"Aggressive airdrop ‘farming’ is probably the best odds of running a low 5 figure portfolio into 6 figures in a single cycle without taking on insane risk."
- any recommendations on what someone with low-mid 5 figs on HL can do to accomplish this? I would assume leveraged delta neutral yield strategy isn't enough given small position sizing comparative to whales.
Correct, if you want to airdrop farm aggressively I would pick off arbs on HL vs another exchange where you have low costs, aim to push the most volume you can before profits turn break even. That's what I've been doing, try to get into Tier 2 volume category for a chance at a decent airdrop.
Wynn was a gift because you could make a ton of profit, whereas most smaller arbs you're basically aiming to scratch after fees (including losing trades and times where you get legged up).
Farming question - if we do care about volume / even though cannot generate volumes some people will - does it make sense to occasioanally unwind perps leg in full - it’s a bit of a wash trade. Ultimately what is this guy doing intentionally trading both sides on tilt? Is he not point farming?
You need to be very, very careful about trading costs. The fees are very high. Therefore you should only trade (manual or automated) whenever you see a mispricing. Price discovery is mostly still Binance, so when HL price is out of line with Binance you can calculate if the arb will likely cover transaction costs and hit it if it does. This way you can generate a bunch of volume for an airdrop while keeping your trading around breakeven. This is quite time intensive. Should be looking to get into Tier 2 ($50mm/month minimum) for a chance at a good airdrop.
I'd expect the occasional extra trade on perps to be -EV (airdrop won't cover trading fees) so wouldn't do extra unwinds of your basis trade.
There's no way the Wynn guy gets a $100 million HYPE airdrop because of his activity last weekend. So no he's not points farming, although he might get some sort of rakeback based on his volume (doubt it's more than 10-15% of his loss).
Point taken on trading fees, 50mm /month doesn’t really seem achievable for me (time and capital wise) so going to stick with evm and keeping the delta neutral stable.
I got it from hyperlend discord based on other experiencing similar issues. This comes from ness.hl founder/mod there but somebody else with more intimate knowledge please verify this is good:
We've seen some users encountering RPC-related issues lately, which may impact transaction reliability or UI performance. If you're experiencing problems, you can switch to any of the following RPC endpoints to restore functionality. Here’s the full list of supported Hyperliquid RPCs:
I’m doing a mix of loop back into 1)hype delta neutral and 2) stability pools, rationale being:
1) delta neutral means more trading on hype and
2) stability pool means no need to swap feusd to usdc, which is insta loss given depeg (defi team suggest limit order to repurchase feusd at discounts to mitigate that).
3) vanilla usdt0 is listed as their less intensive option as you don’t need to monitor prices for either borrow on Felix or short leg liq price on hype core.
As I understand all 3 eligible for Felix points and possible evm support points, but only 1 generates volume for hype points
Do you have a preference between Felix's CDP and Vanilla models? CDP vaults let you get higher yields via FeUSD stability pools (around 16.5-19.6% APY at time of writing) but the Vanilla model get you around 11.5% in USDT which is quite decent (for arguably much less depeg risk)
US legislation might soon clear the regulatory hurdle that has allowed circles to grow with limited US competition so far. Their differentiation from tether is about to be shared with BigBankUSD.
Pricing seems fair at something like 21x PE but maybe those multiples shouldn’t be so high if interest rates ever come down.
With those concerns- the total addressable market of stable coins could 10x in a few years and if circle is still a top stable coin, the stock will be much higher.
I expect it to pop- exposure to the stable coin narrative has been hard to come by and the narrative is consensus by now.
"Aggressive airdrop ‘farming’ is probably the best odds of running a low 5 figure portfolio into 6 figures in a single cycle without taking on insane risk."
- any recommendations on what someone with low-mid 5 figs on HL can do to accomplish this? I would assume leveraged delta neutral yield strategy isn't enough given small position sizing comparative to whales.
Correct, if you want to airdrop farm aggressively I would pick off arbs on HL vs another exchange where you have low costs, aim to push the most volume you can before profits turn break even. That's what I've been doing, try to get into Tier 2 volume category for a chance at a decent airdrop.
Wynn was a gift because you could make a ton of profit, whereas most smaller arbs you're basically aiming to scratch after fees (including losing trades and times where you get legged up).
Thank you. Btw, really enjoyed your coverage of Wynn, eye-opening to how entertaining/lucrative markets can be when you have an angle
Thank you. Don't have much on HL but have covered by DeFi Ed subscription for many years.
Farming question - if we do care about volume / even though cannot generate volumes some people will - does it make sense to occasioanally unwind perps leg in full - it’s a bit of a wash trade. Ultimately what is this guy doing intentionally trading both sides on tilt? Is he not point farming?
You need to be very, very careful about trading costs. The fees are very high. Therefore you should only trade (manual or automated) whenever you see a mispricing. Price discovery is mostly still Binance, so when HL price is out of line with Binance you can calculate if the arb will likely cover transaction costs and hit it if it does. This way you can generate a bunch of volume for an airdrop while keeping your trading around breakeven. This is quite time intensive. Should be looking to get into Tier 2 ($50mm/month minimum) for a chance at a good airdrop.
I'd expect the occasional extra trade on perps to be -EV (airdrop won't cover trading fees) so wouldn't do extra unwinds of your basis trade.
There's no way the Wynn guy gets a $100 million HYPE airdrop because of his activity last weekend. So no he's not points farming, although he might get some sort of rakeback based on his volume (doubt it's more than 10-15% of his loss).
Point taken on trading fees, 50mm /month doesn’t really seem achievable for me (time and capital wise) so going to stick with evm and keeping the delta neutral stable.
Have a bunch of pending/failed transactions on Felix for evm to core transfers. Tried speeding up cancels on MetaMask but still no success - any tips?
Check the chain, hypurrscan i think, and sometimes it shows up there and is not updated in MM.
Solved this now by changing rpc, all went through - thanks
Which RPC did you switch to? Are they listed somewhere?
I got it from hyperlend discord based on other experiencing similar issues. This comes from ness.hl founder/mod there but somebody else with more intimate knowledge please verify this is good:
We've seen some users encountering RPC-related issues lately, which may impact transaction reliability or UI performance. If you're experiencing problems, you can switch to any of the following RPC endpoints to restore functionality. Here’s the full list of supported Hyperliquid RPCs:
- https://hyperliquid.drpc.org
- https://rpc.hyperliquid.xyz/evm
- https://rpc.hyperlend.finance
- https://rpc.hypurrscan.io
- https://hyperliquid-json-rpc.stakely.io
Switching to an alternate endpoint and clearing all your existing transactions!
I’m doing a mix of loop back into 1)hype delta neutral and 2) stability pools, rationale being:
1) delta neutral means more trading on hype and
2) stability pool means no need to swap feusd to usdc, which is insta loss given depeg (defi team suggest limit order to repurchase feusd at discounts to mitigate that).
3) vanilla usdt0 is listed as their less intensive option as you don’t need to monitor prices for either borrow on Felix or short leg liq price on hype core.
As I understand all 3 eligible for Felix points and possible evm support points, but only 1 generates volume for hype points
Do you have a preference between Felix's CDP and Vanilla models? CDP vaults let you get higher yields via FeUSD stability pools (around 16.5-19.6% APY at time of writing) but the Vanilla model get you around 11.5% in USDT which is quite decent (for arguably much less depeg risk)
Thoughts on circle IPO at $24-26?
US legislation might soon clear the regulatory hurdle that has allowed circles to grow with limited US competition so far. Their differentiation from tether is about to be shared with BigBankUSD.
Pricing seems fair at something like 21x PE but maybe those multiples shouldn’t be so high if interest rates ever come down.
With those concerns- the total addressable market of stable coins could 10x in a few years and if circle is still a top stable coin, the stock will be much higher.
I expect it to pop- exposure to the stable coin narrative has been hard to come by and the narrative is consensus by now.
It popped. (also no exposure)