Defi Farm #18 - August 28th Weekly Update

Hi everyone,

Tough week for crypto (and everything) prices! Let's dive in 🤿Over the past 7 days:SPY: -2.81%BTC: -5.7% ETH: -6.5%

Major L1's:SOL: -10.1%AVAX: -10.3%Near: -6.9%Algo: -3.3%FTM: -8.0%

Except for Friday's price action, it was a relatively quiet week on the crypto news front so this might be a shorter edition.Today I'll go over:- A few podcast recommendations if you need some content to binge- Interesting news from this week- Cool projects and protocols I came across this week- This week's interesting farm

Insightful Crypto/Web3 Podcasts that I've been listening to

The Mint Podcast by Adam Levy - linkAdam does an amazing job securing top-notch guests who are all building and experimenting in web3. The breadth and depth of the interviews make the episodes a fun listen.

Empire with Jason + Santi - linkThis is a great podcast to stay up-to-date with current crypto/web3 news and listen to how big-brained 🧠 veterans of the space think about everything that is going on

Seed Club Podcast - linkThis is one of my favorite podcasts for builder/founder interviews. Jess (@thattallguy) is THE person to listen to if you're interested in DAOs and tokenized community building.

Web3 with a16z - linkGreat episodes that get into the important details for BIG crypto/web3 concepts such as auction design, collaboration, securing networks, and policy

GreenPill - linkOwocki invites incredible interviews with web3 builders and leaders. The episodes usually tie back to the core ideas of blockchains/web3 - building public utilities and finding new methods for human coordination.

On the Other Side - linkOn the Other Side with Chase Chapman is a great listen if you're curious about what's right around the corner. In these episodes, Chase and her guests usually discuss how web3 intersects with society and culture to create a more fair and fun future.

Bankless - linkOne of the more well-known podcasts in the space. This is a great listen if you want a mix of everything: news updates, builder and founder interviews, panels, etc.

Interesting news and things from this week

• Thirdweb raised a $24m Series A, Thirdweb makes it easy to deploy smart contracts and web3 features across web2 products.

• M&M's released a limited edition box in partnership with Kingship (a group/record label made up of 4 Bored Apes). What a world...

• Founder of Ragnarok (popular NFT collection) came out with a post admitting to losing almost $2million trying to trade with their treasury, $2.45million for founder compensation, and a $1.5million co-founder buyout. I think this speaks perfectly to my thoughts on treasury management from a few months ago. The space needs better treasury management practices - builders should be building, not trading.

• Arbitrum's Nitro confirmed to be launching soon!

Interesting protocols I found this week

Tangible (link) - Tangible converts real-world assets into tangible NFTs (TNFTs) that can be redeemed for the physical product at any time. They also recently launched USDR - a rebasing, USD-pegged stablecoin that is backed by yield-producing real estate. The stablecoin is overcollateralized (129%) and currently yields 12.31%. This a VERY new project so please realize the associated risks. This video gives a pretty awesome overview.

100 Days of Web3 - This past week, I started a new challenge for myself. Every day, for 100 days I am going to tweet about a web3/crypto tool, protocol, community, or project. Today marks day 5 (only 95 more days to go 😬)! If you're interested, you can follow along here.

Interesting Defi Farm of the Week

Alpha Homora built a leverage Uniswap v3 concentrated liquidity manager on Optimism. You can earn up to 97% APR in ETH/USDC pools.

^ Reading that sentence back, I realized it's word soup. Here's what it means.

Optimism is a Layer 2 blockchain, a scaling solution of ETH.Uniswap is the largest DEX on ETH and most ETH L2s.Uniswap V3 uses a concept of concentrated liquidity. Instead of just depositing USDC and ETH into a pool and farming, you have to select a range of ETH prices you want to provide that liquidity. There are a lot of advantages to running a concentrated liquidity model for the exchange and traders, however, it makes it harder for LP's (liquidity providers) because they have to actively manage their positions.

This new tool, automatically manages your concentrated liquidity positions AND allows you to use leverage for those positions.

⚠️ Leverage can be very risky, especially when farming, especially^2 when farming in a new DEX model that you don't fully understand, and especially^3 if you don't understand how concentrated liquidity and leverage affect impermanent loss you may experience. ⚠️

I personally only use leverage to enter delta-neutral positions (equal long/short exposure) where I'm solely collecting yield and not looking for any asset appreciation.

While this tool is insanely cool - I would only recommend the most advanced defi farmers consider using it.

That's all I have for this week! Stay safe out there and as always, stay yielding!

- Andy