Liquidity is everything!

China and Japan already flushing the markets with money and everyone is waiting for the FED to open the gates.

We’ve already seen what a tiny inflow of $4B does to prices in DeFi. The dynamic from PvP has totally shifted and it makes sense to get into some smaller coins.

However, you definitely should have a plan for the case that markets drop. Macro looks shitty like never before and a dip is likely when the FED finally pivots. (I reported in an earlier Newsletter why this happens and my thesis for that case)

Lots of countries have serious problems and Canada is just one. Germany, one of the most important countries in the EU, also is in a desolate condition.

But different from the doomsday callers, I don’t think the world economy is checking out to nirvana. Politicians are creative when it comes to implement tricks and they’ll be able to kick the can down the road for much longer.

Of course, this will be devastating for the average person. But managing your own financials can be a huge chance and truly life-changing.

On-Chain Look

Stables keep flowing in and crossed the $128B Mcap.

CEX 7D net Flows:
• BTC: -1.05% (-21k)
• ETH: -1.36% (-195k)

Txs on Arbitrum are going wild.

Activity on other chains are in an uptick as well:

• Linea - 97%
• zkEVM - 74%
• Starknet - 22%
• zkSync - 20%

These four might be worth checking out in the coming weeks.

Vertex overtook GMX in 24h generated fees. Another hyped one?

DeFi Updates

Often I ask myself if farming is worth the contract risk when I see all this hacks going on. Just recently Kyber was hacked.

But what can I say… I’m a farmer for life!

But at least you should diversify your farms through different protocols and always know your risks.

So here’re some inspirations for the farmer in you.

Here’s a great explanation what happened with Kyber…

Addition: 90% of funds will be returned by the hacker and 10% remain as bounty.

• FXS halving on 20th Dec.
• Historically a 3-4x average after
• Catalysts: Frax V3 and FraxChain

As you know, I accumulated FXS over the whole bear and my body is ready for a pump.

FXS is actually a long-term hold for me, but I bought some extra to cash in if the thesis plays out well.

Aurelius’ website is live and I’m going to release a thread about it soon.

Also Ethos Reserve V2 will launch next week, which allows to deposit LSTs as collateral.

I’m sure this will bring a boost to Ethos. In the last months LST backed stablecoins have seen a significant inflow.

Especially crvUSD, eUSD and mkUSD saw an increased demand.

I already mentioned IntentX and that I’d keep my eyes on it. Back then I just said I have a feeling about it and that didn’t change so far.

Stats look normal for and early stage Perp DEX:

• Vol: $66.8m
• OI: $2.3m
• Fees generated: $14.75k
• Users: 1469

But lets see, the perp sector is quite competitive.

Charged Particles is a very interesting project! And they’re expanding to Mantel.

It can add a wallet to any NFT. So your useless NFT can hold another shitty NFT 👀

The possibilities are endless. It can also participate in DeFi and can accrue in value.

This brings me to idea of legal tax evasion. (Of course, it depends on your jurisdiction and you should contact an expert before!)

ThorChain is doing some hefty stats with over $1B per week in volume currently!

The top coins are ETH, BTC, USDC and USDT in that order.

If everything goes well and there won’t be any incidents, RUNE will be one of the big winners in the bull.

Demand for native swaps will grow and the current price of $5.32 is a steal for that scenario.

Another project that allows native swaps is ChainFlip and they just launched their token FLIP, which is traded on ETH for $5.48

I’ve talked to them a few months ago and this is what they answered me.

So they add more chains easier and it’s cheaper. So FLIP can be a good play.

However, I think RUNE will run better. They already have a super strong community and even there happened some hacks before, Thor gained a lot of trust.

Superior tech doesn’t automatically mean better price performance. Narrative and psychology are much more important!

Investing

Often the easy strategies pay the most.

10x coins are much easier to find than 100x coins. Even high Mcap coins often do a 10x. $1B or $2B Mcap are nothing when we enter the real bull.

Portfolio

I sold half of my Pyth airdrop for an average price of $0.37 and I consider selling another 25% when it reaches $0.6. The rest, I will ride to the craziness of peak bull or to ZERO.
Bought some SOL and RLB from half of the free cash.

Still holding on to TIA. Hoping for the front-page scenario playing out (reported in the last Mail). Also rotated a little bit of my ATOM into TIA. More risky, but it has more upside potential.

Loaded up some FXS for the thesis mentioned above.

I changed my DCA strategy a bit. Just DCAing with half of the capital and saving some dollarinos for ze dips. Also getting a little more into risky plays.

Stay Sexy!

I’d appreciate if you give me some feedback and what you like to read in this newsletter, so I can provide the best value for you! Just send me a DM on X or respond directly to this mail.