Chainfeeds Guide:
From chasing Alpha to guarding Beta, locking four targets, noting the current price, seeing if it can outperform BTC, and diving into the next cycle.
Article Source:
https://x.com/Wuhuoqiu/status/1947564018367139854
Article Author:
Lao Bai
Perspective:
Lao Bai: AAVE is one of the few targets that you can hold long-term and sleep soundly, with TVL breaking the previous high to over $30 billion. More remarkably, it hasn't had a major security incident in all these years. Looking at traditional financial institutions like JP Morgan testing the waters in blockchain, they also prioritize testing on AAVE for this wave of RWA+ stablecoins. The combination of blockchain and traditional finance, improving efficiency quickly, cheaply, and effectively, is destined to be the primary direction of blockchain development in the future. Among the targets that can ride this wave, besides public chains, the certainty of Uniswap/Curve is not as high, whereas AAVE is a leading target that is definitely and certainly on board. The upcoming V4 launch in the next few months is also highly anticipated, so it's worth diving in. Pendle's TVL has reached $6 billion, close to its previous high, stable and solid, about to usher in its third wave. Pendle's first wave was backed by SushiSwap and some DeFi protocols, splitting out liquidity mining and other yields, but without much buzz or heat, because those yields were quite virtual. The second wave was based on Lido and Eigenlayer's LST/LRT, soaring high. After all, the yields were much more substantial. The future third wave will be about RWA and stablecoins. In traditional finance, yield grading and risk separation is an extremely important track, with a massive market (over $10 trillion). As more RWA and stablecoin assets come on-chain, this track will definitely rise with the tide. Unlike AAVE, which faces competition from Compound, Morpho, and others, Pendle is basically the sole player in this track, with no competitors in sight. Hyperliquid is undoubtedly the strongest token project this cycle. Its crushing user experience and trading depth on other chain Perps have led to crushing trading volume and market cap leadership. Moreover, Hyperliquid is not just a Perp, but a Liquidity Layer on-chain. Phantom's recent integration is the best proof, and more front-ends will connect to Hyperliquid's liquidity backend in the future. Besides the current massive buybacks, there are also future ecosystem developments like HyperEVM and RWA Perp with HIP-3 in the works. I was previously a Bittensor critic until recently, when I started to turn fan and plan to dive in for 6-12 months. My criticism was naturally about its Product-Market Fit (PMF), which I began questioning in 2023 and still doubt, feeling Bittensor is similar to Filecoin. In terms of emission mechanism and Mindshare, it can be seen as the BTC of the AIxCrypto track. With its subnet design, consensus, and proof mechanism, it's also like ETH - potentially, a star subnet could emerge with a true PMF, just like Uniswap and AAVE on ETH. After all, its subnets cover everything from decentralized training to data, computing power, inference, text, image, video, drug research, and more. Almost all AI+Crypto sub-fields have one or several subnets working on things. So, compared to other projects, Bittensor feels more like a foundational platform like ETH, especially since subnets can now issue their own tokens this year.
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