I'm seeing more&more crashouts, pple making bad decisions, getting liquidated, losing their capital, investing their last $ into questionable token launches, and getting reckless trying to make it all back w big trades.
Take a breath🍃
A megapost🧵on positioning:
Goal: Maintain upside potential while buffering against downside.
Do you know where we are in the cycle? No. If you did, you'd be rich and not reading this thread. So how do we position ourselves to make money at any time REGARDLESS of what part of the cycle we THINK we are in?
1. If you've followed my account, you know I love Delta Neutral strategies.
Are they boring? Yes. But they WORK. DN strategies can be your equivalent to stable strategies + risk, and should be earning you at least 20% APR. In this example ft @mars_protocol & @dropdotmoney
(https://t.co/qGHZBhnnWC) I'm earning 34% APR + airdrop incentives.
IMO that is the key that makes DN strats juicy. Look for a DN that is not only providing 20+% APR but ALSO airdrop farming- could be for points like @dropdotmoney or @milky_way_zone, on a new chain with bonus incentives like @berachain & @stride_zone, or where you earn airdrop potential for interacting with DeFi like @initia.
Keep the base strategy profitable, and ADD speculative bonus on top.
2. Farm airdrops & LPs with BORROWED ASSETS.
In web3, there is ALWAYS bootstrapping of new protocols. Rather than complain about VCs dumping on you, go take their free money.
Farm Airdrops: I'm using $BTC and $USDC as collateral on @mars_protocol to borrow $ATOM & $TIA. Swapping these borrowed assets into Liquid Staked Tokens and farming airdrops means you aren't paying for the borrows, and get to cash out on the airdrops, all while earning on USDC lend and keep BTC exposure. Thread: https://t.co/ZIXlRC9bTM
Farm LPs/Deposits: See a juicy $ETH Vault on @berachain? Great, borrow $ETH against $BTC and go farm it. Incentivized stable eth LP on @base or @SuiNetwork ? Great, go LP with borrowed $ETH & sell the rewards.
3. Make arbs with BORROWED ASSETS
In web3, there is ALWAYS arbitrage to be had. The problem is usually you have to a) wait or b) hold assets you don't want to hold.
So, DON'T HOLD THEM, instead 1) borrow them 2) wait for arb 3) repay debt 4) sell/profit the arb.
Here you can see I borrowed $ATOM & $TIA to arb a price imbalance on @Pryzm_Zone maturities. When the arb was complete, I repaid my debt on @mars_protocol and profited the difference. My exposure was $USDC and $BTC collateral. Thread: https://t.co/v9ozw6LaXH
4. Pair trade
Timing the market is HARD. So instead of picking a direction, pick a pair and bet on the winning token. Even if the market goes DOWN, as long as your winning token is down LESS, you profit.
With apps like @bullbear_zone with an extremely simplified UI, you can long / short perpetuals with one click with leverage.
In this pic you see the user has been liquidated on almost all their positions that were one direction, while their pair trade (long $BTC, short $ETH) remains +PnL.
You can even use this strategy to farm APR by selecting assets that have funding rates in your favor. Thread: https://t.co/VBhZQE6YJJ
You can also pair trade using spot assets & perps together + airdrop farming. Thread: https://t.co/8vaAqyj5z0
5. Sell rewards instead of compounding
Yes, we all want to stack and wait for the 5x, but the reality is it doesn't always come. And in downtrends, maybe its not worth trying to catch the knife. Selling your LP and/or staking rewards is a great way to hedge.
You can use apps like @AmuletFinance to get advances on your staking rewards, which you can sell to hedge against your staked bag (Thread: https://t.co/8kLAGjE7gZ).
@astroport_fi offering 30-40% APR on $ETH & $BTC pools? Sell the rewards and wait for a buy opportunity.
6. Participate in FREE airdrop farming campaigns/games
And I mean actually free. Yes, they take effort. Yes they are free. Expect nothing and be happy with something.
I connected my X account on @KaitoAI and was given $250 for doing nothing. People made thousands tweeting about @berachain. I'm playing games on @AbstractChain that require $0- maybe they'll give me a drop 🤷♂️. I got a passport on @kamigotchiworld which gives me a free mint on @initia main net.
7. Follow narratives and flip NFTs
Some say NFTs are dead but that's not true. Just this week people are flipping @tinyhypercats for $500 because they followed alpha from @rekt_gang community.
@MammothOverlord / @OnchainOMies / @CelestineSloths all did MANY multiples from mint to secondary.
Rather than buy on secondary and wait for an airdrop that may or may not come, try and get on the next WL, and flip it. Stop waiting, take control.
8. Be a content creator
If you don't have a large enough following to monetize your content directly on YouTube, there are TONS of projects paying for quality content creators.
Chains like @OmniFlixNetwork allow channel creation and tipping for up and coming creators. DAOs like @scribble_dao , @SNAILSNFT_ , and @galactic_quarks create bounties and support smaller creators until they have a larger following.
Connect with other creators, make collaborations, reach out.
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That's it for today 🌱
Look, the truth is, there is plenty money to be made in web3. The problem is, its way easier to lose it than make it. If you have been here for a while and are still losing money, maybe its time to reassess your strategy.
The market doesn't care about you, but the people we meet here do- connect w others and get second opinions. Find communities that you click with. Stop aping into broken strategies. TAKE CONTROL 🦎
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(These are just some of my personal strategies I have taken over the past few years. Not financial advice, simply sharing my learnings and strategies that I enjoy using).