Mojo Report #2

Fallout again

Author

Sexy Life
August 27, 2023

Mojo Report #2

Your weekly DeFi update. The good stuff, but not financial advice!

After the dumb comes the dumb and everything is over. The crypto space is the market with a huge borderline disorder and everybody is selling again.

But it’s no surprise that after such a long period with no volatility, we get strong movements. Only the direction was unclear.

During times of low volatility people ramping up their leverage to feel something and once the market moves a little bit more, they get recked.

After the dump they position too early, because they expect the chart turns around immediately. (I have been there and know what I’m talking about.)

They get liquidated again and the revenge trading begins. Now it gets really ugly. Even people who should know better fall for this from time to time.

Get your emotions under control!! Most fail because of them.

DeFi Updates

L2s have more users than mainnet for quite some time now. The trend will continue, but only a few L2s will survive.

My biggest conviction are Arbitrum and Optimism obviously, Base and Mantle. zk-rollups are struggling atm and we have to monitor how it’s going.

zkSync has the highest TVL, but most of it is artificial because of airdrop farmers. It’s the most disappointing launch in my opinion, but I hope it will make it.

Not sure about zkEVM since Polygon is also struggling. They might have had some headlines with onboarding web2 companies, but it seems those companies aren’t that happy with it.

But it’s too early to draw a conclusion.

Starknet could actually come out as a zk-rollup surprise.

Rune lending went live. Fundamentals look strong and price even so.

I’m accumulating $RUNE below the $1.50 since November 22, when I wrote the first time about it.

Even the price looks strong atm, I don’t think it will be a sustainable pump. But it can run a while.

HMX looks pretty solid. It’s still small, young, no CEX listing and crossed $1B trading volume.

You gotta keep in mind that staking HMX is still strongly incentivized. However, inflation is under control due to esHMX emissions and 12 months linear vesting.

It got attention and a lot of people are salty they didn’t get in early. So every serious dip gets bought up.

Stader was a little late to the LST, but they’re one of the first to the LRT (Liquid Re-staking Token) game.

You definitely should keep an eye on LRTfi. Even it’s not on many radars, it could become a big narrative any time and you don’t want to miss on this one!

Stella is moving to Mantle.

They also listed HMX to their leveraged LPs.

Aerodrome goes live this week.

If you have 1000 $veVelo (ca. $80), you will be royally rewarded. (hope so)

Around 3500 wallets are eligible to get 20% (136m)

Hope you get some. Snapshot already taken.

It’s one of the long awaited launches on Base. Might be good to get in early with all the traction there.

Investing

It’s time to tell you guys what I’ve been accumulating during the bear.

You might pick other stuff due to differences in size, age, strategy, time, entry etc.

Tbh I don’t have exposure to every category and I only picked the ones I’m most bullish on. My biggest holding is ETH btw.

Here are also only the ones I got bigger bags and I plan to hold for a longer period. Of course I have smaller ones and bags for a shorter time frame as well.

Yes, I hold too many different coins and I’m aware this can be a risk. But I love DeFi and I even would play with it if I wouldn’t make money.

Some of them also cover more than one category.

  1. Liquid Staking
    For this category my picks are a little more on the riskier side.

    - Stader, LRTs
    - Ankr, whole infrastructure package that comes with it
    - Frax, whole eco-system

  2. DEXs

    The DEX landscape is very competitive and often holding the token doesn’t bring a lot of benefits. That’s why I don’t have a big allocation there.

    However, I hold a smaller bag of $Velo (locked) and an even smaller one of $THE (locked).

  3. Lending
    This is a more interesting category. Degens love lending!

    - Aave
    Even if it won’t make a new ATH it will perform well, especially with its $GHO. It’s still a huge player in the lending game and available on every major chain.

    - Radiant
    Radiant already has established itself as a go-to lending platform. It has the omnichain lending first mover advantage and a very impressive team.

  4. Bridge
    No exposure here.

  5. CDP
    This is the category I use the most.

    - Liquity
    $LUSD is simply one of the best decentralized stables!

    - Ethos Reserve
    Love what Byte Masons is doing here.

  6. Yield

    - Pendle
    I was watching the protocol last year around $0.5. But I decided not to invest at this point, because I thought this is too complicated for the average DeFi user. History has shown how wrong I have been and I got in pretty late.

  7. Services
    No exposure.

  8. Derivatives

    - GMX
    I reentered GMX after I sold my whole bag almost at the top. But it’s still THE perp and probably will stay on top for a while.

    - SNX
    Always add some when dipping.

    - HMX
    Got in at the TGE and recently added a few more during the dip. More risky play, but good r/r ratio.

  9. RWA
    This category will play a major role in the future. However, it still has to mature. Be aware, in the next bull a lot of “RWA” scam/ponzi projects will pop up to ride the wave.

    - Tangible
    Already pretty impressive real estate portfolio. They’ll move to the US market soon.

  10. Yield Aggregator
    I like to use these protocols, but I don’t hold any token. You don’t need to own all the token of the projects you like and use!

Excuse that I don’t do a full breakdown on each project, but this would be too much for one mail.

Macro

This post is 4 months old but it’s still up to date. I said it before, rates will stay on this level longer than expected.

And with the FED’s hawkish policy no new liquidity will flush into the system. Therefore, no sustainable pumps will occur.

This means we have to deal with a boring market with some pumps and dumps, but overall not much will happen.

We’ll stay in an environment, where liquidity jumps from one shiny thing to the next one.

There’s also the probability, even it’s very small, such environment will last for years. People are already bored. Slowly more and more will exit and with them liquidity will leave, making everything even more boring.

What would be your plan for such a scenario? Go with the trend and jump from one thing to the next and get burnout?

Always be prepared for every possibility!

It’s always the same! Always the same playbook!

Do you recognize the timing of this tax proposal. They always come up with stuff like that when markets are down.

Remember, they’re masters of manipulation. I wouldn’t give such stuff too much attention.

Stay Sexy!

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