Defi VS NFT, Yieldfarming, Bitcoin & Cryptocurrency Update

Boxmining avatar Boxmining
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Description

0:00 introduction 2:25 Market overview and recap- bull market? 13:04 Uniswap and future of Decentralised Finance (DeFi)? 15:54 DeFi vs Centralised Finance (CeFi) 21: 38 Non-fungible tokens (NFTs) 30:...

AI Analysis

This video dives deep into the dynamic world of crypto, specifically pitting DeFi against NFTs, analyzing the current market, and offering insights into yield farming and various projects. It highlights the insane volatility and rapid innovation happening in the space, emphasizing the critical need for a discerning eye when navigating new trends and investments.

Here's a breakdown of the key topics and insights:

* Market Overview & Bitcoin's Current State:
* The market is largely entering a new bull market, similar to 2017, which means extreme volatility, including potential 20-30% pullbacks in a single day. You need to be mentally prepared for these sharp drops.
* Bitcoin recently dipped below $12,000, which felt like a massive drop but was almost unimaginable six months prior.
* Bitcoin has been moving within a "golden channel"; when it's stagnant, altcoins go crazy, making it an "altcoin market."
* A recent sharp rejection after Bitcoin briefly surpassed $12,000 shows continued volatility.
* When looking at the "Wall Street cheat sheet" of market cycles, people's perception of where we are differs. Bitcoin maximalists might still be in the "hope" phase, as Bitcoin hasn't seen its craziest moves yet compared to 2017.
* The political climate, with trade wars and bank account freezes, reinforces Bitcoin's core value proposition: uncensorable, international currency transfers where "your keys, your crypto" means no one can freeze your funds or call a "Bitcoin bank."
* In the altcoin space, we're likely in the "thrill" phase, where many are making quick, significant gains, but this also means wilder projects and potential for pullbacks.

* DeFi vs. NFTs – The Next Big Thing:
* There's a strong sentiment that while DeFi is currently booming, Non-Fungible Tokens (NFTs) are perceived as the next major wave.
* In Asia, particularly China, there's significant skepticism towards DeFi due to past hacks and people getting burned, leading them to view NFTs as more promising.
* DeFi has significantly impacted the crypto landscape by "waking up" centralized finance (CeFi) exchanges. Before DeFi, CeFi exchanges charged high listing fees and were cautious, but Uniswap's success forced them to adapt, as liquidity now flows directly to decentralized platforms.
* Centralized exchanges have engaged in "shady stuff," like the BKey exchange not having actual coins to back withdrawals or allowing trading of tokens before they officially launched (like Polkadot). DeFi, conversely, offers transparency, allowing users to see what's available and get the delivered product.
* DeFi offers powerful functionalities like depositing idle coins (e.g., BAT, Wrapped Bitcoin, USDT on Compound/Cream) to earn APY, or borrowing other coins for speculation while maintaining exposure to your collateral. The presenter describes complex strategies like collateralizing Ethereum for DAI, then depositing DAI into Y-curve, and further into Vaults, showing the intricate possibilities.
* The presenter is highly skeptical of art NFTs, calling them "delusional thinking." Paying $30,000 for a JPEG of a masterpiece when you can download it for free makes no sense unless it conveys real ownership, intellectual property, or functionality.
* For NFTs to be truly valuable, they need practical use cases, like being playable assets in video games (Engine, Vimworld's "intelligent NFTs" that grow over time) or representing copyright ownership.
* The presenter has his own Boxmining NFT collectibles (from two years ago) which are fun, cheap, and have a use case as collectibles, unlike overpriced art NFTs. He believes they need functionality, not just being an image.

* Yield Farming: Tools, Tips & Risks:
* Yield farming has become incredibly popular, with many new projects distributing tokens to farmers, making it a long-term trend in crypto.
* New tools are available that track APYs (Annual Percentage Yields) for various pools, showing incredible returns, sometimes thousands of percent.
* Crucial warning: High-yield pools, especially those with "slash" names (e.g., spaghetti/CCR/YY curve/pasta), are extremely dangerous due to impermanent loss.
* Impermanent loss occurs when providing liquidity to a pool where the price of one asset drastically changes relative to the other. If one asset drops, your liquidity position will have more of the depreciated asset, causing a significant loss to your capital. The presenter personally experienced this with a BASE token pool, losing 30% of his capital when BASE dropped 50%.
* Safer yield farming options include pure pools like USDT or USDC vaults, which don't involve the risk of holding volatile new currencies or market making for them.
* Compared to centralized saving apps (Celsius, Digifox, Cake DeFi), yield farming offers more transparency, even if it requires more skill. Centralized options lack transparency on how funds are used and often lack insurance.
* While not easy for beginners, it's essential to understand the basics of yield farming given its growing prominence.

* Project Spotlights & News:
* John McAfee is "ghosting" his own privacy coin project, Ghost, which is "completely expected" and seen as mere "crypto entertainment."
* Algorand ($ALGO), led by Turing Prize winner Silvio Macaulay, is shifting focus to decentralized finance. They are expanding their smart contract platform with a new, more efficient layer, directly competing with Ethereum by offering faster and cheaper transactions. This sets up an interesting battle between Algorand's speed and Ethereum's established community.
* Loopring ($LOOP) is a project attempting to scale Ethereum by enabling smart contracts without needing Ethereum 2.0, which warrants further attention.
* Flow Protocol ($FLOW) is an "economic game type" project from which the presenter made a 10-15x profit, but he doesn't see it as a long-term "next big thing."
* Ankr ($ANKR) offers one-click node formation for various cryptocurrencies and staking. The presenter is setting up a Binance Smart Chain validator on Ankr and plans to make a step-by-step guide.
* Plutus DeFi ($PLT) recovered well after the presenter bought the dip and took some profit. He emphasizes that the project now needs to deliver on its promises beyond the speculation phase.
* Trustswap ($SWAP) is a rapidly growing project whose founder, Jeff Kirdeikis, demonstrated strong determination by quickly addressing issues like the BKey exchange refusing withdrawals. Trustswap's launchpad and airdrops are attracting community attention, validating the presenter's decision to become an advisor.
* CREAM ($CREAM), supported by Jeffrey Huang, is highlighted as a promising, yet relatively untapped, DeFi project.

* Personal Reflections & Actionable Takeaways:
* The presenter has recently prioritized investing and researching crypto over video production due to the higher profitability, highlighting the current market opportunities.
* He stresses the importance of learning from past mistakes (especially from 2017), improving strategy, and seeking consistent gains with minimal risk, rather than going "all in" on single projects.
* He warns against the "go big or go home" mentality, as he personally experienced a "rug pull" where a project disappeared, but his diversified approach prevented significant loss.
* The community is highly valued, and the private Telegram group's quality of discussion improved after closing to new members, but it will reopen next week.
* He is currently researching new DeFi projects like RAMP, OIN, ETHVerse, Black Hole, and Union.

Transcript

What is the error here? Data, screen, just making sure everything is okay. That should be all right. So let me just double check, go live. We are going live, guys. We're making sure everything is starting out. So you are live, guys. So welcome back, guys, to another episode of BoxMining. I just have to make sure that I'm live because YouTube is a little bit super wonky this morning. But thank you guys for tuning in. Today is not a normally scheduled episode, actually. Today we're having an impr...