December 15, 2021
All Eyes on the Fed
Introduction
If you checked your portfolio yesterday, you must have been quite shocked…
Did you manage to nail the top?
Jokes aside, obviously, the major data glitch CoinMarketCap, Coinbase, Binance, and Co. experienced yesterday prompted a wave of memes on Crypto Twitter. While no major damage was caused, it was indeed a good reminder that the crypto space and its infrastructure are still nascent and full of bugs and risks...
What are we looking at today? Of course, all eyes are on Jerome Powell and the FOMC meeting, which has kept the markets in suspense for many days now... While the consensus expectation seems to be a “buy the news” event, be prepared for some rollercoaster price action.
As macro expert Darius Dale puts it: “Investors are ill-positioned for a probable US Dollar short squeeze amid growing talk of a Santa Claus rally in/across risk assets.” 💥
Here are some more takes on this pivotal day for all asset markets:
Continued Mainstream Crypto Adoption…
In the end, what crypto needs to grow sustainably, both prize-wise and fundamentally, is continued adoption. That’s the reason why we keep highlighting major crypto adoption stories – even if they don’t have a short-term impact on prices.
… While the Legacy System Feels Increasingly Threatened
At the same time, the famous saying “First they ignore you, then they laugh at you, then they fight you, then you win” is playing out before our eyes. We’re likely somewhere in the later stages…
Juicy New Yield Farming Pastures
Are you sitting on stablecoins after heavily taking profits (hopefully) and don’t want to throw it all back into the market? Then, you should consider deploying a portion of your stablecoins into different DeFi opportunities to earn yield.
Today, cross-chain bridging protocol Celer Network has launched an attractive liquidity farming program. If you want to provide some of your coins as bridging liquidity and get rewarded handsomely for the risk, you should check out this DeFi opportunity.
While rewards are currently the highest on Ethereum L1, there is also the option to provide liquidity on a cheaper L1 or L2. However, Ethereum fees are much lower today than they were recently.
Composable Finance Crowdloan
A project we have had our eyes on for quite a while is cross-chain DeFi protocol Composable Finance, which already has a great working product, the Mosaic bridge. Composable Finance is perfectly positioned among several narratives, which we believe will remain hot in the future: Polkadot, cross-chain DeFi, and L2s.
Today, Composable Finance entered the race for the next Polkadot parachain slot (after Acala, Moonbeam, Astar, and Parallel won the first four slots). If you still believe in the Polkadot ecosystem long-term (as we do), contributing to this fundamentally solid project could be a worthwhile moonshot.
A big positive is that the hype surrounding Composable Finance isn’t nearly as large as when Moonbeam and Acala had their crowdloans, which means you will likely get a “fairer” allocation now...
Wonderful read Oliver, sharing this with my brother and friends as per usual, such great info, thank you.