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Catalyst Channel: Farming the New Air

Introduction to Best and Hyper Liquid

  • The video introduces a new farming strategy focused on "Best," an interface built on Hyper Liquid, highlighting its strong partnerships and differentiation from other platforms.

Overview of Best Platform

  • Best is described as a user-friendly application utilizing Hyper Liquid technology, similar to Phantom and Rabbi, aimed at enhancing user experience while allowing users to earn commissions.

Features of Best

  • The platform offers customizable interfaces, advanced order types, and a unique three-tier referral system designed to attract users and capital.
  • A mobile app for both iOS and Android enhances accessibility, providing users with real-time information about their investments.

Future Developments

  • Upcoming features include cryptocurrency cards that allow direct use of cryptocurrencies through the app, indicating potential revenue generation for the platform.
  • The establishment of "Base Club" aims to support other projects using Best's technology while fostering affiliate relationships.

Market Positioning and Potential

  • Best is gaining traction in trading volume rankings, currently within the top five platforms with significant capital influx over recent weeks.
  • Despite concerns about market dilution and competition, there are few active participants in farming strategies which presents opportunities for early adopters.

Revenue Generation Insights

  • Current analytics show that Best is generating substantial daily revenue compared to competitors like Phantom.
  • With only 17 users generating $12,000 in volume daily, this indicates high potential for growth as more users join.

Comparison with Other Tokens

  • Historical performance of tokens like Aster suggests that Best could replicate or exceed similar success due to its promising narrative and market positioning.

Strategic Farming Opportunities

  • Collaborations with major crypto firms enhance infrastructure development for Best. This could lead to profitable outcomes if leveraged correctly during air drops.

Multiple Air Drop Strategies

  • Users can farm multiple air drops across various platforms including Hyper Liquid alongside Best’s offerings.

Getting Started with Farming Strategies

  • Two adaptable farming strategies will be discussed; understanding how to deposit funds into decentralized exchanges (DEXes), particularly using USDC on Arbitrum network is crucial for beginners.

Conclusion on Fund Deposits

Deposit and Strategy Overview

Understanding the Deposit Process

  • The deposit process is straightforward, allowing users to directly deposit all earned coins without any commission fees. However, using exchanges or bridges may incur charges.
  • It’s essential to operate from the "best" platform for optimal results in trading strategies.

Delta Neutral Strategy Explained

  • The delta neutral strategy involves opening a long position on one platform and a short position on another, each with $1,000. This balances potential gains and losses.
  • If an asset increases by 20%, you gain $200 on the long but lose $200 on the short, resulting in no net loss or gain overall.

Managing Commissions and Community Engagement

  • Users are encouraged to join communities like Catalyst for support while engaging in delta neutral strategies due to lower commissions available there.
  • Having accounts on both platforms (e.g., Best and Bluffing) is crucial for executing opposing positions effectively.

Positioning and Trading Mechanics

Initial Position Setup

  • Start by depositing USDC into Bluffing; it’s noted that many traders mistakenly focus solely on USDT.
  • Price discrepancies between futures of USDT and USDC can be significant; understanding these differences is vital for effective trading.

Leveraging Positions Wisely

  • Utilize leverage between 10x to 30x; exceeding this range can lead to liquidation due to high volatility.
  • A simple order placement process allows users to manage their investments efficiently while maintaining a delta neutral stance.

Profit Management and Risk Control

Balancing Gains and Losses

  • The goal of maintaining a delta neutral position is highlighted: if one position closes at a profit, the other should ideally close at a loss, balancing out overall performance.

Generating Volume Without Excessive Risk

  • By generating volume through strategic positioning rather than high-risk trades, users can avoid account depletion from excessive losses or commissions.

Earning Points and Future Opportunities

XP Generation Through Strategic Trading

  • Engaging in trades generates XP points which contribute towards rankings within the community.
  • Accumulating XP can lead to receiving valuable air drops from various platforms as rewards for participation.

Caution Against Low Liquidity Assets

  • Traders are advised against investing in low liquidity assets as they pose higher risks of price manipulation during trades.

Understanding Delta Neutral Farming Strategies

Key Concepts of Delta Neutral Farming

  • The concept of delta neutral farming is introduced, emphasizing the importance of maintaining a balanced position to mitigate risks associated with market fluctuations. A slight decrease in percentage can lead to a neutral delta state.
  • Closing positions with positive pen results in reduced USDC due to transaction fees, highlighting the need for careful management of percentages to avoid significant discrepancies between different positions.
  • The discussion transitions into the profitability of delta neutral strategies, noting that regular adjustments can lead to optimal outcomes over time. It emphasizes patience in allowing positions to stabilize.

Exploring Additional Farming Strategies

  • Besides delta neutral farming, other strategies such as utilizing various liquidity pools (e.g., Hyper Liquid and Uni) are mentioned as viable options for maximizing returns through farming.
  • The speaker introduces an additional strategy involving spot trading while participating in liquidity farming. This approach aims to enhance volume without appearing automated or bot-like.

Practical Steps for Implementing Strategies

  • To execute these strategies effectively, users should manage their balances and transfers carefully. Converting funds into spot allows for more dynamic trading opportunities while maintaining participation in liquidity events.
  • An example is provided where purchasing Bitcoin using USDC is demonstrated as part of a delta neutral strategy, showcasing practical application within the discussed framework.

Advanced Techniques and Considerations

  • The speaker discusses executing trades with specific amounts (e.g., $1,000), illustrating how managing smaller volumes can help maintain balance across different platforms while engaging in both spot and futures trading.
  • A scenario involving selling short on Ethereum (SIRIUM) is presented, explaining how price movements can impact overall gains or losses when employing delta neutral tactics within this ecosystem.