Despite the recent volatility of the crypto market, here are a few altcoins worth watching:
Near Protocol (NEAR)
Near Protocol was launched in April 2020 following token sales from Andreessen Horowitz and Pantera Capital. It’s a platform that claims to provide high-speed solutions to decentralized applications (dApps), was last month integrated with decentralized payments network Terra. With this new partnership, Near Protocol claims to provide the fastest solution to decentralized applications.
Osmosis (OSMO)
Osmosis, a growing decentralized exchange (DEX) built on the Cosmos blockchain, was in green all day. This week, Osmosis reached $1 billion in total value, according to DeFi Llama. The Cosmos-related projects are increasingly active, which may be why this is happening. OSMO is up 6.5% today, hovering around $9.
Internet Computer (ICP)
Internet Computer launched last year, has quickly risen in price over the past few weeks. The technology allows smart contracts, computation, and data to scale at web speed. It recently activated a new mechanism that serves as a bridge between chains. Through bridges, blockchains can exchange data, tokens, and smart contract instructions with each other. In response, the governance token, ICP shot up, trading at $34.Up 20% from last week.
Analysis paralysis. I spent an hour this afternoon trying to define whether OHM was a buying opportunity after its 25% crash in the last few days. It is one of my “three zeros” candidates. Then there was the hoops I have to go through. Buy some DAI, then buy some OHM (can’t do that on Bittrex), then dig out the OHM LP docs I reviewed last week and … oh, what the heck. I have enough stuff right now.
So I gave up the opportunity and got back to the task at hand which was to earn some NFT income. If I don’t play game I don’t get any income. LOL>
If you like OHM, you should check out TIME and Wonderland…Similar concept dealing with protocol-owned liquidity (POL) but Wonderland is on the Avallanche network.
It is part of my crypto investment plan. It is a willingness to invest up to 1% of the portfolio value in tokens that have a chance of doing a 10X, a 100X or even a 1,000X. There are two objectives. Sell half the investment as soon as it doubles in value. Then decide on an income / investment plan for that asset, and that asset alone. I have four components in this plan since its inception in August 2021, and intend to hold up to 10 initially. Any contributor that doubles, the additional funds are reused to invest in more “three zeroes” prospects.
I have just put OHM, TIME and the like on hold in favour of spending some time analyzing another DeFi game. I rather fancy that income earning NFTs are somehow less risky than Liquidity Pairs on a race track. In particular the recent liquidation of a number of assets gives me cause for concern. And I would need to understand how OHM works in practice (with my money tied up, not just reading the bumph) before I layer into TIME or other more advanced products.
The game is DeFi Kingdoms. I send NFTs (Heroes) on quests to earn in-game items which one way or another can be either re-invested or converted to Fiat and sent to an off-ramp. It’s grown arms and legs, and my best estimate of income from the number of NFTs I have bought in the game is about $200 per week. Now if I can grow that 10X, I think that will provide more than enough income for our family to live off. Since it is a very new area, I am cautiously optimistic, but I won’t bet the farm on it, just yet or ever.
Just a little part time research on my coffee break. See attached
Hi,
I have provided a link to a (relatively) non-technical article that attempts to explain Internet Computer. I say “relatively” because even with my knowledge of conventional networking (Microsoft Certified Systems Engineer), I can understand the future implications but I can’t envisage the roadmap as the world moves from a TCP/IP and UDP internetworking protocol base to the Internet Computer base.
So I will try to explain this by an example. In the UK some time ago, all our terrestrial television was provided by a transmission system of antennae scattered around the country. In the very old days the television signal was VHF. Some time in the 1970/1980s VHF was phased out and UHF (a frequency higher than VHF) become the norm. Some receiver sets only received VHF, so they had to be replaced. Then came digital TV. The old UHF transmission bands needed to be cleared of usage to make way for 5G for mobile telephony. That took some time. TV free to air needed a new aerial, and a “set top box” to decode the new signals.
Well, the Internet Computer is like the new 5G. Right now nobody has the hardware or software to make use of it, and crypto (specifically the decentralized part of it) will become far more efficient than it currently is trying to run a 5G requirement on a VHF transmission system.
I am sure purists will find many flaws in this comparison, but I hope it will explain it to a layman. In my mind there is no way to imagine the potential future benefits of this change until it actually starts to happen, but for anyone with a longer term view than 5 years, it may be worth looking at unstoppable domains
Hi,
I think this is referred to as “impermenant loss”. I have decided not to utilise TIME or OHM for the time being. I have just put a small amount of funds into FarmersOnly (FOX) on the Harmony network. I have chosen to lock the FOX-ONE currency pair in the vault as an experiment (proof of concept). A bit of teething trouble, but my funds remain in there for the last two days after the interface had teething problems, and the headline 0.77% per day interest has been correctly allocated to my vault value. I have no idea of where the FOX end of this is going but I have a reasonable confidence (compared with other ecosystem tokens) that ONE is stable - if any of these ecosystem tokens can be though of as stable.
I may also lock another LP in there next month. I am unsure, but what I am sure of is the proportion of our crypto portfolio that will be allocated to this type of investment/trade. Now I have decided the fiat proportion of the portfolio that will be our maximum exposure, and the target 12 month gain range that I wish to achieve, it is now a matter of determining whether a simple single LP pair on semi-permanent deposit with accumulating reinvested interest will best achieve the profit goal, or whether that needs to be broken down into activities as short as weekly, and against a basket of LPs as the headline APYs change across LPs in response to the market, and the accompanying “impermanent loss” is taken into account on a short term basis as a mechanism to control overall currency risk.
TIME does offer rebases, so even with a huge price dump, if you’ve been holding long enough, you’re experienced a lesser degree of loss. Something to consider with TIME/MEMO.
If you’re US based (and maybe elsewhere), if you wrap your MEMO, you get to avoid the effect of the rebases creating a taxable event while still gaining yield.
You can always move over to a LP offering stablecoin pairs. No upside in the stablecoin’s price appreciating obviously. But you’ve removed impermanent loss.
I have included a screen shot of a recently developed interface that now tracks all activities within the game. This is a godsend for future tax liabilities. The snapshot is only for heroes doing quests. There is a lot more going on in the game, like locking liquidity pairs into a “garden” where earnings started off very high and are now becoming lower as the total locked value increases. This just could not work on an ecosystem with high gas fees. That is the main reason I have chosen to concentrate on the Harmony network for income opportunities.
ETH fees are the absolute worst. The Ethereum network is definitely too expensive for most users right now. Imagine trying to build on it as a startup.
Hi,
Actually, that is part of my current plan - that is the integration plan. This is at a very early stage but the concept is to do a series of iterative calculations to determine how one may arrive at an end goal of a self-amortizing loan where isolated, high interest short term investments can allow a number of total loss scenarios, yet still achieve an overall objective. In order to do that effectively, I need to first of all develop the plan, do some backtesting on actual results from the likes of yearn, ohm and time, then do some cautious forward testing with small money, and gradually build confidence that the plan could work.
It would not be the first time I have spent a lot of time chasing the tail of the dragon, but here is the strategy that caused me to look into this.
Strategy. What? Use leveraged liquidity pairs as a future income stream.
Why? Diversification of source of income
Plan.
When? Starting now. Proof of concept for a week. 0.1% exposure. Pilot 1.0% exposure for two weeks, production - to be decided, up to 5% of portfolio value. Who? Me and partner. Where? On Harmony network only. How? Source initial funds from ETH holdings.
Expected outcome. +100% in 12 months time.
Actions. Develop a plan of actions required to achieve an overall return of 100% from a 3 or 4 tier LP plan. Define reward/risk for each tier. Accept tier risks, or modify overall outcome if risk too high.
This is the real world basis on which I expect to develop this multi-tier plan.
But why?
