A key investment strategy is to "farm" airdrops by actively trading on up-and-coming Perpetual DEXs before they launch their own tokens. The top pick for this strategy is Gravity, as it currently has low competition and clear rules for earning points towards its upcoming token launch. For a "two-for-one" opportunity, consider using Based, which provides points for its expected Q1 airdrop while also potentially qualifying you for a future airdrop from market leader Hyperliquid. While not recommended for active farming, using Hyperliquid for your normal trading activity is a smart way to passively position for a potential second airdrop. Avoid farming on platforms like Lighter, which have become too saturated, and remember that this is a high-risk strategy with no guaranteed returns.

Investment Theme: Perpetual DEX Airdrop Farming

• Perpetual DEXs are decentralized exchanges that allow users to trade cryptocurrencies with leverage (borrowed money) on contracts that have no expiration date.
• These platforms are highly profitable, which allows them to reward early users with valuable airdrops (free tokens) when they launch their own cryptocurrency.
• The speaker notes a major trend: decentralized exchanges (DEXs) are consistently taking market share from centralized exchanges (CEXs) like Binance and Coinbase. This suggests a long-term growth trajectory for the entire DEX sector.
• "Farming" is the strategy of actively using these protocols before they launch a token to accumulate points, which later convert into an airdrop. The speaker describes this as being similar to buying tokens "over-the-counter" (OTC) before they hit the public market.
• Key Risk: The speaker emphasizes that airdrop farming is not guaranteed. You can spend money on trading fees and lose money on trades without earning back your investment if you choose the wrong protocol or if the market is bad when the token launches. DeFi is inherently risky, with hacks being a constant threat.

Takeaways

• The core investment strategy discussed is to identify promising, not-yet-crowded Perpetual DEXs and use them to "farm" a future airdrop.
• The goal is to find platforms where the potential airdrop value outweighs the costs (trading fees and potential losses).
• Efficiency is key: it's better to use a protocol with fewer users, as your activity will earn you a larger share of the eventual reward.

Gravity

• This is the speaker's top pick for airdrop farming at the moment.
• Bullish Factors:
  • Relatively Soon TGE: The token launch is expected sooner rather than later, meaning a shorter wait for potential returns.
  • Low Competition: The platform has significantly lower weekly trading volume ($6 billion) compared to competitors like Lighter ($72 billion), meaning it's "not crowded yet." This could mean users are early.
  • Clear Incentives: Gravity explicitly tells users how to earn points (40% from trading volume, 15% from holding positions open, etc.), making it the "easiest place to farm."
  • Positive EV Trading: The platform pays you a small amount (one basis point) for setting limit orders, which can help offset farming costs.
  • Strong Backing: The project raised money at a $500 million valuation, suggesting strong investor confidence.
  • Ecosystem Play: It is built on ZK Sync, and the speaker is bullish on the ZK Sync ecosystem's potential. It also incorporates a privacy narrative.

Takeaways

• According to the speaker, Gravity currently offers the best risk/reward opportunity for airdrop farming.
• The combination of low user competition, clear point-earning rules, and a relatively near-term token launch makes it an attractive platform to focus on.
• The primary risk is that its low usage might be because it's a poor product, not because you are early. The speaker is betting on being early.

Omni

• Presented as another very interesting opportunity, but with a longer timeline.

• Bullish Factors:

  • Unique Selling Point: Omni has a "loss refund" mechanism, giving traders a 2% chance to have a losing trade refunded. This unique feature could attract more users over time.
  • Zero Fees: The platform currently has zero trading fees.
  • Large Airdrop Allocation: A massive 50% of the total token supply is allocated to the points campaign, which is significantly higher than many competitors.

• Bearish Factors:

  • Long Timeline: The token launch is "so far out," which introduces uncertainty about future market conditions and increases the time your capital is at risk.

Takeaways

• Omni is a potential long-term farming play. The very large allocation for the airdrop could result in a significant payout.
• This is for investors with a longer time horizon who are willing to wait for the token launch.

Based

• A unique "two-for-one" opportunity built on top of the Hyperliquid protocol.

• Bullish Factors:

  • Dual Exposure: By using Based, you earn points for the upcoming Based token airdrop (expected in Q1) while your activity is also registered on Hyperliquid. This means you could potentially qualify for a future Hyperliquid airdrop as well.
  • Near-Term Catalyst: The token launch is expected soon, in Q1.

• Bearish Factors:

  • Small Scale: The speaker estimates a relatively small Fully Diluted Valuation (FDV) of $75 million.

Takeaways

• Based is a strategic play for those who want to farm a near-term airdrop while also positioning themselves for a potential, albeit uncertain, future airdrop from the market leader, Hyperliquid.

Hyperliquid

• The market leader and responsible for the "biggest airdrop of all time" (over $2 billion).
• The speaker believes it is the best product on the market for actual trading.
• There is a possibility of a second airdrop, as 40% of the token supply is still earmarked for "community incentives."
• However, the speaker is skeptical about actively farming it, believing that if a new points campaign were announced, the platform would become "ridiculously" saturated, making it hard to earn rewards.

Takeaways

• It is likely not worth actively "farming" Hyperliquid in the hopes of a second airdrop due to potential competition.
• The speaker suggests using Hyperliquid for your normal, "real" trading activities. This way, you use the best product and might passively become eligible for a future airdrop if one occurs.

Lighter

• The speaker recommended farming Lighter six months ago, and it was a "very, very good trade" for those who got in early.
• The platform is now considered "too saturated" and it is "so hard to get points."
• The speaker has personally stopped farming it because the competition is too high to be profitable.

Takeaways

• The primary opportunity on Lighter has likely passed. For new farmers, the effort and cost required to earn points may not be worth the potential reward due to intense competition.