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Health, Wealth, and Happiness

April 10, 2024

“If you find three wonderful businesses in your life, you’ll get very rich.”

- Warren Buffett

Howdy, investors!

New liquid restaking platforms like EigenLayer and Ether.Fi are changing how crypto investors generate a yield from their ETH. Learn if these new yield-generating alternatives are right for you.

Solana returned to popularity in 2024. If you missed Solana in 2021, now might be a good time to consider this alternate Layer-1 blockchain.

With just 10 days until the fourth bitcoin halving, markets are increasingly looking for signs of an incoming rally. Is that the right mindset?

Tokenizing real-world assets is back in the news, and this time, the concept could see success as institutions like BlackRock enter the space.

Read on!

Staking on Steroids: An Introduction to EigenLayer and Ether.Fi

by Anatol Antonovici

Think of Ethereum as a high-interest savings account with a twist.

Depositing your Ether (ETH) gets locked up for a certain period (like a money market or CD). This locking, or “staking,” helps secure the Ethereum network. In return for staking your ETH, you earn staking rewards (similar to how a bank pays interest).

The key difference: Unlike a traditional savings account, new products on Ethereum allow you to reinvest your staking rewards to earn even more ETH automatically.

This is done through Ether.fi and EigenLayer, two separate products that work together to handle your deposits, manage the security, and automatically reinvest your interest payments for you.

Reinvesting your rewards for even greater returns is similar to taking interest from a savings account and putting it into another high-yield account to grow your savings even faster.

However, it does have risks, such as impermanent loss, potential loss of staked funds due to technical issues, and smart contract risk. Don’t stake more than you’re willing to lose.

Our new guide will cover how restaking works using EigenLayer and Ether.fi. Think of it as “staking on steroids.”

Read on to learn more about restaking >>

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New Risk Scorecard: Lido (LDO)

Lido is a liquid staking protocol that allows users to stake proof-of-stake tokens like ETH in exchange for receipt tokens that can be traded, used in DeFi, or redeemed for their staked tokens.

The Lido platform has been a phenomenal success. But how risky is an investment in LDO?

Our analysts put the LDO token through our industry-leading Blockchain Risk Scorecard to determine what risks investors in the token might face.

Premium members can download the Lido Risk Scorecard here.

Not yet a Premium member? Sign up now and get access to all our investor scorecards, along with other great benefits like monthly BMJ token airdrops, exclusive crypto merch, and more!

Must Read

Today's most important stories for crypto investors.

Solana Uncovered: An Introduction to the Solana Network (Coin Metrics)

Solana's ecosystem is taking off this year, with innovative projects ranging from DeFi to NFTs. Solana has also emerged as a preferred platform for memecoin trading, though it remains to be seen whether this audience will stick around. Investors who want to see if Solana (SOL) fits their portfolio are encouraged to read this extensive guide.

What You Need to Know About the Bitcoin Halving (Chainalysis)

The bitcoin halving is just around the corner. The upcoming fourth halving is particularly significant, due to increased institutional engagement with bitcoin. Historically, halving events have led to substantial price increases for bitcoin, and many anticipate that the upcoming halving will trigger a market upswing due to a compounding supply shock. Will history repeat itself?

Real World Assets, Real World Application (X)

Putting real-world assets (RWAs) on blockchain will likely happen in two stages: it will start with crypto-native users and then expand to traditional applications. Despite the initial hype around RWAs serving the unbanked, their true potential is being unlocked by crypto-native users first. This initial adoption paves the way for mainstream use cases like using tokenized assets as loan collateral or building globally diversified portfolios.

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Chart of the Day

The Growth in Solana Since Launch

Solana's growth in daily active users (DAU) has been remarkable. The platform began with a relatively modest user base, which gradually expanded as it gained recognition for its high performance and low transaction costs.

The recent massive spike in users can be attributed to several factors:

Firstly, the overall growth of the cryptocurrency market and increased interest in decentralized finance (DeFi) have driven more users towards Solana, known for its DeFi capabilities.

Additionally, several popular projects and applications have been launched in Solana's ecosystem, attracting diverse users to the platform.

Moreover, Solana's ability to handle high transaction volumes at low costs has made it an attractive alternative to other blockchains, especially during network congestion and high fees on platforms like Ethereum.

The spike in DAU is a testament to Solana's renewed popularity and potential to become a leading Layer-1 solution. As Solana continues to develop its infrastructure and ecosystem, it's looking like a legitimate competitor to Ethereum.

ICYMI