DAOVentures’ Victor Lee on Why He’s Bullish on Avalanche and What He Expects From Ethereum 2.0
By Derek Rose
Cryptos are looking healthier after five straight days of gains, raising hopes that fears of a months- or even years-long bear market might be overblown.
For anyone who wants to jump into the market now, there’s obviously heaps of different ways to go about doing it, from spot Bitcoin exposure to sophisticated investment products.
DAOVentures is a crypto-native investment platform designed by professional DeFi managers, aimed at giving users – who don’t have the time or resources to invest in heavy research – easy access to profitable strategies.
The platform says it’s the “go-to investment platform for automated DeFi portfolio strategies, whether you are a hodler, fresh to DeFi or sophisticated investor.”
Its strategies include a DAO Metaverse fund that farms Axie Infinity, Aavegotchi and Illuvium tokens (paired with Ethereum) on Sushi and Uniswap; a DAO Citadel product that offers Bitcoin and Ethereum exposure while gaining liquidity incentives on Curve; and a DAO Stonks fund that offers exposure to tech stocks like Apple and Facebook via synthetic assets on the Mirror Protocol.
To learn more, Stockhead recently corresponded with Victor Lee, the DAOVentures’ Singapore-based co-founder and product lead.
Stockhead: How simple is it to use DAO Ventures?
Lee: If you have already set up a cryptocurrency wallet, such as Metamask, then all you need to do is go to app.daoventures.co to connect your wallet and deposit your stablecoin.
Of course you need some time to browse which strategy you’d like to invest in, but that’s about it.
Stockhead: What are the advantages of using it rather than just yield farming oneself?
Lee: The biggest advantage of using DAOventures is that you don’t have to worry about spending time on researching and trying to figure out which platform is the right and best for you to generate yield. Since our strategies are tried and tested by professional fund managers with a thematic approach, you just need to decide what kind of risk profile you have and what kind of assets or ROI you want.
Another huge advantage of using DAOventures is that you get to save a lot of money, by depositing in one well-diversified strategy. If you want to conduct all the transactions hard-coded in our smart contracts, from swapping the stablecoins, providing liquidity, staking, to selling LP rewards, you will be bleeding hard with the gas fee. We are doing these actions with a pool of funds, so there is far less gas needed.
Stockhead: Who have been your customers/users?
Lee: Retail investors who are very interested in DeFi investment, but not so savvy or who do not have so much time on researching all the updates in the market.
Stockhead: I see one of the strategies you’ve got going is stablecoin farming — with the promise of double-digit rewards. That sounds pretty great, given you’re escaping the volatility of most cryptos. Can you be more specific about what kind of yields you’ve been able to achieve?
Lee: Stablecoin farms are supposed to be the strategies for those who are not so aggressive and reserved, but still would like some decent yields. Advantages of investing into full stablecoin pools is the fact that there’s almost no volatility on stablecoin itself and no impermanent loss occurred on the full stablecoin pools. Since it is double-stablecoins pools we can expect the APR will be relatively lower than other strategies, but still able to achieve two digits APR compared to full-stablecoin pools on Ethereum or Polygon.
Stockhead: What are the risks?
Lee: There is always a fundamental risk of investing into cryptocurrencies, since stablecoins are also cryptocurrencies. However, stablecoin farm strategies are created to minimise the risk. Although there is a risk of volatility in yield, meaning APRs can rapidly change from time of deposit.
Stockhead: I understand you’re big on the Avalanche ecosystem? What do you like about it over EVM-compatible competitors like NEAR Protocol, Fantom and Harmony?
Lee: Users don’t lie, Avalanche is getting mainstream attention due to their team (which) is working with big multinationals too in USA.
Stockhead: Do you see any future for Binance Smart Chain? I just checked DeFi Llama, they still have 6.0% of the DeFi market, which still makes them No. 3. But they’re definitely losing market share to AVAX, Terra and a few others.
Lee: Binance Smart Chain comes with the Binance name and they have announced $1b fund to support BSC development. It will be here to stay for the foreseeable future. However, their advantage on enabling low gas fees currently is not only applied on BSC, since we can also see on AVAX, Matic and Aurora, etc (other chains too).
Stockhead: How much do you expect this Eth 2.0 upgrade to shake things up for Ethereum’s competitors?
Lee: ETH 2.0 is gaining traction but it still needs time to prove it. Don’t expect it to have immediate traction for at least six months after the official launch [currently scheduled for Q2] . We assumed the ETH 2.0 is still under L1 and may need more custom/specific L2 solutions.
Stockhead: Are we going to be in a multichain world or can Ethereum regain the dominance it had a year ago?
Lee: Multichain is definite to go. Too much investment and vested interest invested into these alternate L1 chains. Ethereum should be still the lead in the DeFi chain but it is getting less dominant and multichains will be the lead in future. This is because there are a lot of easy fork-able solutions on blockchain; we can’t terminate this fact as it will grow as much as network chains in future.
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