The relationship between Bitcoin and the macro economy is becoming increasingly close

With the launch of the Bitcoin spot ETF, this once niche asset has become the focus of traditional finance. This means that the price movements of Bitcoin are increasingly influenced by macroeconomic factors. Currently, there are still many uncertainties in the macro economy, which indirectly affect the performance of other assets such as tech stocks.

In the past two months, the market has been fluctuating in the range of 82000-88000. There is a lack of new narratives for altcoins in the secondary market, and no sustained opportunities in the primary market. In this situation, investors can consider using their quality coins and stablecoins for mining to earn passive income, in addition to staying on the sidelines.

A certain public chain recently launched the liquidity proof ( PoL ) mechanism, which has an annualized yield of over 100%. How does this mechanism create a virtuous cycle?

1. Users provide liquidity: Deposit assets into the dApp's liquidity pool, receive receipt tokens, and stake them to earn rewards.

2. Validator Allocation: Distribute rewards to the pools with the highest returns based on the incentives provided by the dApp.

3. dApp Competition: To attract validators, dApps increase incentive measures and enhance liquidity depth.

4. User Delegation: Users can delegate the rewards they receive to outstanding validators, creating positive feedback.

5. Ecological Expansion: With the increase in liquidity and user participation, trading volume rises, attracting more participants to join.

This virtuous cycle creates a collaborative relationship between dApps, users, and validators, addressing the issues of insufficient liquidity and uneven asset distribution found in traditional PoS.

Mining Strategy Recommendations

1. Steady Layout: Choose a combination of core assets and liquidity tokens (LSD), such as WETH/LSD or WBTC/liquidity tokens. This can reduce the risk of coin price fluctuations while enjoying better liquidity depth and multiple yields.

2. Low Volatility Strategy: Choose trading pairs of stablecoins, such as USDa/sUSDa, to reduce the risk of impermanent loss. Although the yield may be lower, the assets are relatively stable.

3. High-Risk Short-Term Strategy: Choose newly launched or popular token pools, which may yield extremely high annualized returns. However, be aware of price volatility and security risks, suitable for short-term operations.

Summary

In this ecosystem, various protocols compete with each other to attract more capital. The best strategy is often to diversify investments and adjust dynamically:

• A portion of the funds is allocated to a stable LSD/mainstream coin/stablecoin pool.
• A small portion of funds to try high-risk, high-reward emerging token pools.
• Regularly monitor the yield rates of various pools, validator commissions, and other data to optimize configurations in a timely manner.

However, regardless of the strategy chosen, attention must be paid to the project's security, carefully assessing factors such as contract risk, token models, and team background of the new protocol. High returns are often accompanied by high risks, and investors should remain vigilant.