Year-End Special: The “Strategy Evolution” of the DeFi Era

As 2024 fades into the past, the blockchain world has shown more than its usual buzz and excitement. This year has been marked by rapid iterations of strategies and landscapes. While some struggled with the turbulence of meme coins or fell victim to rug pulls, others turned their focus toward deeper, more stable, and efficient “strategy upgrades.” By rationally analyzing foundational rules and leveraging them effectively, they embraced the true essence of DeFi: achieving long-term value growth on a secure foundation.

One of the most significant shifts has been the evolution of Airdrop Reference, which has transitioned from content creation and education to active participation in the DeFi space. Through live operational projects, it has tested and validated an effective “multi-dimensional fishing” strategy. From “maximizing ETH restaking returns” and “Bitcoin restaking” to the innovative “One BTC, Five Streams” approach and the launch of live projects ARP1 and ARP2, the journey has traced a gradual line from “basic blockchain operations” to “advanced puzzle assembly.” Behind this progression lies not just technical stacking but an elevation of cognition and strategy.

On one side of the spectrum stands Bitcoin; on the other, Ethereum and its restaking boom. Midyear, our deep dive article, “ETH Restaking: How to Maximize Returns After the High-Yield Fade,” dissected the issue: the early bonanza of restaking rewards — driven by excess demand — was unsustainable. As more participants joined the fray, returns inevitably normalized. Yet, restaking remains foundational to decentralized security mechanisms, with long-term potential.

Restaking is not a fleeting trend. It combines network security and economic incentives. While Ethereum’s PoS rewards are stabilizing, projects like EigenLayer are introducing new opportunities: connecting restaked assets to third-party services (AVS) to earn additional “rents” or airdrops.

However, with the early-mover advantages diminishing, strategy upgrades are essential:

• Prioritize stability over short-term gains, leveraging tools like AAVE for lending-plus-restaking to expand holdings steadily.
• Look beyond staking returns, considering potential airdrop incentives from project ecosystems.
• Optimize liquidity turnover, particularly through high-reliability liquidity pools.

In this evolving landscape, restraint becomes the ultimate strategy. As hype fades, protocols that sustain long-term value will thrive. Those who build their positions during quieter times, much like accumulating tokens in a bear market, will find themselves well-positioned when the next wave arrives.

The restaking narrative deepened further with Bitcoin in “Bitcoin Restaking is Here.” Projects like Babylon, EigenLayer, and ether.fi transformed Bitcoin — the “digital gold” — into a dual-layer asset capable of generating both staking and restaking returns. This development brings BTC closer to what stETH was years ago, leveraging blockchain modularity and composability.

**Why does Bitcoin need restaking?**It offers BTC holders a dual benefit: native staking yields and AVS rewards. For long-term BTC holders, this represents a rare pathway to grow assets while maintaining exposure.

However, thorough diligence on counterparties and project security remains crucial. The rise of decentralized BTC tokens like TBTC, LBTC, and eBTC reflects a sustainable direction, countering earlier centralized issues with WBTC and HBTC.

In “One BTC, Five Streams! Creative Ways to Maximize BTC Returns,” we proposed a bold concept: transforming Bitcoin, traditionally a dormant asset, into a multi-revenue generator through staking, restaking, cross-chain bridging, and liquidity mining.

This strategy, while initially viewed as complex, epitomizes DeFi’s core principle: maximizing every unit of liquidity. By combining strategies — staking on L2, earning airdrop points, creating liquidity pairs with stablecoins, and more — BTC can yield layered rewards.

The key takeaway? Pursuing composite returns reflects DeFi’s essence. Yet, these strategies demand a rigorous approach to risk management. Overleveraging or engaging with dubious protocols can lead to disastrous outcomes. The mantra remains: “Risk awareness transforms complexity into opportunity.”

In the blockchain world, writing compelling articles alone is not enough to ensure a project’s growth and adoption. The key lies in creating reliable solutions that anchor user trust. In Airdrop Reference Whitepaper v1.0, we officially announced that Airdrop Reference would not only focus on educational content but also venture into the DeFi service space — marking a new chapter of dual progress in content and services.

Reflecting on the past year, users have faced numerous challenges in real-world operations, such as complex processes, high gas fees, and fears of falling victim to scams. For this reason, we have extended our efforts from written guidance to actionable practice, tightly integrating content with implementation to provide users with a path that is more time-saving, efficient, and user-friendly.

Theory without practice is a castle in the air; practice without cognitive support is like blind men feeling an elephant. What we aim to do is unify education, strategy, and risk management into real-world projects, enabling readers not only to understand but also to act and truly seize DeFi’s opportunities. This is the core idea revealed in the whitepaper: “Transforming our knowledge and insights into transparent smart contracts to ensure safe benefits for more people.”

It is widely known that in DeFi, staking often means locking up liquidity, while liquidity mining requires funds to remain flexible. These two activities are inherently at odds, much like the proverbial dilemma of choosing between “fish and bear’s paw” (a Chinese idiom for two desirable but incompatible options).

However, in “ARP1: A Beginner’s Guide to Having Both Staking and Liquidity Mining,” the DeFi project ARP1 by Airdrop Reference tackles this conflict of returns. By combining “low-risk leverage + liquidity mining + restaking,” ARP1 not only secures 100% staking rewards (plus airdrop incentives) but also allocates 80% of funds for liquidity mining. In essence, users can now enjoy what was once two incompatible benefits, placed conveniently in the same basket.

For ordinary users, such seemingly complex operations are simplified into a one-click solution. This is made possible by decentralized asset management platforms like Enzyme, which consolidate steps such as borrowing, swapping, and restaking into a single “Deposit” button. Funds are stored transparently in smart contracts, auditable and withdrawable at any time, eliminating traditional concerns like “exit scams” or “lock-up periods.”

The launch of ARP1 represents a direct implementation of “strategic combinations + user-friendly tools.” It also signals to the world that Airdrop Reference is not merely about theoretical discussions but is actively materializing its DeFi products to share results with its users. Moreover, participation in ARP1 grants users Airdrop Reference points, making them part of the community and enabling broader participation in future value creation.

As of the time of publication, despite a significant pullback in ETH, ARP1 has maintained an 8.57% return, as shown in the accompanying chart.

Unlike ARP1, “ARP2: Risk Management for Natural Gains” takes a different approach. It employs high-frequency rebalancing of Bitcoin (TBTC) and liquidity fund tokens (JLP), turning every market fluctuation into an opportunity for buying low and selling high. This mirrors the famed “Yale Model” in traditional investing: achieving long-term growth through multi-asset allocation and periodic rebalancing while capturing effective arbitrage along the way.

Historically, most people approach Bitcoin or other tokens with a “hold through all fluctuations” mindset, while combinations and rebalancing are rarely considered. JLP liquidity fund tokens, in particular, are often overlooked. However, ARP2’s performance demonstrates that rebalancing not only reduces volatility but can also generate additional profits during market swings. Leveraging the Solana-based Symmetry platform, ARP2 performs extreme rebalancing hourly, turning market volatility into tangible returns. Over two months, it achieved 6% more yield than simply holding BTC, illustrating the advantages of proactive strategies.

As of this publication, even with BTC experiencing a significant downturn, ARP2 has achieved 69% compounded returns, peaking at 81.24%, as shown in the chart.

That said, ARP2 is not a one-size-fits-all solution. Different asset allocations, weightings, and timeframes affect returns. Selecting suitable assets for hedging or pairing requires a deep understanding of their long-term behavior. While rebalancing may seem straightforward, it involves multiple layers of scrutiny concerning project security and fund management. ARP2 serves as a benchmark example to showcase possibilities, but the key remains understanding when to exit, consistently monitoring, and prioritizing project audits — essential tasks for any DeFi investment.

Why do we emphasize strategy so strongly? Because in the waves of the blockchain world, the line between profit and loss is often defined by a layer of insight and execution. While market conditions are beyond control, strategies can minimize uncertainty. Airdrop Reference’s transition from a content-focused ecosystem to DeFi project development reflects an industry response — no longer merely teaching users how to act but actively paving the way for safer, more accessible investment paths.

• ARP1 maximizes capital utilization, combining staking and liquidity mining.
• ARP2 leverages multi-asset extreme rebalancing, allowing users to capture multiple market swings without relying on static price movements.

Future iterations, such as ARP3, ARP4, and beyond, will each feature a core strategic logic, paired with tailored risk management methods and income pathways.

These projects will be integrated into the multi-service ecosystem envisioned in the Airdrop Reference Whitepaper. From strategy to execution, all operations will remain transparent and utilize blockchain technology to encode details like profit distribution, management authority, and fee structures into smart contracts. For users, this eliminates concerns about unclear fund usage, lock-up periods, or sudden pauses and scams. Everything is on-chain, traceable, and secure.

As we reach the end of the year, reflecting on the “strategy evolution” of the past twelve months, a clear narrative emerges in the DeFi ecosystem: from solo efforts to synergized strategies, from impulsive trading to structured rebalancing and composite returns. What once were private tricks have now become services delivered through mature platforms with one-click solutions.

Still, no matter how many “explosive returns” strategies we discuss, it is crucial to remember that risk always accompanies reward. ARP1 and ARP2 are not guaranteed to avoid losses; extreme market conditions or security breaches in underlying assets could still result in setbacks. As we have consistently emphasized: “Manage risks, and returns will follow.” Even the most perfect combinations must uphold principles of stop-loss thinking and asset diversification.

For Airdrop Reference, this year has marked a dual progression — from cognitive insights to practical strategies. On one hand, we have continued to educate users on identifying scams and understanding blockchain fundamentals. On the other, we have pragmatically launched DeFi services, bridging the final gap between knowledge and action. The release of the whitepaper has set everything on a path of clarity, transparency, and continuous iteration.

2025 promises an even more dynamic chapter. With the rise of AVS products, advancements in cross-chain technology, ongoing BTC restaking innovations, and accelerated Ethereum L2 scaling, each transformation will spark new strategies and opportunities. We hope Airdrop Reference continues to be your trusted navigator in this vast and uncharted sea, guiding more people to safeguard risks, seize opportunities, and confidently secure their share of growth and freedom before the next bull-bear cycle.

To all fearless explorers who maintain respect for the unknown, may you forge ahead in strategy upgrades and await the blossoms of controlled risks. Together, let us embrace 2025 with courage and wisdom to write the next chapter in DeFi’s grand saga.

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Airdrop Reference is an innovative blockchain education and promotion platform aimed at spreading basic blockchain knowledge and helping ordinary users understand and participate in the development of blockchain technology. The mission of this project is to lower the entry barriers to blockchain, promote high-quality blockchain projects, and allow more people to enjoy the benefits of the Web3.0 era.

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