My favorite farm of 2021
The market looks much better than it did a few weeks ago.
What’s causing it?
One reason is that the Superbowl is happening in America on Sunday. Companies such as Coinbase, FTX, and Crypto.com have commercials lined up.
Hopefully, this is not a “buy the rumor, sell the news” situation.
Could this be the beginning of another bull market? Who knows. I’m containing my excitement until BTC breaches $50k.
Today I’ll be covering:
- Catalysts in the Metaverse: Disney and McDonald’s are entering the Metaverse
- Farm of the Week: The One-Jewel in DeFiKingdoms was one of my biggest winners of 2021.
- Cognitive biases: Are these thinking errors affecting your investing?
- Where to Earn /w Your ETH: Got some ETH laying around? Starting earning passive income on it.
Let’s dive in!
MAJOR Companies are making moves to enter the metaverse.
Disney is hiring 4 people with Metaverse knowledge. You guys have no idea how crazy Disney fans are. I know people who visit Disney World every month.
There will be a FLOOD of new inflow coming in if Disney releases Marvel, Star Wars, and Mickey mouse NFT’s
South Korea has a $200b sovereign wealth fund. It’s looking to invest in the Metaverse.
I’ve always viewed South Korea as ahead of the curve when it comes to technology. They were treating video games as eSports decades before the USA did!
McDonald’s has filed 10 trademarks around the metaverse. Experts predict that their ice cream machines will still be broken in the metaverse.
And remember that Nike and Adidas are already participating. Zuck already renamed his company, Meta.
Having companies like Disney and Nike being a part of Web3 is how new money and inflows enter our universe.
Here’s a chart from The Block showing Venture Capital inflows.
Are you feeling down about the dip? This is the calm before the storm.
Project of the Week: One – Jewel Farm on DeFiKingdoms
Transparency: I have been in this farm since September 21′. It was one of my biggest winners of 2021.
Keep in mind when I started farming here, the rates were over 2000%+ APR. It has since gone down since more people are invested. I’m still currently invested and don’t plan on exiting anytime soon.
These rates are still attractive to me.
Why did I invest in DeFiKingdoms?
DeFiKingdoms is a DEX / RPG game that’s being built on Harmony One (Expanding to other chains soon)
I’m bullish on Harmony One, GameFi, and NFT’s.
This project gave me exposure to all 3 at once.
I was tired of investing in projects where people would farm tokens, and then immediately sell-off.
If the only value proposition is governance, then people have no incentive to keep the token.
Well, DeFiKingdoms is building an RPG game.
Whenever people want to do anything in the game, they’ll have to USE the Jewel token.
One thing that impressed me about the team is that they have been executing their roadmap on time.
And on top of all this, they have amazing tokenomics.
Whenever a new feature launches, they conduct airdrops to people staking Jewel in the bank.
The game is expanding to AVAX in Quarter 1. Instead of Jewel, the currency there will be Crystals.
I have thousands of Jewel staked because I want to be airdropped Crystal, and have the chance to win a Generation 0 hero.
This cycle keeps repeating itself with each new feature, and each new expansion (They’re planning to be on 5 chains in total)
DFK already has more transaction volume than Axie Infinity, while having significantly less market cap.
That shows tremendous growth, especially considering the future chain expansions.
My Strategy:
I don’t play the game.
I don’t own any heroes.
I treat this project like a DEX with interesting gamification.
There’s a tremendous profit opportunity if you’re willing to invest the time in learning the game.
But for me, I like to keep things simple. There’s an opportunity cost to my time.
I farm with the ONE – Jewel LP.
I went with ONE – Jewel because I figure it’d have the lowest impermanence loss.
- I provide my Jewel – One LP in the gardens.
- I harvest my Jewel every few days.
- Stake the Jewel in the bank for xJewel.
What is xJewel?
It works similar to xSushi or sSpell (abracadabra). You stake your Jewel and you get more Jewel in return.
(Every time people use Jewel in the game, a % goes back to the bank and gets distributed to the stakers)
The Risks Involved:
When I invested in the game, I’d say the risk was a 9. It was a high-risk play for me.
Now I rate it around a 6 in risk levels and put it into my “medium risk” bucket.
The team has proven itself over the past half-year.
The downsides:
- A portion of your Jewel is locked until July. I know you’re thinking, “Wait, wouldn’t people just dump their tokens in July?”
The tokens are unlocked slowly over time.
The point of this tokenomics model was to give the developers time to build the game. By the time the tokens unlock, so much utility in the game will be unlocked.
- I can’t quite say that it’s a game yet. You can buy a hero and start questing with it. That’s about it. They’ll have some interesting mechanics coming soon like housing and PVP combat.
- High barrier of entry for newbies. Floor heroes now are around 30 Jewel which is (~$250usd ish). DFK is working on introducing a “scholarships” feature that’ll make it easier for new players.
I’m still massively bullish for DeFiKingdoms this year.
Jewel is around $8.75 now and was around $22 at its all-time high.
The community is hardcore, I love the team, and I’m excited about their roadmap.
Anyways, remember that this is NOT me telling you to APE into the project. I’m shining a spotlight onto a project for you to research more if you’re interested.
And most importantly, I’m showing you how I think about investments.
Tweets of the Week
I’ve studied hundreds of cognitive biases to become a better Crypto investor.
Here are the 14 most important ones:
— The DeFi Edge 🗡 (@thedefiedge) February 7, 2022
Many people underestimate the psychological aspect of investing.
This is just as important as what projects you choose to invest in.
Most people have their Ethereum sitting around doing nothing.
Let’s put it to work.
Here are some low-risk ways to earn passive income with your ETH:
— The DeFi Edge 🗡 (@thedefiedge) February 9, 2022
I listed out various places to gain yield on your Ethereum. I rate them from lowest risk to highest risk. And I share which strategy I’m using with my ETH.
How to size bets
Some personal principles 👇
— Jason Choi (@mrjasonchoi) January 18, 2022
Sizing bets is one of the most important concepts in Poker. It’s vital in Crypto too!
For example, I love high-risk plays. But I limit them to 5% of my portfolio each, and I take profits.
Are there people who APE into a shitcoin and 10x? Sure.
But I’m optimizing for a scenario that accounts for variance and wins in the long term.
The following thread is the culmination of countless hours of research .@PastryEth & I have dedicated to the ETH ecosystem during our time as pastries.
In it we’ll attempt to simply explain the hundreds of brilliant, funky & sometimes rather unconventional dApps in DeFi. (1/107) pic.twitter.com/PhqTxFZQ3m
— croissant (@CroissantEth) February 8, 2022
A must-read thread on the various dapps in the ETH ecosystem.
Don’t feel overwhelmed or FOMO! It’s a great 80/20 of what’s possible in the DeFi space.
