The correlation between Bitcoin and the macro economy has strengthened

Since the launch of Bitcoin's spot ETF, it has transformed from a niche asset to a focal point of traditional finance. This change means that the price movements of Bitcoin are increasingly influenced by macroeconomic factors. Currently, there are still many uncertainties in the macro economy, and tariff policies have further impacted technology stocks.

The current market has been oscillating in the range of 82000-88000 for two months, and the secondary market altcoins lack new narratives, while the primary market has not shown any sustainability. As investors, in addition to choosing to wait and see, using high-quality coins and stablecoins in hand for mining to earn passive income is also a wise choice.

Recently, a public chain with a built-in DeFi mechanism has launched the PoL( liquidity proof) mechanism, with an APY that can reach over 100%. Let's explore the mining opportunities on this public chain.

How the PoL Mechanism Forms a Positive Cycle

1. Users provide liquidity: Investors inject assets into the dApp's liquidity pool, receive receipt tokens, and stake them to earn rewards, providing initial liquidity for the ecosystem.

2. Validator Allocation: Validators allocate rewards to the pools with the highest returns based on the incentives provided by the dApp. As more rewards flow into popular pools, user yields increase, thereby attracting more users to participate.

3. Competition among dApps: To attract validators' reward distribution, dApps enhance incentive measures (such as increasing native coin rewards), thereby deepening liquidity.

4. User Delegation: Users can delegate the rewards they earn to outstanding validators, increasing the block proposal weight of these validators, thereby earning more sharing rewards and incentivizing validators to continuously optimize their distribution strategies, creating positive feedback.

5. Ecological Expansion: As liquidity and user participation increase, trading volume and dApp usage rates rise, network value improves, attracting more users and developers to join, accelerating the virtuous cycle.

This virtuous cycle creates a collaborative relationship among dApps, users, and validators, breaking the dilemma of insufficient liquidity and uneven asset distribution in traditional PoS.

Mining Strategy

1. Stable layout: core blue chips/LSD as the main focus

Core idea: Choose a relatively core, deeply rooted, and moderately volatile asset portfolio, such as:

• Native Tokens/LSD (such as Staking Tokens, Liquidity Tokens, etc.)
• Mainstream tokens/LSD (such as ETH derivatives, BTC derivatives, etc.)

Advantages:

• Reduce the risk of severe fluctuations in coin prices
• Enjoy better liquidity depth
• Multiple benefits can be obtained simultaneously: the staking rewards of LSD itself plus PoL rewards.

Potential sources of income:

• Liquidity Mining (LP Rewards + PoL Rewards)
• LSD built-in yield
• Additional incentive profit sharing for the protocol

Risks and Precautions:

• There may be a premium or discount issue between LSD tokens.
• You need to select suitable validators to achieve the best returns.
• Consider the balance between the amount of funds and the costs of Gas and fees.

2. Low Volatility Strategy: Stablecoin/Stablecoin Pairing

Core idea: Choose stablecoin pairs for the stablecoin pool to reduce impermanent loss caused by price fluctuations.

Advantages: The assets themselves are relatively stable, suitable for investors with lower risk tolerance.

Potential sources of income:

• PoL Incentives
• Transaction fee revenue
• Possible additional rewards or airdrops for the parties involved

Risks and Precautions:

• Pay attention to the credit risk of stablecoins
• APR is usually lower, consider allocating some funds to high-yield pools.
• Protocol incentives may be unstable

3. High-Risk Short-Term Strategy: Meme coins/Emerging Token Pool

Core idea: Choose newly launched or high-profile Meme coins/emerging tokens and their trading pairs with mainstream tokens.

Strategy: Short-term mining and timely cashing out into blue-chip assets or stablecoins.

Potential sources of income:

• PoL rewards
• Extremely high APR or airdrop opportunities

Risks and Precautions:

• High price volatility/project failure risk
• The risk of impermanent loss is high
• Need to pay close attention to data changes

Conclusion: Dynamic adjustment of strategies is crucial

In this ecosystem, there is fierce competition among protocols. The best strategy is often not to be fixed in one pool, but to adopt a decentralized investment and dynamic adjustment approach:

• Some funds are allocated to relatively stable LSD/blue chip/stablecoin pools.
• A small portion of funds is allocated to high-risk, high-volatility altcoins or Meme pools.
• Regularly monitor the APR of each pool, validator commissions, protocol incentives, and other data to optimize mining profits in a timely manner.

Security Reminder: Be sure to pay attention to the contract risks of new protocols, the rationality of token models, and team backgrounds, among other factors. Although high APYs are attractive, various risks still exist in early ecosystem projects.