Yield Farming Strategy: How To Discover Opportunities Using @nansen_ai & Doing Due Diligence?
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2/ This strategy relies heavily on the "Hot Contracts" dashboards.
1) Ethereum Hot Contract - pro.nansen.ai
2) Multichain Hot Contracts - pro.nansen.ai
1) Ethereum Hot Contract - pro.nansen.ai
2) Multichain Hot Contracts - pro.nansen.ai
3/ So what are "Hot Contracts"?
Simple Explanation: The contract receiving the highest capital currently. I say currently, but you can also sort by last 24 hours or last 7 days
Simple Explanation: The contract receiving the highest capital currently. I say currently, but you can also sort by last 24 hours or last 7 days
4/ So why is this useful? By looking at the contracts market participants (especially Smart Money) are depositing capital into, you will be able to start doing your research and understanding WHY they are parking their funds in that contract.
5/ Step 1: Head to "Hot Contracts" and look for 2 things.
1) Smart Money Depositor in last 24 hours
2) Inflow in last 1D/7D
In the red box, you see a pattern of @StargateFinance contract across different chains with good volume deposited and Smart Money participation
1) Smart Money Depositor in last 24 hours
2) Inflow in last 1D/7D
In the red box, you see a pattern of @StargateFinance contract across different chains with good volume deposited and Smart Money participation
6/ Step 2: I want to find out who the Smart Money participants are. Right-click the contract, select "Wallet Profiler"
7/ Step 3: Identify the token being deposited. In this case, we can see USDC is being deposited.
8/ Step 4: Click on the down arrow for the dropdown list.
9/ Step 5: Copy Address
10/ Step 6: On the left menu bar, under "Diligence", select "Top Depositors"
11/ Step 7: Paste the contract address you copied in Step 5 and input "USDC" as token (identified in Step 3)
12/ Step 8: There are 2 "Smarter LP" in this contract. Both deposited 3 days ago, and withdrawn half their initial position.
13/ Step 9: Looking at @StargateFinance farm page, we can see the APY for the few contracts we highlighted in Step 1.
14/ Take away the concept instead of looking at the project specifically. I will use different examples in this guide and use the ones that has the clearest example for you to understand.
15/ This is Chapter 8 of the guide. For other chapters, check out -
16/ This is for educational purpose only and should not be viewed as financial advice. This process highlights how you can use on-chain analytics to find opportunities, more research still have to be done on contracts and project.
17/ Next chapter, we will go into how to defend your yield farming position.
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