The Dynamo DeFi newsletter covers trends, on-chain analysis and tools in crypto each week. Be sure to also check out my YouTube for more regular content.
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📈Trends and Narratives
Is the Airdrop Meta Over?
Late last year, the airdrop farming meta became the meta in the crypto markets. After even small farmers earned $10K+ from the Jito airdrop, everyone was looking for the next Jito.
Although there have been other lucrative airdrops since then, like Dymension and Wormhole, few have been able to find returns comparable to Jito’s $10k+ drop. In fact, many have been left disappointed - large protocols were over-farmed, and in several cases the terms of the airdrops set by protocol teams weren’t as favorable as many farmers would have hoped.
Consensus across the timeline would say that the airdrop farming meta is over, but I’m not so sure.
Airdrop farming won’t be easy moving forward, but because so many farmers have thrown in the towel, finding the right protocol to farm for an airdrop might be more profitable than ever.
To start, many ‘disappointing’ airdrops might have overcorrected after launch, leaving them currently undervalued.
The market quickly realized this with the Friend.tech airdrop. After dumping to less than $0.90, FRIEND is up 200%. All FRIEND supply is already circulating.
I’ll be on the lookout for airdrop opportunities as the herd walks away. It only takes one big airdrop to rake in some serious money. Additionally, consider that the crypto market has broadly seen downside volatility the past month. Market participants tend to take less risk (some of them, at least) and ‘free money’ airdrops are often the first to be sold in a downturn.
How to Capitalize
Check out my Weekly Pro Update, where I mention protocols that I’m farming for potential airdrops. I update this often with new strategies and ideas.
Watch my recent video on why airdrop farming is here to stay
Look where no one else is - find protocols with good funding, a capable team, and few users. This will take some digging, but here’s a place to get you started.
🔢On-Chain Analysis
NEAR TVL and Stablecoins hit All-Time High
NEAR hit an all-time high both in terms of TVL and stablecoins market cap this week.
NEAR stands out as a Layer 1 for several reasons:
NEAR is highly scalable, regularly processing millions of transactions per day
NEAR smart contracts are programmed in Rust, like Solana
NEAR has a chain abstraction SDK, allowing applications to be built that abstract blockchain away from the user experience.
The founder of NEAR was previously accomplished in the field of machine learning and recently spoke at the Nvidia conference
NEAR’s surge in TVL and stablecoins is a sign that its DeFi ecosystem is gaining traction.
🚜Farm of the Week
Meteora
Meteora is a top DEX on Solana with several unique tools for users, including dynamic LP-ing, dynamic pools and dynamic vaults. The team is closely associated with Jupiter. Currently over $260M in TVL.
How it Works
Meteora’s DLMM (Dynamic Liquidity Market Making) is a big step in providing liquidity. It’s a bit much to wrap your head around at first, but it’s worth spending a bit of time on.
Meteora has a points program, but it’s invisible to users. Another reason why this protocol isn’t as farmed as it should be.
Here’s a general overview on how to LP through Meteora’s DLMM:
Find a pool with good volume and solid TVL. I like pools with over $1M in TVL.
Find a pool you like, then click “Add Liquidity”. Remember, while we can earn some yield on this, we’re focusing on earning potential points for the airdrop.
From here, you can simply enter the amount you’d like to LP of each token, and select the type of volatility strategy - I recommend starting with Spot until you get the hang of it.
Play around with Vaults and Farms to earn additional points.
Risks
Because these positions do not auto-rebalance, keep an eye on this daily so you continue to earn fees and the position doesn’t go dormant (out of range).
🛠️Tool Spotlight
Track Recently Funded Crypto Projects with AlphaGrowth
Looking at recent fundraising announcements can be a great way to discover new crypto projects. AlphaGrowth tracks recently funded blockchain companies. To assist with finding relevant projects, these companies can be filtered by:
Category (API, DEX, Payments, etc)
Chain
Announcement date
Investment type (Seed, Series A, etc)
Project type (chain, dapp)
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📅Key Events This Week
Macro Events
📊FOMC member Barkin speaks - May 6th
📊FOMC member Williams speaks - May 6th
📊FOMC member Jefferson speaks - May 8th
📊FOMC member Cook speaks - May 8th
📊FOMC member Bowman speaks - May 10th
📊FOMC member Barr speaks - May 10th
Token Unlocks
🔓 HFT (3.46%) - May 7th
🔓 IMX (1.39%) - May 7th
🔓 GMT (1.75%) - May 8th
🔓 ENS (0.94%) - May 9th
Launches & Updates
Note that these launches are mostly unvetted by the Dynamo DeFi team and this isn’t an endorsement of any of them.
🚀 QANX Testnet Launch- May 7th (Source)
🚀 GNY 10 million token Burn - May 7th (Source)
🚀 $ORD Staking - May 7th (Source)
🚀 vdao Airdrop snapshot- May 10th (Source)
That’s all for this week. For more frequent content, follow me on Twitter and YouTube.
Until next time,
Patrick Scott
Dynamo DeFi
