Bankless: 10 Potential Airdrop Opportunities to Watch in 2022
Which protocols are most likely to airdrop in the near future?Source: Bankless
Compiled by: DeFi Dao
Since Uniswap launched its airdrop campaign in September 2020, airdrops have been one of the most lucrative opportunities.
Since then, we have seen many people walk away with thousands of dollars worth of tokens, with the most loyal users of these protocols winning massive rewards— we're talking six to seven figures.
The good news is that we are very confident that this trend will continue. This is a core primitive in web3: using crypto protocols and receiving a share of ownership in return.
That's why we released an ultimate airdrop guide last November.
Today, Ben outlines the top 10 airdrops we need to keep a close eye on in the next 3-6 months. Hint: We believe various L2 projects are gearing up for this.
Here are the airdrops we are most looking forward to in 2022 so far.
Top 10 Airdrops to Watch in 2022
Yield farming farmers can adopt many different yield-boosting strategies, but perhaps the most profitable is retroactive airdrops.
In late 2021 and early 2022, retroactive yield farming saw a massive surge. A proactive farmer could earn over six figures if they qualified for airdrops from Ribbon, dYdX, ENS, Gitcoin, Bankless DAO, and LooksRare.
All you have to do is use these products.
While this strategy can be highly cumbersome or prone to failure—losing significant fees after airdrop dreams are dashed—it is very easy to get started, as users only need to interact with one project or protocol.
This raises the question: how can we leverage this trend moving forward? Which protocols are most likely to airdrop in the near future?
We previously answered this question with a complete airdrop guide, but we wanted to provide an update for Q1 2022.
Let’s take a look at 10 potential retroactive airdrop opportunities on Ethereum, competitive L1s, and L2s, betting that they may launch tokens in the coming months.
1. Hop Protocol
Project Overview
Hop Protocol is a cross-chain liquidity network that allows users to bypass Optimistic Rollup withdrawal times and transfer funds between Ethereum L2 and EVM-compatible chains.
How to Earn Airdrop
Transfer funds using Hop between a chain or rollup, or provide liquidity on one of the supported chains (Arbitrum, Optimism, Gnosis Chain, and Polygon).
Airdrop Probability: 9/10
There is no official confirmation or hint of an airdrop. However, given the increasing appeal between L2s like Arbitrum and Optimism, and their likelihood of launching their own tokens, Hop Protocol and other cross-chain bridges seem poised to capitalize with their own tokens.
Valuation Estimate (FDV): $1 billion
This is calculated based on the average FDV of two Hop competitors (Synapse and Multichain).
2. ZigZag Exchange
Project Overview
ZigZag is a decentralized order book trading platform based on zkSync. Users can go long, short, or place limit orders on a wide variety of token pairs while enjoying gas fees of less than $0.50 on zkSync.
How to Earn Airdrop
Bridge to ZigZag and open positions. For safety, it’s best to perform both actions to qualify for the airdrop: going long + going short.
Airdrop Probability: 8/10
ZigZag has not confirmed any airdrop plans. However, like Hop, given that its native network will launch a token, ZigZag is likely to use this catalyst to follow suit.
Valuation Estimate (FDV): $2.2 billion
This is derived from the average valuation of the three largest perpetual exchanges in the EVM ecosystem by trading volume: dYdX, Perpetual Protocol, and GMX.
3. zkSync
Project Overview
zkSync is a zero-knowledge Rollup (ZK Rollup) for Ethereum. The network inherits Ethereum's security while providing users with near-instant transactions and gas fees below $0.10.
How to Earn Airdrop
Connect to zkSync and use the most popular applications currently on the network, such as the aforementioned ZigZag.
Airdrop Probability: 9/10
Their documentation explicitly confirms that there will be a zkSync token; however, the distribution method for the token has not been mentioned.
Valuation Estimate (FDV): $8 billion
This valuation is based on the average market cap of Cosmos and Near, two networks similar to zkSync that are technically innovative but have yet to gain substantial traction among users.
4. Arbitrum
Project Overview
Arbitrum is a generalized Optimistic rollup for Ethereum. This Layer 2 scaling solution provides users with lightning-fast transaction confirmations and cheaper transaction fees while inheriting the security of Ethereum L1.
How to Earn Airdrop
Arbitrum is a network rather than an application, which makes this tricky, but the safest method may be to "cast a wide net and pray," as users should interact with this chain in as many different ways as possible. This includes using popular applications on the network and connecting to the chain via the native Arbitrum bridge.
Airdrop Probability: 8/10
The Arbitrum team has not officially confirmed a token release or airdrop. However, given the network's steady growth in users, TVL, and the number of deployed applications, a token release combined with a broad liquidity mining program similar to what Polygon and Avalanche have adopted may be a strategy under consideration. The team is accelerating growth.
Valuation Estimate (FDV): $30 billion
This valuation is derived from the average market cap of the four major non-Ethereum Layer 1s calculated by market cap.
Given that the network has the full support of the Ethereum community and that hundreds of billions of dollars in L1 are waiting to migrate, this valuation seems feasible based on the future appeal the network may garner.
5. Optimism
Project Overview
Optimism is a generalized Optimistic rollup for Ethereum. Like Arbitrum, the network provides users with the security of layer 1 Ethereum, along with incredibly fast confirmations and lower transaction fees.
How to Earn Airdrop
Like Arbitrum, the "cast a wide net and pray" strategy may be the best way to maximize your chances as a user. This means using as many popular applications on the network as possible in conjunction with the native Optimism bridge.
Airdrop Probability: 7/10
The Optimism team has not commented on whether there will be a token release or airdrop. However, like zkSync and Arbitrum, an airdrop strategy is certainly possible as a means of decentralized network growth and acceleration. That said, Optimism seems to have lagged behind Arbitrum in terms of users, TVL, and seemingly new application deployments throughout its lifecycle. In this case, a token release may make sense on a similar timeline.
Valuation Estimate (FDV): $30 billion
Although Optimism may lag behind Arbitrum in some key metrics, it is almost certain that it will eventually gain the same support and appeal within the Ethereum community and popular applications. For this reason, it should ultimately launch with a valuation similar to its peer scaling solutions.
6. Ondo Finance
Ondo Finance is a decentralized investment bank that offers structured products, such as batch liquidity supply vaults, and provides liquidity-as-a-service (LAAS) solutions for DAOs looking to rent liquidity in conjunction with the Fei protocol.
How to Earn Airdrop
Deposit idle funds into Ondo vaults.
Airdrop Probability: 6/10
There are no formal indications that the team will conduct an airdrop, nor are there any obvious catalysts. However, given that Ondo proposed to form a "Poke Bowl" collective for SushiSwap, they may follow suit by launching their own token.
Valuation Estimate (FDV): $500 million
Given the uniqueness and multifaceted nature of its protocol, it is difficult to value Ondo. However, considering its close ties with the Fei protocol and its uniqueness with LaaS, we can accept this $500 million valuation.
7. Opyn
Opyn is a protocol that allows for the creation and trading of options. Opyn serves as the infrastructure for protocols like Ribbon and Stake DAO.
How to Earn Airdrop
Opyn is an expansive protocol. Therefore, there are various ways to earn an airdrop, such as directly minting oTokens (put or call options), buying and holding oTokens, utilizing protocols built on Opyn like the aforementioned Ribbon and StakeDAO, and holding or minting the protocol's latest product, Squeeth.
Airdrop Probability: 6/10
While the team has not made any formal indications of an airdrop on Twitter or Discord, nor are there any clear upcoming catalysts.
Valuation Estimate (FDV): $1 billion
This estimate is based on the valuations of other options infrastructure protocols, and given Opyn's immense appeal, we set its market cap at 10 times that of these competitors.
8. Euler Finance
Euler is a next-generation lending protocol that enables permissionless listing of assets.
How to Earn Airdrop
The most likely way to qualify for the Euler airdrop is through lending on the protocol.
Airdrop Probability: 6/10
The Euler airdrop does not seem to have any direct catalysts. However, to compete for community attention with peers in the lending space like Rari Capital and Silo Finance, and to gain some publicity, it may make sense for the protocol to conduct a retroactive airdrop.
Valuation Estimate (FDV): $350 million
This valuation estimate is based on the previously mentioned peer, Silo Finance.
9. Slingshot
Slingshot is a decentralized exchange aggregator and trading platform based on Polygon, Arbitrum, and Optimism.
How to Earn Airdrop
For safety, trade on each chain where Slingshot is deployed. There is also an NFT marketplace worth exploring. For this, you can also enter text to chat with traders.
Airdrop Probability: 8/10
As an L2 native project, Slingshot seems to be a major candidate for a native token distribution, potentially distributing its own token as it rides the wave of adoption and inevitable token release. While they recently released an NFT collection, perhaps it will accelerate the community's demand for input on platform governance.
Valuation Estimate (FDV): $220 million
This is calculated based on the valuation of another DEX aggregator, ParaSwap, which recently airdropped its own token.
10. Membrane
Membrane is a developing decentralized OTC protocol. While not a direct copy of the Tokemak project, there seems to be overlap in developer and idea sharing between the two protocols.
How to Earn Airdrop
The best way to qualify for the airdrop is to interact with the Tokemak ecosystem in as many different ways as possible. This includes participating in C.O.R.E voting events, depositing assets into the protocol, and guiding the staking of TOKE to balance reactors and guide liquidity.
Airdrop Probability: 9/10
While there is no clear catalyst, the existence of the BRANE token is almost confirmed, and the "Wenbrane" meme is widely referenced in the Tokemak community.
Valuation Estimate (FDV): $350 million
Due to the lack of many comparable protocols, it is difficult to predict Membrane's valuation. However, our best guess is that it will trade at around 10% of the fully diluted valuation of TOKE, which would place its market cap at approximately $350 million.
Airdrop Opportunities on Solana
While retroactive airdrop farmers on Ethereum L1 or its various L2s have plenty of opportunities, there are also many opportunities in other ecosystems.
Let’s talk about the opportunities on Solana and see why it is a strong candidate for widespread airdrops. Additionally, we will highlight some specific opportunities available on-chain.
Why is Solana a Strong Candidate for Large-Scale Airdrops?
Despite network performance issues and the poor performance of its ecosystem tokens, Solana remains prime real estate for airdrop farming.
Many new protocols on the network launch without tokens, and considering that even during the bull market in the fall of 2021, launching IDOs with low, floating, high FDV tokens struggled to gain traction, the next generation of Solana protocols may turn to airdrops as a way to build goodwill within the DeFi community.
Moreover, with gas costs on the Solana network being less than a penny, the cost of strategies to earn airdrops is very low.
Airdrop Targets
Drift Protocol - A decentralized perpetual exchange where users are likely to qualify by opening an account and holding long and/or short positions.
Katana - An automated options vault manager, where the most likely way to qualify is to deposit funds into one of the protocol's vaults.
Friktion - A second automated options vault manager, similar to Katana— the most likely way to qualify is to deposit into a vault on the platform.
Psy Finance - A third automated options vault manager, like Katana and Friktion— the best way to qualify is to deposit into a vault.
Francium - A leveraged yield farming protocol where users can cover all qualification requirements by lending to the protocol and opening leveraged yield farming positions.
Conclusion
While the timing may be tricky, there are many potential airdrop opportunities on Ethereum, ZK Sync, Arbitrum, and Optimism.
While in the world of airdrops, it’s either airdrop or nothing, you only need to hit once to recoup your gas costs and ultimately reap substantial rewards.
