⚡The "sweet spot" chains showing outsized growth
Which chains to spend time researching, major announcements, and a 300% APR farming strategy (with airdrop)
Read Time: ~6 minutes
⚡Snapshot
New product announcements from Aave and Ethena
Dynamo DeFi Pro Call recording is up - intel on Berachain, Sei and yield farms
Sorting out growth of mid-size and large chains to find opportunities
Using Shadow exchange to farm S yield and airdrop points
📖 Recommended Reads
⚡Leveling up over time is the most enjoyable game in the world
Hardware vs software mindset and how to make the most of it
⚡The holy trinity of crypto protocols that can be worth $50B+
Guy from Ethena announces Converge network and how Ethena fits the holy trinity bill
⚡The biggest problem in crypto is the lack of first-principled thinking
A completely free course designed to get anyone onchain - complete with videos, visuals and guides
⚡Aave announces Horizon, a new project for institutions to use tokenized RWAs
The goal is to position Aave as the infrastructure layer for institutional DeFi and capture the growing RWA market
⚡Digital asset investment products see 5th consecutive week of outflows
Bitcoin ETFs now over $5B in total outflows in 5 weeks
⚡Uncovering Hidden Opportunities in DeFi
Last week's Pro Call delivered:
Complete macro analysis including cycle positioning and ETF impact
In-depth breakdown of the fastest growing chains (Sonic, Berachain, Sei)
Best available DeFi farms
The recording and slides are available now for Pro members.
Get immediate access to this call's recording plus all previous analysis
Become a Dynamo DeFi Pro member today →
🔢Onchain Analysis
Sorting Out Growth
One of our most popular destinations for all DeFi research starts at the Chains page on DeFiLlama.
The dashboard tracks everything from total TVL share, changes in TVL, active addresses, DEX volume, App Revenue, etc. You can group chains by Layer 2 or chains that share the same token, and you can edit the TVL range, which changes the chains you’ll see when sorting.
Sorting the chains by TVL might seem trivial, but with a few clicks, we begin to see an overhead view of where money is going in DeFi.
First: simply sorting chains by 30d TVL growth provides some insight, but lots of noise.
Massive 2000%+ growth, but Mint still has less than $10M in TVL and Waterfall has $40. Unichain’s TVL is up 300% in a month, but when total TVL is only $9M, that could easily be a single DeFi power user who could withdraw their capital at any time.
Morph and Story have large enough TVLs to investigate further. There’s your signal.
When sorting TVL growth by percentage increase among large chains ($100M+ TVL), we see there are only 3 chains with substantial monthly TVL growth (we discussed the opportunities on these chains at length in last week’s Pro call).
We’ve talked about opportunities on Sonic. Berachain has seen impressive growth since launch, and Sei’s TVL jumped by 80% in the last 5 weeks. Again, worth investigating.
Finding the sweet spot: setting our TVL range to track chains with TVL above $20M and below $100M shows us protocols that are still quite young but have enough TVL to consider them somewhat battletested.
Topping the list is Morph & Story (again), followed by Soneium (Sony’s chain) and Venom.
From here, follow the money: find protocols that are growing quickly. There’s usually a reason - there might be DEXs with high yields, lending protocols with supply APY and points, etc.
The idea is to find where the growth is happening. And right now, mid-size chains and a few large chains are popping.
🚜Farm of the Week
Shadow on Sonic - Yield & Airdrop Points
We highlighted this farm in last week’s Pro call. Sonic is running a points system in anticipation of a huge confirmed airdrop in June.
Many apps on Sonic are participating, meaning you can earn points by using Sonic DeFi or simply holding whitelisted assets.
Shadow is a DEX on Sonic participating in the points program with a yield opportunities.
How it Works
First you’ll need to add Sonic to your browser wallet. You can do that while connecting your wallet to Shadow’s exchange or through Sonic’s bridging portal.
One of the better yield opportunities for those looking to acquire Sonic (S) tokens is the S/USDC.e pair.
This APR is deceptive - that’s essentially the max available APR, which would include a tight range and potentially expose us to impermanent loss.
We can select the “Wide” liquidity range and still earn over 300% APR (this changes often) while minimizing our chances of S price falling out of the range.
For extra safety: the Passive setting doubles the liquidity range while still earning over 150% APR.
From here, simply input the amount of S tokens and USDC.e (the ‘.e’ just means it’s bridged) and begin providing liquidity.
Risks
Top 3 Reasons Why Crypto is Dropping
⚡Capitalize on Volatility with Hyperliquid
Hyperliquid is the premiere decentralized perps exchange. It’s one of the best crypto products I’ve ever used.
It’s fully onchain, with zero gas fees and low trading fees (you’ll get a discount on trading fees by using this referral link)
If you think the market will drop, you can protect yourself against downside by shorting anything from Bitcoin to AI agent tokens with minimal slippage.
Get started on Hyperliquid in 2 minutes →
🛠️Tool Spotlight
Alphractal’s Bitcoin Metrics
Alphractal has helpful onchain analysis dashboards to analyze the inner workings of the Bitcoin network.
Some of these dashboards include onchain analysis and market indicators like the Pi Cycle highs and lows, and bull market comparison charts.
More helpful DeFi Tools: The Dynamo DeFi Crypto Tools List
📅Key Events This Week
Macro Events
📊 February Retail Sales data - March 17th
📊 February Housing Starts data - March 18th
📊 Fed Interest Rate Decision & Statement - March 19th
📊 Initial Jobless Claims data - March 20th
Token Unlocks: $700M Unlocking This Week
🔓Tokenomist: Track token unlocks and make better investment decisions. Use my code DDNM5 for 5% off Pro Plans.
🔓APE (1.95%) - March 17th
🔓SOLV (7.93%) - March 17th
🔓FTN (4.65%) - March 18th
🔓MELANIA (17.50%) - March 18th
🔓ZETA (1.36%) - March 19th
🔓ZKJ (25.72%) - March 19th
🔓 IMX (1.39%) - March 21st
🔓ID (18.23%) - March 22nd
🔓MURA (1.00%) - March 23rd
🔓OM (0.51%) - March 23rd
🔓MRS (11.87%) - March 23rd
Launches & Updates
Note that these launches are mostly unvetted by the Dynamo DeFi team and this isn’t an endorsement of any of them.
🚀 Cryptex finance ARFI launch - March 17th (Source)
🚀 IMX statue NFT collection release - March 18th (Source)
🚀 Zano 5th hardfork - March 18th (Source)
🚀 Peapods finance Leveraged Volatility Farming launch on sonic labs - March 19th (Source)
🚀BNB pascal hardfork - March 20th (Source)
🚀XAI sentry node snapshot - March20th (Source)
⚡Favorite Resources
If you want to dive deeper, here are some of my favorite resources:
🛠️ The Dynamo DeFi Crypto Tools List: A comprehensive list of 100+ crypto tools to help with portfolio tracking, analytics, airdrops and more.
🚀 RocketX: The 1-stop-shop to get the best rates for on-chain & cross-chain swaps.
🛡️ Ledger: The smartest way to secure your crypto. Buy & sell crypto with full control over your assets.
For more frequent content, follow me on Twitter and YouTube.
Until next time,
Dynamo DeFi
Wow lovely God bless the sweet spot. Revelation14family continue to pray for you guys in Almighty God