BTC breaks $16,000, DeFi lock-up volume rises, cross-chain mining is on the way

BTC has reached 16,000 USD and started its blood-sucking trend again.

Grayscale’s open purchases provide a continuous upward momentum for BTC. In other words, Grayscale has unlimited bullets and can buy BTC every day in the market. The amount of BTC mined every day is not enough for Grayscale to buy.

Grayscale with unlimited bullets is really enviable.

However, while DeFi is pulling back amid BTC’s bloodsucking, there is still one data that is rising, that is the DeFi lock-up volume. Mining is no longer lucrative, but mining remains.

1. DeFi coins pull back, lock-up reaches new heights

When DeFi crashed drastically, the price of DeFi project tokens fell all the way, with most tokens falling by more than 60%. However, the locked amount of DeFi only fluctuated slightly.

When the leading token of DeFi rebounded a few days ago, the increase was also gratifying, doubling in a few days. However, the locked amount of DeFi has increased, breaking through the previous high.

In other words, if DeFi falls, it will not affect mining; if DeFi rises, it will attract funds to enter the mining market.

If a bull market comes, it will still be a BTC bull market, and the money brought by the BTC bull market will most likely flow into DeFi, because BTC is also flowing into DeFi.

Funds first flow to important targets, and then flow to value depressions. In other words, funds flow to BTC, and we have also seen Grayscale constantly buying BTC; in order to gain more benefits from rising BTC and other cryptocurrency assets, some will go to DeFi low-risk mining, allowing BTC and other assets to bring more benefits.

2. Mining income tends to be normal

Speaking of mining income, it is constantly declining, and APY has fallen to around 20%, as shown in the figure below.

This APY return is not worth mentioning if compared with previous DeFi mining. But compared with the annualized return of several points in real life, this is a huge profit.

Therefore, some stable DeFi mining projects that can accommodate large amounts of capital are still very attractive.

3. More cross-chain mining is on the way, not just on ETH

Now mining is more concentrated on the ETH chain, and BTC is also constantly migrating to the ETH chain to participate in mining. Of course, there are also many mining projects such as TRX and EOS, and DOT is also slowly developing DeFi.

However, there are still many public chain projects that have not yet developed DeFi mining, such as BCH, DASH, etc. Many projects with their own independent public chains and value may migrate to the ETH chain in some form in the future to participate in mining and obtain more benefits.

However, some projects are considering migrating various old public chains to ETH for mining. For example, the M.finance cross-chain mining contract helps users holding non-Ethereum ERC20 tokens to cross-chain native tokens to Ethereum for mining and earn DeFi income.

How does M.finance cross-chain work? An mToken is generated through a cross-chain contract, which ensures a one-to-one correspondence between mToken and native Token. There is also a public announcement page in M.finance, where users can see the number of native Tokens staked by the native address and the number of mTokens generated by the cross-chain contract at any time. Currently, the website has published BTC's cross-chain information.

M.finance cross-chain operations require a HyperPay wallet to operate, so that the native Token can be cross-chain to generate mToken, and then the mToken can be extracted to the Ethereum wallet to participate in M.finance's cross-chain mining.

The world is bustling with people for the sake of profit. In order to promote the circulation and trading of cross-chain mToken, M.finance supports pledging MINI v2 LP to mine MG, as follows.

After reading this, do you have a question: why did M.finance choose MINI v2 LP instead of uni LP or sushi LP?

4. For the development of MINISWAP, mining brings traffic

It is understood that M.finance is created by the MINISWAP team. It is clear why MINI V2 LP was chosen for mining.

In the SWAP track, it is not easy to obtain liquidity. With big brothers like UNI constantly attracting funds, and Sushi's way of taking advantage of Uniswap is no longer applicable. If SWAP wants to stand out, it must find another way and a breakthrough.

In search of a breakthrough, MINISWAP earlier launched a mining project called YMI to attract traffic, and the gameplay is basically the same as sushi mining.

MINISWAP is now doing M.finance cross-chain mining, which is considered to attract funds for projects that have not yet started DeFi mining.

In the mining launched by MINISWAP, although the YMI pool is not as big as Uni and Sushi, I made money by finding a good entry posture. Now the pool of M.finance is not very big, and more cross-chain mining is on the way. Look at the tokens in your hands to see if there is a suitable posture to steadily mine and make money.

In the SWAP track, competition incentives, grabbing liquidity, and grabbing users are not easy. But with competition, there are more opportunities for users to make money.

BTC is sucking blood, DeFi is developing, and everything will be great when the bull market comes.