🧠 Uniswap money printer

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Today's Agenda 📓:

• 📝 Lesson of the Day: How to make money on Uniswap

• 🍎 Premium Bite: A Full Review of Optimism, a rising L2 star

• 🔥 Don't Miss These Headlines

How to Take Advantage of Uniswap and Make $$

From now on, every Wednesday we'll be teaching you to a lesson so you can level up while reading this before getting out of bed. So reply to this email with a lesson you want us to cover next week!

Let's get right into it:

Uniswap V3 is a new protocol on Uniswap. Normally, for a liquidity pool you deposit crypto like ETH, USDT, or USDC to give liquidity in exchange for returns. Uniswap V3 is different:

V3 allows liquidity to be used in certain ranges.

For example, you can deposit USDC to a ETH/USDC liquidity pool to Uniswap and set price parameters of $1,200-$1,400 on ETH. Meaning, if the price of ETH falls below $1,200 all the USDC gets converted to ETH. But if the price goes above $1,400, it gets converted to USDC.

By setting parameters, this allows for a form of trading, or hedging, to occur.

• In short, when markets increase, Uniswap will convert your assets to ones with higher value.

• The strategy is to figure out what range of price ETH will be in and to set parameters according to that range for liquidity to be used by Uniswap.

V3 also utilizes NFTs to represent your position in the liquidity pool. Pretty cool stuff if you ask us.

The $ making strategy:

1. Find pools that have a lot of volume. You want to find a pool that has a good amount of TVL and has a high 24-hour volume compared to that TVL.Example: A pool with 11.8M TVL that generates $110K of 24-hour volume likely isn’t a pool that you should touch. Not a lot of liquidity circulating. Low 24hr volume=low transaction fees=low returns

2. Make sure to look through all the pools on Uniswap and see the 7 day volume and TVL.

3. Go to Metcrypt.org to see a calculator to see how much yield each pool provides. You can see each yield % is correlated with the pools TVL and daily price volume. Just plug in the amount you will put into the liquidity and then it calculates the yield generated over a certain period of time.

4. You're much better off in pools with pairings like ETH, DAI, USDC, rather than Shiba or other coins you haven't heard of.

In Summary: We found you an opportunity and we summarized the strategy super simply. If you need more information, try out this video, or google for more. We encourage you to at least play around with Uniswap v3, and don't be shy to make some money (if that's what you're into).

But before you do, make sure you understand this principle: yield farming and liquidity pools require active involvement. It is not as easy as depositing money earning a yield. You need to actively and strategically set price range parameters.

And of course, this is not financial advice. We're just here to make it easier to get educated and explore the world of web3.

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Review of an L2 with Promising Upside

Here's a preview of our premium newsletter. Our premium issue is designed to give you in depth analysis, data, and ideas on how to generate returns. So you don't have to go down rabbit holes on a weeknight.

Today we covered:

• What is an L2?

• Optimism: fundamentals & ecosystem

• How to use it

• 5 Bullish Signs- 10x your investment

• 4 Bearish Warnings- don't go in blind

• Entry point & more resources

We're Feeling Optimistic

Optimism has entered the chat.

Optimism is one of ETHs first L2 networks. Its job is simple: lower ETH gas fees through "roll-ups."

L2s are like that kid who has fruit roll-ups on deck at school- everybody wants a piece.

How it works: Very similarly to smushing your fruit roll-up into a ball.

Optimism roll-up literally just bundles mountains of transaction data, processes them on its own blockchain, and then sends them back down to ETH in a super compressed form.

Fun fact: banks have a similar process. They group similar transactions together to validate in bunclhs, instead of individually. 

When Optimism bundles hundreds of transactions into single batches, the fees required to settle them fall *bigly* compared to if they had been executed on Ethereum itself.

The transfer of this data from an L1 to an L2 and vice versa is done through bridges.

You might be asking yourself: what's the point of an L1 is the L2 is doing the work? Well, the L1 provides superior security and stability. The L2 just has to make sure it's sending valid transactions.

Validating: The data transferred through the Optimism bridge back on to the L1 goes through a technical method that is critical to enabling on-chain scalability of blockchains, known as fraud proofs. You don't have to know how it works, you just need to know it makes sure the data sent to the L1 is correct and legitimate.

Bottom line, Optimism does its job very well. Optimism gas fees are 10x cheaper than on Ethereum because of its bundling work. The network has saved users more than $1B in ETH gas fees since it launched two years ago.

Ecosystem:

a.k.a. wtf is it used for?

• Hundreds of dApps

• dApps range from lending services and NFT marketplaces to wallets, DAOs, and blockchain tools.

• You can view Optimism’s ecosystem here.

Popular dApps are financial because of Optimism's lowers gas fees.

• Aave: the king of lending.

• Synthetix: tokenizes underlying assets into derivatives for streamlined trading.

5 Bullish Signs

There's a few reasons we're eyeing Optimism, and we share them with you in premium.

To find out how to use it, why it has bullish signs for returns, the bearish signs you should keep in mind, and the flippening no one is talking about:

We're certain you won't regret it. It costs less than $1 a day to upgrade your financial literacy, all in one email a week and you get a 14-day free trial..woaaaa

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research

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