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Airdrop Farming

Airdrop Framing and Sniping Memecoins is loaded with bots.

Purpose​

An expensive and ineffective practice to engage in customer acquisition?

Airdrops are FREE crypto tokens given away to accounts that have been active on a service as reward for patronage.

Airdrops are used as a marketing strategy to solve the cold start problem that involves sending coins or tokens to wallet addresses in order to promote awareness of a new virtual currency.

Strategy​

How much time, attention and commitment is required to gain benefits?

What is the best learning path from simple to complex? Lowest risk/gains to higher risk/gains?

  1. Avoid scams
  2. Identify Protocols
  3. Risk Strategy
  4. Time Commitment
  5. Cost of Activity
  6. Tax Implications?

Tactics​

Divide and conquer. Form teams to to research and work together to identify and participate in airdrops.

The greatest rewards will be greater awareness of opportunities to grow and teamwork to provide leverage in taking opportunities when the arise through better communication.

Mantra

Progress begins with awareness

Opportunities​

Liquid Restaking (LRT)​

Liquid restaking is a process that allows users to stake their assets in a way that they can still be used for other purposes, such as earning additional rewards or participating in other protocols. This concept is particularly relevant in the Ethereum ecosystem, where it builds on the success of liquid staking platforms like Lido.

EigenLayer is a restaking protocol that has seen significant growth, with its Total Value Locked (TVL) increasing from $1.3 billion to $15 billion since the start of 2024. The protocol allows users to restake their assets to earn additional rewards. For example, a deposit of $20,000 (~6.6 ETH) into EigenLayer from the current date to the end of September would yield an airdrop value of $1,098 at an Annual Percentage Yield (APY) of approximately 15%.

Renzo is another protocol that builds on the restaking meta, offering strategies that potentially yield higher returns than EigenLayer. The article suggests that Pendle YT strategies on Renzo could provide more substantial gains, although specific figures are not provided in the excerpt[1].

EtherFi is also part of the restaking ecosystem, providing services that simplify the restaking process for users. Like Renzo, EtherFi is built on top of EigenLayer and aims to offer competitive returns through its airdrop campaigns.

Actions​

  1. Investment Strategy: Investors should consider the potential returns from different restaking protocols. While EigenLayer offers a solid APY of around 15%, other protocols like Renzo and EtherFi might provide higher returns through more complex strategies.
  2. Airdrop Participation: Participating in airdrop campaigns can be a lucrative way to earn additional rewards. The article highlights the importance of understanding the specific terms and conditions of each protocol's airdrop campaign to maximize returns.
  3. Market Trends: The rapid growth in TVL for protocols like EigenLayer indicates a strong market interest in liquid restaking solutions. Investors should stay informed about new developments and emerging protocols in this space to capitalize on potential opportunities.
  4. Risk Management: While the potential returns are attractive, investors should also be aware of the risks associated with restaking and airdrop farming. Diversifying investments across multiple protocols can help mitigate some of these risks.

What is the most important question you could ask yourself to make progress?