Some defi re-staking strategies

By EdgyFebruary 1, 2024

One of the biggest airdrops ever has just landed.

Jupiter’s a combination of dex aggregator + perps + launchpad built on Solana. They distributed around $700m worth of tokens to ~1m wallets.

Currently, $JUP has a market cap of ~$810 M and a Fully Diluted Valuation of ~$6 billion.

Between Jupiter and Jito, Solana’s proving to be fertile ground for airdrops.

Warning: Always be careful when you’re claiming airdrops. There are tons of fake sites out there trying to drain your wallets. 

Here’s the tweet from the official account with the site to see if you qualify.

Here’s what we got today:

  • The EigenLayer Opportunity. Qualify for the biggest upcoming airdrop.
  • Why are $UNIBOT holders angry? Reactions to $UNISOL.
  • And news around the web.

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DeFi Strategies

EigenLayer Strategies

EigenLayer and restaking’s one of the hottest narratives this year.

We’ve already covered EigenLayer and re-staking a few times before. Here’s an article if you’re not familiar.

Re-staking your ETH could give you additional yield and airdrops. We’ll share some strategies with you today.

Strategy #1: Stake Through Eigenlayer

The easiest way to start is through Liquid Staking Tokens.

  1. Stake your ETH on Lido.
  2. Receive stETH from your ETH stake.
  3. Put your stETH to work by staking it with EigenLayer and earn points.
  4. That’s it. Done!

It’s not possible to calculate exactly how much extra yield you can earn on your restaked tokens.

This will depend on how much revenue the Eigen marketplace generates.

Currently, all the EigenLayer LST pools are full and limited for security purposes.

Strategy #2: Stake through KelpDao

Now we’re adding in another party to get more airdrops potentially. 

  1. Stake ETH on Stader
  2. Receive ETHx
  3. Deposit ETHx to KelpDao. In exchange you get rsETH.
  4. You’ll receive EigenLayer points + Kelp Miles
  5. You can also use rsETH for loans, leverage, and other uses.

Strategy #3: Etherfi and Pendle

This strategy will encompass both the and Pendle protocols.

1) Stake ETH on to obtain eETH yield and both points and EigenLayer points.

With just one step you are already earning:

  • EigenLayer Points
  • EtherFi Loyalty Points
  • ETH Staking Yield
  • Restaking Yield (not yet live)

​2) Now here comes Pendle.
Stake eETH in the eETH Pendle pool for 24% APY.

This will get you:

  • Swap Fees
  • PENDLE Incentives
  • PT-eETH Fixed Yield

3) Let’s say you don’t have vePendle to incentivize your yield on Pendle. You can still always carry out step two but on this PenPie pool.

Closing Thoughts

EigenLayer and the entire re-staking narrative have attracted much attention, especially from institutions.

This is also reflected in the liquidity collected in just a few months. The EigenLayer TVL has already crossed $2.03 billion.

These strategies will help you boost some yields + farm airdrops simultaneously.

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Why did $UNIBOT crash?

Everyone is busy finding the next 10x. But it’s just as important to protect your positions.

Even seemingly solid projects can drain your portfolio. Last week, Unibot did just that.

What is Unibot? It is the market leader in the Telegram Bots narrative. TG Bots solve one of the biggest headaches in the crypto space: bad UI/UX.

​TG Bot users can access crypto from the familiar interface of Telegram. They can:

  • Buy and sell
  • Copytrade
  • Handle airdrops
  • Manage their portfolio
  • Access strategies, technical indicators, and more

On January 27th, $UNIBOT announced a new token for its Solana bot called $UNISOL. Even though some of it would be airdropped to OG $UNIBOT holders, they weren’t happy.

On the announcement day, $UNIBOT was around ~$73. By Jan 29th, the token price had fallen to ~$47.5. That represents a ~35% crash!

What happened?

​Previously, all the revenue generated by Unibot was going to $UNIBOT holders. But with $UNISOL, the revenue generated from Solana would go to $UNISOL. So, holders will receive far less revenue than originally anticipated.

​​Also, the project was diluting tokenholders. Once the new token comes online, the supply of Unibot tokens is going to inflate significantly. The new token isn’t airdropped to OG holders alone. New users on Solana will also receive it.

​It also created a new concern among tokenholders: the project will create a new token for every new L1 ecosystem. This would mean that tokenholders will keep getting more and more diluted.

Edgy’s take: Don’t be in a hurry to proclaim the death of the Unibot just yet. The project is still solid. Only the token is affected for now. And even full details of that aren’t out yet.

​So, the situation might not be that bad. Even the price has recovered a bit. $UNIBOT is now trading at around $60.

​The key takeaway from this whole episode is that, until now, the expansion of a project into a new chain was seen as unquestionably good for tokenholders.

​But Unibot has proven otherwise. Some projects might issue a new token for new ecosystems, but that’ll actually push the price down for existing tokenholders.

Free Research Report

IntoTheBlock published a report called “Better Risk Management: A Catalyst for DeFi Adoption”. It covers a ton of ground from overview of different risk factors to monitoring and mitigation strategies.

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🚀 DeFi Catalysts

ZetaChain mainnet is set to go live in a few days. It is looking to integrate different blockchains such as Bitcoin, Ethereum, and Cosmos chains.

Picasso Network has released Restaking Vaults on Solana. For this round, they’ve set a cap of 50k SOL for restaking vaults.

Orbiter Finance announced plans for their zk-rollup, Orbiter Rollup. Their vision is to make it the layer through which all other L2s are accessed.

Immutable zkEVM mainnet is available for early access. They’ve promised a surprise for users who have Immutable Passport.

Curve Finance has been developing lending and borrowing markets for crvUSD. Once released, this should drive the crvUSD growth.

GMX announced the launch of a BNB market on Arbitrum GMXv2. 100,000 ARB will be used to incentivize early LPs in the GM(BNB) pool.

Lido DAO chose Wormhole and Axelar, LayerZero competitors, as official bridge partners. LayerZero had tried to bridge stETH without Lido’s approval.

Magic Eden launched a multichain wallet. It’ll have cross-chain transfers, native BRC-20 support, NFT portfolio management, and more.

Celestia Blobstream will be integrated with StarkNet. L3s built on StarkNet will be able to use Celestia as the Data Availability Layer.

Solana introduced token extensions. It adds 13 new functions such as native metadata, confidential transfers, and more.

📰 Industry News

Farcaster released Frames, and is fast becoming the next meta. It allows anyone to create interactive experiences within Farcaster.

Polygon announced AggLayer. Theoretically, it’ll aggregate many L1s and L2s to create the feeling of a single chain with unified liquidity.

Beam Wallet has acquired Join. a web3 shopping wallet. It’ll be possible to make Amazon and Shopify purchases using the wallet in February.

API DAO announced the OEV Network. It will be a zk-rollup that is designed to capture Oracle Extractible Value.

Abracadabra was hacked for $6.5 million in $MIM, their stablecoin. The hack caused $MIM to temporarily depeg to $0.77.

🧠 Twitter Alpha

  1. Ripple hacked.
  2. A new off-ramp entity is in town.
  3. Inflows are coming back for the BTC ETFs.
  4. Vitalik on the intersection between AI & Crypto.
  5. The “Making It” false myth.

p.s. We’ve started accepting early signups for our live training, Double Your DeFi in April 2024.

1. It’ll be the final time we conduct this training
2. We’re offering $400 off to the first 25 signups.

You can sign up here