For those who wanna take this
opportunity and make something of it, I've
found undervalued DeFi projects.
Okay, so crypto can be overwhelming.
There's so much to remember, and the more you
learn, the more you realize you don't know.
It feels like there's always an opportunity
that you're missing out out on or
a mistake that you could be making.
And trust me, I am right there with you.
I first bought Bitcoin in 2013.
I didn't buy a whole lot, just like a couple of $100.
But today that little bit is now worth around $9,000.
Or it could be worth that much if I bothered
to keep my seed phrase when I made that wallet.
Nine grand just locked away that I'll never
be able to access because I was careless
when setting up my first wallet.
So I understand the mistakes in crypto, and
So I like to keep an eye out for
protocols that are doing things a little bit differently.
And that's when I came across Vader Protocol, who's
aiming to be an all in one DeFi protocol.
Their method is to take the best ideas
from Terra, Thor Chain, and Olympus DAO and
put that all into one single dApp.
They use the same mint to burn stablecoin
system invented by Terra, which means the ecosystem
encourages holders to burn Vader and USDV.
To keep the price pegged at $1, they use
a concept called continuous liquidity pools instead of a
limit order book, helping to prevent impermanent loss.
And they borrow an element from
Olympus DAO called Protocol owned Liquidity.
This helps guarantee users that there's always
sufficient liquidity for normal market operation.
then early investors will
take profits and leave for the next opportunity.
This kills the token price for
the people who do stick around.
There was this project that was getting some
buzz early in 2021 called Zero Exchange.
A friend of mine was saying, yeah,
It seemed like a lot of hype was around this
project and it could do well, but you can see
by the one year chart that didn't really happen.
They had the hype to get off the starting line, but
they didn't have the users to keep the people on board.
Because of this, I was looking for a
DeFi project with a popular ecosystem, lots of
liquidity, and a relatively low market cap.
One that caught my eye is SpiritSwap
built on the Phantom blockchain.
SpiritSwap doesn't have the same name recognition as those
other two, but based on TVL, there's an argument to
be made that they are undervalued long term.
It's hard for me to judge whether or
not this will be an amazing investment.
They're still young projects, so they
have a lot to prove.
But for the short term, I could see SpiritSwap
performing well as the market catches on to
this lower market cap to TVL ratio.
Now just be careful and please
always do your own due diligence.
None of this is financial advice.
Now, as I mentioned, Phantom is the
blockchain that SpiritSwap is built on.
Lately, Phantom has been blowing up.
Phantom is the 6th largest blockchain by
TVL, so it likely could be undervalued.
However, there are some downsides that I discovered
about Phantom. On the Phantom Block Explorer,
you'll see that they have only 51
validators, which is not a lot.
Their Nakamoto coefficient score is also
much lower than some other blockchains.
The Nakamoto coefficient basically is a way
of measuring how decentralized a network is.
Having a low score means the security of the
network is much higher risk than other blockchains.
So I think Phantom is undervalued in
terms of DeFi and new wallet addresses.
But I am a little bit skeptical of
Phantom, given some questionable aspects of their network.
However, it's hard to say because this is where
opportunities are made, where maybe some people are concerned
and others are bullish on the project.
So that's up to you to do a little bit more
diligence and see if it aligns with your investing goals.
Now let's talk about something completely different.
The first DEX that allows Bitcoin to
be traded in a fully decentralized manner.
This gives Bitcoin even more of an
edge over a major competitor, Gold.
Today, the gold industry has a
market cap of 11 trillion.
But while gold is nice to look at and some investors
like it as a store of value, others argue the price
we pay isn't worth the potential dark side of the industry.
Now, no matter your opinion on the matter, Bitcoin does
have some advantages over gold as a store of value.
One advantage is that every transaction on
the Bitcoin ledger is permanent and public.
But Bitcoin has an issue as well.
It suffers from a bit of a liquidity problem.
Bitcoin transactions are expensive
and pretty inefficient.
This means it's less effective for payments.
Now, luckily, the Lightning network helps here,
but there's still the issue that vast
amounts of liquidity in Bitcoin can't interact
with Ethereum or other blockchains very easily.
That may be changing with the DEX called Varen.
Varen is the first Ethereum decentralized exchange
to allow Bitcoin to be traded in
a fully transparent and trustless way.
But this is only possible thanks
to their partnership with Ren Protocol,
the project behind Ren Virtual Machine.
Now, you might already know about wrapped Bitcoin.
And if you've heard of this, you're
probably thinking, what's the difference here between
this and a wrapped Bitcoin?
I can trade a wrapped Bitcoin.
Well, Ren virtual machine does the
same thing, but much faster.
Instead of storing the Bitcoin with a
centralized server, they stored on their network
of decentralized nodes called dark nodes.
These dark nodes cannot deny anyone the
ability to mint or redeem their Bitcoin
and making the process much more decentralized.
Now this is a new idea and
Veren has a very small market cap.
The question is will people see this slight improvement to
trading Bitcoin as a massive value add or not?
We don't know for certain.
Currently their total value locked is
surprisingly low at under $1 million.
The project is quite young though, launching
their token only in September of 2021.
This is definitely one of the riskier on the
list, but I had to include it given their
unique proposition that I haven't seen elsewhere.
Overall, the DeFi space is growing
and investors absolutely know it.
Prices for individual projects can be sky
high sometimes for no good reason.
I believe the opportunity right now is to try
and find that disparity, the disparity being which protocols
have users, have the TVL have the unique proposition,
but the market just hasn't caught on quite yet.
That's where the biggest gains will be made.
If you want slightly less risk exposure in
DeFi, you can simply invest in large blockchains
that have many DeFi services built on
them like Avalanche, Ethereum or Matic.
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Now next, if you're looking for a good video to
watch from here, I would recommend this video on
screen where I test out investing in some degenerate
strategies and the results were wild.
You'll enjoy that one.
Anyways, I would like to thank you so much for
watching and I hope you have a profitable day!