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The risk of the first mine is high, and the interest rate of the old mine is low.How to choose Defi mining?



Since September, defi has gradually lost its high-yield money-making effect. Many imitation projects have been launched, and a series of events have occurred, making many people gradually consider the safety and risk factors of defi. In addition, the third anniversary of 94, For a while, the currency circle ushered in a relatively strong adjustment.

For adjustments, many people have gradually become accustomed to it, but with the gradual reduction of the interest rates of many old mining projects, most of the DeFi projects in the market are still at 50%-300% interest rates. Even so, it still shocks many outsiders.

In fact, there are many factors for the decrease in yield. On the one hand, most of the farmers participating in DeFi mining implement the strategy of mining, withdrawing and selling. That is to say, they only pay attention to their own profits, and turn a blind eye to the revolutionary results produced by DeFi. , so often mined coins will not be held.

The Flux cross-chain lending agreement was officially launched on Arbitrum and the first Arbitrum mine was opened on November 3: According to official news, Flux Protocol launched V3 cross-chain lending on Arbitrum. Flux will start its first mine on Arbitrum at 20:00 on November 3, and will support liquidity mining of ETH, USDC, DAI, USDT, and WBTC. At the same time, it supports the cross-chain of Arbitum, Polygon, BSC, OEC, and Heco, that is, it supports deposit, withdrawal, and borrowing between any two chains.

The Flux protocol is a cross-chain lending protocol developed by the ZeroOne team. It has completed the deployment of public chains such as Conflux, BSC, HECO, OEC, Polygon, and Arbitrum. [2021/11/3 6:29:48]

On the other hand, there are actually some defi mining that have caused high losses to users, such as liquidity mining traps, project parties running away, or code bugs and other factors, which have also made many participants gradually change from embracing defi to Fear of defi.

Demeter opened the first mine of HECO with a 24-hour TVL of more than 260 million US dollars: According to the latest data from Kingdata, Demeter, a decentralized stablecoin market protocol, opened its first mine at HECO at 15:00 (SGT) on September 18, and mining has already started In 24 hours, Demeter's total TVL (total locked assets) has exceeded 260 million US dollars. According to public information, Demeter has been audited by the audit agency PeckShield to complete the contract code audit. At present, APY, a number of mainstream currencies, ranks first in HECO. [2021/9/19 23:36:48]

The actual use of the coins mined by the Defi project is not very large

At present, the coins mined by most defi projects only have the function of governance voting, and there are few dividends or the destruction function of supporting the price of the currency. In this way, it actually means that if you do not plan to participate in this defi project for a long time, then basically There is not much benefit in holding it. You can only rely on the stability of the currency price to maintain your own free losses, and you must also bear the risks brought about by the decline in the currency price.

Ethereum standard computing power currency ETHST governance token ET head mine is online: According to official news, the governance token ET head mine of the Ethereum standard computing power currency ETHST project is online, and the daily ET output is 3.5 times. Users can open it on MDEX Head mine bonus. The price of ET has also increased from the initial price of 0.01U to a maximum of 0.85U.

ETHST computing power coins will be sold in 10 phases, with a total computing power of 500,000MH/S. Xiaojingku will provide Spark Mining Pool hosting. Users can query mining machine mining information at any time and monitor ETHST mining data in real time.

The next issue will be on sale on May 10th. Participation methods: codebank wallet, Huobi wallet, TP wallet. See the announcement on the official website for details. [2021/5/8 21:38:52]

Although the risks brought about by the decline in currency prices are indeed relatively high, some people have proposed strategies such as hedging, but in fact, the most important part of hedging is to open a corresponding number of short orders. Order means that if there is a large increase in the price of the currency, there is nothing you can do. On the other hand, holding an empty order for a long time generally requires a certain amount of capital fees. Of course, this also depends on the trend of the market. The multi-party funding fee, sometimes the multi-party funding fee to the short side, and the general interest rate of this funding fee is not small. On average, if it is a unilateral market, it may cost about 30% of the funding fee in a year, for example In the last year's market, in fact, those who are long basically have to pay capital fees to subsidize the short side every day, so long-term hedging is not a perfect solution.

MXC Matcha will list JASMY (Jasmy) and start mine mining: According to the official announcement, at 18:00 on January 9th, MXC Matcha will launch JASMY first mine mining, and you can use MX, USDT, BTC pledge mining in "MX DeFi" JASMY head mine, the duration is 4 days.

At 20:00 on January 10, JASMY will be launched and USDT trading will be opened. At 10 o'clock on the same day, deposit and withdrawal will start. According to the data, JASMY is a blockchain storage concept project founded in Japan. [2021/1/1 16:13:26]

The calculation method of the perpetual contract funding fee of an exchange

Participating in the first mine is like picking chestnuts from the fire

It is a relatively dangerous thing to participate in the first mine at present. Generally speaking, the first mine will be directly excavated by a new project, because we all know that when a new mine is excavated, there are generally fewer people involved. However, the released coins are certain, so each person will get a lot of coins. As time goes by, more and more people will participate, and the amount of funds will gradually increase, which will naturally reduce everyone's income gradually. This and Digital currencies such as Bitcoin are mined in a similar way.

Similarly, we also know that in the early days of Bitcoin and other digital currency mining, the risk is actually relatively high, and the currency price fluctuates significantly, so the top mines of DeFi here also show this situation, so mining DeFi can also learn from old numbers such as Bitcoin. The early mining model of the currency may have some gains.

The participation of old mines is relatively stable, but it is necessary to pay attention to impermanent losses

Impermanence loss is a word that appears frequently in the process of defi mining. Most newcomers don’t understand it. In fact, impermanence loss is relatively simple. Here we refer to the grid transaction method. For example, when we deposit stable coins usdt and eth , according to the proportion of funds in the pool, we will participate in the market value with our own funds. If someone uses usdt to exchange eth, then at this time, the funds in the pool will be exchanged according to the price, and vice versa.

If the price of eth continues to rise and people continue to exchange usdt for eth in the pool, then the funds we participate in will continue to sell eth to obtain usdt, which will make us "sell early", which will generate If there is a loss, such a loss is an impermanent loss.

Of course, there are impermanent losses, and there are naturally impermanent gains. If the price of eth falls first in a range, then rises, and finally returns to its original position, then naturally, when we make a market, we will keep buying when it falls eth, and then when it is rising, sell eth continuously, thus completing a market-making process, in which part of the market-making profit will be generated here, which is different from the fee profit generated by market-making.

As a comparison, grid trading is actually based on the same principle. You can keep buying when it is falling, and then sell it when it is rising. This can also make profits. Therefore, the process of market making can actually be regarded as a grid. The process of trading.

Watch out for liquidity pool depletion

As defi is currently entering a phased hotspot, before the emergence of new influential gameplay, defi may appear to be in a certain state of flameout. In fact, this is a process of shuffling the market, and in this process, we need more Pay attention to the market making of small currencies, where the liquidity pool is prone to exhaustion.

The depletion of the liquidity pool is actually a method with a certain "conspiracy", which can be used as the main shipping method. When we find that the interest rate of a certain pool is relatively high, we do not have to participate in it. In fact, it may be the pool's The amount of funds is relatively small, so the income of each participant will naturally be higher, but here, why are there fewer participants?

One possible reason is that someone knows the news that the currency is going to fall, so in order to avoid losses, they cancel the participation, or just wake up and sell it directly. In this way, although the rate of return of participating in the liquidity pool will rise , but the risk of falling currency prices is hidden here, so once someone participates, it may become the best burial item for the main force to ship, and may even cause the liquidity pool to dry up. Zero is similar. Once no one injects funds into the pool, the pool will be abolished, and the currency may also be abolished. Therefore, choosing the mainstream currency is actually a relatively safe way, while other currencies that have skyrocketed or plummeted or unknown In fact, it is not recommended to do liquidity mining for a long time.

As a new product, liquidity market-making mining is actually not particularly designed in many aspects, and there are many loopholes. Therefore, as a participant, we should not only focus on high returns, but also consider the high risks involved.


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