GuShiio.com This article will provide an in-depth analysis of three profit models that do not rely on market trends from the technical and strategic levels.
Original article: The DeFi Investor
Compiled by: Yuliya, PANews
Despite the recent sluggish performance of the cryptocurrency market, there are still profit opportunities in the market that do not rely on rising token prices. In fact, in addition to traditional traders and investors, there are many participants who have made considerable gains in this area through other channels. This article will provide an in-depth analysis of three profit models that do not rely on market trends from the technical and strategic levels.
1. Airdrops and revenue farms
In the current DeFi ecosystem, liquidity mining and airdrop mechanisms with head assets such as BTC, ETH, and SOL as the core are becoming increasingly perfect. Take the Pendle protocol as an example. Its smart contract supports stablecoin asset lock-in to obtain a fixed annualized rate of return (APY) of 19% and a fixed annualized return of 12% on BTC assets. By optimizing strategic combination and capital utilization efficiency, professional operators can achieve 50-80% annualized returns of stablecoins.
2. High FDV New Currency Short Arbitrage
Binance's new tokens recently launched
A technical analysis of the newly launched tokens on the Binance Exchange shows thatThe vast majority of tokens are inTGELater, it showed a clear downward trend。This market phenomenon mainly stems from two core factors:
- Token decentralization is serious: Chain data shows that tens of thousands of tokens are issued every day
- Imbalanced valuation system: Project parties tend to use high valuation models to realize early investors cash out
As the market often says: chaos often contains opportunities. This market inefficiency provides professional traders with significant opportunities to short. The derivatives trading platform represented by Hyperliquid provides an effective trading channel for short-selling strategies by quickly launching perpetual contracts for new currencies. However, special attention should be paid to the fact that considering the high volatility characteristics of newly issued tokens, it is recommended to adopt a low leverage strategy to optimize the risk-reward ratio and accumulate strategic experience through small-scale experiments.
3. Capital rate arbitrage (Delta neutral strategy)
In the pricing mechanism of the perpetual contract market, the capital rate serves as a periodic settlement mechanism for both long and short parties, providing significant profit margins for arbitrageurs.
- When the capital rate is positive, the long direction needs to pay fees to the short direction;
- When the funding rate is negative, the short pays the long.
Professional traders can capture funding rate spreads by building Delta-neutral portfolios. At the specific operational level, when a significant positive funding rate is observed, a BTC spot long position of US$1000 and a contract short position of US$1000 can be established at the same time (the funding rate can be monitored through the Coinglass platform), and stable income can be obtained through market-neutral strategies.
Currently, agreements such as Ethena and Resolv have developed an automated capital rate arbitrage system to provide passive benefits to users. However, by manually operating a multi-variety arbitrage strategy, although it is time-consuming, it is still possible to obtain higher returns. Investors can use the Funding Comparison feature of the Hyperliquid platform to find arbitrage opportunities.
summary
Even during the market downturn, there are still many opportunities in the cryptocurrency space. Contrary to common belief, there are still many inefficiencies in the crypto market, which provides arbitrageurs with abundant profit margins. It is recommended that each participant should find a specific area in which they are good at and can be profitable, and continue to improve and strive to become an expert in that field.
