That said, we believe the potential for earning substantial rewards still exists. The game has just slightly evolved, presenting new challenges for those eager to reap the benefits.

There are still opportunities and we keep finding them and presenting them to you.

The best part about the new airdrop in this report is that this is ground zero, and you have a chance to farm substantial points before other airdrop farmers catch on.

So, if you want to end the second quarter of 2024 with a bang while farming airdrops, we've got just what you need. 

Let's dive in… 

TLDR

• Many would argue that once a lucrative endeavour in the crypto world, airdrop farming has seen its golden era wane – yet there are still opportunities.
• Lyra has launched its "Derivative yield on EigenLayer"; now it is time to farm its airdrop.
• Pencils Protocol, an all-inclusive platform that offers a range of services on Scroll Network, presents a nice 3-in-1 airdrop opportunity.
• Catalyst, a permissionless cross-chain Automated Market Maker (AMM) designed to enable liquidity connections, has a points program that will last ten weeks.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. 

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Lyra Derivatives Network

We have covered Lyra extensively multiple times, and if you have been reading our reports, you probably know that we believe it is a great platform with immense potential.

For those who missed it, here is a quick primer. Lyra Derivatives Network is a comprehensive ecosystem designed for trading derivatives (perps and options) in the cryptocurrency market. It encompasses a suite of components, including Lyra Chain, Lyra Protocol, Lyra Exchange, and Lyra Wallet, all aiming to revolutionise the on-chain derivatives experience.

We mentioned before that the network introduced a novel utility token, LDX, which will serve as the backbone for the Lyra Derivatives Network. 

Previous Lyra token holders will be airdropped a new LDX token on a 1:1 basis with the same total supply. However, new users have a chance to receive an airdrop for contributing to the platform's success.

In our last update, we covered the Lyra airdrop; however, at the time of writing, the new defi primitive called "Derivative yield on EigenLayer" wasn't live. However, the team has now shipped the feature. It is quite an interesting opportunity because it can combine three airdrops in one (Lyra, Eigen, EtherFi/Swell) and offer a 10%—50% yield in USDC.

Airdrop farming action plan

1. Go to Lyra Finance Deposit USDC/USDT/ETH/stETH from Arbitrum/Optimism/Base At this point, you are already earning points 
2. (Optional) Trade on perps and options market
3. (EigenLayer strategy)  3.1 You will need to have some ETH on Arbitrum
   • Swap your ETH to weETH on Arbitrum using Ramses (Leave some ETH for gas)
   • Now go to Lyra Finance and click on the "Yield" section
   • Click on the "WEETHC" option and deposit weETH from Arbitrum
4. Done!

Note: There are certain market risks associated with covered call strategies that Lyra offers. For full information, you can refer here. But long story short, if the price of ETH moves up very quickly, you might end up with a little less upside than just holding ETH.  This strategy is best for those who are moderately bullish on ETH and want to generate USDC yield on their ETH holdings. We think 10%-50% in USDC is very decent for such mild risk, plus airdrop potential only sweetens the deal.

Here is a step-by-step tutorial.

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Pencils Protocol

Pencils Protocol is an all-inclusive platform that offers a range of services, including auction services for blockchain-native users and compound yield aggregation and leverage services for users. 

It has recently rebranded from PenPad to Pencils Protocol, marking a significant enhancement of its platform and aligning more closely with its vision for a comprehensive decentralised finance (DeFi) ecosystem. 

The platform is built on Scroll, a layer 2 solution for Ethereum that utilises zero-knowledge proofs, ensuring a secure, efficient, and scalable environment for its users.

The platform has introduced a new points system called Pencils, which rewards its community members for their participation and support. Pencils Protocol aims to become the go-to destination for all DeFi solutions on Scroll, offering a cost-effective DeFi experience by minimising slippage and gas fees. 

Both Scroll and Pencils protocols don't have a token yet. Additionally, you can farm this airdrop using liquid-restaked tokens such as Kelp or Puffer. Thus, it can be a nice 3-in-1 airdrop opportunity. 

The cool part is that you earn EigenLayer points while following this strategy.

Airdrop farming action plan

1.  You will need some ETH on the Scroll network (You can bridge using Orbiter)
2. Go to KelpDAO, connect to the Scroll network and stake your ETH to receive wrsETH
3. Go to Pencils Protocol, connect your Twitter and verify it. Deposit your wrsETH afterwards.
4. Done! Happy Farming!

Here is a step-by-step tutorial.

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Catalyst

Catalyst is a permissionless cross-chain Automated Market Maker (AMM) designed to enable liquidity connections and asset swaps between blockchains. Its primary objective is establishing an interconnected ecosystem that allows easy access to assets and applications across multiple chains. 

Catalyst's mission is to create a seamless economic trade system where users can exchange assets across any chain they are on. It will enable users to access applications on chains where they don't currently have assets, thus fostering a more interconnected blockchain ecosystem. 

This is achieved by allowing any chain to permissionlessly connect liquidity to that of another chain, enabling new chains to automatically transfer to/from any other chain from day one.

The platform has garnered support from industry veterans, raising $4.2M in funding led by Spartan Group and with participation from Robot Ventures, Maven11, Polygon Ventures, Alchemy Ventures, Hashkey, and Circle Ventures, among others.

It currently doesn't have a token, and here is how to farm the airdrop.

Airdrop farming action plan

1. Go to Catalyst
2. Make some swaps between ETH and WETH (Only Base and Optimism chains are available)
3. Provide ETH to liquidity.
4. "Eggs" (Catalyst's way of saying points) are distributed every Friday. The point program started on May 21st and will last ten weeks. There are still a small number of users farming this airdrop, so it could be a good opportunity.
5. Happy farming!

Here is a step-by-step tutorial.

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Cryptonary's take

Even though we have received some decent airdrops from platforms like Drift, EigenLayer, and Renzo, there have been some negative sentiments related to airdrop farming because teams are becoming less generous with their airdrop distributions. 

Despite the negative sentiment around airdrop farming, we still believe airdrops are nice opportunities from an ROI perspective.

Beyond the airdropped tokens, exploring various tokenless platforms at early stages keeps you informed and ahead of the curve, potentially helping you discover hidden gems before everyone else. 

Now, let's see what the next round of airdrops brings. Cryptonary, Out!