How to Use METRIX for Crypto Passive Income

Summary

Jake, the founder of Metrix Finance, introduces a cutting-edge DeFi tool designed to generate passive income from cryptocurrency assets. He shares his strategy for identifying profitable liquidity pools using CoinGecko and Metrix Finance's platform, focusing on institutional-level data in a user-friendly manner. Jake demonstrates how to filter and select assets, analyze pools for optimal returns, and build a diversified portfolio. He emphasizes the importance of market timing and the benefits of crypto-crypto pairs in a bull market, showcasing how to deploy capital effectively for maximum yield.

Takeaways

• 😀 Jake, the founder of Metrics Finance, has been investing in cryptocurrency since he was 13 and has experience in concentrated liquidity pools.
• 🔍 Metrics Finance aims to offer institutional-level data in a user-friendly manner, inspired by Jake's experience as a consultant for DeFi hedge funds.
• 📈 The platform uses CoinGecko to identify potential cryptocurrency assets for inclusion in a portfolio, such as Ethereum and Bitcoin.
• 🌐 It allows users to select from various networks and exchanges, including Uniswap, PancakeSwap, and others, to provide liquidity.
• 🔑 The 'Discover' page on Metrics Finance is used to filter and identify pools that include specific assets, narrowing down investment options.
• 📊 Users can apply filters to the pool list based on desired assets and network preferences to find suitable liquidity pools.
• 🚀 In a bull market, Jake recommends crypto-crypto liquidity pools for exposure that correlates with market movements, rather than stablecoin pairs.
• 💰 Jake demonstrates how to use Metrics Finance to find the best pools with high returns, such as Ethereum to various token pairs.
• 📝 The platform enables users to simulate and strategize investments, providing APR estimates and historical data for analysis.
• 🔗 Bookmarking and saving potential investments in a portfolio allows for easy comparison and decision-making.
• 📈 Metrics Finance provides projections and estimations based on historical data, but these are not guarantees of future returns.

Q & A

Who is the speaker in the video and what is his background?

The speaker is Jake, the founder of Metrix Finance. He started investing in cryptocurrency at the age of 13 and by 17, he was investing in concentrated liquidity pools through Uniswap and other platforms.

What is the main goal of Metrix Finance?

The main goal of Metrix Finance is to provide institutional-level data in a retail-friendly manner, focusing on what metrics hedge funds look at and what they want to see on a position-by-position basis.

How does the speaker plan to identify cryptocurrency assets for his portfolio?

The speaker plans to use CoinGecko to identify different cryptocurrency assets that he wants to include in his portfolio, specifically mentioning Ethereum and Bitcoin.

What is the significance of selecting specific networks and exchanges on the Discover page of Metrix Finance?

Selecting specific networks and exchanges helps the user to narrow down the pool options to those that they have had good results with in the past or that they are comfortable with, thus streamlining the investment process.

Why does the speaker choose to include multiple assets in the 'must include' filter on Metrix Finance?

Including multiple assets in the 'must include' filter helps to narrow down the pool options to those that contain all the specified assets, making it easier to find suitable pools for the user's portfolio.

What is the speaker's strategy for selecting pools during a bull market?

In a bull market, the speaker prefers to provide liquidity for crypto-crypto pools to avoid being sold into a stable coin as the price moves up, thus benefiting from the correlated movement of the assets.

How does the speaker decide on the amount to deposit into a position?

The speaker typically likes to deploy around $10,000 into a position, which is the amount he uses for analysis in the video.

What is the purpose of adjusting the calculation range to a 30-day high and low?

Adjusting the calculation range to a 30-day high and low helps the speaker to invest based on a roughly 15-day time frame, which is the duration he prefers to be in a position, assuming the current trend continues.

Why does the speaker bookmark certain pools on Metrix Finance?

The speaker bookmarks pools that are performing well or that he is interested in to easily find and compare them later on when making decisions about his portfolio.

What is the importance of analyzing volume history when evaluating a pool?

Analyzing volume history is important as it provides insight into the performance stability of the pool over time, helping the speaker to assess the risk and potential returns of the investment.

How does the speaker plan to track the performance of his portfolio on Metrix Finance?

The speaker is excited about an upcoming feature on Metrix Finance that will allow users to track the performance of their portfolio and individual positions, providing data that is not commonly available on most tracking tools.

Outlines

00:00

🚀 Introducing Metrics Finance: Your Guide to Passive Income with Crypto

Jake, the founder of Metrics Finance, introduces the platform designed to offer institutional-level data in a user-friendly manner. He shares his background in cryptocurrency investing, starting as a 13-year-old and moving into concentrated liquidity pools by age 17. Jake explains the goal of Metrics Finance, emphasizing his experience as a consultant for DeFi hedge funds. He highlights the importance of using CoinGecko to identify assets like Ethereum and Bitcoin for portfolio inclusion and discusses selecting networks and exchanges for optimal results. He demonstrates narrowing down options from 1785 to 226 pools and explains the benefits of crypto-crypto liquidity pools in different market conditions.

05:00

📊 Fine-Tuning Your Crypto Portfolio: Strategies and Tools

Jake continues by demonstrating how to zoom into specific pools and calculate potential returns. He emphasizes the importance of using a 30-day high and low strategy, adjusting for personal preferences and market trends. He examines volume history and performance over the past 30 days to determine stability. Jake adjusts for peak prices to estimate a 65% APR, demonstrating how to save and simulate positions using the Metrics Finance platform. He provides a step-by-step guide to finding the best opportunities across different networks, emphasizing the importance of minimizing gas fees. Jake concludes by showcasing the strategize tab, which helps track and manage portfolio performance, and promotes Metrics Pro Plan for enhanced features and tools.

Keywords

💡DeFi

DeFi stands for decentralized finance, which refers to a system of financial applications built on blockchain technology that operates without traditional intermediaries like banks. In the video, the founder of Metrics Finance emphasizes using DeFi tools to establish passive income on cryptocurrency assets. Examples include using liquidity pools on platforms like Uniswap and PancakeSwap.

💡Liquidity Pools

Liquidity pools are collections of funds locked in a smart contract used to facilitate trading on decentralized exchanges (DEXs). They allow users to trade tokens without the need for traditional market makers. The video explains how the founder invests in these pools to generate returns and suggests filtering through pools to find the best opportunities based on historical performance and personal preferences.

💡Metrics Finance

Metrics Finance is the platform created by the video's speaker, Jake. It provides institutional-level data in a retail-friendly manner to help users analyze and allocate capital in the DeFi space. The video focuses on using Metrics Finance to discover, analyze, and manage cryptocurrency investment opportunities.

💡CoinGecko

CoinGecko is a cryptocurrency data aggregator that provides information on various digital assets, including their prices, volume, and market capitalization. In the video, the founder uses CoinGecko to identify different cryptocurrency assets to include in his portfolio, such as Ethereum and Bitcoin.

💡Ethereum

Ethereum is a decentralized, open-source blockchain featuring smart contract functionality. It is one of the primary assets mentioned in the video, often paired with other cryptocurrencies in liquidity pools to generate returns. The speaker frequently uses Ethereum as a base asset in his investment strategies.

💡Passive Income

Passive income refers to earnings derived from an investment without active involvement. The video's main theme is establishing passive income through DeFi tools and liquidity pools. By strategically investing in these pools, the speaker aims to generate consistent returns on his cryptocurrency assets.

💡Uniswap

Uniswap is a popular decentralized exchange that allows users to trade cryptocurrencies directly from their wallets. The founder mentions using Uniswap to invest in liquidity pools, leveraging the platform's ability to facilitate token swaps and liquidity provision without a central authority.

💡Portfolio

A portfolio in the context of the video refers to a collection of cryptocurrency investments managed using Metrics Finance. The speaker demonstrates how to build and analyze a portfolio of assets by selecting and bookmarking various liquidity pools, aiming to optimize returns based on market conditions and personal strategy.

💡TBL (Total Value Locked)

Total Value Locked (TBL) refers to the total amount of assets staked or locked in a DeFi protocol. In the video, the speaker uses TBL as a filter criterion to identify higher-value liquidity pools, which can indicate more stable and potentially more profitable investment opportunities.

💡APR (Annual Percentage Rate)

Annual Percentage Rate (APR) is the yearly interest earned on an investment, expressed as a percentage. The video discusses calculating and comparing APRs for different liquidity pools to determine the most profitable investments. For instance, the speaker analyzes the APR of various Ethereum-linked pools to decide where to allocate his capital.

Highlights

Introduction to the best DeFi tool for establishing passive income on cryptocurrency assets.

Founder Jake's background: Started investing in cryptocurrency at 13, involved in concentrated liquidity pools by 17.

Metrics Finance's goal: Providing institutional-level data in a retail-friendly manner.

Jake's experience as a consultant for DeFi hedge funds.

Using CoinGecko to identify cryptocurrency assets for the portfolio.

Initial focus on Ethereum and Bitcoin, then expanding to other networks and exchanges.

Selecting preferred exchanges and networks for better results based on past experience.

Filtering liquidity pools to narrow down options from 1785 to a manageable number.

Strategy for providing liquidity: Crypto-crypto pairs preferred during market retrace phases.

Comparison of crypto-crypto vs. crypto-stable coin strategies in different market conditions.

Importance of correlated crypto assets in a bull market for better returns.

Detailed filtering process to identify the best liquidity pools with specific assets.

Utilizing TVL (Total Value Locked) filters to further refine pool selection.

Analyzing performance and bookmarking the best pools based on returns.

Adjusting investment ranges and strategies based on individual needs and market conditions.

Use of custom infrastructure and CoinGecko API for accurate data retrieval.

Simulating different scenarios to optimize portfolio performance.

Metrics Finance's tools for backtesting liquidity distribution and volume history.

Portfolio strategizing and execution for earning passive income.

Future features: Performance tracking and detailed portfolio analysis.

Encouragement to like, subscribe, and share for updates on new tools and features.

Special offer for the Metrix Pro Plan with a discount code for yearly subscription.

Transcripts

I'm going to show you the best defi tool

for establishing passive income on your

cryptocurrency assets let's Dive Right

In first things first I'm Jake call the

founder of metrics Finance I was

investing into cryptocurrency as a

13-year-old kid and by the time I was

roughly 17 years old I was investing

into concentrated liquidity pools

through Unis swap as well as other

various platforms our goal at metrics

Finance is to provide institutional

level data in a retail friendly Manner

and the whole reason for that is because

I actually worked as a consultant for

multiple different defi hedge funds and

helped them allocate Capital to

different positions I know exactly what

metrics they're looking at and what

exactly they want to see on a position

by position basis and that's our goal

here at metrics the first thing that

we're going to want to do is use coin

gecko to identify different

cryptocurrency assets that we want to

include in our portfolio now I know I

want to include ethereum and Bitcoin in

my portfolio so what I'm going to do is

I'm going to head over to the Discover

page on metrics finance and once I'm on

the Discover page I'm going to select a

couple different networks in a couple

different exchanges I'm going to select

the ones that I personally don't mind

providing the quot of Theon because I've

had very good results with them in the

past if you really want to you can

select every single one but I'm not

going to do that I'm going to select the

uni swap pancake Swap and orca and then

also the ethereum arbitrum optimism

polygon base as well as B&B chain and

salana network so lots of networks just

a few different exchanges I like to keep

it relatively simple I didn't leave out

exchanges for security risk I left out

the exchanges just because I know that I

don't typically get as good of results

on them but we can also throw in quick

swap here if we really want to so let's

move further when it goes to the actual

pool list we have 1785 different pools

obviously it's going to be a pain to

look through through every possible pool

out there I'm going to go over to this

little filter icon where it says must

include I'm going to leave that blank

for now and then I'm going to start to

list out the assets that I want to

include in my portfolio separating them

by commas so Bitcoin ethereum I'm also

going to go ahead and include salana as

well as ton I also don't mind taking on

some exposure to link as well as uni

token and madic token so we're going to

throw those on the list I'm also going

to include render in there as well as

GRT and then fet token and tows so let's

do that render GRT fet tow so we got a

lot of different assets here if we just

click off of it it's already going to

show us pools that have all those

different Assets in there now you're

going to see that we still have 1265

pools that's because we have ethereum in

here and practically any asset can be

paired with ethereum we take that out

you can see we go down to roughly 226

different pools so we've significantly

narrowed it down there's still a lot to

look through and I know right now that

we're at a good point in the market that

I want to be providing liquidity for a

crypto crypto liquidity pool and the

reason why is because the market is

starting to retrace a little bit if

we're going into a bull run then I want

to be in crypto crypto so that way I'm

not getting sold into a stable coin as

the price moves up because if I'm

running an ethereum to usdc strategy

well guess what as the price is moving

up my ethereum is being sold into usdc

whereas as the price is moving down I'm

dollar cost averaging into ethereum so

in the course of a bare Market SL

sideways Market yeah let's run ethereum

to usdc or crypto stable coin pair I

shall say but in a bull market when

we're starting to move back up in the

situation that we're currently in having

crypto crypto exposure that is

correlated is pretty crucial because

that means that we're going to be able

to move up to together when it comes to

both those assets and not get shifted

into one or the other at least not by a

long shot and it's still going to happen

regardless but being in something like

ethereum after being shifted out of link

is better than being in something like

usdc after being shifted out of Link or

something like that so keep that in mind

so what I'm going to do is I'm going to

go over here to must include it and I'm

going to type in ethereum this is going

to show me all of these different assets

but their pools paired with ethereum so

we get ethereum to wrap Bitcoin we get

ethereum to link we get ethereum to UNI

stuff like that I'm going to start there

and I'm going to keep on going down this

list if I want to I could do a TBL

filter above $1 million I don't think

that's going to take off many pools

we're only going to take off actually we

took off about 30 so I was wrong that's

probably filtering out the lower tvl

pools on stuff like the polygon Network

or over on pancake swap on the B&B chain

stuff like that but I'm fine looking at

roughly 30 different pools I think

that's a good amount to analyze and a

lot of these are going to be duplicates

like we already have two ethereum to

bitcoin positions doing similar

performance over here so I'm just going

to bookmark one and the reason why is

because we can use metric's Finance to

go and find the best one later on so I'm

going to bookmark that right there I'm

just going to bookmark the one that's

doing a higher return so I can start off

with that one and then I'm going to keep

on heading down this list ethereum link

looks interesting there's also ethereum

uni which is doing a little bit higher

than ethereum link actually uh and then

we're going to skip that ethereum

Bitcoin there's Bitcoin B ethereum on

binance Smart chain once again it's not

doing too good we'll bookmark ethereum

to madic ethereum to ton ethereum to

render he was a little bit better of a

return on ethereum to bitcoin if we

wanted to we can unbookmark the other

one and move on to this one I'm just

going to ignore it because once again as

soon as I find the actual range and if I

really want to deploy into a specific

pair then I'm going to go and analyze to

see what better opportunities there are

and then I'm going to head over to page

two and do the exact same thing keep on

going down this list now in reality I

would go through all 35 different pools

but in this situation I'm going to stick

to the six that I already bookmarked

we're going to start over here on the

ethereum to link position mainly because

I'm already in this position I want to

see what type of returns it's doing and

how I can actually get a better overall

return on my position so I'm going to

put my deposit amount at $10,000 because

I typically like to deploy around

$10,000 into a position and then over

here when it comes to my range this is

where I'm going to zoom into the 30-day

High and the 30-day low that's what

works for my strategy it might not work

for your strategy you might want to use

a 7-Day high and low right use the time

frame that works for you and you can do

that by adjusting this calculation range

over here now I do 30-day high and low

because I want to invest on roughly a

15-day time frame two weeks or so that's

about how long I want to be in a

position so typically if I have 30 days

that's going to be 15 days that I'm in a

position assuming we're keeping up with

the current Trend basically keep that in

mind from there I'm going to look over

at the volume history see how this has

performed over the past 30 days in this

situation it's been pretty solid it's

been moving to the right very very

stable it hasn't really gone down a ton

yes we have seen a little bit of a

decline right here but we made up for it

right over here when we picked up in

volume we really wanted to we could go

over this calculation range look at a

3-day calculation range that's a similar

return and that's going to be more

accurate so let's just keep it at 30

that's a little bit lower if anything

we're going to shock ourself get better

results that's great I'm also going to

adjust the current price to look at the

peak price in my range to see what type

of return I'm doing over there and

that's a 65% APR so that's my lowest

assumption I'm assuming a little bit

better but still my lowest worst case

scenario 65% APR and then from there

I'll just revert it back to normal

because I want to make sure I'm looking

at accurate data when looking at ratios

this gives me 55% link 45% eth I am

happy with that so I am going to save it

to my portfolio remember we can dive in

and we can look at other ethereum to

link positions because there might be

something that's performing better we're

going to pull up the simulate page and

we're going to go over to pair once we

are on pair we are going to go over here

and select the exchanges and networks

just like we did on the Discover Page by

the way if you guys like this style

content make sure to drop a like And

subscribe when notifications turned on

and if we're lucky maybe you'll share us

with your friend but of course I know we

got to be really really good for you to

want to do that so let's head over here

remember I selected ethereum arbitrum

and basically everything until B&B chain

and then also salana so we're going to

do that same exact process over here and

then also select salana I'm going to put

my deposit amount over here at $10,000

and then I'm going to go ahead and

select my pair which is ethereum to link

full disclaimer this can be a little bit

laggy because we are pulling all this

data directly from the blockchain we

have our own custom infrastructure for

pulling data from the blockchain and we

do rely on coin gecko API for pulling in

all these different tokens so once again

can't get a little bit laggy just give

it some patience we're working on

different optimizations after we build

this crazy new killer product now after

we enter in the different assets over

here and we've got our deposit amount in

here we also want to go over here and

find out our Min in Max price that's 220

to 260 basically so we're going to throw

that in here to our Min and Max price

and it's going to spit out all the

opportunities that have ethereum to link

with that range basically now as you can

see we got about five different opportun

unities here remember we're looking for

the best possible opportunity it looks

like it's going to be over here on the

ethereum network this initial one that

we are looking at at roughly 77% APR now

if we were to go deploy into one of

these other ones it looks like we're 52%

over here 66 over here 73 and then 73 so

let's just Deploy on the ethereum

network assuming we're deploying less

than $10,000 of capital maybe we want to

go ahead over to like the optimism

Network or the polygon Network on quick

swap because that's doing a really good

return very similar but at the same time

we don't have the crazy gas fees like we

have on the ethereum network so that's a

consideration there we would open that

up and actually save it to our portfolio

so I've already done this and then we

can head into our strategize tab this is

going to show us all the positions that

we have saved to our portfolio keep in

mind this is the portfolio Builder I've

already saved a couple different

positions in here it's showing this

roughly $50,000 Capital allocation it's

making me about 113% APR ideally what

you would do is you would do that same

exact process that I just went through

finding these different pools and then

favoring them and then actually going

through and finding the ranges and

making sure that you found the best

opportunity and you would actually go

and save those to your portfolio

assuming you like what you see and the

results that you could get out of those

positions remember to back test the

liquidity distribution and back test the

volume history and then of course after

you have the strategize page and you're

happy you can go and deploy them into

your actual portfolio and you can

actually execute these strategies and

start to earn income on your assets like

for example this 50k could start to earn

me 155 bucks per day if I deploy in

these remember metric Finance provides

projections and estimations based on the

historical data it is not a guarantee of

what type of return that you're going to

get just keep that in mind and pretty

soon you'll actually be able to track

the performance of your portfolio as

well as individual positions over on

metrix finance and see a lot of data

that you normally cannot see on most

tracking tools out there so I'm super

excited for this to come out and if you

guys are ready for this tool to come out

drop a like let us know Down Below in

the comments and of course subscribe

when notification is turned on so you

don't miss out when we publish an update

and if you guys are interested in

joining our metrix Pro Plan there's

going to be a link to metrix Pro down

description if you do use code year

you're going to be able to get roughly

$80 off of the yearly plan which is

going to give you a total of 4 months

for free compared to if you're to just

pay monthly and the whole reason why

we're doing that is because we're

throwing all the money that we make off

of yearly plans directly back into

development of the product to build out

completely new tools just like this

portfolio tracking that I just showed

you once again I hope you guys enjoyed

and I will see you guys in the next

video peace out