4,624% APY for Native Farm Staking? Possible Airdrop? Fast Growing Ecosystem? Presale? Read More Here!

Distortion by Nullish Ordinals sold at a 0.03 BTC floor (around $800) on May 28, when I published 3 Secrets for Ordinal Collectors, 3 Potential Grail Collections, & 3 Hot New Collections. A few days later, on June 1, floor-priced Distortions sold for 0.02 BTC (around $500). And today, less than one week later, the floor price for a Distortion by Nullish Ordinal sells for 0.132 BTC (around $3500).

This illustrates how fast prices can accelerate when the right crowd gets attracted. The projects I will discuss today don’t have a crowd yet. On the contrary, they exist in an ecosystem with few users or platforms. However, I am optimistic this will change and that this ecosystem will scale massively. The projects are on a chain you probably haven’t used yet, Polygon zkEVM.

Here are some of the reasons I want to be early to Polygon zkEVM:

• Polygon is a crypto powerhouse. They launched DeFi Summer a couple of years ago with their gigantic incentive program. Polygon has invested a lot of time and money in zkEVM, and I’m confident the Polygon team will want to ensure Polygon zkEVM is a success.

• Based on Arbitrum and Optimism’s success with airdropping to attract users, there is speculation (but no formal announcement) that Polygon may do an airdrop or incentive program to attract users and liquidity to Polygon zkEVM.

• Competition on Polygon zkEVM is nearly nonexistent. Fewer platforms mean investors have fewer choices about where to put their liquidity.

• TVL on Polygon zkEVM is a paltry $22.5 million. But this is ten times the TVL from one month ago. Why is so liquidity increasing by 10x? I’m unsure but don’t want to miss the fireworks from its next 10x increase.

The Polygon zkEVM project you’ve probably never heard of

Doveswap ($DOV) is a PolygonzkEVM native DEX with a growing user base and a compelling market capitalization. Doveswap only has about $0.5M in TVL, commanding about 1/4 of the DEX trading volume on Polygon zkEVM.

Of its 100 million total supply, only around 1.2 million DOV tokens are circulating today. Trading at $0.26 puts the DOV circulating market cap at around $300,000. This is microcap territory. What does that mean? Prices can move quickly if the crowd gravitates toward the project.

All liquidity on Doveswap is concentrated liquidity (CL), helping it achieve high trade volume and paying nice LP rewards for CL providers. We are so early in this story that aggregators like Firebird and 1inch aren’t yet positioned on Polygon zkEVM.

I’ve provided liquidity on Doveswap for several pairs for a few weeks. Here’s the reason why:

Because there are so few users on Polygon zkEVM, I am earning tremendous rewards in DOV tokens. You may notice the “Vesting: 3 days” box. To attract sticky liquidity, CL providers must stay in range for three full days to receive the maximum rewards, a clever twist making providing liquidity a more even playing field.

Why I’m Bullish on DOV

Before I reveal a much larger reason I’m so excited about DOV, let’s recap why I see it as an attractive risk/reward scenario:

• Low competition on Polygon zkEVM, a chain that should see incredible growth.

• $300,000 circulating market cap. If this goes to a $2 million circulating market cap, that’s a 6x. If it goes to a $10 million circulating market cap, that’s a 33x.

• Only 555 DOV token holders. Many initial holders who got in below $0.10 have already sold their positions.

• 4,624% rewards for providing liquidity to wETH/DOV. 312% APY for wETH/USDC!

• If Polygon does an airdrop, being an early adopter should bode well for me.

2 Reasons I bought a lot more DOV

The Doveswap team is launching a derivatives platform on Polygon zkEVM called Shrike Perps. Shrike is a GMX fork and will have very similar tokenomics to GMX. Leverage DeFi platforms are cash machines when they have users. Shrike is raising $450,000 by selling 3 million $SHK tokens via a presale (at $0.15 per token for everyone). There was no seed capital or pre-presales.

The SHK presale launched on Monday and is already 20% filled. However, I expect interest to increase dramatically because the Doveswap/Shrike team (same) announced today that investors participating in the Shrike presale would be rewarded with 20% bonus SHK tokens that vest over three months.

To participate in the SHK presale, investors need to hold DOV tokens. The more DOV you own, the more SHK you can purchase in the presale. So, by holding DOV, I can now also invest in a Polygon zkEVM perps platform that is a GMX copy. And I’m going to get 20% bonus tokens? Sign me up!

Further, the Doveswap team announced yesterday they are launching single-sided staking on DOV by the end of next week. This is tremendous because many investors don’t want to mess around with CL, and staking DOV will create another reason to buy and hold the tokens.

Key Takeaways

Polygon has the resources, desire, and knowledge to build out its Polygon zkEVM ecosystem. The TVL on Polygon zkEVM has increased by 1000% in the past month. When investors get thirsty for airdrops/incentive programs, I can see them flocking over if/when Polygon announces an official program.

Doveswap is native to the Polygon zkEVM chain. The team is launching a GMX fork called Shrike, and to participate in the SHK presale, investors need to own DOV tokens. Additionally, DOV can be paired with wETH for high rewards or single-sided staked starting next week.

The narratives for DOV and SHK are extremely appealing, and the low valuation means that asymmetric gains are possible. Is it risky? Yes. But the potential rewards are enough for me to take the risk. I’ve included instructions below for easily getting ETH to Polygon zkEVM.

Doveswap/Shrike Discord: https://discord.com/invite/Up2SMcfthg
Doveswap/Shrike Twitter: https://twitter.com/DovishFi
Dextools.io chart: https://www.dextools.io/app/en/polygonzkevm/pair-explorer/0xa36ba122eeb3ef87225e3c4d44da80aaa16aa166

How I bridged ETH to Polygon zkEVM and purchased DOV

1. Go to Orbiter.finance: https://www.orbiter.finance/?source=Ethereum&dest=Arbitrum

2. Connect the wallet and select the chain you want to move ETH from. I chose Arbitrum in this example. In the “to” chain, I chose Polygon zkEVM.

3. Approve and send funds. In less than 5 minutes, I have funds in Polygon zkEVM. If you need to add Polygon zkEVM to your Metamask wallet, visit https://chainlist.org/chain/1101 and connect your Metamask.

4. After ETH has been bridged, go to https://beta.swap.dovish.finance/#/swap. Swap ETH for DOV. ETH is used for gas on Polygon zkEVM, so leave some for future transactions.

5. If you want to participate in the SHK presale after buying DOV, visit: https://swap.dovish.finance/#/sale and deposit ETH. The 20% bonus will go into effect after the tokens have been distributed only to wallets participating.

6. Consider LPing your DOV on Doveswap or wait until next week when single staking for DOV is live.

At the time of writing, I own DOV and provide liquidity to the DOV/wETH CL pool. However, I haven’t been paid or sponsored to write this piece. This information should not be taken as investment advice. Digital assets like crypto, Ordinals, and NFTs involve risk, so you should always perform due diligence before investing. Furthermore, this article is my opinion; I am not a financial advisor.