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8 months ago

Points Farming Blueprint 📘 Alright let's drop some serious alpha. When farming points, particularly on perp DEX's, there are two primary areas of focus. 1. Capital preservation 2. Maximum value extraction Without one, you can't have the other. The two are symbiotic. When farming across Pacifica, Lighter, Extended, etc, I almost don't care about PnL. If you can move $5M, $10M, $25M in volume without sacrificing any capital, you should be absolutely over the moon. Assuming you've accounted for fees, this literally translates to free money at some future date. Now it's not completely free, because you poured your blood sweat and tears into it. This should be treated NO differently than any other job. Yes, I consider earning governance rights by way of incentivized programs to be my full-time job in addition to my professional capacity as a market & investment analyst. It is the purest way to claim a seat at the table as an early supporter and stakeholder. To the second point: maximum value extraction. I used to think this was achieved by trading lower-cap, riskier pairs to grow my capital, so I could earn points even quicker. But it's a fallacy. You will wind up giving back more to the market than you bargained for. What's the fix? Trade only $BTC and $ETH as much as possible, and only other pairs on occasion when your conviction is high. Oftentimes I am long $ETH and short $BTC or vice versa, which allows me to move big volume without risk of liquidation since I'm hedged. That's why you see me doing $500k volume in 24H on a $2k account. On perp DEX's like Pacifica, that could literally net me $500-$1000+ per day in future airdrop value. I'm extremely bullish on Pacifica and we are really early to it as their points program just launched a few weeks ago. you'll need an invite to get into the closed beta, and I've got a custom link right here: https://t.co/pQr4nGsmT9 Other platforms like Extended I'm ultra bullish on as well, and the UI & trading experience is second to none. It's still easy to earn points here as well, but once the Lighter airdrop takes place it will get more diluted. You'll want to act quickly and start earning as many points as you can week in and week out. No time to waste: https://t.co/MP0RbiFjiH One of the best ways to preserve capital is to cover positions on other exchanges. For example if you go Long $ETH and short $BTC on Pacifica, you could go short $ETH and long $BTC on Hyperliquid https://t.co/HrtsmILA6W and that way you're doing volumes in a delta-neutral, risk-free way. One caveat here. Use 10-20X leverage max, especially when operating across multiple exchanges. In the event there are massive price moves, you'll have enough of a cushion to close out vs if you were on 50 or 100X. This way you risk fewer liquidations. One very important final piece of alpha here. Don't use large amounts to farm. Personally I like to start with a $2k account per wallet/exchange. That way even if I blow up, I can easily recharge another $2k and keep going. I can still move huge volume with small accounts by trading the most liquid pairs. That's all for today! If you want to ask me for more details on how I farm perp DEX's, join the Discord for 7 days free here: https://t.co/QzXIr1Pedy

TheTradingTank's tweet photo. Points Farming Blueprint 📘

Alright let's drop some serious alpha.

When farming points, particularly on perp DEX's, there are two primary areas of focus.

1. Capital preservation
2. Maximum value extraction

Without one, you can't have the other. The two are symbiotic.

When farming across Pacifica, Lighter, Extended, etc, I almost don't care about PnL. If you can move $5M, $10M, $25M in volume without sacrificing any capital, you should be absolutely over the moon.

Assuming you've accounted for fees, this literally translates to free money at some future date. Now it's not completely free, because you poured your blood sweat and tears into it. This should be treated NO differently than any other job.

Yes, I consider earning governance rights by way of incentivized programs to be my full-time job in addition to my professional capacity as a market & investment analyst. It is the purest way to claim a seat at the table as an early supporter and stakeholder.

To the second point: maximum value extraction. I used to think this was achieved by trading lower-cap, riskier pairs to grow my capital, so I could earn points even quicker. But it's a fallacy. You will wind up giving back more to the market than you bargained for.

What's the fix? Trade only $BTC and $ETH as much as possible, and only other pairs on occasion when your conviction is high. Oftentimes I am long $ETH and short $BTC or vice versa, which allows me to move big volume without risk of liquidation since I'm hedged. That's why you see me doing $500k volume in 24H on a $2k account.

On perp DEX's like Pacifica, that could literally net me $500-$1000+ per day in future airdrop value. I'm extremely bullish on Pacifica and we are really early to it as their points program just launched a few weeks ago. you'll need an invite to get into the closed beta, and I've got a custom link right here: https://t.co/pQr4nGsmT9

Other platforms like Extended I'm ultra bullish on as well, and the UI & trading experience is second to none. It's still easy to earn points here as well, but once the Lighter airdrop takes place it will get more diluted. You'll want to act quickly and start earning as many points as you can week in and week out. No time to waste: https://t.co/MP0RbiFjiH

One of the best ways to preserve capital is to cover positions on other exchanges. For example if you go Long $ETH and short $BTC on Pacifica, you could go short $ETH and long $BTC on Hyperliquid https://t.co/HrtsmILA6W and that way you're doing volumes in a delta-neutral, risk-free way. One caveat here. Use 10-20X leverage max, especially when operating across multiple exchanges. In the event there are massive price moves, you'll have enough of a cushion to close out vs if you were on 50 or 100X. This way you risk fewer liquidations.

One very important final piece of alpha here. Don't use large amounts to farm. Personally I like to start with a $2k account per wallet/exchange. That way even if I blow up, I can easily recharge another $2k and keep going. I can still move huge volume with small accounts by trading the most liquid pairs.

That's all for today! If you want to ask me for more details on how I farm perp DEX's, join the Discord for 7 days free here: https://t.co/QzXIr1Pedy

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