

1/ If you missed $CPOOL, don't miss $dAMM

TGE on Oct 31, but you can get it now at $300k Mcap 👀

The market might not know about it due to complex dynamics and ambiguous info

I went down the rabbit hole using Discord, Dune & Nansen, and this is what I found out

A thread 🧵 2/ $dAMM is the main token of @dammfinance, an undercollateralized lending protocol similar to $cpool that lends out tokens, including altcoins, to accredited market makers

1/ On Hedging: what is hedging and how to hedge

(with an example, fully on-chain and decentralized)

A thread 🧵 2/ WHAT IS HEDGING

Hedging is an advanced strategy to minimize the risk of your investment by offsetting losses

Think of it as an insurance policy. If you want to protect your home against the risk of fire, you might protect it by taking out insurance

1/ Enabling cross-chain composability: how @NEARProtocol’s Nightshade will disrupt DeFi

A thread 🧵👇 2/ This thread aims to provide the main takeaways from the more extensive research by @proximityfi that I personally wrote and you can find here

I've tried to make it as simple to understand as possible

medium.com/@ProximityFi/e…

After recent events, it is time the crypto space develops a new stablecoin that is

- 100% decentralized
- censorship resistant
- truly resilient

In this thread I'll explain and summarize one interesting idea to issue a BTC/ETH-backed stablecoin using derivatives contracts 🧵👇 1/ Let's understand the motivation first

Today:

- The US sanctions Tornado Cash and following this event
- Circle blacklists Tornado cash addresses by freezing USDC
- Github suspends accounts of Tornado contributors

https://twitter.com/bantg/status/1556721709931175937

While you are too busy with FOMC, CPI, unemployment data, GDP, recession, Powell, FED, Lagarde, Japan bonds, etc etc.

I just have notifications on for @Bitboy_Crypto

He is the HERO you don't deserve

He gave you a clear signal to max long at the bottom Sometimes it's just this easy

The signals are so good that you don't even need to know anything about markets to make money

Don't overthink

Just follow

$USN v2.0 has just been announced:

"A flexible stablecoin that can adapt to any market conditions"

v2.0 Phase I Design: collateralized 1:1 with $USDT + offers a sustainable native yield thanks to $NEAR staking rewards

Keep reading 👇🧵

1/x TLDR; $USN v2.0 shifts to a flexible model that will be split in 2 phases:

- Phase I: USN is 1:1 backed w/ USDT and offers a sustainable native yield obtained from NEAR staking rewards

- Phase II: USN will also be collateralized by non-stable assets, starting w/ NEAR

2/x

$USDD might go down to $0.85, but it must stay above $0.85

JustLend shows that $USDD is $1. It seems this is hardcoded

As Collat. Factor = 85%, this means that if USDD goes below $0.85, then ppl can buy worthless $USDD and borrow $USDC for a profit, draining the protocol Things don’t look good

I wouldn’t touch it. Collateral in stablecoins is higher than USDD in circulation

However, if they buy USDD they are spending money

1/ Given the market situation & extreme fear, you might be tempted to short $TRX due to the $USDD depeg at $0.96-0.97

DON'T DO IT

Pls understand the math first 👇🚨 2/ I don't precisely like their tactics, you know that. The problem is always how they convey information

Currently:

- $USDD is +158% collateralized by $USDC & $USDT
- Adding $BTC @ $20k, Collat. Ratio increases to 197% (it doesn't rly matter given the stablecoin collateral)

1/ Update on $USDD 👇

I just woke up and saw that USDD has slightly depegged to $0.97

Now trading at around $0.98 2/ The Curve pool for $USDD - 3CRV is getting unbalanced

$USDD = 82.82%
3CRV = 17.18%

Even the native Sun.io, which has deeper liquidity, is getting more unbalanced:

$USDD = 60.94%
$USDT = 39.06%

1/ And it's starting

$USDD is currently just 92% collateralized by the Reserves (even considering $TRX funds) ⚠️

If you subtract $TRX, it turns out collateralization ratio is currently 73%

Also, the 140M $USDT are not really USDT, but jUSDT 👇 2/ That means that the 140M USDT are deposited into JustLend, a lending / borrowing protocol on the $TRX network

They are earning some yield on that, which is understandable

However, we need to consider now that those $140M are subject to smart contract and exploit risk

This Is Huge:

$NEAR becomes the first non-EVM chain with @MetaMask compatibility 🤯

No need to create a NEAR wallet - just use your Metamask and come play with NEAR dapps directly

By @proximityfi & @NEARProtocol

1/7 Some notes:

- The integration is done entirely on the Near side via smart contracts using Ethereum accounts

- The plugin codename is nETH

- This is an early-stage alpha version, so there're still some technicalities

- Contract is already audited

- Unofficial integration

2/7

$ETH / $BTC is currently at spot where the 2018 bear-market relief rally took place

Notes:

- Bear market rallies can be strong: $ETH +120%
- Can last longer than most think: 1 month only up
- Can trick you into thinking we go back bull mode
- Macro structure is key: just a LH If smth like that occurs, don't get fooled

$ETH / $BTC might even go lower without much support though, given the stETH situation

It's backed 1:1 to ETH but liquidations may put some sell pressure on ETH. Then misunderstanding & FUD come, which may trigger a bigger sell off