1. Avalanche, a public chain project, has recently suddenly encountered a lot of hype and attention. The Avalanche Foundation announced that it will launch a $180 million liquidity mining reward program, which is a catalyst for the total lock-up value (TLV) on the public chain.
Personally, I have always been an active user of the Avalanche ecosystem, and have not given up even during the recent bear market. I hope to discuss the characteristics of new users of the public chain ecosystem through a series of tweets, and my personal views on what will happen next in the ecosystem.
DeFi on 2.Avalanche eco-exist in the “C chain”, that is, the public chain Ethernet Square Virtual Machine (EVM) compatibility layer. To understand Avalanche, you must know this little knowledge: The Avalanche protocol consists of three architectures, namely X chain, C chain, and P chain. Exchanges often use “X chain” for redrawing. You can use the native Avalanche wallet to exchange tokens between these exchanges, and then withdraw funds to your MetaMask on the C chain .
Or, you can use their newly introduced bridge.
3. Give you some historical background: C chain and OG AVAX bridge are expensive, and the user experience is quite clumsy, which is the main reason why the growth of AVAX users has been kept to a minimum.
Its users are either the original blockchain family (holding AVAX tokens), or some follow-up operators aiming at early income farming opportunities.
4. A small part of the core users of the project survived the first 6 months and started to build the community. I have enjoyed 3-4 digits of annualized return (APR) for many months, and I have also witnessed crazy withdrawals.
The project’s recent announcement highlighted two key catalysts:
- The Avalanche ecosystem is verified by mainstream DeFi protocols such as Curve and Aave
- Launched a $180 million liquidity mining plan-by comparison, Matic ‘s Aave liquidity mining incentive plan is about $40 million. The Avalanche Foundation extends incentives to more projects.
5. Come, let us take a deeper look at the Avalanche ecosystem. I will start with how to start using AVAX:
The first is Snowball, which is my first income farming project in the Avalanche ecosystem. They have grown into a powerful pool of compound interest mining, IDO and stablecoin machine guns. You can think of it as a native Curve agreement for additional revenue farming products.
6. Penguin Finance ($Pefi): I have dealt with them from the first day I participated in income farming. Penguin Finance provides IDO, compound interest farming and xPEFI locking models with compound income.
Important products to be launched by the project include a sports prediction market and a gambling game called “Penguin Arena” (penguin arena).
7. Pangolin ($PNG): This was the first decentralized exchange (DEX) that attracted users to the Avalanche ecosystem, and it was also a catalyst at that time. As a pioneer in this field, Pangolin has formed a strong team and community governance process in recent months, and has easily become the most valuable decentralized application on the AVAX C chain.
8.Trader Joe ($JOE): This is a newer DEX that has emerged in the Avalanche ecosystem in recent months. The project has risen because people believe that Pangolin is developing slowly. Trader Joe has always been the favorite of those who follow suit, and it is well integrated with Snowball, Penguin Finance and other projects in the ecosystem.
9. BENQI: This is the first native loan market in the Avalanche ecosystem. It should further improve capital efficiency in the next few weeks or months.
Sherpa Cash: The first privacy software in the Avalanche ecosystem. It is basically equivalent to Tornado Cash on Ethereum, but the product has not yet been launched. Its tokens are also newly issued.
10. Yield Yak ($YAK): Yield Yak is generally an automatic compounding service. Its status in the project has declined.
$LYF, $GDL, and $ZERO are all other early on-chain projects that I am not familiar with, but I know that there will be some good gains. And $BAG is a DEX.
11. For new participants, many of these projects may be very small, and some can be confusing.
In my opinion, it is impossible to say which projects really attract people’s attention. In the next few months, we may see AVAX DeFi usher in a crazy wave of new projects and products.
12. To put it bluntly, I don’t think all the projects counted here are a good opportunity to join the Avalanche ecosystem “as soon as possible.”
I personally witnessed that the TVL of the Avalanche ecosystem has grown from USD 250 million to USD 800 million+ in the past 48 hours.
13. According to my personal experience and observations, I have the most confidence in snob, pefi, joe and pangolin projects because of the unique moat built in the early AVAX-native DeFi.
I personally find that $Pefi and $snob are the most impressive investment opportunities since April.
14. I think Pangolin and JOE can become projects that can be co-invested without thinking in the ecosystem… But I am not so sure about the relative chances of each project.
Frankly speaking, JOE is more attractive due to its market capitalization, fully diluted valuation (FDV) and ghostwriting release rate. But compared with PNG, its risk is much higher.
15. Pangolin has really experienced the pain of growth, but they have sorted out the governance structure of the team, and the community has been actively building in recent months.
Historically, its transaction volume dwarfs JOE, but I have seen that JOE’s transaction volume in the top machine gun pool in the past 24 hours is almost 10 times that of it.
16. What kind of “high-quality” opportunities are there?
I think the best case study is MATIC. They launched a $40 million liquidity mining incentive program, and the ecosystem has exploded in the next few months. AVAX has launched an incentive plan that is more than three times larger, coupled with a good accessibility opportunity and cost reduction.
So naturally $AVAX is a simple answer and an excellent investment choice.
I think the next best option is the JOE/PNG token pair, but it should be noted that this depends on daily active users and increased transaction volume. I have contact with both, but I personally placed a bigger bet on $joe.
I personally think that $Pefi and $SNOB also have great opportunities.
According to my personal experience in each project in the past, their communities and teams are very active and actively participate in the ecosystem, which I cannot ignore. The Pefi team left a particularly deep impression on me.
For Qi, I personally believe that any debt instrument that unlocks capital is also a huge investment opportunity in the chain.
I also think that we will see a considerable cycle of following the trend of operating income farming, considering that the past APR has remained strong… New projects, users and capital may experience their usual cycle on AVAX. Discovering “real” projects in the next wave will also be very profitable.
17. In short, I think we are at the beginning of a longer-term outbreak of AVAX.
I personally have a 100% position in the early projects that entered the network (and it has been a few months), and in the next few weeks, with the help of liquidity mining news, I will actively participate in income cultivation and be more active Participate in the chain.
Personally, I really like these early operations in the AVAX ecosystem as an interesting adventure away from the ups and downs of the market, but I think that such an alternative window of opportunity is over. The market is about to usher in AVAX DeFi, it’s time to participate in this game again.
Good luck to everyone and look forward to the next round of player matches.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-about-the-new-public-chain-avalanche-inventory-of-early-avalanche-ecological-projects-and-investment-opportunities/
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