Insightful Insiders #2 - Why its actually not too late to farm L0

How to position using a minimalist approach with $20+ and 45 min of your time

Jan 20, 2024

Hey guys just want to start off by saying appreciate all the support on twitter and on this substack we have reach over 1k substack subscribers and there has only been 1 newsletter posted so far… crazy stuff

I’m assuming at least 10% of this is sybils/peoples alts for those trying to grind the referral rewards to get access to the resource sheets which is fine/unavoidable. If you don’t want to grind for the resource sheets I sell them for painfully cheap DM me on twitter if your interested.

Anyways been super busy lately organizing farms and making content so wanted to get this one out asap because well be talking about L0 today which is more time sensitive.

As I’ve outline in this post in the past most people see the large amount of unique L0 wallets (~3.5M) and immediately assume the L0 is extremely diluted. However, after looking into onchain metrics and wallet stats via dune dashboards we can see that a majority of these wallets are “low quality” with very little volume, unique contract, txns, s/d (source and destination) chains, ect

Now while its general consensus that its too late to farm L0 I always like to look for areas where there is not consensus because that is where the edge can be found. For context L0 has said their token will be within first half of 2024, generally snapshots are done ~1 month in advance from when the token is officially announced to be released.

Most people believe that L0 will happen within Q1 2024, although L0 has historically shown they like to take their time so a delay wouldn’t surprise me. We are also soon going to hit 100M total messages/txns on L0 which will probably be hit by this Sunday Jan 21st.

Now well I wouldn’t really bet 100M messages being a snapshot date, its a nice round psychological number and also wouldn't surprise me as you have to expect for anything in this space

So TLDR snapshot date could happen:

Fomo at 100M messages = ~2 days

In 1-2 months = assuming token launch is late Q1

2-3 months = assuming token is early to mid Q2

For whatever reason I’m thinking it will be around the March to April or later area so we’ll see how that plays out, imo you have a good 1-2 “safe” months to interact if 100M messages doesn’t become a snapshot date.

Ok so how do we position?

Essentially the strategy is to take a “minimalist” approach by targeting certain potential criteria thresholds while being as time and capital efficient as possible

While we may not be able to hit the volume and unique months criteria

We can make up for this by being in the top percentile for S/D chains, L0 txns, and unique contract interactions

The goal is to be in the top 10%-15% out of all wallets in these metrics. This can all be done using refuels and bridging NFTs using Merkly and L2pass

The thesis here is that L0 is a cross chain messaging protocol/infrastructure, therefore they should value/care about a user interacting with many different chains, their overall txn count with L0 contracts , and somewhat care about the amount of unique contracts interacted with.

The reason we are doing refuels instead of spamming ERC20 tokens from polygon to 20 different chains in 2 minutes like all the engagement farmer threadooors are telling you to do is that refuels = more organic/helps users get onboarded to other chains.

Even if the amount being bridged for refuels is small (less than $0.01) this is fine imo and L0 limits the amount you can bridge for refuels anyway which is sometimes a very small amount depending on the chain.

So based on the Co-pilot dune dashboard in order to get in the top 10% we need:

8 source chains (where you bridge FROM)

12 destination chains (where you bridge TO)

15 unique contracts

40 L0 txns

Some notes - bridging from a different chain = new unique contract

Ex. you bridging from Polygon on Merkly your using the merkly contract

If you bridge from BSC this is a different contract so this = +1 another unique contract

If your also bridge from BSC but you use L2 pass instead this = +1 ANOTHER unique contract because the L2 pass contract is a different contract than the Merkly one

Every time you refuel/bridge a NFT = +1 L0 txn

Now the key is to either already have or setup gas on 3-5 different chains your going to bridge from while also finding/using combinations where you can refuel onto one chain and then continuously refuel in multiple different chains.

This is because the source chains are much harder to get than the destination chains because you have to do the work of getting the native gas token on that chain first before you can do a refuel from there.

The best way I’ve seen to get starting gas on a bunch of chains is to use gas.zip, make sure you have starting funds on a cheap chain (Arb, Op, BSC, Polygon, Avax) for example and then bridge from there to your other cheap chains. You can of course always withdraw gas token from a CEX but this is too tedious imo.

Polygon is a good place to start because you can refuel cheaply to a majority of chains

This image highlights 20 chains that I've found that are generally cheap to bridge to (not necessarily all from polygon)

The goal is to use and find patterns/routes where you only have refuel to a new chain 1 time (L0 limits how much you can bridge/refuel) so you can then immediately refuel to next chain and get a source chain interaction.

Some good combinations that I’ve found

Polygon → DFK (minimum 3 jewel, im overestimating a bit here) → Harmony (min 5.5 ONE)/ Moonriver (min 0.3 GLMR), then can refuel from Harmony → DFK, and from Moonriver → another cheap chain like Kava or Klayton

A short route like this will net you 4 sources chains, 4 destination chains, 4 L0 txns and unique contracts and take around 7 minutes and $1.5

You can then use gas.zip or merkly refuel if you have enough to get gas on the rest of the “core 5” (op, arb, avax, BSC) and refuel from there and now you have all 8 of your source chains covered

Some more examples of how to fill out the rest of the destination chains once you get gas on the starting source chain

Polygon → Tomo/Moonriver/Harmony/Gnosis/CoreDAO/Kava/Celo/Moonbeam

Arb/OP/AVAX/BNB → Loot/Tomo/Orderly/Fuse/Shimmer/OPbnb/Beam/XPLA/Astar

(Basically all the chains I underlined in red in the image above)

As I was writing this L2 pass just added a Gas Station refuel option that lets you refuel to multiple destination chains in 1 txn while also processes each txn as a individual L0 txn.

This is a very effective way to build out a bunch of destination chains quickly although it will only count as 1 unique contract interaction

S/D chains is the most important metric were going for

As always don’t do your interacting in the exact same order or refuel the exact same amount, and I would try to space all of your activity over the course of around ~2 days instead of a few hrs.

Also dont worry if your S/D chain progress isnt reflected on the dune dashboard tracker, it doesn’t cover a majority of the S/D chains.

You can always double check your txns are being used by L0 by putting the txn hash into https://layerzeroscan.com/ sometimes it takes a few hrs to reflect there depend on what chains your interacting with

Once your satisfied with your refuels I would finish it off by minting and bridging a zkONFT for a few reasons:

Bridging a NFT using L0 could easily be a niche criteria multiplier
Interacts with Polyhedra tech (25M funding) and L0 at the same time

Highlighted chains in image below are cheaper ones you need around ~$2 in gas on respective chain to be able to mint and bridge NFT.

You can also do the same thing on Merkly but it uses wormhole (285M funding) if you go under that tab, will also cost you around $2 but not necessary for what we are trying to cover here.

Ok that was a lot, hopefully that all made sense and you have enough of a guide to get started and finish out your interaction on your own, lets finish off with what I would focus on for these next few weeks and the weekly underrated farm highlight.

One word.

Tensor.

Basically its the Blur of Solana, team has indicated it will end its most recent season soon and could have it token drop as soon as next month.

I think most people feel this is currently/too difficult/overfarmed, but I think its going to surprise a lot of people similar to the way Season 1 of Blur did as a $1B FDV for tensor does not seem unreasonable for me.

I would focus on tensor hard for the next 2 weeks season 3 will probably end in the next 2-3 weeks to be timed around Jupiter airdrop liquidity injection into the SOL ecosystem

Its actually fairly easy to rank in the top 5k with just 2-3 SOL which could print you $1k-5k+ depending on FDV at launch

In this airdrop thread recap post here there are 2 good threads highlighted that go over how to farm tensor well so I would read those.

The TLDR of those threads is

Focus on low royalty collections that have high volume

currently the meta collection for this is FOCS, it was previously sol maps but points got nerfed to only getting 25% of the amount now, FOCS will prolly get nerfed next in ~1 weeks, other decent option are zeta cards or magic tickets

try to be in like 10-15th+ place on the bids ranking or lower to avoid getting turbo dumped on if price changes fast

use the delta feature so it reduces each consecutive bid at a slightly lower price

list the nft just below floor or sell into bids and rinse and repeat

requires a decent amount of babysitting/active management but I think its worth grinding for the next few weeks, points leaderboard is updated every Tuesday if I remember correctly.

Ok for the underfarmed pick pf the week its going to be a 3 in 1: Gravita + Maverick+ Zksync

TLDR they are all tokenless process/strategy goes as follows (maverick has a token but has indicated they will have future token airdrops for people who LP over time)

1/ Get WETH on zkSync and deposit into your vault/vessel on Gravita

2/ Borrow/mint Grai (their stable coin)

3/ Go onto Maverick on zkSync, search for a Grai related pool and LP there, the USDC-GRAI pool is more stable but the ETH-GRAI pool will earn you much more in fees. You’ll also be earning points/marks from Gravita as you LP with Grai.

Note: you need to borrow a minimum of 200 Grai which will require a minimum of ~$325 in ETH, will have some more farm in the future for my smaller budget farmers out there because I know something like this isn’t for everyone

That’s it, gotta keep the under farmed farms limited in order to avoid dilution like we saw happen with the LORDS/ETH pool on Ekubo before they clashed points for it becasue dilution increased too much.

May save/post more of these farm for more “premium” content whether that a paid (11$/month) version of this newsletter or some other form of premium access if thats something you guys are interested in.

If you found this Insightful and your interested in some resources I sell some interaction tracker/guides for various airdrop categories to help pay for my gas fees lol.

The main one used to be L0 but I wouldn’t recommend getting that one now, the other main one I have is the “BigL2sSheet” that covers Scroll, Linea, zkSync, Base, and Zora

Multiple things are covered like how to multi account without getting marked as a sybil, example routes you can use, core strategy for each chain, and a interaction tracker are all included.

Will probably be creating more sheets for other categories like Interoperability and Perp Dexs in the future when I have more time or if there is enough demand

As always if you want to instead support me for free sharing this newsletter or my content on twitter is always appreciated and helpful

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