Alfprotocol is created to cater to traders with different appetites for risk aversion. In essence, it provides leveraged and non-leveraged products that would suit both new and experienced traders in a decentralized ecosystem that is powered by Solana, a robust blockchain suitable to handle the core requirements of a decentralized finance platform.
Solana has proven itself to be a viable go-to blockchain compared to Ethereum and other L1 solutions that have many shortcomings when tested with substantial user traffic.
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Unleveraged Liquidity Pools
Solana’s Alfprotocol offers two main packaged products for the unleveraged pools in the form of:
AlfMM – an on-chain autonomous market maker (AMM) decentralized exchange (DEX) service capable of reallocating unused liquidity to the leverage protocol. AlfMM will utilize AMM side order execution to achieve a bidirectional integration between AMM and the Treasury. The AMM acts as a source for the order flow and breaks down operations to acquire the best price option between the AMM and Serum, which gives it a DEX aggregator attribute.
AAlf – Allotment Alf is a money market solution that utilizes single-asset pools for liquidity providers (LPs) and overcollateralized debt positions for borrowers. Pools are handled separately, with each pool’s asset acting as a base for computing pool utilization and interest rates.
The true purpose of these two products is to provide a platform for risk-averse investors to provide liquidity and trade, all while indirectly providing liquidity for the leverage protocol.
Leveraged Liquidity Pools
Alfprotocol’s leverage feature is a system that enables traders to enter positions with leverage using the Solana blockchain. The protocol will utilize its connectors module, which uses business logic to enter leveraged positions outside protocol Serum to achieve the highest APY and efficiency in capital provision. In addition, to ensure sound liquidation, yet another module called “The Treasury” will track positions’ health at all times by keeping a tokenized representation of the collateral and positions debt made in lockboxes in its custody and being linked with an oracle.
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Lockboxes will also be utilized within the leverage protocol by wrapping fungible tokens. Lockboxes are the core technical solution for leveraged lp position health and collateral tracking. Alfprotocol’s users will be able to use multiple lockboxes as collateral for a single position.
Alfprotocol is currently in development. To find more info about the project and stay updated with the project’s current progress, please visit the website and check out the whitepaper.
With Binance Smart Chain offering numerous possibilities to earn profits, Smart Contract happens to be the rising star. One of these opportunities happens to be Decentralized Applications (or Dapps) that seek to take advantage of the PoS (Proof of Stake) abilities of the BSC network.
Lately, there have been new DeFi based Dapps getting launched every day. And, picking the right project can be a daunting task. This is where BNBMatrix.io comes in! This newly launched project has one of the neatest and most uncluttered user interface and processing.
BNBMatrix has introduced an attractive opportunity for crypto investors and enthusiasts to gain financial freedom. BNBMatrix is a smart contract-based Dapp built on BSC Network that makes use of blockchain technology to provide financial services based on a smart contract. It allows the investors an opportunity to earn a high percentage of rewards based on the deposit period that is anywhere between 7 and 30 days. The users can make stable daily returns from 7.8% to 17% on their deposits. The idea is to make the most advantage of the Binance Smart Chain without spending too much time or resources.
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BNBMatrix has seen immense growth since the time of its inception. While this editorial was being written, they surpassed an investment of 2500 BNB, which happens to be growing continuously.
Featuring extremely simple processing (deposit/withdrawals), BNBMatrix aims to offer ease of understanding to the users. They realize the importance of the prevention of malice and the need for strong security. Thus, the smart contract code has been audited by HazeCrypto, verifying that it is secure for usage.
BNBMatrix is devoted to making its users’ experience easy, safe, and seamless. And, the team offers 24/7 customer support to all the users on Telegram. They’re happy to answer queries or concerns and resolve any issues that the users may have.
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A user can get started with a minimum deposit of 0.01 BNB. The attractive reward percentages range anywhere from 7.8% to 17%. And, these returns depend upon the deposit period of 7 – 30 days. BNBMatrix is attaining a huge amount of popularity in the crypto space given such stable returns.
Participate in BNBMatrix:
Visit BNBMatrix.io, and have a look at the interface and FAQs
Select the desired Deposit Period for your investment. Enter the number of BNB you would like to deposit. Click ‘Invest’. That’s it.
After you invest, you’ll be provided with a referral link. Share it with your friends. You receive a percentile of their deposits.
Referrals:
BNBMatrix has a 5-level referrals program that rewards investors for bringing in new users to the Dapp. It makes up for a commission of 11.5%. Once users make a deposit, they are provided with a referral link. Sharing this link with their friends and having them invest would get the users additional rewards.
BNBMatrix is a simple-to-understand project with a clean interface that offers its investors earn profits on their idle crypto assets. The smart contract has been experiencing great success in terms of investment with such attractive rewards.
BNBMatrix.io is a yield farming Dapp on BSC. The goal is to make the most of the Binance Smart Chain without having to spend too much time and/or resources.
The Binance Smart Chain (BSC) has seen an increase in the activity on its blockchain from token swaps, dApps to NFTs, and decentralized money markets. One of the best features of the BSC is that it offers cross-chain atomic swaps with gas fees that are almost 20 times lower than other chains.
Its Proof-of-stake Authority (PoSA) consensus allows for it to be a high-speed infrastructure, helpful for DeFi apps. This makes it suitable for mass adoption.
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BEP-20 tokens offer borderless DeFi opportunities as when a token is launched on the Binance Smart Chain it can easily be moved across different chains. It also helps to simplify interoperability in the entire ecosystem.
What is BNBMatrix?
BNBMatrix is a smart contract-based investment Dapp written on the Binance Smart Chain. It became live last week and in about 7 days, it has already crossed a milestone of 500 BNB, which is growing at the time of writing.
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Benefitting from BNBMatrix
The investors are able to generate stable daily returns anywhere from 7.8% to 17% on their investment with BNBMatrix. In fact, the smart contract offers the option to invest as low as 0.001 BNB to get started. Moreover, the generated BNB can be withdrawn at any time from their Dapp.
Features
Safe & Secure: BNBMatrix is very meticulous about the safety of the smart contract. It has been audited by HazeCrypto. There were no vulnerabilities, backdoors, or scam scripts found in the BNBMatrix Smart Contract.
Customer Success: Team BNBMatrix offers 24/7 customer support on Telegram to all users. Be it a query or concern, they ensure it is resolved at the earliest.
Stable ROI: With revolutionary growth since its launch, BNBMatrix is on a pursuit to become one of the highest ROI programs amongst yield farming on BSC. Between the deposit period of 7 and 30 days, the investors can get a 119% to 239% return on their investment.
5 Level Referral Program
BNBMatrix offers 5 levels of referral programs, paying an attractive 11.5% commission. A referral link is provided at the time of investment which can be shared by the users with their friends to join in.
BNBMatrix is a simple project with a neat interface that helps investors make passive income on their idle crypto assets. The smart contract has been experiencing a thriving success in terms of investment with its profitability and referral levels.
To get more information about BNBMatrix.io, head to their website or join their Telegram group
Since its launch in September 2020 as a parallel platform by Binance, Binance Smart Chain (BSC) has been making its presence felt in multiple financial technology markets. With its low transaction fees, fast processing speeds, and compatibility with Ethereum Virtual Machine, it is offering an unbeatable user experience to NFT, Dapp, and DeFi developers.
Taking all these attributes into account, BSC has revolutionized trading through its exchange with new and exciting Dapps getting launched every day.
BNBMatrix.io is a yield farming Dapp on BSC. The goal is to make the most of the Binance Smart Chain without having to spend too much time and/or resources.
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
What is BNBMatrix?
BNBMatrix is a smart contract-based investment Dapp written on the Binance Smart Chain. It became live in early November 2021 and since then, it has seen drastic growth.
Get 110 USDT Futures Bonus for FREE!
Benefitting from BNBMatrix
BNBMatrix lets the investors generate stable daily returns from 7.8% to 17% on their investment. To get started, the smart contract offers the opportunity to invest as little as 0.001 BNB. The investors can withdraw the generated BNB at any time from their Dapp.
Highlights
Following are the key features of BNBMatrix:
Strong security: The safety of the smart contract comes first and foremost, and BNBMatrix has been audited by HazeCrypto. No vulnerabilities, backdoors, or scam scripts were found in the BNBMatrix Smart Contract.
Customer support: If the users have any grievances or concerns, BNBMatrix offers 24/7 customer support on Telegram for assistance.
High ROI: With radical growth since its inception, BNBMatrix is on its journey to becoming one of the highest ROI programs amongst the yield farms on BSC. Between the deposit period of 7 and 30 days, the investors can get a 119% to 239% return on their investment. The longer the deposit period, the bigger the reward.
Referral Program
BNBMatrix pays an 11.5% commission over 5 levels of referral programs. The investors can share their referral links and allow their friends to join in while making additional profits.
Closing Thoughts
BNBMatrix is grabbing a lot of attention in the crypto industry given its clean and simple interface, and easy functionality. The smart contract has been experiencing constant growth in terms of user base with its attractive returns and referral levels that offer a wide scope of earnings to its investors.
To get more information about BNBMatrix.io, head to their website or join their Telegram group.
KillSwitch is a new DeFi project that is created to assist all yield farmers ensuring that transactions are quick and smooth. Soon, KillSwitch will be ready to list utility tokens for its ILO which will be happening on the 25th – 31th October 2021.
“KillSwitch”, a new DeFi project with features that provides easy yield farming and security for all users
From one yield farmer to another who shares and knows of the same pain, developed a smart tool targeting to increase convenience and security for yield farmers. The feature is now available on Binance Smart Chain and Polygon chain with 3 prominent features which are One-clicked stake, Kill Position and Semi-Auto Compound.
What to expect in the near future?
Although KillSwitch has made farming easier, there is still much more room for improvement. Primarily, two more features will be introduced shortly. Which are:
Mixture Swap – the swapping of LP tokens to other LP tokens (that are on the whitelist) that users can stake in the source of a pool. This feature is exceptional for those who like to jump around from one platform to another.
Take Profit/Stop Loss – The ultimate feature allows users to “rest easy” without having to worry about the risk of their investments. The TP/SL is a feature that users can set to close their own investments at a given condition or to receive a certain amount of profit likewise.
KillSwitch Sets ILO Date
To grow the DeFi project, KillSwitch has decided to open up its platform to investors by setting up an ILO (public sale) with the maximum capacity of $5,000,000, which will be happening on the 25th-31th October 2021.
What is KillSwitch?
KillSwitch is a smart yield farming aggregator targeting to increase convenience and security for all yield farmers. Sympathizing fellow yield farmers, they created the fast and effective smart yield aggregator that aims to make farming easy and “leaving” easier.
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Increased demand for the CRV token and low circulating supply are driving up the price.
Currently, over 89% of all CRV tokens are locked up in DeFi protocols.
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Curve has broken past its April highs, fueled by increased demand for CRV tokens and a low circulating supply.
Curve Breaks Out
CRV tokens are in high demand.
The DeFi DAO token is climbing higher, breaking past its yearly high of $4.66 achieved in April. The CRV token is currently trading at $4.91, up 75% over the past week.
USD/CRV chart. Source: CoinGecko
Curve Finance, the issuer of CRV tokens, is a DeFi protocol specializing in like-asset swaps such as stablecoins and wrapped assets. Users can provide liquidity to Curve’s swap pools to earn CRV tokens rewards, which can then be deposited into other DeFi protocols to generate additional yield.
This year a whole sub-DeFi ecosystem has formed around yield optimization for CRV tokens. Both Yearn Finance and Convex Finance offer attractive yields to users willing to lock up their CRV tokens in vaults for up to four years.
The competition between these two protocols, sometimes called “The Curve Wars,” has rapidly consumed a large portion of the total CRV token supply. Additionally, a new “DeFi 2.0” protocol, abracadabra.money, allows users to borrow its MIM stablecoin using Curve Liquidity Provider tokens as collateral, further reducing the CRV supply.
Over 89% of all CRV tokens are currently locked up in various DeFi protocols, with an average vesting time of 3.68 years. With the supply shrinking and demand staying constant, the CRV token is rapidly increasing in value. Recently, the supply of CRV tokens has become disinflationary, meaning that more tokens are being locked up than new ones distributed.
CRV and vested CRV chart. Source: @banteg via Dune Analytics
Since May’s market crash, DeFi protocol tokens have underperformed compared to the market average. While Layer 1s such as Solana and Avalanche have enjoyed significant gains, Aave and Yearn finance’s tokens have remained stagnant. Whether Curve’s current price action is the start of a DeFi revival in the market remains to be seen.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.
This news was brought to you by ANKR, our preferred DeFi Partner.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
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Cryptocurrencies are volatile, which presents risks when investing.
Employing hedging strategies can minimize the risk of investing in crypto.
Earning yield, allocating to larger projects, and storing assets safely can reduce the risks associated with crypto investing.
Share this article
Crypto investors can employ a number of strategies to minimize the risks associated with participating in the space.
A Guide to Hedging in Crypto
Many cryptocurrencies have hit new all-time highs in recent weeks, while trading volumes have been soaring throughout the year. The crypto space is experiencing its biggest bull run to date, and while many believe that the cycle could continue for at least a few more months, the market’s future moves are impossible to predict.
During market peaks, optimism can affect rational decision making. Investors may be tempted to double down with leverage or neglect risk management strategies as prices increase, which can have dramatic consequences during a downturn.
Crypto’s “HODL” mindset, which advocates for holding onto all investments without ever selling, may not be the optimal strategy for everyone. For those who want to succeed in the crypto market, there are several tried-and-tested strategies that can be used to hedge portfolios.
Dollar Cost Averaging
Perhaps the simplest way to manage risk in the market is by simply taking profits. However, there is risk in selling. Exiting the market too early could mean missing out on huge gains if prices continue to climb. That’s where the popular “Dollar Cost Average” (DCA) strategy comes into play. DCA involves incrementally buying or selling an asset rather than deploying capital in one purchase or selling the entirety of one’s holdings. DCA is particularly useful in volatile markets like crypto.
DCA helps manage price action uncertainty; it’s useful for deciding when to sell. Rather than attempting to identify the top of the bull market, one can simply sell in increments as the market rises.
Many successful traders implement the strategy in one form or another. Some use DCA to buy crypto with a portion of their paycheck every month, while others may make purchases daily or weekly. Centralized exchanges like Coinbase offer tools to automatically employ a DCA strategy.
Historically, crypto bear markets have offered the best times to accumulate assets. Bull markets, meanwhile, have offered the best times to sell. DCA is therefore best utilized when the cyclical nature of the market is factored in.
Yield Farming and Staking
The advent of DeFi and stablecoins has offered a way for investors to earn yield on their portfolio. Holding a portion of one’s holdings in stablecoins offers a way to capture the lucrative yield farming opportunities while reducing exposure to market volatility. DeFi protocols such as Anchor and Curve Finance are known to offer double-digit yields, while the rates offered in other newer liquidity pools can be significantly higher (newer yield farms are also considered riskier).
Staking crypto tokens is another effective method of generating passive income. As staked assets appreciate in price, so do yield returns. Meanwhile, liquid staking through projects such as Lido Finance offers a way to earn yield through tokens representing staked assets. If the asset decreases in price, staking allows the holder to continue earning interest on the asset.
On-chain and Technical Analysis
While trading and technical analysis requires a level of knowledge and skill, learning the basics can be useful for those who are looking to get an edge in the market. That’s not to say that one needs to buy expensive trading courses or spend time making short-term trades. However, it can be useful to know a few key indicators such as moving averages to inform decisions such as when to take profits.
Many tools also offer ways to analyze on-chain activity such as whale accumulation and funding rates. Other types of technical analysis include finding the “fair value” of assets. It can also be useful to analyze the overall picture of the market from a macro perspective as there are so many factors that can influence the market. For example, ahead of crypto’s Black Thursday event, fears surrounding Coronavirus indicated that markets could be preparing for a major selloff.
Storing Assets and DeFi Cover
One of the most important aspects of protecting crypto relates to storage. It’s crucial to use the right kind of wallet and safeguard private keys. Cold wallets such as hardware wallets are recommended for significant portions of funds, while hot wallets such as MetaMask are generally not considered the best place to store crypto.
While investors often lock assets such as ETH in smart contracts to leverage DeFi opportunities, there are ways to get protection against hacks and other risks. Projects such as Nexus Mutual, which resembles insurance for DeFi, offer ways to hedge risk on crypto portfolios by selling cover against exchange hacks or smart contract bugs.
Portfolio Construction
Portfolio construction is another important aspect of managing risk. Choosing what assets to buy and at what quantities can have a great impact on the overall risk level of a portfolio. It’s important to consider the amount invested in crypto relative to other assets and savings accounts. Moreover, selecting the right crypto projects to invest in is a crucial part of managing risk. Similarly, for those who trade assets, it is important to distinguish the proportion of a portfolio that can actively be used for trading.
As a general rule, it is worth considering the market capitalization of each asset in a portfolio. While major cryptocurrencies like Bitcoin and Ethereum are volatile, they are considered less risky than many lower cap projects as they are more liquid and benefit from Lindy effect. However, projects with lower market caps can also yield greater returns. Portfolio construction ultimately depends on the risk appetite, financial goals, and time horizons of each individual. The historical data shows that investing in larger cap projects can be profitable on a long time horizon.
Portfolio allocation also pertains to different types of assets. This year’s NFT explosion has yielded great returns for many collectors who participated in the market, but NFTs are less liquid than most other crypto tokens. NFTs are not interchangeable, whereas assets like Bitcoin and Ethereum trade at almost the same price across every exchange. This can also make it harder to find a buyer at a set price when interest in the market dries up. As NFTs are an emergent technology in a nascent space, investing in them is still very risky.
Buying Options
Options are a type of derivative contract that give buyers the opportunity to buy or sell an asset at a set price. For those who are long on a crypto portfolio, put options can be an effective way to hedge risk. Put options offer the right to sell an asset at a determined price in a determined time frame. This allows investors to protect their portfolio by going short in case of a downswing in the market.
Conversely, call options offer an opportunity to buy as asset at a set price in the future, and are effectively a type of long bet. If an investor takes profits early in case of a downturn, holding call options can allow them to buy back in at a certain price if they believe that the market is likely to rally in the future. Options are a complex product that are only recommended for advanced traders and investors, but they can yield lucrative returns for users.
In conclusion, crypto investing can offer huge returns. Historically, crypto has offered outsized upside potential unmatched by any other asset in the world. Fundamentally, though, more potential reward comes with more risk. Employing a variety of hedging strategies can help minimize the risk and increase the rewards the space offers.
Disclosure: At the time of writing, the author of this feature owned BTC, ETH, and several other cryptocurrencies.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
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Cryptocurrencies are volatile, which presents risks when investing.
Employing hedging strategies can minimize the risk of investing in crypto.
Earning yield, allocating to larger projects, and storing assets safely can reduce the risks associated with crypto investing.
Share this article
Crypto investors can employ a number of strategies to minimize the risks associated with participating in the space.
A Guide to Hedging in Crypto
Many cryptocurrencies have hit new all-time highs in recent weeks, while trading volumes have been soaring throughout the year. The crypto space is experiencing its biggest bull run to date, and while many believe that the cycle could continue for at least a few more months, the market’s future moves are impossible to predict.
During market peaks, optimism can affect rational decision making. Investors may be tempted to double down with leverage or neglect risk management strategies as prices increase, which can have dramatic consequences during a downturn.
Crypto’s “HODL” mindset, which advocates for holding onto all investments without ever selling, may not be the optimal strategy for everyone. For those who want to succeed in the crypto market, there are several tried-and-tested strategies that can be used to hedge portfolios.
Dollar Cost Averaging
Perhaps the simplest way to manage risk in the market is by simply taking profits. However, there is risk in selling. Exiting the market too early could mean missing out on huge gains if prices continue to climb. That’s where the popular “Dollar Cost Average” (DCA) strategy comes into play. DCA involves incrementally buying or selling an asset rather than deploying capital in one purchase or selling the entirety of one’s holdings. DCA is particularly useful in volatile markets like crypto.
DCA helps manage price action uncertainty; it’s useful for deciding when to sell. Rather than attempting to identify the top of the bull market, one can simply sell in increments as the market rises.
Many successful traders implement the strategy in one form or another. Some use DCA to buy crypto with a portion of their paycheck every month, while others may make purchases daily or weekly. Centralized exchanges like Coinbase offer tools to automatically employ a DCA strategy.
Historically, crypto bear markets have offered the best times to accumulate assets. Bull markets, meanwhile, have offered the best times to sell. DCA is therefore best utilized when the cyclical nature of the market is factored in.
Yield Farming and Staking
The advent of DeFi and stablecoins has offered a way for investors to earn yield on their portfolio. Holding a portion of one’s holdings in stablecoins offers a way to capture the lucrative yield farming opportunities while reducing exposure to market volatility. DeFi protocols such as Anchor and Curve Finance are known to offer double-digit yields, while the rates offered in other newer liquidity pools can be significantly higher (newer yield farms are also considered riskier).
Staking crypto tokens is another effective method of generating passive income. As staked assets appreciate in price, so do yield returns. Meanwhile, liquid staking through projects such as Lido Finance offers a way to earn yield through tokens representing staked assets. If the asset decreases in price, staking allows the holder to continue earning interest on the asset.
On-chain and Technical Analysis
While trading and technical analysis requires a level of knowledge and skill, learning the basics can be useful for those who are looking to get an edge in the market. That’s not to say that one needs to buy expensive trading courses or spend time making short-term trades. However, it can be useful to know a few key indicators such as moving averages to inform decisions such as when to take profits.
Many tools also offer ways to analyze on-chain activity such as whale accumulation and funding rates. Other types of technical analysis include finding the “fair value” of assets. It can also be useful to analyze the overall picture of the market from a macro perspective as there are so many factors that can influence the market. For example, ahead of crypto’s Black Thursday event, fears surrounding Coronavirus indicated that markets could be preparing for a major selloff.
Storing Assets and DeFi Cover
One of the most important aspects of protecting crypto relates to storage. It’s crucial to use the right kind of wallet and safeguard private keys. Cold wallets such as hardware wallets are recommended for significant portions of funds, while hot wallets such as MetaMask are generally not considered the best place to store crypto.
While investors often lock assets such as ETH in smart contracts to leverage DeFi opportunities, there are ways to get protection against hacks and other risks. Projects such as Nexus Mutual, which resembles insurance for DeFi, offer ways to hedge risk on crypto portfolios by selling cover against exchange hacks or smart contract bugs.
Portfolio Construction
Portfolio construction is another important aspect of managing risk. Choosing what assets to buy and at what quantities can have a great impact on the overall risk level of a portfolio. It’s important to consider the amount invested in crypto relative to other assets and savings accounts. Moreover, selecting the right crypto projects to invest in is a crucial part of managing risk. Similarly, for those who trade assets, it is important to distinguish the proportion of a portfolio that can actively be used for trading.
As a general rule, it is worth considering the market capitalization of each asset in a portfolio. While major cryptocurrencies like Bitcoin and Ethereum are volatile, they are considered less risky than many lower cap projects as they are more liquid and benefit from Lindy effect. However, projects with lower market caps can also yield greater returns. Portfolio construction ultimately depends on the risk appetite, financial goals, and time horizons of each individual. The historical data shows that investing in larger cap projects can be profitable on a long time horizon.
Portfolio allocation also pertains to different types of assets. This year’s NFT explosion has yielded great returns for many collectors who participated in the market, but NFTs are less liquid than most other crypto tokens. NFTs are not interchangeable, whereas assets like Bitcoin and Ethereum trade at almost the same price across every exchange. This can also make it harder to find a buyer at a set price when interest in the market dries up. As NFTs are an emergent technology in a nascent space, investing in them is still very risky.
Buying Options
Options are a type of derivative contract that give buyers the opportunity to buy or sell an asset at a set price. For those who are long on a crypto portfolio, put options can be an effective way to hedge risk. Put options offer the right to sell an asset at a determined price in a determined time frame. This allows investors to protect their portfolio by going short in case of a downswing in the market.
Conversely, call options offer an opportunity to buy as asset at a set price in the future, and are effectively a type of long bet. If an investor takes profits early in case of a downturn, holding call options can allow them to buy back in at a certain price if they believe that the market is likely to rally in the future. Options are a complex product that are only recommended for advanced traders and investors, but they can yield lucrative returns for users.
In conclusion, crypto investing can offer huge returns. Historically, crypto has offered outsized upside potential unmatched by any other asset in the world. Fundamentally, though, more potential reward comes with more risk. Employing a variety of hedging strategies can help minimize the risk and increase the rewards the space offers.
Disclosure: At the time of writing, the author of this feature owned BTC, ETH, and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
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Olympus DAO’s OHM token is quickly approaching its all-time high.
The project’s clever tokenomics are drawing in users and providing value.
A strong community and meme culture surrounding the project are also helping the DAO to grow.
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Olympus DAO has bounced off its summer lows and is rapidly approaching a new all-time high. The project’s clever tokenomics, strong community, and meme culture are all driving adoption.
Olympus DAO Climbs Higher
While other crypto assets swing with market volatility, one project has consistently climbed higher in the background.
Olympus DAO has risen more than 160% over the past month as interest in the project reaches a fever pitch. The OHM token is currently trading at $1,224 and is roughly 13.6% short of its all-time high of $1,415 achieved earlier this year in April. During the market crash in May, the project was hit hard, losing almost 90% of its value and dropping to an all-time low of $162. It has since rebounded with strength.
OHM/USD Chart. Source: CoinGecko
Olympus DAO is the DeFi protocol that issues the fully collateralized, free-floating OHM token. The project’s ultimate goal is to create a stable crypto asset. However, when looking at the historical price swings of the OHM token, this may seem counterintuitive.
The current previous volatility is intentional in the early stages of the project. The DAO’s current objective is to first grow the supply of OHM tokens, with stabilization coming later. In order to grow the token supply, Olympus DAO has constructed a clever tokenomic system to draw in new users and provide value.
The DAO works by allowing users to bond other crypto assets such as MakerDAO’s Dai stablecoin to the protocol, receiving newly minted and discounted OHM tokens in return. This brings in assets to the DAO, which are then deployed to generate yield.
OHM token holders can stake their tokens to receive the yields generated by the DAO, which incentivizes them not to sell their OHM. This, in turn, creates more belief in the future of the project as yields keep increasing. When the OHM token yield increases, the market values the tokens higher, increasing the price. This encourages more people to bond their assets in exchange for discounted OHM, thus completing the cycle.
Source: @RyanWatkins_
This tokenomic “flywheel” will only work if enough people are using the protocol to set it in motion. Olympus DAO has drawn users to the project through its strong community and meme culture surrounding the project.
On social media, many proponents of Olympus DAO (who refer to themselves as “Ohmies”) sport the (3, 3) suffix in their names to indicate allegiance to the project. The (3, 3) tag references the game theory of how the project works. If a user stakes OHM tokens, it is conceptualized as a +3 positive for the DAO as it causes scarcity, increasing the price of OHM. If all DAO participants choose to stake their OHM, it results in the highest possible net positive for all token holders, represented by (3, 3).
The game theory of Olympus DAO. Source: Olympus DAO Medium
The game theory meme format has become so prominent that it has even extended to other projects. For example, users of another DeFi protocol, Tokemak, have adopted a similar meme using radioactive signs instead of numbers.
Source: @TokenReactor
Additionally, Olympus DAO has gone on to inspire several similar projects. The recently launched TempleDAO takes inspiration from Olympus’ meme culture. At the same time, Wonderland, a direct fork on Avalanche, was created by DeFi 2.0 pioneer Daniele Sesta, and has received the blessing of the Olympus DAO team.
Currently, the OHM token price looks strong, with more trading volume than ever before. While the tokenomics suggest that the price will continue to increase, critics have likened the protocol to a Ponzi scheme. Whether Olympus DAO will be able to sustain its current rate of growth remains to be seen.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.
This news was brought to you by ANKR, our preferred DeFi Partner.
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You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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It goes without saying that the world of decentralized finance (DeFi) saw exponential growth over the past year and a half, with the total value locked across various protocols skyrocketing.
And while some time ago, most of the DeFi developers were predominantly occupying Ethereum’s network, competitive chains such as Binance Smart Chain and Solana, among others, have also seen substantial growth in demand and interest.
Many argue that until Ethereum transitions to a proof-of-stake (PoS) consensus algorithm, the network won’t be able to handle the massive demand. Facts support this, as we’ve seen Ethereum transaction fees and processing time spin out of control in times of network congestion.
Solana and BSC have risen as the most obvious alternative and perhaps the ones that garnered the majority of the users’ interest. Another worthy mention is Polygon – formerly known as Matic.
To garner the attention and capitalize on the growing markets while also allowing its users to benefit by staking their cryptocurrency and farming other in return, KingDeFi becomes among the first DeFi protocols to enable a cross-chain bridge across 5 different networks.
What is KingDeFi?
According to the team, KingDeFi is the first yield farming aggregator powered by artificial intelligence (AI), working across Binance Smart Chain, Solana, Heco, Polygon, and Ethereum.
The main idea behind the protocol is to make it easier for users to get the most out of their cryptocurrency without having to spend countless hours searching for the best opportunity, dabbling through multiple transactions, and burning fees.
Users are able to provide liquidity directly through the KingDeFi platform, where a monitoring function unlocks insights into some of the major protocols that operate across the supported blockchains.
With a simple click of a button, users are able to get suggestions on where they can find the most profitable farms. These suggestions are even customized based on the tokens users hold in their own wallets.
A Closer Look Into the Bridge
One of the things that make KingDeFi stand out is their cross-chain bridge across five different networks – Polygon, Heco, Solana, Ethereum, and Binance Smart Chain.
The team applies a multi-programming language approach, taking advantage of Solidity, Rust, C++, and Haskell, in an attempt to keep expanding to other chains in the future.
The bridge is important because it allows the protocol to spread its current circulating supply across the abovementioned blockchains and even to more in the future.
This means that instead of applying practices such as burning, the team can manage price inflation by re-distributing the rewards across various networks.
It’s also worth noting that there’s only one project token and one circulating supply spread across multiple chains – there is no token on a different blockchain. This eliminates a lot of issues, such as minting new tokens, which would ultimately increase the overall circulating supply of the project.
The bridge is also a tool that would allow KingDeFi to network and connect to different teams and projects in an attempt to offer a multitude of farms on its platform.
“The bridge is an amazing instrument to “open doors” for new partnerships. The team is now contacting other projects across five blockchains in order to start farms and have new partnerships with the best and fastest-growing projects across Solana, Heco, Polygon, and Ethereum.” – Reads an official blog post.
Team and Security
KingDeFi takes an interesting approach towards branding its platform – it’s all carrying a medieval theme in the spirit of kings and knights.
It’s worth noting, though, that the team behind it is anonymous. In line with the general theme of the project, its CEO is King Arthur – a figure based in Switzerland with over 10 years of experience in Banking, Asset Management, and Technology. His background firms purportedly include the Frankfurt Stock Exchange, KPMG, and some technology startups.
In terms of security, the King Farms contacts have been audited by the well-known company CertiK. The report from the check can be seen here. In addition, the team told CryptoPotato that they have a cybersecurity advisor whose role is to cover all infrastructure security assessments together with Hacken as a security provider – another rather popular company in the industry.
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