NFT Flipping
[Testimony from an experienced flipper]
- Commit to being on your computer for a significant amount of time - this takes effort.
- Understand the “Greater Fool Theory”
- The point is to sell into hype and greed for profit.
- Keep an attentive eye on social medias (Twitter and Discord)
- Twitter is for the product and hype
- Discord is to evaluate the team and community
- Follow Twitter Bot accounts that follow relevant NFT trading activity (New mint, successive purchases, floor price changes).
- Get Browser extension to evaluate rarity of generative collections.
- Mint Day - hype will build, beware of gas wars.
- Buy 3 NFTs that you like visually - if they go to zero, you want something that at least looks nice.
- The typical price is 0.08 ETH to enter. Free mints are becoming popular.
- Reveal day - Price tends to drop after reveal and then rise once hype builds again. Sell one on the first day no matter what, try to recover price of initial purchase price. Save the rest to speculate and try to make a greater profit or recover initial purchase price.
- Ethereum is where the volume is largest and has the greatest chance of speculative movement that can lead to profit.
- Set a plan and stick to it.
State of Defi
Currently Rank #40 on DeFi Llama with 37m TVL, down from 1.37b last January.
Only 10 projects with $100k+ on-chain.
Total volume is just under $500k/day. Volume is concentrated to DFK, Tranquil and Sushi but most volume is under $10k.
36k transactions per day concentrated in DFK.
DeFi Kingdoms is moving to Klayton soon.
The easiest way to trade
OpenOcean finds the best routes across all Harmony DEXes to get the best rate.
The best way to borrow/lend
AAVE has “bad debt” that needs to be resolved from the hack.
- People deposited distressed assets, and borrowed non-distressed assets against them, then ran off with the loans.
- Since the distressed assets can’t be liquidated (sold) to cover the loan, this leaves “bad debt”.
Tranquil is a solution for now.
Why can’t we trade our distressed assets?
Well… we can, they’re just worth much, much less.
(Data as of 9/14/22 - OpenOcean DEX aggregator/optimizer)
1USDC
1USDT
1DAI
1FRAX
BUSD
1ETH
wBTC
BNB
FXS
[missing data]
SUSHI
AAG
[missing data]
1AAVE
Minimum Steps to fix DeFi on Harmony
- Large players need to add Stably stablecoin liquidity to allow traders to move in and out of speculative positions.
- Preferably with a AMM bot (Hummingbot) to take a market neutral position.
- Enable the LayerZero bridge to bring over new assets (2USDC, 2DAI, 2USDT, 2ETH, etc.)
Additional steps include resolving bad debt with ecosystem partners and burning distressed assets to avoid sloppy user experience on DEXes.
Bonus: Build the Pipe to supercharge liquidity via stableswaps and veToken liquidity directing mechanics.
Stablecoins
Stablecoins are pegged to the price of the US Dollar. They allow people to move in and out of volatile crypto assets without leaving the chain. This is important because-
- It takes a long time to move crypto to centralized exchanges and trade to actual US Dollar
- Most cryptos aren’t listed on centralized exchanges
Stably is a USD-collateralized stablecoin and currently the only viable option compatible with Harmony at the time of writing. However, it is not currently circulating and needs a large native mint and liquidity provision (ideally with the ONE token) to be traded easily and utilized effectively.
HRC20 Stably USD
How to mint and redeem
Note - the Internal transactions on the Stably USD explorer page show some data involving Royale? Unsure how to interpret.
