Weekly Crypto Newsletter 5.9.21 ⚡️
Enjoy industry highlights for the week.
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Farming Tip
Most farming events are essentially a means to distribute tokens and establish a community. You can think of them as perpetual ICO’s or funding rounds. In legacy finance you’ll have a series of rounds before a company goes public. In every subsequent round the team is able to raise more money for less equity because they have delivered a working platform/product or have made significant progress. DeFi protocols receive funding using a more nuanced model. The retain their respective tokens in a treasury and the value of their treasury grows as the token price appreciates. This forces the team to add token value accrual mechanisms as they iterate. In other cases the teams will allocate a portion of the revenue into an operations fund.
TIP: Don’t over think or analyze the tokenomics in the early stages. Token utility and the tokenomics change significantly as the teams build. Solid teams are usually keen on getting community input which could also impact the trajectory. Instead focus your attention on what the team is building, the progress they’re making, and other projects they are collaborating with. In first few weeks to month, its probably best to just mine and dump. Once the DeFi token has had it’s first significant correction begin your assessment or at least monitor the progress. Once you feel the project is showing signs of potential, resume yield farming. I’ve done this at least a few times and have been rewarded amply for my efforts.
Content Summary
1:08 Transferring to MATIC
3:15 Getting Paid to Take Out A Loan
4:41 Triple Digit APR
Notable Tweets
