Bitcoin, DeFi , Yield Farming, and Cryptocurrency Update

Boxmining avatar Boxmining
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Description

Latest Bitcoin and Cryptocurrency news and trends. We take a look at the key events affecting the blockchain sector and review market movements. Combining both fundamental analysis and technical analy...

AI Analysis

This video dives into the latest happenings in the crypto market, highlighting a shift in focus from stagnant Bitcoin to more dynamic altcoins and the booming world of DeFi and yield farming. It also explores China's growing influence on the crypto space, particularly with Polkadot and their national digital currency.

Here's a breakdown of the key discussions:

* Market Recap and Bitcoin's Stagnation:
* Bitcoin is currently stuck in a "golden triangle" or "miracle channel" between $10,800 and $12,000, and it's become quite uninteresting for trading compared to altcoins.
* While Bitcoin and Ethereum experienced recent dips (Ethereum going below $400), altcoins are picking up significant momentum.
* Many large funds and "whales" are moving capital from speculative trading into yield farming opportunities due to higher profitability.
* The overall crypto market sentiment feels like early 2017, with extreme enthusiasm and positivity, but not yet at the peak, suggesting more growth is still to come.

* Polkadot ($DOT) and the China Narrative:
* Polkadot has surged to become the sixth-largest cryptocurrency by market cap, largely driven by its strong narrative and adoption in China.
* Unlike in the West, Polkadot has a massive following and base in China, with many Chinese projects leveraging its parachains (e.g., Darwinia Network, Mantra DAO, Real Chain, Crust).
* China's national digital currency, DCEP (Central Bank Digital Currency), is a massive topic in China, even appearing on prime-time TV talk shows like Phoenix TV. It's explicitly presented as a direct response to Facebook's Libra.
* There's a significant fear within Chinese financial circles of potential exclusion from Western payment systems like SWIFT due to escalating trade tensions. This fear is a major push factor driving people towards crypto-based solutions.
* Tether (USDT) plays a crucial role in China due to currency controls, as it offers exposure to stablecoins and a way to move value outside of strict government regulations. China's love for USDT contributes to its continuous supply growth, now at $13 billion in market cap.

* Yield Farming: High Rewards, High Risks:
* Yield farming remains a primary focus due to its high profitability, with some pools offering incredible APRs (e.g., previously 3000% on YFV, currently around 80% or 367% on YFV).
* Despite the high yields, yield farming is extremely risky, and it's essential to be cautious. The market won't last forever, as high yields are often tied to new coin issuance.
* High Ethereum gas fees can significantly eat into yields, making it less viable for low investments unless the returns are exceptionally high.
* It's recommended to start with a "test send" or "test stake" with a small amount to understand the process and build confidence before deploying larger capital.
* CREAM: Was one of the earliest yield farming opportunities, and getting in early proved profitable.
* YFII & YFValue (YFV): YFII is being actively farmed. YFV initially had heavily modified smart contracts, leading to some problems (like delayed unstaking), but developers have since shown transparency and are getting audits, making it a current active farming target.
* YMPL: A rebasing coin and liquidity mining pool that requires significant research due to its dangerous nature.
* SushiSwap: A clone of UniSwap that aims to heavily incentivize staking UniSwap pools to farm Sushi tokens. It's considered dangerous because it uses custom contracts that haven't been audited, but it aims to offer a more dynamic and incentivized version of UniSwap. The verdict on its long-term viability is still out.

* DeFi's Transformative Impact:
* DeFi isn't a distraction from top cryptocurrencies; it's a fundamental shift and a direct competitor to traditional finance, giving crypto new functionalities.
* DeFi products like MakerDAO (collateralizing ETH for DAI), Compound, Cream (lending/borrowing), yield aggregators, Curve pools, and Synthetics (minting assets) are revolutionizing the space.
* DeFi has significantly changed the power dynamic with exchanges. In 2017, projects begged exchanges for listings; now, projects can simply launch on decentralized exchanges like UniSwap, crowdsource liquidity, and offer incentives, making centralized exchanges less powerful. This change is absolutely crucial.
* DeFi is a "rising tide that brings up all boats," benefiting even top cryptocurrencies as they also want to participate in decentralized liquidity pools and staking.
* The space needs more cross-chain functionality and asset bridging to unlock further liquidity.

* Personal Investment Strategy and Community:
* The presenter is currently "illiquid" because a significant portion of his crypto assets are locked up in yield farming and new coin investments.
* He is aggressively researching new projects and actively joining groups to gain access to crucial information and project allocations.
* Duck DAO: Joined this large DAO (decentralized autonomous organization) for access to information, deals, and project incubation. It operates on a tiered system (paying to join with their token) to ensure higher quality discussions and filter out spammers.
* The presenter actively manages FOMO (fear of missing out), acknowledging that it's okay to miss some 10x gains, and focuses on controlled, well-researched investments.
* He emphasizes the importance of joining high-quality communities and being active in sharing and providing information.
* The podcast "Bitcoin Out of the Box" offers on-the-go crypto learning, with more exclusive content and interviews coming soon.
* Actively encourages listeners to smash the like button and engage, seeing it as a fair exchange for the information shared.

* Other Projects and Insights:
* Swissborg (CHSB): Highly recommended for buying and selling cryptocurrencies, especially for onboarding new users. It offers no-fee trading for those holding 50,000 CHSB tokens, making it a seamless entry point into crypto.
* UTrust (UTK): Positioned to enable merchants to accept crypto payments, which is seen as crucial for broader adoption as more users want to spend their crypto. Preferred over services like CoinPayments or Coinbase Payments.
* Celsius Network (CEL): A centralized finance (CeFi) platform that recently raised $20 million, showing that even centralized services are gaining traction in the current landscape.
* Binance and Oasis Labs: Launched an intelligence-sharing platform for exchanges, indicating growing collaboration in the space.
* Perpetual Protocol (PERP), Orion Protocol: Other projects currently being researched.
* Chain Games: Had a successful launch on TrustSwap, an ambitious gaming project to watch.
* Wax: Doing a lot with collectible cards and custom blockchains, also an area of interest.
* A significant portion of profits from yield farming are being reinvested and used for personal treats, reflecting current market opportunities.

Transcript

have on restream is the stream is online and we have we're going live right now on youtube hey guys and welcome back to another episode of box mining live here today is august 28th it's a friday for me over here and we're gonna do some really cool stuff today we're gonna talk a little bit about what's going on market recap first of all first and foremost always on a friday recap of this week as well in terms of the news then we'll talk about the latest yo farming digs everyone's been asking me ...