We Made Money with DeFi!

Here's how...

We spoke with some pro’s, who are absolutely dialed-in, to bring you some serious Alpha this week. Let’s get into it.

  • 📈Empowered Investor: Lessons From our First Liquidity Pool. Social-Fi: FUD or Future?

  • 🔧Growth Toolkit: Skyrocket your X Spaces: Alpha from a Pro. 

PLUS: 

  • 💡Community Highlight: Meet Fred

  • 🔊Spaces Alpha: Your Top Tool for Web3 Success

📈Empowered Investor

Sharing what we learn about DeFi, Crypto and NFT’s so you can grow.

Lessons from our First Liquidity Pool 🚨

  • TLDR:

  • Investing on Uniswap V3 has brought us SO much value!

  • We could have spent time doing DD from a macro perspective (checkout two amazing resources below)

  • Overall, things went well, we didn’t make as much as we thought, but we learned a ton and once the FUD dies down, I believe things will improve.

Last week we shared our process of investing into a Uniswap V3 Liquidity Pool. The beauty of this skill is that we can now put our bags to work, while we wait for their value to rise.

What’s great about Uniswap is that it is one of the most trusted and widely used protocols, and offers opportunities for noobs and experts, whales and small bagged (but high conviction) legends alike!

Today, we are diving into what went right, what went wrong, and how we are learning from this experience so that we can make smarter moves in the future.

Step 1: The Play

Exactly 1 week ago, on Nov. 22, we deposited $30 USD worth of both USDC and ARB into the 3% Fee Tier Liquidity pool of the pair ARB/USDC, on the Arbitrum Network.

You can check out our previous article to learn exactly how we chose this pool, and how you can do the same for yourself.

So, the question you’ve all been waiting to have answered… how did we do?

Let’s get into it.

Step 2: The Results

Drum Roll Please….

We made a total of $0.541 in fees! Which is a return on investment of 0.9%!

Alright alright, kind of anticlimactic, I know, but lets dive a bit deeper shall we.

Step 3: The Analysis

So the big question is, why didn’t we make… more?

In our analysis, we were supposed to make $0.29 per day and should have had over $2 in fees now!

We can answer this question by looking at the volume and TVL over the past week…

We can see that they are both trending downwards. As we covered before: Low TVL, Low Volume = Low Fees. Because this is a mid term investment, I am willing to give this a bit longer to see if Volume Picks back up.

Which leads me to my next point… and one area that we failed to investigate prior to our position… What’s going on with ARB in the big picture that may have caused this?

Alpha Alert - Two main resources to check this out.

  1. CoinMarketCal - an incredible website that lists upcoming catalysts (like token unlocks, founder selling, AMA’s, team updates, etc) for tokens and NFT projects. There was nothing of note for Arbitrum.

  2. CoinMarketCap - to check out social sentiment, recent news and price action. Here was are first clue: There is some drama going on with BanklessDAO where they are requesting several million dollars in ARB that seems to have caused some FUD.

    Conclusion: This is temporary does not affect my fundamental bullish view on ARB, and I hope to see volume return after this blows over.

So how do we feel about the Range we chose? I’m so glad you asked.

So long answer short… I am very happy with the range. It fit our trading style in the sense that we are holding this for a medium term (3-6 weeks), and I don’t want to risk too much.

You can see the top and bottom of our range and price has stayed very close to the center of it, meaning that we have had practically zero impermanent loss.

We may potentially have a breakout with increased volatility within the next week, and I feel that we will be safe.

Two HUGE takeaways:

  1. If we wanted to make shorter term, higher risk plays, we could have dropped this range by a significant amount and made almost a dollar a day. Maybe this will be my next play. Respond to this email if this sounds fun!

  2. We could play this in a way where, if we are bullish on a token, let’s take ARB for example, and wanted to take profit over time, Yield Farming would be a GREAT tool to do this by Leveraging Impermanent Loss. Here’s how:

    1. If we are bullish on ARB and want to take profit, invest in an ARB/Stablecoin pair, just like this one, and set the HIGH of the range to the High Price Point that you want to take profit.

    2. The way Impermanent Loss works is that it always shifts your liquidity towards the weaker token. This means: If the Price of ARB goes UP, then more of your liquidity will turn to USDC.

    3. So let’s say we think ARB will hit 11$ (It’s 1$ at the time of this post), we set the range of, let’s say, $0.9 - $10.50. As price gradually get’s closer to 10.50, more of your ARB will turn to USDC, cashing out at higher and higher prices.

Next week we are going to give you more updates on this position, and start exploring a new area to test out.

Here’s your chance to get the most value possible… What do you want to learn more about for our next letter?

Flash Loans or Whale Wallet Tracking?

Respond to this email and let us know!

We will get our hands dirty and report back to you with our results, so you can grow.

Social-Fi: FUD or the Future?🤔 (4 mins)

  • TLDR:

  • Whether you love it OR hate it, Social-Fi is here to stay.

  • Social-Fi is unique for it’s potential in monetizing growth and connecting with creators.

  • SuperFans (by the Founders of SuperSpaces) is doing things differently.

Whether you love the idea of Social-Fi, or you can’t stand it, no one can deny that it’s here to stay.

From the hype driven campaigns of FriendTech and Stars Arena, whether they made it or not, word is out that they can generate both attention AND funds.

We spoke with Fred Rustler, Co-Founder of SuperSpaces AND their new Social-Fi Platform - SuperFans, to dive into this contentious topic.

What is Social-Fi? 

Social-Fi combines social networking with financial incentives, leveraging the blockchain to create a more interactive and rewarding experience for users.

It's about taking the online interaction we're all familiar with and adding a layer of financial benefit, turning engagement into something more tangible.

Think of it this way: you can invest in the “stock” of other creators who you are bullish on, giving you financial value as they grow, as well as exclusive access to them personally.

The SuperFans Edge 

Most of us have seen the dark side of Social-Fi. From hacks, to greedy founders, to imbalanced tokenomics, the opportunity for corruption is real.

Fred's insights into the broader Social-Fi landscape, and into how previous renditions have failed, has provided compelling reasons to pay attention to SuperFans:

  1. Accessibility For Everyone: Too late to invest in legends like Elon or Vitalik? No stress, you will be able to buy a part of their “share” and benefit from their future growth!

    What’s more, SuperFans is developing a platform accessible via mobile and desktop, ensuring that it’s easy for anyone to join, engage, and benefit from the Social-Fi revolution.

  2. Community and Collaboration: SuperFans isn’t just another platform; it's a community. Fred's vision is to create a space where fans and creators can collaborate, building connections that go beyond traditional social media interactions. This approach fosters a deeper sense of community and shared purpose.

  3. Transparency and Lower Fees: Addressing the pain points of existing Social-Fi platforms, SuperFans promises the lowest fees in the sector, coupled with a transparent system that ensures fair compensation for creators and contributors.

Why SuperFans Stands Out As we move forward, the potential of Social-Fi to reshape our online interactions is immense. What sets SuperFans apart is its commitment to the community-first approach. This platform isn’t just about leveraging the latest tech; it’s about creating a sustainable, engaging, and fair ecosystem for all its users.

Also, they are hosting an airdrop so make sure to DYOR and check out what’s to come. It’s now live and ready for you to whitelist yourself HERE.

Click the link to join up! You can also check them out here to get your DD started.

🔧Growth Toolkit

Weekly tips and resources to grow as a person and as a web3 builder.

Skyrocket Your X Spaces: Alpha from a Pro🧠 (4 mins)

  • TLDR:

  • Fred, the co-founder of SuperSpaces, knows what it takes to grow your show.

  • The most powerful alpha is to curate and manage your speakers.

  • Leverage SuperSpaces to broaden your network, and grow your show by analyzing yours and other top hosts/shows.

Of all the people to talk to, about what makes a successful X Spaces, Fred Rustler falls in the top 0.0001%.

As the Co-Founder of the open-access tool, SuperSpaces, which is a cutting edge Spaces analytics platform, specifically for Web3 Spaces, including a global leaderboard of the worlds top Spaces Hosts AND shows… he knows what it takes to stand out.

We invited Fred to last week’s episode of Web3 Matters, where we dove into what it takes to build a successful X Spaces show. Here are the top actionable takeaways for you to grow:

Managing Your Speakers

One of the most important points Fred spoke about was leveling up, as a host, by managing your speakers. Here is the Alpha that’s based on almost 2 years of analyzing top X Spaces:

  1. Curate Quality Speakers: Select speakers who are not only relevant to the topic, but also known for their expertise and engaging speaking style. They should bring an energy that informs AND entertains.

  2. Speaker Panel Dynamics: It's not just about who speaks, but also about the chemistry between speakers. A diverse and dynamic panel can lead to more engagement and depth to the conversation.

  3. Balance Speaking Time: Ensure a good balance in speaking time among speakers. This means cutting off prolonged monologues or people hogging the mic, which leads to a less engaging experience for the audience.

    SuperSpaces can provide insights into how speaking time is distributed in your Spaces, and how the audience reacted.

  4. Prep and Brief Speakers: Before the Space, brief your speakers on the topic, the audience, and the format. This preparation helps in keeping the discussion on track and ensures that speakers contribute effectively.

  5. Encourage Diverse Perspectives: Invite speakers with different viewpoints to create a more diverse and engaging chat. This diversity can lead to a more dynamic and richer experience for the audience.

  6. Effective Moderation: As the host, actively moderate the convo to keep it focused and on track. Ensure that all speakers have the opportunity to contribute and steer the conversation back if it veers off-topic.

  7. Post-Event Analysis: After the Space, review the performance of your speakers. Look at audience engagement during different segments and gather feedback. Keep learning to keep growing.

Know Your Audience and Boost Your Network

  • Understand Your Audience: 

    Check out SuperSpaces to learn more about your audience and tailor your content to them.

    Check out your top listeners and do some DD to see their interests, what questions they ask, and what they’re curious about right now.

  • Network and Collaborate: 

    This is where the Leaderboard comes in to play. Checkout other top spaces, see who their guests are, re-listen to past shows and compare it to the data to learn about:

    • Hot Topics

    • Popular Speakers

    • Hosts Strategies to boost engagement

  • Then reach out, drop into a future space, jump on stage and send a DM.

Top Overall Web3 Matters Listeners (We Love You!)

General Tips to Boost Your Growth

  • Prioritize Quality Over Quantity: Focus on delivering quality content rather than just increasing the number of Spaces.

  • Regular Engagement: Host regular Spaces to build a loyal audience. Consistency is key.

  • Interactive Sessions: Encourage audience participation to make your Spaces more interactive and engaging.

    Also, make time to acknowledge your audience, because without them, you’re just a guy/gal, on a mic, talking to themselves.

💡Community Highlight

Recognition for our Web3 Matters community members who are making a difference.

Meet Fred🙏

Fred is the Co-Founder of SuperSpaces.AI and SuperFans.tech, the next iteration of Social-Fi that’s building on the missteps of previous iterations, like FriendTech and Stars Arena, and building it in a way that puts community first.

My favorite thing about Fred, is that he doesn’t give a f’k about your following. He will support you as long as you support him, and bring a positive presence to the space.

The value and insight he brought to our last episode was on a whole other level, which aligned perfectly with our mission to provide YOU value!

Definitely give Fred a follow and check out his work with SuperSpaces and SuperFans!

Want to be featured in our next newsletter?

Join us for our next episode of Web3 Matters 👇

🔊Spaces Alpha

NEW TIME! For this week only: Every Friday at 3:30 pm EST / 8:30 pm UTC. 

Tap into your number 1 asset to make it in this space: Your Mindset.

Our special guests, CosmicAdonis and StevieWildcards, hosts of their own Web3 Spaces Show and some of the most real and grounded people you will ever meet, will join us to deliver the alpha.

Expect alpha on how to be happier, more productive, and make moves in Crypto, NFT’s and beyond with confidence.

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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