TradiFi (Traditional Finance) having Liquid Restake Protocol, a different form of Liquid Restake Tokens in DeFi (Decentralized Finance), would give such TradiFi institutions an edge over most other conventional commercial banks across the globe.
LRT is a new kid on the block in DeFi and requires some level of technical navigation and fundamental understanding of DeFi (if you need a quick call on DeFi to catch up, look up Adrian Pape)
âš Benefits of LRTs
1. Capital Efficiency: Users earn rewards from multiple protocols with the same capital.
2. Enhanced Security: It allows new protocols to tap into Ethereum's existing security layer (right now, via EigenLayer) .
âš Risks of LRTs
1. Centralization Risk: Potential for systemic risk to Ethereum if too many stakers move to EigenLayer.
2. Yield Risk: High yield competition among protocols could dilute staking rewards.
Restaking offers a way to maximize staking rewards and protocol security, but it comes with its own set of risks, particularly around yield and centralization.
NB: The acronym LRP, I coined, for TradiFi, for conveyance of the same idea as it runs, starting with DeFi.
Those who will celebrate in the bullrun are already positioning now. Many people are in fear now, and would have more reasons to fear pre-bullrun. You only have one assignment - to take position and ignore the noise.
1/ Do you want to make a lot of money in Crypto? Everyone wants to make a lot of money in crypto!
But to make a lot of money, you need just one thing, and it is very important: lot of money!
'lot of money' is relative, however, people come across the money they invest into crypto via several means. The most common is - Jobs.
1) These jobs can be conventional
2) The other is via crypto/web3 related jobs. This may include services rendered for crypto projects. You get paid for your freelance.
3) Gifts: you could get gifts from 'frens' & families to start your crypto investment. When & if this comes to play, be sure you're given a long leash. Success isn't overnight. Okay, back up. Success can come overnight, however you can't bank on being the next outlier.
How to Avoid Falling Victim to a Crypto Rugpull During this Bear
1. Research: Thoroughly research the project, its team, and its goals. Look for transparency, a clear use case, and genuine community engagement.
2. Team Information: Verify the team's identities and backgrounds. Check if they have experience in relevant industries.
3. Whitepaper: Read the project's whitepaper to understand its purpose, technology, and goals. Ensure it's well-written and comprehensive.
4. Transparency: Ensure the project provides regular updates, communicates openly, and shares progress reports.
5. Community Engagement: Active and genuine community engagement on social media platforms can be a positive sign.
6. Audit and Code: Check if the project's smart contracts have been audited by reputable firms. Review the code on public repositories if available.
7. Token Distribution: Be wary of projects where a significant portion of tokens are held by a small group, as this could lead to manipulation.
8. Liquidity Lock: Look for proof that the project's liquidity is locked, reducing the risk of a sudden price crash.
9. Gradual Development: Be cautious of projects that promise rapid and unrealistic development or returns.
10. Scarcity of Information: If there's a lack of information about the project or its team, it's a red flag.
11. Too Good to Be True: If an investment opportunity seems too good to be true, it probably is. Avoid projects that promise guaranteed profits.
12. Community Feedback: Seek opinions from the broader crypto community. Online forums can provide valuable insights.
13. Start Small: Invest a small amount initially to minimize potential losses.
14. Trust Your Instincts: If something doesn't feel right, it's better to step back and reconsider.
No investment is entirely risk-free, especially in the volatile world of cryptocurrencies. Stay vigilant and informed to reduce the likelihood of falling victim to a rugpull.