Let’s break down 4 protocols that keep building and attracting new users on the bearish market
— Synthetix is one of the very first DeFi-protocols.
It gained popularity due to trading synthetic assets in L2-blockchains: Optimism, Polygon. Trading volumes have grown 4-5 times since the beginning of June.
The protocol earns $11 million a month on commissions and gives part of it to SNX token stackers. P/E index = 7.4, so the project is undervalued in relation to competitors.
— Hop Protocol is a bridge between block chains.
Another L2-blockchain beneficiary, created a convenient and easy way to transfer assets from ETH to Arbitrum, Optimism and other block chains.
During the Arbitrum Odyssey HYIP, this bridge was the most popular, leading to a surge in commission income. Now the hype has subsided a bit.
— Concentrator is a yield aggregator for Convex TVL which has increased 5 times since April.
Concentrator increases rewards from the Convex and Curve ecosystem by automatically reinvesting Convex rewards as cvxCRV. Last week their IFO and the addition of 24 new vaults raised their TVL to new highs.
The IFO (initial token farming) is going on right now. It is highly suggested taking a closer look at this one.
— Osmosis is the largest DEX in the Cosmos ecosystem.
Despite the collapse of LUNA and UST the Osmosis site was able to recover, rebalance and already integrate exchanges to space.
The team recently announced plans to build its own DEX arbitrage system, and the profits will go back to OSMO stackers.
Also, let’s talk about 7 situations in which you can lose money
“Buffett willed NOT to lose money, so let’s look at the main risks of losing money”
1. Risk of falling prices.
There is a rule of thumb that when you buy, the price goes down, and vice versa. But that’s if you are only guided by emotions, other people’s trades and entry points. Many beginning bloggers who buy Instagram followers advise to sell this or that cryptocurrency as soon as it falls in price.
2. Risk of de-pagging.
Some stabelcoins actually turn out not to be stabelcoins at all. The price of UST dropped from $1 to 0 in a couple of days. All assets that have a real-world peg can one day break down and collapse.
Stables are not the only ones: some tokens wrapped in another block chain (WETH, WBTC) can also lose their tether to the underlying asset. That’s what happened with the Wormhole bridge and WBTC.
3. Smart Contract Risk
Not all smart contracts are secure and vetted, even after an audit. In 2022, fraudsters stole $3.2 billion in assets through smart contract vulnerabilities and other “holes.”
Every application can be affected by a smart contract vulnerability, remember that.
4. Risk of lack of liquidity
There are times when tokens lose liquidity. And you have to exchange the asset at a worse price, losing 70-80% of the asset. It happens with new coins or on unfamiliar DEX’s.
Always look at the “slippage” indicator. This tells you how much you can lose on rate differences at most.
5. The risk of illiquid assets
In order to sell NFT you need to find an individual buyer. That’s why it’s not always easy to sell an NFT, even putting it below the floor price. Your NFT without a buyer is worth 0, even if the floor price is 100 ETH.
6. Risk of losing your wallet.
You are completely responsible for your wallet. So if you lose it, no support will restore it (unless you have linked your mail/phone). 4 million BTC are considered to be lost.
7. Hacks/Fishing/Scams
This depends on the creativity of the scammer. The most common examples: a phishing site, asking to connect a wallet and sign a scam transaction/enter a syphrase. Or buying a shieldcoin that cannot be sold… To accelerate trust, some scammers buy real Instagram followers and other involvement metrics. This allows to create a trusted first impression, raise the brand status and increase the retention rate of new users.
It is important to understand and assess the risks and do everything necessary to minimize them
For example:
– Make sure your keys are safe.
– Not trusting unverified counter parties
– Be constantly aware of what is happening not only in the cryptocurrency market, but also around it
– To predict how this or that event can affect the situation
– To form and optimize your own investment strategy
Investments, especially when it comes to cryptocurrency, is a fascinating and dangerous world, a kind of jungle where luck is on the side of the one who acts quickly and decisively.