DeFi Enclave's Chronicles №19

1. Voyager's Vault - Detailed Report on My Investment Moves

2. Alpha/Airdrops - unexplored DeFi territory, proceed at your own risk

My newsletter is completely free, but there are my referral links to the projects I recommend. I would be grateful if you use them as a small token of appreciation for my work.

So, I have two important updates about my portfolio:

1. I completely restructured it, now it's divided into 4 different sub-portfolios. I got rid of small positions, and now each sub-portfolio has its own watch list of potential projects.

2. I sold my main position in PENDLE, which was 35% of my portfolio a month ago, and moved it to PNP. I also sold off a major position in BTRFLY.

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. Infrastructure Genesis Portfolio - A portfolio of fundamental projects on which the entire crypto industry is built. Here, one shouldn't expect any cash flow or short-term growth; it's a bet on the growth and development of cryptocurrency.

4. Stables - A portfolio consisting of stablecoins.

Now, let's go through each of the portfolios.

1. PNP - I switched from PENDLE to PNP, and you can read about why in my recent post. After switching, the price of PENDLE dropped by 30%, while PNP only fell by 4%.

2. GRAIL - It's undervalued, but I'm looking to see some development soon. The project hasn't been very active with announcements or innovations, and I'm unsure about its direction.

3. FXS - I staked my FXS as cvxFXS on Beefy Finance to benefit from autocompounding and save on fees. However, since Convex introduced a new option to move to Fraxtal, the need for Beefy seems to be diminishing. I'm finally happy about the 30% APR yield, although the buybacks aren't yet noticeable on the chart.

4. Radiant dLP - The project feels like a scam with poor innovations for loyal dLP stakers. I want to exit, but I'm locked in for another six months. I hope the token doesn’t drop to zero during this time, as I'm disappointed with what Radiant is doing.

5. MVD - I've been asking in their Discord for six months to update the documentation to understand what's in the Treasury DAO. It feels like I'm the only one interested in how the treasury contracts look and what's inside. If they don't update by May, I plan to exit the project due to this lack of transparency.

6. Mozaic - Still waiting for the return of stolen funds; there's not much movement on this front.

7. Beefy - The project is pleasing as it has finally overcome a tough transition period and started to generate a solid 25% APR. This is where my main purchases are happening right now.

Watchlist

1. ETHFI - There's now an opportunity to accumulate the token on Layer 2, but there's still no news about utility or staking. I've heard that there are many short sellers in the token, who hedge their positions to earn additional returns from airdrop campaigns. It's quite possible that someone might want to squeeze these short sellers out soon, so the token could experience a significant pump.

2. SILO - The project is performing well financially and promises a V2 soon with the possibility of staking on Layer 2.

3. Algebra - This project is very secretive, and it's unclear what's happening inside it despite their weekly reports. They are promising a new tokenomics in Q2. The ALGB token is like an ETF on the frontier market in traditional finance—its composition is risky but one component might perform exceptionally well and carry the whole token. It's a bet on the global increase in trading volumes across all DEXs.

The portfolio, in addition to earning from funding rate arbitrage, has a strong potential for receiving airdrops. I don't stick to just one pair of perpetual DEXs and sometimes switch to those where interesting paid events are happening. Managing the portfolio is quite complex, as it's necessary to calculate the potential benefit from participating in events or generating volume to receive airdrops, as significant money is spent on fees and they are not always compensated.

For example, look at the Grand Prix event by Vela Exchange, a not very popular DEX but hosting a surprisingly profitable event where you can get a couple hundred PYTH for a very small volume. On the other hand, consider the opBNB event on KiloEx, where I earned about $16 today for $200k in total volume. It became clear on the third day of the event that spending money and time on such an event was pointless.

VRTX - Great news came out yesterday about the start of a buyback & stake of VRTX tokens. The project will use part of the revenue to buy back tokens and stake them, and the rewards from staking will also be used to buy back VRTX tokens. The only issue is the lack of specifics; it's completely unclear what portion of the revenue will be used for the buybacks and how long this will continue.

Hyperliquid - The event with points has ended but there's been no word about TGE yet. The project has been behaving reasonably towards its users, so I hope there isn’t another season waiting for us for several months.

HMX - The project is developing and pleasing with various events and rewards; there's nothing to criticize.

MUX - A confident, stable project that performs well for its LPs, a great place for conservative money storage during turbulent times in the market.

Watchlist

I'm eagerly awaiting TGE for Merkle Trade & KiloEx, having generated large volumes on these platforms. However, I don't believe in the success of platforms like Orderly, LogX, and Satori.

I have big questions about IntentX; they have a very cool tokenomics, but from a technical point of view, it's very difficult to trade on this platform. There are some poor restrictions on withdrawals within 12 hours, and there's often not enough liquidity just to open a position. Bids might take a minute to execute or could be canceled ultimately. I hope someone like Hyperliquid will copy their tokenomics, and then we might get a near-perfect perpetual DEX.

The most challenging sub-portfolio to invest in, aimed at long-term growth. It's very difficult to understand all the technical aspects of each project, so I add projects to the portfolio that I consider fundamentally important for the development of the crypto industry, based exclusively on my subjective observations of the market and research by big-brain influencers.

Yeah, I have GAL token (by Galxe) in this portfolio already(crazy ?), soon there will be a post about it.

Watchlist: TON, DYM

The only thing I can say about this portfolio is that I catastrophically lack stablecoins, and I am finally addressing this by replenishing this sub-portfolio.

It's difficult to judge the exact profitability of the portfolio this month due to significant rearrangements and various buy/sell transactions, but it's clear that the portfolio is approximately down by 10-20%. The passive income this month is around 2% of the capital, or 24% annually. I expect that passive income will now increase significantly as it will mainly come from the Penpie bribe market.

I've decided to stop spreading myself thin across everything because I feel I'm not investing enough in truly worthy projects, trying instead to participate in a bunch of mediocre ones. I must admit that the cool airdrop from Jupiter was a fluke, after which I caught FOMO and decided to invest small amounts of capital in as many projects as possible.

Now, I want to better study the potential of projects and not follow the main crowd, but instead enter less popular projects that look promising but are under the radar of the general public.

My newsletter is completely free, but there are my referral links to the projects I recommend. I would be grateful if you use them as a small token of appreciation for my work.

This is the list of projects that I am primarily betting on.:

• Dolomite - Recently, the project launched the ability to accumulate points (minerals), everything is heading towards an airdrop, and the project is under the radar.

• Cega - The project is developing nicely. I bought their NFT, Super Sanics, for which they should additionally reward me with an airdrop for using the platform.

• IntentX - Making a big bet on this project, I continue to accumulate points.

• CARV Gaming - The project will soon start selling nodes, and I want to try to participate.

• Merkle Trade - I've already accumulated quite a lot of volume, so I'll stop for now, as these seasons seem like they'll never end.

• KiloEx - I've accumulated about 150k points; I don't plan to go any further for now, as their fees are quite high.

• Mode Network - In just a few days, the project apparently promises a TGE. I earned the main amount of points here (30k) for the degenscore. I didn't accumulate enough, although I should have put everything into this instead of into Blast.

• Zk.Link Nova - It looks very high-quality; liquidity might flow here after the launch of other chains.

• Elixir - Now is a great opportunity to earn points while the project is still unnoticed.

• Aperture Finance - The project offers very cool functionality for managing positions on Uniswap, and there isn't strong competition on the leaderboard.

• BinaryX - The project is selling tokenized shares of real estate in Bali and recently launched a point farming system. These points can be used to purchase merchandise and buy shares in real estate. Also there is TGE soon.

• Airpuff - The new project has a pretty cool concept, offering the ability to farm various points with leverage or by providing liquidity. The project farms points from multiple projects all at once for you.

  Invite codes to a team where many people are staking, and we receive bonuses for this: V2DKDN, QP1TR9, Q5KWKC, 4DME8A, GQAJW5, Q871PR

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