I've been into blockchain since 2017. Currently working as a CMO and as a partner at a Hedgefund
I've been into blockchain since 2017. Currently working as a CMO and as a partner at a Hedgefund
Share Dialog
Share Dialog
Subscribe to nixnox.eth
Subscribe to nixnox.eth
<100 subscribers
<100 subscribers
Today (21st of January) the entire crypto market has crashed, with BTC down 10%, ETH down 14% and LINK also down 14%. Like I said in the last article Greed in the crypto markets it’s important to take profits for a day like today so that we’re able to buy the dip.
As you can guess from the title the main strategy for this dip is to buy more LINK for the following reasons:
As a larger cap cryptocurrency, it tends to be a little less volatile than smaller cap ones and is also more likely to survive an extended bear market
LINK dominates the markets as a decentralised oracle. Although many other projects use centralised solutions, Chainlink is the most used decentralised one.
The Cross-Chain Interoperability Protocol (CCIP), will be a game-changer for EVM-compatible blockchains and will only make LINK more attractive
However, I am not buying and farming LINK on Ethereum. I have opted to use the token on the Fantom network because the strategy requires regular intervention and rebalancing, which becomes very expensive on Ethereum due to gas fees.
As you can see this happens to be one of my simpler strategies. I will go through a couple of steps individually and explain my reasoning behind them:
Link Vault: I chose Mai Finance over Tomb Finance because I believe that Mai is the better platform and also yields better rewards over the long term if you boost using Qi.
Borrowing from the vault: In the image above I indicate a 170% Collateral-to-Debt (CtD) ratio. You can adjust that ratio depending on your risk tolerance and activity. I generally advocate staying below 250% though.
Yield farming: We split the borrowed MAI into 2 different pools. The idea is to set a ratio between the two (50/50, 60/40 etc.) and rebalance the pools to that defined ratio weekly. By doing that we lower the volatility, which allows us to stay flexible, should we want to repay our debt.
Deposit & reborrow: We want to deposit our LINK back in the vault to minimize our liquidation risk. Whether you should borrow more or less depends on the price of LINK, but generally stick to the CtD ratio you set at the beginning. Don’t forget to also collect Qi rewards and lock them up for 3 months to boost your yield.
As of writing this article the price of LINK is 19.20 USD. My exit strategy is split into three parts:
The Swing: Once LINK reaches a price above 25 USD, I will be selling 20% of my position back into a stablecoin pool.
The Value: When LINK reaches a price above 40 USD, I will be selling an additional 40% of my position, either into stablecoins or lower cap projects.
The Rocket: The last 40% of my LINK position will be kept until it reaches a price of 100 USD or higher. Though this is very unlikely to happen this year, I do love the project and plan on holding a small portion for years to come.
Today (21st of January) the entire crypto market has crashed, with BTC down 10%, ETH down 14% and LINK also down 14%. Like I said in the last article Greed in the crypto markets it’s important to take profits for a day like today so that we’re able to buy the dip.
As you can guess from the title the main strategy for this dip is to buy more LINK for the following reasons:
As a larger cap cryptocurrency, it tends to be a little less volatile than smaller cap ones and is also more likely to survive an extended bear market
LINK dominates the markets as a decentralised oracle. Although many other projects use centralised solutions, Chainlink is the most used decentralised one.
The Cross-Chain Interoperability Protocol (CCIP), will be a game-changer for EVM-compatible blockchains and will only make LINK more attractive
However, I am not buying and farming LINK on Ethereum. I have opted to use the token on the Fantom network because the strategy requires regular intervention and rebalancing, which becomes very expensive on Ethereum due to gas fees.
As you can see this happens to be one of my simpler strategies. I will go through a couple of steps individually and explain my reasoning behind them:
Link Vault: I chose Mai Finance over Tomb Finance because I believe that Mai is the better platform and also yields better rewards over the long term if you boost using Qi.
Borrowing from the vault: In the image above I indicate a 170% Collateral-to-Debt (CtD) ratio. You can adjust that ratio depending on your risk tolerance and activity. I generally advocate staying below 250% though.
Yield farming: We split the borrowed MAI into 2 different pools. The idea is to set a ratio between the two (50/50, 60/40 etc.) and rebalance the pools to that defined ratio weekly. By doing that we lower the volatility, which allows us to stay flexible, should we want to repay our debt.
Deposit & reborrow: We want to deposit our LINK back in the vault to minimize our liquidation risk. Whether you should borrow more or less depends on the price of LINK, but generally stick to the CtD ratio you set at the beginning. Don’t forget to also collect Qi rewards and lock them up for 3 months to boost your yield.
As of writing this article the price of LINK is 19.20 USD. My exit strategy is split into three parts:
The Swing: Once LINK reaches a price above 25 USD, I will be selling 20% of my position back into a stablecoin pool.
The Value: When LINK reaches a price above 40 USD, I will be selling an additional 40% of my position, either into stablecoins or lower cap projects.
The Rocket: The last 40% of my LINK position will be kept until it reaches a price of 100 USD or higher. Though this is very unlikely to happen this year, I do love the project and plan on holding a small portion for years to come.
No activity yet