Today, I would like to share investment tips. It mainly explains the concept of "information gap" and uses the case of cmETH to give everyone a better understanding.
In the investment world, "information gap" often becomes the dividing line between high-yield earners and low-yield earners, and the same is true in the world of cryptocurrency.
Here you can first understand two common information gaps:
One group of people in the market has more information than others
One group of people in the market gets information faster than others
As an ordinary retail investor, it is difficult to become the second type mentioned above. Factors include the ability to run automated programs (the speed of collecting data), internal information (information circulates among investors, project developers, KOLs), etc.
Generally, retail investors have a better chance of distinguishing themselves from less experienced market participants through the first type of information gap, thereby obtaining more profits.
1. How to earn huge profits through on-chain protocols through information differences?
Applying the first information difference mentioned earlier (having more information than others), I think it is easier to achieve in the following situations:
small market environment
For example, Mantle has a certain user base, but it is not a particularly popular blockchain.
emerging assets
For example, cmETH, as the new asset currently promoted by Mantle, is gradually increasing in protocols that support cmETH staking, and the diversity of protocols is high.
Information circulation is low
If there are fewer people participating in the market and due to the low level of discussion, it will be difficult to see articles that summarize information on the market. This is the current situation of Mantle and cmETH.
2. On-chain staking application strategy with poor cmETH information
I posted an article last week, the link is here: Compilation of APY income from staking on the cmETH chain. An experienced operator will find that there is poor information about pledge income in the market.
The reason is: the divergence of APY annualized income. Some only have basic benefits, while others have additional incentive benefits.
The influence of poor information will be amplified through the principle of lending agreements. The fewer people use and lend assets, the lower the utilization rate of funds will lead to lower deposit returns.
From a practical perspective, we will find that cmETH, deposits and borrowings on the Aurelius lending protocol are all at low interest rates.
In contrast, it gives us arbitrage space for cross-platform lending and deposits. For example, Minterest provides a deposit interest rate of 16.04%.
Although this involves depositing other assets into Aurelius first, and then lending cmETH to Minterest, thereby obtaining the income from the interest rate difference. (16.04% deposit interest - 3.63% borrowing interest)
But I think as a user who actively participates in the Mantle ecosystem and Methamorphosis airdrop activities, it should be very common to have FBTC and mETH on hand.
Or users who have successively made profits during the recent bull market understand that users with a large number of stablecoins can easily participate in Aurelius deposits.
(The picture below shows the deposit items supported by Aurelius)
3. Summary
Seeing that the on-chain lending agreement has polarized deposit interest rates, we must be keen to detect the arbitrage opportunities that exist between them. Carefully check the deposit and borrowing interest rates of the relevant agreements, and you will be surprised to find "the original room for arbitrage." So big."
Don’t forget, you still have the deposit income from the assets you originally deposited before borrowing.
Today’s investment information is here first. I hope it can give everyone a basic concept of “information difference” and understand the application strategy of information difference in on-chain lending protocols.
If you have anything you want to discuss or have questions, please leave a message below, and don’t forget to follow my account! Knowledge-based articles, or information related to airdrops and income will be published from time to time.
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"myronchiu", you and I can get an extra 10% points
※None of the above content constitutes investment advice. Users are advised to operate according to their own risk tolerance and DYOR participate in the investment market with caution.
※The cover picture is taken from the mETH Protocol web page
