ruletheworld

Feb 092021
 

This is a guide on how to buy TORN token from Tornado Cash. Tornado is a privacy and anonymity protocol on Ethereum. It helps users with this extra layer of privacy using a trustless mixer, with denominations of 0.1 ETH, 1 ETH, 10 ETH, and 100 ETH. It also works for ERC20 tokens like USDC, DAI, and USDT.

Tornado Cash has been in operation for a while now and has proven its effectiveness in real-world adversarial scenarios. To that end, the protocol has come up with its own token TORN. This is currently a governance-only token but it is not hard to see how it can become a value capture token via fees. The users of Tornado would not mind paying some fees for peace of mind and privacy.

TORN’s tokenomics is well thought out and the inflation schedule is very gradual with no bumpy lockups expiring. In addition, there are no pesky VCs in TORN’s allocation ready to dump on retail as soon as possible and bring down its value.

The allocation of TORN has been very fair, providing TORN to early users of the Tornado protocol and using TORN as an incentive mechanism to increase the number of users and total value locked (TVL) in the protocol. This is essential to the success of TORN and Tornado since the larger the anonymity set, the better it is for the users.

How to Buy TORN

If you want to buy TORN, the simplest way currently is through 1inch.

1inch has both its own liquidity pool for TORN/ETH but is also an aggregator. This means it will guarantee you a lower price to buy TORN than directly going to other DEXes like Uniswap. Here is the Uniswap pool for reference.

1inch is able to provide fairly sophisticated routes for your order, and even split it up into various protocols and DEXes to bring you the best price. Here’s an example going from YFI to TORN which combines 4 DEXes and protocols – Uniswap, Sushiswap, Balancer, and 1inch.

1inch also currently has a liquidity provider (LP) incentive which has increased the pool size. See the next section to learn more about this if you want to participate.

Buy TORN with YFI on 1inch

Note that DEX trades can take up decent gas, so if you are trading small amounts, it is better to trade on Binance instead. We don’t usually recommend CEXes but these gas prices are unusually unprofitable for anyone trading < 100 ETH batches.

How to Earn 1inch Tokens by Staking TORN/ETH

1inch has a limited time liquidity providing incentive for TORN. This is a great way for you to earn some 1inch tokens while also earning liquidity provider fees on 1inch.

To access this, go to 1inch > DAO > Farming and select the ETH/TORN pair. The current APY is 200%. Remember that you take on impermanent loss risk by being an LP.

To become an LP, first buy TORN via 1inch, then add liquidity to the TORN/ETH LP pair on 1inch.

You can read the official 1inch announcement here.

How to Farm TORN

You can also farm TORN instead of buying TORN from an exchange. This is a long-term play since the amount of TORN that you earn depends on the time you are staked. However, this is good because TORN is gradually released into the market.

The mechanics are a bit complicated due to privacy considerations. You get AP tokens that you can convert on a special Balancer pool into TORN after you withdraw a note. Also, always check the gas prices since they can take up a significant amount of ETH for Tornado and thus reduce profitability.

You can read the TORN farming details here.

Jan 292021
 
how to buy opium token from opium finance

This is a guide on how to buy OPIUM token from Opium Finance project founded by Andrey Belyakov and team.

What is Opium Finance?

Opium finance or opium protocol is a general purpose derivatives protocol built on Ethereum. The protocol allows investors and traders to create new positions, settle existing positions, and trade them with other traders and investors.

Opium finance’s first financial product is an insurance product. This helps investors in the DeFi ecosystem hedge some of their risks. This is mostly protection against smart contract exploits, defaults, stablecoin insolvencies, and other risks inherent in the system.

Since the opium protocol is general purpose, the insurance product can be specified to contain custom logic. A good example of a general insurance use-case with Opium would be to protect against a USDT collapse if you are heavily exposed to Tether. Other protocols will have a harder time getting the data to settle this type of position.

To learn more, check out the opium protocol docs.

How to Buy Opium Token

If you want to buy the opium token, which is the native governance token of the opium finance protocol, follow these steps:

Step-1: Go to 1inch OPIUM/ETH pool. Note that 1inch pool currently has the highest liquidity, but that might change in the future. The good thing though is 1inch is also a liquidity aggregator, so it can route liquidity to get you the best execution for OPIUM.

Step-2: Connect your MetaMask or another Web3 wallet.

Step-3: Execute the trade. That’s it! You should have the OPIUM in your wallet after the transaction is confirmed.

If you are starting out with a non-ETH token, e.g. say YFI or LINK, then you don’t need to convert to ETH first. Instead, let 1inch figure out the route that gives the best price natively. Just change ETH to your token in the dropdown on 1inch.

If you don’t yet have any ETH or other ERC20 tokens, you can buy from Binance. Note that sometimes trading on Binance could be preferable over DeFi exchanges if the gas fees is very high and your trade size is not too large.

For the month of February 2021, there is a liquidity mining program for OPIUM along with 1inch. You will earn both OPIUM and 1inch tokens during this time. Check out this post from 1inch for more details.

Jan 282021
 
Buy DPI, the DeFi Index

This guide on how to buy DPI, the DeFi index fund will walk you through what DPI is and why it is powerful to get a diversified exposure to DeFi with minimal effort.

DeFi, or decentralized finance, is having a moment on Ethereum. The rise of “blue-chips” like AAVE, SNX, and YFI has been followed by the rise of newer tokens like UNI and SUSHI and then a long-tail of promising projects from there on out.

For a regular crypto investor who isn’t spending 24/7 in Discord channels and Telegram groups, keeping up with everything can be daunting. Even then, buying and rebalancing a DeFi portfolio isn’t trivial due to increasing gas costs.

What is a DeFi Index Fund?

A DeFi index fund is an index that is backed by several other DeFi tokens. This index itself is tokenized and assets held in reserve, i.e. each token of the DeFi index fund can be redeemed for underlying assets and each token can be created by supplying the underlying assets in the specific ratio.

A DeFi Index is an ideal instrument that grants exposure to underlying DeFi tokens and does the rebalancing automatically on behalf of holders. Its value is fully backed by the DeFi tokens backing the index, just like a regular Index Fund in traditional equities.

What is the DPI Index?

The DPI index is maintained by the popular DeFi Pulse team and built using the Set Protocol.

As of this writing, there are 10 components of the DPI. They are as follows:

  • AAVE at 25.80%
  • UNI at 23.79%
  • SNX at 16.31%
  • MKR at 9.42%
  • COMP at 7.20%
  • YFI at 6.50%
  • LRC at 3.89%
  • REN at 3.67%
  • KNC at 1.98%
  • BAL at 1.63%

Now of course you may not agree with the weighting here and that’s the whole point of the index. For example, YFI feels underweight in the index at the current valuations, but that’s a personal opinion.

How to Buy DPI Index

In order to buy the DPI index, you can simply need to buy the DPI token from any exchange. However, due to the nature of the index being backed by other tokens, you can also “create” a token of DPI by supplying the underlying assets.

If you want to supply all the assets and get DPI tokens, we refer you to the tokensets page of DPI. This may be a good play for DeFi whales who may get better pricing and even find arbitrage trades in volatile markets and make a profit off of price discrepancies.

If you’re a smaller investor or don’t want to deal with the creation and redemption process, then buying DPI off an exchange is the easiest way to gain exposure to this DeFi index.

To buy DPI, follow these steps:

Step-1: Go to a DeFi aggregator like 1inch to find the best pricing for DPI.

Step-2: Connect your Web3 wallet like MetaMask.

Step-3 (optional): Make sure you have ETH or another ERC20 token in your wallet. If not, you can buy from exchanges like Binance or Coinbase.

Step-4: Select which token you want to convert to DPI, or just stick with ETH.

Step-5: Execute the trade and you should have DPI in your Web3 wallet.

This should route your order through the best DEXes on Ethereum even for pretty complex paths. For example, here is a sample routing to convert from RLC to DPI.

If you are an investor DPI, let us know your thoughts in the comments below and what tokens you would like to see added to DPI.

Jan 212021
 
How to buy BADGER from Badger DAO

This is a guide on how to buy the BADGER token from Badger DAO. Badger DAO is a very interesting community driven Decentralized Finance (DeFi) project with the aim of bringing Bitcoin into DeFi.

Bitcoin of course is the OG of crypto. However, Bitcoin is also slow to move when it comes to making changes on-chain. “Smart Contracts on Bitcoin” is a meme we have been hearing for over 5 years now, and more recently, “DeFi on Bitcoin” has become a meme with some Bitcoin maximalists who don’t understand anything other than “number go up”.

For good reason perhaps, Bitcoin should remain conservative. The way forward then is to bring Bitcoin to the DeFi ecosystem instead of the other way round. This is where Badger DAO comes in, with its governance token BADGER.

What is BADGER?

BADGER is the native governance token of Badger DAO. The goal of Badger DAO is to build tools that bring Bitcoin into DeFi and Ethereum. Badger is not a single product – instead, it has multiple products and tokens.

The first product is the much awaited DIGG from Badger. DIGG is an elastic supply token similar to Ampleforth (AMPL). It tracks the price of BTC by expanding or contracting the token supply with a 24 hour rebase period. DIGG can be earned via farming, which has become a great way to get wide distribution of token these days in the DeFi world.

Other products might follow suite depending on the success of existing products and the community that has gathered around Badger.

How to Buy BADGER

Step-1: Go to 1inch (a DeFi aggregator) and check the best price of BADGER for ETH (or any other ERC20 token).

Step-1b (optional): Buy ETH with your BTC or local fiat at Coinbase or Binance or another local exchange.

Step-2: Connect your MetaMask or another Web3 wallet and execute the transaction.

Step-3: Just wait for the above transaction to confirm and you’ll have the BADGER in your Web3 wallet.

Remember to use an aggregator like BADGER so you get the best price, instead of going to a single exchange like Uniswap of Sushiswap. This is especially true if you want to convert a non-ETH token into BADGER.

For example, here is a path shown by 1inch to buy BADGER with YFI instead of ETH. As you can see, 1inch will automatically split the order and then route it to the best DeFi exchange for you to get the best price execution.

Buy BADGER with YFI on 1inch order routing

(the PMM1 in the above is a private market maker. These contracts source liquidity from centralized exchanges like Binance in addition to DeFi exchanges).

If you are feeling especially bullish (or bearish) on Badger, you can also buy BADGER futures on FTX. The advantage is, you can go long (or short) with leverage of up to 100x so you can make big bets on the direction of this token. If you want to go this route, you want to buy the BADGER-PERP token, which is a perpetual futures contract.

Jan 102021
 
Beginner's guide to swing trading

This is a guest post by Joshua Ahorro from ByBit. The article is written as an educational article for stocks that is mostly applicable to crypto traders as well.

Swing Trading is a type of major trading where certain positions are held longer than one day. With swing trading, fluctuations in corporate fundamentals typically need several days to a few weeks to create adequate price trends to generate a significant amount of profit. Hence, the majority of fundamentalists prefer swing trading over any other type of trading.

In a nutshell, swing trading places in between two other well-known trading styles, namely trend trading/position trading, and day trading. With day trading, a trader holds a stock between a few seconds to a few hours within a single day only. On the contrary, trend trading requires a trader to evaluate the essential long-term trends of an index or stock. Trend traders hold the stock for a few weeks or even months. 

In this article, we highlight everything you need to know so you can have a comprehensive overview of what swing trading is all about.

What Is Swing Trading?

Swing trading is a medium-term trading technique used by traders who try to gain reputable profit from the market’s price trends. That said, swing trading helps traders buy and sell stocks whose indicators direct to a positive (upward) or negative (downward) trend in the future. Swing trading requires traders to hold a specific stock or index for a minimum of two days to a maximum of three weeks. Eventually, they trade the stocks on an intra-week or intra-month basis between positive and negative fluctuations.

Best Stocks For Swing Trading

The primary component for successful swing trading is choosing the right stocks. With swing trading, the best stocks are the large-capacity stocks considered most actively traded stocks on the market’s popular major exchanges. In a dynamic market trend, the stocks will swing between extreme heights; hence, they are swinging in low extremes and high extremes. As a result, the swing trader will take advantage of the trend in one direction for a few days or weeks only and then switch to the opposite edge when the stock reverses its trend or direction.

Pros and Cons of Swing Trading

Before anything else, we’ll describe the pros and cons of swing trading. After reading this, you can evaluate whether swing trading is the perfect trading technique you can start when it comes to stock market trading.

Pros

  • Swing Trading only requires a few hours of the day, unlike Day Trading.
  • It is suitable for part-time trading; hence, you can still work at your full-time job or schooling without compromising them.
  • Swing traders rely completely on technical analysis; hence, swing trading has a more simplified process.
  • Swing trading offers the opportunity to maximize short-term profit by seizing the bulk of market/price swings.

Cons

  • Timing in the Stock Market can be challenging.
  • Sudden market reversals can yield to major losses.
  • Swing traders regularly miss longer-term trends or exceptional stocks over short-term market changes.
  • More exposure to weekend and overnight price variations resulting in risks associated with gaps in prices

How Swing Trading Works

Swing trading gains profit through the upward and downward trends or swings in the prices of the market. Swing traders hope to capitalize on small fluctuations within a bigger overall trend. That said, they consistently target to gain a lot of small wins that eventually add up to bigger profits or returns. For instance, other traders will wait four to five months to achieve 25% profit, while swing traders produce 5% gains per week and surpass other traders’ earnings in the long run.

The majority of swing traders utilize daily charts, such as 24 hours or 48 hours, to pick the perfect entry or exit point. However, other swing traders adapt shorter time frame charts, namely hourly or 4-hour charts.

As a newbie trader, starting with swing trading is overwhelming and confusing. Numerous questions can come into your mind, especially if you have zero knowledge about trading in general. In a nutshell, we list down how to get started with swing trading.

  1. Pick a suitable swing trading platform.

The first step to begin with your swing trading journey is choosing the right swing trading platform. It is crucial for obtaining relevant market data and a platform for executing your trades. With advancements in technology, many trading platforms or trading software platforms are emerging to provide traders with a one-stop-shop for their trading needs.

As an introduction, here are some of the market’s reputable trading platforms:

  1. Create your trading strategies

Swing trading isn’t a one-size-fits-all type of trading. Hence, you can create so many variations of trading strategies regardless of the trading technique you want to venture into. We’ll discuss more of the swing trading strategies in the next section.

In creating a swing trading strategy, here are some of the steps that you can follow:

  1. Develop a trading idea by formulating an assumption. With this step, you can observe how the stock market behaves using charts. You can play around to gain an essential overview and insights.
  2. Read through articles and forums about swing trading. You can implement the concepts you’ve read and customized them according to your preference.
  3. Perform a test run on the idea you’ve just created.
  4. If the test you’ve performed yields promising results, you can enhance the performance of the strategy. You can have a trial and error process in improving your technique.
  5. Now that you’re confident with your swing trading strategy, you can go live with the actual stock market.

Popular Swing Trading Strategies

A variety of swing trading strategies consists of different entry and exit points and technical analysis tools. Here are some of the popular swing trading strategies you can start with:

Sector Trading

Sector Trading involves the identification of the strongest market sector. Once you’ve recognized the market sector you prefer, select individual stocks that match your standards. With sector selection, you invest only in the most promising sector in the market.

Breakdown Trading

A breakdown strategy lets the swing trader choose an open position on the earlier side of a downtrend. With a breakdown strategy, you open a position as soon as the price breaks below the support level.

Breakout Trading

Breakout trading is the opposite of breakdown strategy. With breakout trading, swing traders take an open position on the early side of the uptrend and eventually identify the price to breakout. With a breakout strategy, traders start a position as soon as the price breaks above the key resistance level.

Pairs Trading

Pairs trading is a type of swing trading where the traders enter positions in two stocks within the same market sector that are often. You can short a certain stock with pairs trading, while going long on the other stock, considering that your trading strategy indicates a correlation is becoming weaker. As a result, you’re hoping to earn from one stock rising while the other is going down.

Retracement Trading

Also known as pullbacks, retracement trading involves short-term price changes within a larger trend. Retracement swing traders identify the price to temporarily reverse within the standard movement and profit from this short-term fluctuation. Reversals always begin as potential pullbacks; thus, swing traders must identify whether it is purely a pullback or the retracement is an actual relapse.

Reversal Trading

Reversal trading depends on the fluctuation in price momentum. Reversal strategy targets to earn profit from the trend variations. For instance, when an upward trend drops momentum and the price begins to shift downwards. Depending on the current market trend, the reversal can either be positive (bullish) or negative (bearish).

Conclusion

Swing trading is one of the perfect trading techniques for beginners to get an overview of what trading looks like in general. However, swing trading still provides advanced and intermediate traders with reputable profit potential.

Also, swing trading is suitable for individuals who can’t commit a whole day to monitor their charts but can set aside a few hours to analyze the stock market every night. It is ideal for those employed in full-time jobs or studying in school but have adequate free time to stay updated with the current trend of the global market or economy.

Like any other type of trading, swing trading has its advantages and disadvantages. Hence, it is entirely up to the traders to become proficient with swing trading or try other trading techniques.

Jan 102021
 
buy BAO token from BAO finance

This is a post on how to buy BAO Token from Bao Finance but also how to farm BAO token instead of buying and why it has been quite attractive for DeFi enthusiasts.

BAO Finance is an interesting DeFi project that describes itself as a synthetic asset and lending platform, kinda like a combination of SNX and Aave. However, more immediately the reason it has caught the imagination of a lot of people and projects is its somewhat unique take on yield farming.

The broader product idea from BAO Finance is to use Uniswap, Sushiswap, and Balancer LP (liquidity provider) tokens to collateralize synthetic positions. Think of this as SNX but instead of SNX being the collateral, the LP tokens will be. To that end, it made sense for BAO Finance to first release a yield farming product.

Per their site,

The BAO token acts as a governance token for the fully community run project. It is also backed by the insurance fund where all Bao fees go.

How to Farm BAO Token

Before you decide to buy BAO, it might make sense to first look at how to farm BAO token instead since this could be more profitable with lower risk. This is especially the case if you have any Uniswap LPs sitting around doing nothing. Instead, you can stake them in BAO Finance and earn some BAO tokens immediately.

The most interesting thing about BAO yield farming is that there are hundreds of LP pairs available to yield farm.

However, one thing to note upfront is that you will only get 5% of the BAO tokens that you farm upfront. The rest will vest over a period of 3 years with a 1 year cliff. Therefore, if you are looking for a short-term farm, make sure to figure out if these numbers work out for you or not.

This is also why the advertised APYs are so high, since only 5% of this is “real” at the moment.

Also, make sure to read the docs, especially around fees and penalties before you start farming. There is both a deposit and withdraw fee.

BAO token APYs

The good news though is there are hundreds of LP pairs available so there are a lot of options. Check out all the BAO Farms here.

How to Buy BAO Token

BAO token has been one of the top performing DeFi tokens the last few days.

BAO token price coingecko bot

If you want to directly buy BAO token, make sure you buy via 1inch so you can get the best possible price. 1inch will automatically aggregate all of DeFi liquidity sources for you including Uniswap and Sushiswap. Uni and Sushi have the largest BAO pools of liquidity since they are incentivized with BAO farming currently.

You can also easily convert non-ETH ERC20 tokens into BAO via 1inch automatically via the best price execution and by splitting your order the right way.

YFI to BAO token on 1inch

If you want a more centralized exchange experience especially when gas is high, you can always go to Binance. If you need to buy ETH via USD, Coinbase is best.

You can also find the information on BAO/ETH pairs on Uniswap and Sushiswap. This is the BAO token on Etherscan.

Jan 052021
 
Buy GRT Graph Token

This is a guide on how to buy GRT or the Graph Token from the project The Graph. The Graph has emerged as an essential middleware for a number of decentralized finance (DeFi for short) applications over the last few years. It allows developers to quickly build their applications and pull data from the Ethereum blockchain without having to write a lot of custom code. They can create ‘sub graphs’ that contain this data their applications need. Applications like Uniswap rely on The Graph’s middleware to show trading data. It has become an important piece of the developer stack in DeFi.

The Graph recently announced the launch of its own token, GRT.

Before you decide to buy GRT, note that there is a pretty large inflation and a lot of new supply coming into the market over the next few months from VCs and founders. This could depress the price, somewhat similar to CRV, in the short to medium term.

How to Buy GRT

If you want to buy GRT, the best way is via an aggregator of DeFi exchanges like 1inch. This should give you the best pricing as far as DeFi exchanges go. You don’t need to manually check Uniswap, Balancer, Matcha, etc. to find the best execution anymore.

If the gas is too high, you can always use Binance to buy GRT. Trading fees here should be much lower (and no 0.3% LP fee either) due to it being a centralized exchange.

If you don’t have any Ether ETH yet, buy on Coinbase and then use 1inch or Binance as described above.

If you want to buy GRT with leverage, you can do that on FTX. Buy the GRT-PERP to get up to 100x leverage on a futures position into GRT. Use this if you are especially bullish (or bearish) on GRT.