DeFi Enclave's Chronicles #22

So, the total portfolio today consists of the following sub-portfolios:

1. Cashflow Conveyor Portfolio - As the name suggests, this is a profit-generating portfolio.

2. PerpDEX Revenue Flywheel Portfolio - A portfolio for earning through funding rate arbitrage. You can read more about how it works here.

3. Stables - A portfolio consisting of stablecoins.

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   Heat Map for July

The return includes income from farming, staking, and bribes.

In July, active income(can’t call it “passive income” anymore) from farming/staking/bribes/rewards accounted for 15% of the total capital, which is approximately equivalent to an annual dividend income of 395%

The overall portfolio return(capital growth + active income) in July was -1.7%.

In July, BTC increased by 3% and ETH also increased by 3%.

Now let's go through the sub-portfolios and positions.

1. Penpie - PNP and PENDLE aren't doing great, and some people are saying that Pendle isn't needed anymore now that the hype around LST/RST tokens has died down. But I think everything is cyclical, and it's obvious that Pendle can't keep growing without a break. The team has already proven they can adapt to changes and follow trends. It looks like there's going to be hype around Elixir soon, which plans to launch deUSD on Pendle. The project is still a versatile way to make good money.

2. Camelot - The project continues to launch on new Arbitrum Orbit chains, which seems to be its main focus. Campie is finally about to launch, which should increase demand for the token. I've decided to withdraw my GRAIL from the dividend plugin, and in six months, I'll decide what to do with the token. By then, I might either invest in Campie or sell and use the money to buy more MGP.

3. Radiant - The project launched on Base, but it seems like no one cares about it anymore. Radiant has lost its market share and isn't able to keep up with technical developments and adaptations fast enough. It takes quite an effort to lose out on hype to the boring Aave, which has been predicted to have a second wind in the past couple of weeks. With just under two months left before my tokens vest, I'll probably sell them and invest in MGP and other tokens.

4. Aerodrome - I added AERO to my portfolio at 0.45, and since then, the token's price has nearly doubled. The project looks very promising, and I want to buy more, but after such a price increase, I'm hesitant to buy at these levels, especially when I also want to add CRV, which is currently very undervalued.

5. Layer3 - I received an airdrop from the project, and the L3 token has already started generating income through quest rewards. I'll be adding them to my portfolio; it will be interesting to see how profitable this turns out to be.

6. Beefy - The project looks great. They're launching dozens of CLM vaults every week, and I think this additional income will soon start impacting BIFI's earnings. For now, I've decided to farm with a BIFI/USDC pair, but once I reach a decent amount of capital, I'll switch fully to mooBIFI to avoid losing tokens to IL.

7. Paraswap - I'm starting to have serious doubts about the project. First, the DEX aggregator sector is highly competitive. Second, Rabby removed the option to swap through Paraswap in its app, which I suspect could negatively impact trading volumes. Third, I've reconsidered my opinion on their tokenomics. The model where the project holds its own tokens in the treasury and constantly sells them to cover expenses seems outdated and unpromising.

8. Mozaic - The project is slowly coming back to life, and the vaults are set to launch soon. Additionally, the project managed to secure funding from an investor, so it seems I'm not the only one who still believes in it.

9. Magpie - I'm gradually building a position in MGP. It makes sense to switch to this token from GRAIL & Radiant since Magpie's treasury already includes them along with other more promising projects. Campie, Listapie, and then Eigenpie, Sympie, and Babypie will be launching soon, which will significantly increase the project's treasury. I need to establish a solid position by then.

• Curve - The CRV token has found a second life after the founder's liquidation. The project has gone through so much turmoil and only gets stronger, which I really appreciate. Right now, the token is very undervalued, which is obvious when looking at CVX. Convex gets 90% of its profit from CRV, and its market cap has almost overtaken CRV's, which is unusual. If we believe in market efficiency, either CVX should drop significantly, or CRV should increase by a few hundred percent. There's also the possibility that Convex has something up its sleeve that justifies its growth, and we just don't know about it yet.

• Azuro - The platform is similar to Polymarket but more undervalued. It looks like an under-the-radar cash generator. I'll keep an eye on it because the project seems too risky to invest in right away.

Aark Digital - I'm continuing to farm AARK, esAARK, and ARB, and it's proving to be very profitable with low competition. The ARB distribution will continue for another month, which creates a good opportunity for earnings.

Vertex - I'm continuing to farm VRTX and build up my position. I have a lot of faith in this project and believe it is undervalued.

HMX - The project continues to make poor decisions that devalue the token.

WOOFi - I’ve added a small position in WOO. While the project isn't perfect and has its flaws, I like how they're evolving, especially with their layered gamification in staking, discounts, etc. It's a full-fledged platform with its own CEX, and the token was recently in the top 100 by market cap on CoinGecko. So, I'll keep an eye on it and gradually accumulate tokens.

Merkle Trade - I received an airdrop and decided to sell. It's a good opportunity to lock in some profits, especially since airdrops in perp DEXs can be quite costly.

Gains Network - The project slightly changed its tokenomics, making the GNS token a bit more attractive.

Synthetix - The project is currently migrating its infrastructure to V3 and recently launched on Base. As a bonus, Kwenta is compensating trading fees with SNX tokens. I've started accumulating SNX through trading and plan to hold onto them. I see potential in the V3 upgrade and think the token should be added to my portfolio.

• WooFi introduced boosters that, as the name suggests, boost staking rewards for 5 days. I managed to get the rarest one, which boosts rewards by 10x. According to the latest transaction on Sudoswap, it's worth 10k WOO ($1730). While I doubt I’ll get that much, I'm hoping to get at least $500 for it. Previously, I managed to grab and sell a mid-tier booster for $125.

• ARB rewards on Aark Digital for the last 6 weeks.

• These are rewards for participating in the Degen Racing Royale on Merkle Trade.

I'd be glad to hear any advice on what to add or change in the comments here or on my X (Twitter).