Alpha is excess return, which is a return that is unrelated to the overall volatility of the crypto market. For primary and secondary crypto market participants, Alpha returns can be obtained by screening web3 projects. However, Alpha returns are very scarce and very difficult to be discovered and captured. It can be said that Alpha returns are a mythical indicator that crypto market investors are constantly chasing.
If you don’t have the diamond drill, don’t take on porcelain work. To do porcelain work that can obtain Alpha returns in the web3 industry, it is very important to find your own diamond drill. For investors seeking Alpha returns in the crypto market, veDAO is their first choice of diamond drill.
1. Source of veDAO and Alpha
veDAO is an investment and financing community that explores potential projects. It is a new project that was launched at the beginning of this year. The project team has been very active recently. The community, Twitter, space and veDAO Research Institute are very active. The number of KOLs and partner institutions joining the community is increasing rapidly. Ordinary users of Web3 investment have a very large information gap when looking for projects, and some very creative projects are eventually buried for various reasons. Based on the above pain points, veDAO gathers public wisdom and expert opinions through the community co-prosperity model based on the DAO organization. On the one hand, it acts as a Bole to screen the best web3 start-up projects for investors; on the other hand, it provides convenient and high-quality financing services to project parties, so that gold can shine earlier.
Most of the Alpha generated by Web3 markets can be attributed to two basic sources: Informational - Information-based Alpha occurs when some market participants have different information than others and can exploit this asymmetry to invest; Analytical - Analytical Alpha occurs when all participants have very similar information, but one investor is able to analyze the information better than other investors. These two categories capture most of the sources of Alpha projects generated in web3 markets.
Based on the above two sources of Alpha, we combine veDAO’s business module to see how to use veDAO to obtain Alpha benefits in the web3 industry.
2. Make full use of project Twitter data
Twitter is the frontier of Web3 discussion. Almost all official information or related events of Web3 projects are published on Twitter at the first time. Therefore, users can obtain the most authoritative and fastest source of information through Twitter. Currently, Twitter is the main channel for users to understand the market trends and project information of Web3. veDAO aggregates the Twitter data of each project: including the number of fans of the project, the number of KOL followers, the number of asset whale followers, the number of NFT whale followers, and the detailed information of the main followers.
The projects on the veDAO platform are basically web3 startups or projects that are about to have IDO/INO/IGO. The number of Twitter followers, KOLs, and whales following the projects reflect the overall strength and future prospects of the projects from one aspect. On the veDAO platform, you can easily and conveniently sort web3 projects and many projects in various sub-tracks by indicators such as the number of fans, the number of KOLs following, the number of asset whales following, and the number of NFT whales following. You can easily filter out high-quality web3 startup projects. Although this screening method is not 100% certain, it is at least a dimension that is worth referring to. Automatic sorting based on various indicators can save users a lot of time and energy.
In veDAO, users can easily find information about new projects and hot startup projects. Screening projects based on Twitter data is a valuable innovation of veDAO. Currently, veDAO still sorts based on Twitter stock data, and sorting based on incremental data has not yet been developed. In the past week or month, which project's Twitter data has grown the fastest is also very valuable to users.
veDAO is based on the Twitter social graph data of the web3 project and can provide users with informative Alpha.
3. Let professionals do professional things
The progress of the Web3 industry is due to the rapid development of professional division of labor. Leaving professional matters to professionals is the way to win in the web3 market. Nowadays, there are more and more web3 startup projects, and how to pick out high-quality projects is becoming more and more professional and complicated. If investors want to choose good projects, they not only need to understand the white paper and github of the project, but also need to have a deep understanding of the track where the project is located, the business model of the project itself, and the competitiveness of the product. In addition, there are many web3 projects, and the business models and business scenarios of each project are different. If you need to have a more comprehensive understanding of these, it will take a day or two. For most investors, it is difficult to have the time and energy to select projects. There are many experts in various sub-sectors in the web3 industry who have been battle-hardened and have achieved certain success. For most users, there are many lessons learned from large and small projects and crypto market investments.
Based on the above reasons, relying on the power of crypto market experts to obtain web3 industry Alpha is a cost-effective option for most investors. By paying a low service fee and handing over professional matters to professionals, it is likely to be better than doing project screening by yourself, thus achieving the purpose of improving efficiency and saving your own time.
The veDAO project has an expert committee module that brings together experts in the web3 industry, including analysts, KOLs, investment institutions, investment research institutions, media organizations, security audit companies, etc. These experts are leaders in a certain field who have been evaluated by the veDAO team and community, so users no longer have to spend time and effort searching for them.
Each expert also has his or her own main direction and focus area. If the user's main purpose is to learn about encryption, then you can choose an expert who provides practical science and knowledge sharing. If the user pays attention to the market and focuses on prices, then he or she can choose an expert who analyzes data on the chain. For investors looking for Alpha in the web3 industry, they can pay more attention to some developers and project research experts. They often introduce potential projects on their social media and share their experience of deep involvement in them. This will be very instructive for users who are committed to finding high-quality projects.
On the veDAO platform, each expert has his or her own homepage. Through the comments on the expert's homepage and the scores of multiple dimensions of each project, we can see which project the expert is optimistic about and which project he or she is not optimistic about.
Projects reviewed by experts are generally popular projects selected by veDAO, which allows users to easily learn about the latest popular projects. If users are interested in a project, they can click on the project to enter the project details page, where they can view the expert's rating and comments on the project. At the same time, all other community users can also vote and comment on the project, so that users can follow "Dianping" and "Expert Comments" to understand and evaluate projects in a multi-dimensional, all-round, objective, professional and in-depth manner. This function is another innovative feature of veDAO, and it is currently free.
The veDAO expert review module can mainly provide users with analytical Alpha.
4. Make good use of veDAO Research Institute’s investment research reports
Although the veDAO Research Institute was established not long ago, a large number of research reports produced by them can be seen on major web3 media platforms. There are new project financing information every day, and more than 3 in-depth research reports every week, some analyzing specific projects, some analyzing sub-tracks, and some providing specific practical methods related to project screening. The number of their publications can be called a model worker, and the quality of their research reports is also quite good.
Users can use the veDAO Research Institute to obtain the following Alpha information:
Understand the most complete and timely project financing information. Financing information is one of the key indicators for selecting high-quality projects.
To find potential 100x Alpha projects, the veDAO Research Institute carefully selects and then conducts in-depth analysis of specific projects. Many projects are potential projects.
Learn how to screen high-quality web3 projects, how to value web3 projects, and other methods or tools related to project screening.
The investment research information of veDAO Research Institute can provide users with both information-based Alpha and analytical Alpha.
5. Specific case: Using veDAO to find Alpha projects
The veDAO platform integrates a large amount of multi-dimensional information on web3 projects. So how can we use the information provided by veDAO to find potential Alpha projects? Let’s use a specific case to illustrate.
1. First of all, you can make good use of the veDAO Research Institute's investment research reports. For example, in early March and early April, the Institute used its keen sense of smell to see the potential of the ordinarys track and the LSD track, and made analysis and predictions on related potential projects. Therefore, following the Institute's investment research reports is definitely one of the best ways to learn about the latest, hottest, and most promising projects.
2. In the veDAO project list, each major project is accurately classified with tags, allowing users to accurately locate projects under the LSD track, and can also quickly understand the properties of a project through its tags.
veDAO is committed to discovering potential projects. Whether it is a new primary project or a secondary project with issued tokens, as long as there is potential for explosion, it can be observed and analyzed through veDAO's selected community data. Through expert comments, Twitter following, KOL following, asset whale following, NFT whale following, related information, community voting and comments, etc., you can intuitively understand the popularity of the project, community recognition, whale trend, etc. Through these data parameters, we can get one step closer to the Alpha project.
3. If users want to catch up with new projects that are about to be launched, veDAO also has an "upcoming" project ranking list. This module can be found on the veDAO homepage. It is a module with clear direction and high practicality. It specializes in providing information on upcoming tokens, NFTs and airdrops, and displays them in chronological order of ongoing and upcoming releases.
This module can not only help users have an overview of the recently issued projects, so that they can quickly participate and not miss investment opportunities, but also assist in various dimensions of data information, conduct a more in-depth analysis and judgment on the prospects and investment value of the project, and thus screen and find Alpha projects.
4. Combined with the professional investment research report of veDAO Research Institute, the community data of the upcoming modules and projects, try to choose a project in the LSD track to have a deeper understanding. For example, after clicking on the Tenet project, the detailed information of the project includes the voting situation of the DAO community, expert comments, project introduction, project financing information, the upcoming Token, Twitter relationship, related information and community evaluation. From objective project information, white paper, financing information, to the collection of community members' experience judgment, total number of votes, positive and negative percentages, to the project hexagons, comprehensive scores, and commentary content commented by experts, plus in-depth analysis of major relevant information, users can have a comprehensive understanding of the project, form their own judgments and opinions, and accurately grasp the project issuance information through the upcoming Token module to seize opportunities. It can be seen that the veDAO platform provides objective, brainstorming, professional and detailed, the hottest and most potential project information. It allows users to have a deep understanding layer by layer and accurately find high-quality Alpha projects.
Summarize
From the perspective of finding Alpha projects, the above are what I think are the most valuable core functions of veDAO. Of course, if you want to get a hundred times Alpha return, it is not enough to have tools alone. Users also need to combine their own focus and cognition, and have enough patience and risk control ability.