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DeFi Masterclass Part 2, and How to Become Inevitable...
Web3 Matters
October 11, 2023
Let’s get straight into it.
Today, we’re diving into:
📈Empowered Investor: Uniswap Fundamentals, Your Strategy Builder.
🔧Growth Toolkit: Become Inevitable, SMART Goals for Growth.
PLUS:
💡Community Highlight: Meet Bruce.
🔊Spaces Alpha: Power of Networking
📈Empowered Investor
DeFi puts investing back into your hands: it is the future of finance. We are here to empower all of you with the incredible opportunities DeFi has to offer.
DeFi Masterclass Part 2: Finding Your Liquidity Pool 🚨
TLDR:⏰
Start with knowing the fundamentals of Uniswap.
Discover your investing strategy by knowing yourself.
Next Newsletter Topics: Deep Research Template and Concentrated Liquidity - making your investments more efficient.
Last week we covered:
Why DeFi is the future and how it can change your life.
How Yield Farming is a game changer, for you and for all of Web3.
WTF is Impermanent Loss and how to protect yourself from it.
Today we are diving into the MOST important part about Yield Farming: How to find the right liquidity pool for YOU.
To start, let’s go over some terms you need to know.
Uniswap: The Basics.
Uniswap Concepts: The ‘What’ and the ‘Why’🧠
These pictures are from the Uniswap V3 Dashboard. This is where you will deposit your tokens into the pool you choose, and guide your research.
TVL: stands for Total Value Locked. It tells us how much liquidity people are willing to LOCK UP into the protocol.
Why is this important? It tells us the health of the pool. The higher the TVL, the higher the conviction, and generally, the safer the pool.
Volume: tells us how active the pool is over the last 24 hours or 7 days.
Why is this important? The higher the volume, the more transactions took place, which means MORE FEES are available to give to liquidity providers (That’s you).
Fee Tier: The cost of the transaction fee that people pay when they swap tokens in this pool.
Why is this important? The higher the percentage, the more Liquidity Providers (YOU) receive. What’s important to remember though is… 👇
This is linked to Volatility - the amount price changes for a token. Higher volatility means bigger price swings. High Volatility means More Risk. Low volatility means lower price swings. Lower Volatility means Lower Risk.
% Selected: the number of liquidity providers (YOU) who choose this tier.
Why is this important? The general rule is to choose lower % fee tiers for stable tokens (Like USDT, USDC, DAI etc.) and Higher % Fee tiers for volatile tokens (like PEPE, SHIB, GPT).
Notice which fee tier has the highest % Selected. This is where you will find the most activity in the pool, and the higher chance of getting more fees.
Next Newsletter, we are going to dive into the most powerful part of Uniswap V3: Concentrated Liquidity. This is what sets Uniswap apart, and is a tool to increase the fees you can receive.
Check out our Web3 Matters space with Jake Call where we spoke about all of this in detail.
Yield Farming Strategy Builder (Part 1)🔨
In order to make your strategy bullet proof, let’s get to know ourselves a bit better.
Here’s what I want you to do - Read the following 3 steps. For each one write down what resonates the most.
1. Define Your Goals
Every investment starts with an objective. Are you aiming for:
Rapid growth and potentially higher returns?
A stable, gradual, long term income?
Holding a position for several weeks or months, with medium risk/reward?
2. Understand Your Risk Level
It’s not about how much risk you’re willing to take, it’s about how much you can handle WITHOUT your emotions interfering with your position.
I can handle big swings in my portfolio. I won’t panic sell when it drops, and I won’t hold longer than planned for more potential gains.
I am a zen master, I can wait years before I see growth in my port. I’m in no rush and I don’t want to stress.
I am somewhere in the middle, I can handle a couple of weeks in the red because I am confident in my plan, and know that
3. Knowledge Level
How much market awareness do you have, and how much work are you willing to put in?
I love TA, charts are my love language, and learning about smart contracts, audits and protocols gets me up in the morning.
Price goes up and down. I am a big believer in the big picture, and don’t bother with the details.
I can find important levels on a chart, I know when price is outside of my comfort zone, and I look forward to learning about the details.
Note that this is just a starting point. It’s up to you to be honest and realistic with what you can handle.
Here is a general idea of what your choices say about your investment style:
The Scalper:
Short term position’s with higher risk and potential for higher reward.
Riskier pairs might include memecoins like: PEPE, SHIB or GPT.
Requires eagle eye focus and constant monitoring. May go to zero, may moon, regardless, you are OK with the outcome.
The Swinger:
Medium term positions over weeks-months, with Mid level risk and reward.
May include pairs like: WBTC/ETH or UNI/ETH.
Ideally should monitor at least once a day. Swings are expected and accepted.
The HODLER:
Long term positions ranging a year and more.
You invest in solid bluechip tokens and stable coins like USDT/USDC, ETH/USDT.
Returns are more passive and require less monitoring.
In our next newsletter, we will give you the second part of the Strategy Builder: our Deep Research Template.
🔧Growth Toolkit
Weekly tips and resources to grow as a person and as a Web3 builder.
Growth During the Grind🌱
TLDR:⏰
Power up your WHY by including others.
To become inevitable, make habits that work, seek clarity and change your questions to change your world.
Become powerful by reflecting on clarity every day.
Here are the life changing takeaways from our last space with Sterling Long - a certified High Performance Coach who consistently helps his clients succeed in business, personal growth and having strong relationships.
Power Up Your ‘Why’💥
You know that excitement you feel when you think about your goals? That's your 'Why'. It’s the force that drives you forward, even when the world says otherwise.
Your ‘Why’ isn’t just a casual thought; it’s what drives discipline. And discipline? That’s what gets you out of bed before the sun rises, and keeps you energized through life's challenges.
Let’s paint a picture.
Scenario One: “Work hard, get paid.”
Scenario Two: “Work hard to enrich the lives of my family, clients, and community.”
Which one hits harder? Scenario Two, right? Because it's not about you. It’s bigger, richer, more profound. The stakes are higher.
Staying in bed isn’t just laziness; it's robbing those you care about of a better life. It’s science. Our DNA is wired for collective strength. Serve others, and you amplify your power.
“Create STRONG relationships through Trust. Bring positive energy by making sure both of you are equally giving and receiving in a balanced and healthy way.”
Interested in High Performance, automation, or empowering daily decisions with AI?
Over the next 30 days, I'll be writing 30 Atomic Essays.
Follow my Social Blog on @typeshare_co:
— Sterling Long (@LuzzoticaLong)
3:21 PM • Oct 11, 2023
Make Yourself Inevitable💪
Stack the Right Habits: work towards your goals through habits and build them into routines. Examples: Schedule time blocks, daily exercise and networking.
Stay Intentional: Regularly assess these habits. Are they keeping you on track towards your goals? If not, replace them with ones that do.
The Power of Definitions: Alex Hormozi swears by this. Want to be a better person? Get specific, what does a better you look like? For me, I want to be present, purposeful, and brave.
The key to all of this is Clarity. The single best hack for any High Performer is to ask yourself questions, every day, that force you to seek clarity.
A powerful example is "Who am I fighting for today?" or “What can I do to be present today”.
Sterling recommended this powerful app if you want to dive deeper.
Question Everything: Change your questions to change your thoughts. This will transform your world.
Swap “why me?” with “how can I rise above this?” See how this changes your thoughts from victimhood to empowerment? This gives your back the control of the situation by shifting your mindset to take responsibility.
“Responsibility is the prerequisite for freedom,”
If you are interested in Sterling’s coaching services, check out the link below.
Set SMART goals for growth 💪
If you’re looking for a growth tool to help you achieve your personal development goals, the Personal Development Plan for Self-Improvement is an excellent place to start.
SMART goals are a framework for setting objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound. By setting SMART goals, you can help focus your efforts and increase the chances of achieving your goal, whatever this is.
We searched for a template that is designed to help you identify what you need to work on to achieve your goals. It includes a structure that helps you set priorities, identify your strengths, and take action using SMART Goals. The template can be found here.
So what’s the idea?
By using this template, we want you to create a personalized plan that will help you stay focused and motivated as you work towards your goals. This tool is literally for anyone who wants to improve their life and achieve their full potential. This part of the core of Web3 Matters, and we look forward to hearing about your experience using it!
💡Community Highlight
Recognition for our Web3 Matters community members who are making a difference.
Meet Bruce🙏
Bruce is the founder behind the project Creepy Creatures, and one of the most supportive and selfless people out here.
Bruce has either been in our audience or on our stage for every single Web3 Matters episode. Needless to say, we’ve gotten to know him pretty well.
The most incredible thing about Bruce, is that it’s clear, every time you interact with him, that his priority is his people. Prime example: his mission behind Creepy Creatures is to highlight his fathers art.
What’s more, his vision is centred around lifting up his community by hosting spaces about mental health, weekly poker games with cash prizes for his core members, and so many other plans that I am not allowed to tell you right now.
Creepy Creatures 💀
Launching Halloween Night 🎃 (October 31st)
Do you dare to enter the Creepy Castle? 🏰👀
— Creepy Creatures NFT (@CreepyOGs)
4:08 PM • Oct 2, 2023
Thank you Bruce, for being the most compassionate, supportive and community driven person we know.
If you want to support Creepy Creatures, his discord server here:
Want to be featured in our next newsletter?
Join us for our next episode of Web3 Matters 👇
🔊Spaces Alpha
Every Friday at 3 pm EST / 7 pm UTC.
This week we are diving into the power of Networking. Over the last week, Victor has been deeply engaged with IRL Web3 events, and he has so much to share with us.
The Web3 Community is alive and well, and this Friday, we will dive into how to maximize value in this bear market by building strong connections.
Check out the link below and set your reminders ✅
Finally, we'll be giving away exclusive thank-you gifts to our early supporters, so be sure to invite your friends to subscribe to Growth Bytes. Link below 👇️
http://web3bytes.beehiiv.com/subscribe
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